SmartStyle Franchise FDD, Profits, Costs & Fees (2024)
SmartStyle is a prominent chain of hair salons, distinguished by its strategic locations within Walmart stores, which significantly contributes to its foot traffic and client base.
Established in 1996, the franchise embarked on its franchising journey in 2016, illustrating a successful expansion model that has led to the establishment of thousands of salons across the United States, Canada, and Puerto Rico.
The brand’s affiliation with Walmart not only enhances its accessibility to a broad spectrum of customers but also underscores its convenience and integration into the shopping experience.
With its headquarters in Minneapolis, Minnesota, SmartStyle offers a comprehensive range of hair care services, including hairstyling, cutting, waxing, and coloring.
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Initial Investment
How much does it cost to start a SmartStyle franchise? It costs on average between $184,000 – $326,000 to start a SmartStyle franchised salon.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee/Development Fee | $40,000 |
| Leasehold Improvements | $60,000 – $120,000 |
| Furniture, Fixtures, Equipment and Supplies | $30,000 – $50,000 |
| Construction Management Services Fee | $6,000 |
| Construction and Design Plan Review | $1,000 |
| Post Build Review | $2,000 |
| Total | $184,000 – $326,000 |
Average Revenue (AUV)
How much revenue can you make with a SmartStyle franchise? A SmartStyle franchised business makes on average $248,000 in revenue (AUV) per year.
This compares to $343,000 yearly revenue for similar hair salon franchises.
Below are 10 SmartStyle competitors as a comparison:
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SmartStyle Franchise Disclosure Document
Frequently Asked Questions
How many SmartStyle locations are there?
As of the latest data, SmartStyle operates approximately 4,391 salons across the United States, Puerto Rico, and Canada, primarily located within Walmart stores. This extensive presence in Walmart locations has helped SmartStyle become widely accessible, catering to clients seeking convenient hair care services.
What is the total investment required to open a SmartStyle franchise?
The total investment required to open a SmartStyle franchise ranges from $184,000 to $326,000.
What are the ongoing fees for a SmartStyle franchise?
SmartStyle franchisees pay a royalty fee of 10% of gross sales and a marketing fee of 5%. The royalty fee supports operational assistance and brand maintenance, while the marketing fee funds advertising efforts to drive customer traffic across all locations.
What are the financial requirements to become a SmartStyle franchisee?
To become a SmartStyle franchisee, candidates are required to meet specific financial criteria, including a minimum net worth of $750,000. Additionally, they must have at least $250,000 in liquid capital.
These financial requirements ensure that franchisees possess sufficient resources to cover initial setup costs, ongoing expenses, and any necessary investments to successfully operate within the SmartStyle franchise system.
How much can a SmartStyle franchise owner expect to earn?
The average gross sales for a SmartStyle franchise are approximately $0.25 million per location. Assuming a 15% operating profit margin, $0.25 million yearly revenue can result in $37,500 EBITDA annually.
Who owns SmartStyle?
SmartStyle is owned by Regis Corporation, a major player in the haircare industry headquartered in Minnesota. Regis operates several well-known salon brands, including Supercuts, Roosters, and Cost Cutters, alongside SmartStyle, which is primarily located within Walmart stores across North America.
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