Salons by JC Franchise Costs $1.7M (2023 Stats)

One of the fastest growing salon franchises, Salons by JC has expanded aggressively since it started franchising in 2011. Over the past 5 years, Salons by JC added 50 locations and now has 135 salons across the US, of which 124 are franchised-owned.

Although it’s always good to be part of a high-growth franchise, that shouldn’t motivate you to buy the franchise either. Instead, you must look at its pros and cons, and more especially its financials.

That’s where it gets a bit complicated for Salons by JC: the investment cost of $1,669,000 (on average) is far more than the average turnover ($529,000 per salon per year).

Is this a profitable franchise? Should you invest and open a new Salons by JC? In this article we’re looking at Salons by JC and its Franchise Disclosure Document to answer these questions and more. Let’s dive in!

Key stats

Franchise fee	$60,000
Royalty fee	5.50%
Marketing fee	1.00%
Investment (mid-point)	$1,669,000
Revenue per unit	$529,000
Revenue per sq. ft.	[franchise_value_revenue_per_sq_ft]
Sales to investment ratio	12.0x
Minimum net worth	$1,000,000
Minimum liquid capital	$300,000

About Salons by JC

Salons by JC is a leading salon suite franchise in San Antonio, Texas. 

It was established in 1997 by Jack Griffey and Cecil Miller to empower beauty and wellness specialists with the best salon suite rental opportunities.

The brand gives beauty and fitness practitioners complete freedom to invest in a salon franchise, expand their businesses and reap the benefits. 

Salons by JC has been franchising since 2011, leasing private suites to self-employed beauty practitioners who, in turn, operate their businesses independently. 

Today, the salon suite operates in over 130 locations across 26 US states and Canada. 

Salons by JC franchise pros and cons

Pros

• Semi-absentee ownership: franchisees can pursue other business interests because Salons by JC allows semi-absentee ownership. 
• Multi-unit rental income: franchisees can own multiple units with state-of-the-art equipment, beds, blankets, hairdryers, roller carts, shampoo pots and mirrors. 
• Support: the franchisor provides all the tools, resources and freedom to satisfy the client’s needs. There are no pricing, working hours, or terms of service restrictions, which enables brand owners to establish personal relationships with their clients. 
• No mandatory experience in the beauty industry: no mandatory salon experience is required to own a Salons by JC franchise. 
• Detailed salon-based training program: the franchisor offers a comprehensive on-the-job and classroom training program focused on the crucial aspects of starting and operating a modern salon.
• Financial assistance: the franchisor liaises with third-party financing partners to help franchisees cover the cost of equipment, franchise fee, startup costs, inventory and accounts receivable. 
• Exclusive territory protection: the Franchise Agreement protects franchisees from competition against other Salons by JC studios. 

Cons

• Not a part-time business: Salons by JC franchise is not a part-time investment opportunity. 
• Not operated from home or as a mobile unit: franchisees must commit to the daily operations from the physical locations. 
• Competition from other premium female beauty and hair salon chains like Phenix Salon Suites, My Salon Suite and Sola Salon Studios to name a few

Salons by JC franchise costs

You would have to invest around $1,669,000 to open a Salons by JC franchise business.

This is an average. Indeed, it varies based on many factors such as the location of your franchised business, its size, and other factors. 

In addition to the initial franchise fee of $50,000 which you must pay to the franchisor, you would also pay for the leasehold improvements, furniture and fixtures, signage, insurance, etc.

Startup costs

Here’s the full breakdown of costs:

Type of Expenditure	Amount
Initial franchise fee	$60,000
Leasehold improvements	$1,002,000 – $1,503,000
Furniture, fixtures and equipment	$133,800 – $200,700
Business licenses, permits etc.	$100 – $300
Signage	$12,480 – $18,720
Insurance	$900 – $1,500
Working capital (3 months)	$10,000 – $20,000
Other	$91,075 – $222,700
Total	$1,310,355 – $2,026,920

Salons by JC franchise fees

Salons by JC franchise profits

A Salons by JC franchise made $529,000 in revenue per year in 2022, as per the 2023 Franchise Disclosure Document.

This is the median revenue per franchise salon for 102 of the 124 franchised businesses that were open for all of 2022. Which is a +6% year-to-year revenue growth vs 2021.

Disclaimer

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