Drybar Franchise in 2024: Costs, Fee & FDD
Considering a Drybar franchise? This beauty industry leader offers a premium, yet affordable blowout experience and has expanded to over 150 locations. Learn about the costs, support, and revenue potential for franchisees in our full analysis!
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Drybar is a distinctive beauty franchise that has taken the haircare industry by storm since its inception. Founded in 2010 by Alli Webb in Brentwood, California, Drybar emerged from Webb’s simple vision of delivering a high-quality, affordable blowout experience. Webb’s innovative approach to haircare—focusing solely on blowouts—has transformed Drybar into a nationally recognized brand. With a background in hairstyling and a passion for making women feel confident, Webb’s vision for Drybar was not only to create a service but to create a pampering experience for women everywhere. Over the years, Webb’s accomplishments have been widely recognized, earning her spots on prestigious lists like Inc. Magazine’s “How I Did This” and Fortune’s “40 Under 40.”
Drybar’s core offering is the blowout, a hairstyling service that focuses solely on washing, drying, and styling hair without cutting or coloring. This focus allows Drybar to perfect its craft and deliver a consistently excellent experience. In addition to blowouts, Drybar also offers a range of styling products and tools, including shampoos, conditioners, and the iconic Buttercup blow dryer, all designed to help customers maintain their blowouts at home. The franchise primarily targets women who want to look their best for special occasions or simply maintain a polished, everyday look. Drybar’s appeal is strongest among busy professionals, socialites, and anyone who values a luxury pampering experience.
As of now, Drybar has grown to over 150 locations across the United States, making it a leading brand in the beauty and personal care industry. With its sleek, consistent aesthetic and a focus on delivering top-notch customer service, Drybar serves thousands of customers daily. The franchise has a presence in major cities across the U.S., and its name has become synonymous with blowouts. This widespread recognition has solidified Drybar as a go-to destination for hairstyling, making it a household name in the beauty industry.
For franchisees, Drybar offers a comprehensive support system. This includes extensive training programs that cover everything from operational procedures to brand standards and customer service excellence. Franchisees also benefit from ongoing support in marketing, product launches, and business development. Additionally, Drybar’s strong brand presence and established customer base provide franchisees with a significant advantage in entering the competitive beauty market. With its proven business model and dedicated support system, Drybar continues to attract entrepreneurs looking to invest in a high-demand, luxury service.
Drybar Franchise Insights
- Drybar operates over 150 locations across the U.S., making it one of the largest blowout-focused beauty franchises in the country.
- The franchise serves thousands of customers daily, with a strong focus on busy professionals and women seeking luxury beauty services without the hassle of cuts and colors.
- Drybar’s signature blowout service is priced between $49 and $70, offering a premium hairstyling experience that remains affordable for a wide range of customers.
Drybar Franchise Key indicators
Unit Growth YOY (%)
7%
vs industry 5%
Total U.S. Franchised Units
159
3-Year Failure Rate
16%
vs industry 6%
Sales-to-Investment ratio
1:1
How much does it cost to open a Drybar franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Drybar franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Drybar franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Drybar below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Real Property, Utility, and Other Security Deposits | $1,500 | $9,000 |
| Leasehold Improvements (net of landlord tenant allowances) | $198,800 | $369,000 |
| Cabinetry, Millwork, Furniture, and Décor | $75,200 | $113,300 |
| Initial Opening Package | $54,000 | $57,000 |
| Initial Software Set-Up and Technology Fees | $2,124 | $2,124 |
| Computer System & Other A/V Technology | $28,000 | $33,000 |
| Training Program and Other Training Expenses | $9,600 | $11,000 |
| Architect, Engineer, Drawings | $16,200 | $18,400 |
| Grand Opening Spend Requirement | $20,000 | $20,000 |
| Signage and Graphics | $4,400 | $13,200 |
| Office and Business Supplies | $3,300 | $8,720 |
| Business Licenses and Permits | $500 | $16,500 |
| Insurance (Initial 20% Payment) | $1,350 | $1,550 |
| Professional Fees | $1,980 | $13,530 |
| Additional Funds (Three Months) | $83,500 | $133,400 |
| Total Estimated Initial Investment | $550,504 | $869,724 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
Investing in a beauty franchise like Drybar requires careful financial planning to ensure you meet all the necessary financial criteria. Here are the key financial requirements you’ll need to consider before opening a Drybar location or a similar franchise in the industry:
- Initial Capital Required You’ll need approximately $550,000 to $870,000 to cover the total investment for a Drybar location. This range includes costs for real estate, build-out, equipment, signage, initial inventory, and other startup expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement It’s estimated that you should have at least $100,000 to $200,000 in liquid assets (cash or assets that can be quickly converted to cash) to ensure you can handle initial expenses, working capital, and unforeseen costs during the startup phase.
- Net Worth Requirement A recommended net worth of $500,000 to $1 million is typical for franchises in the beauty and personal care industry. This ensures that you have a strong financial foundation to support your investment and sustain the business until it becomes profitable.
How much does a Drybar franchise owner make?
Calculating the salary of a Drybar franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Drybar franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Drybar Revenue & Gross Sales
Drybar’s recent revenue performance has been strong, with the median gross sales for franchise locations reaching $734,771. This figure highlights the brand’s ability to generate substantial revenue, driven by consistent demand for its premium blowout services and products. The robust performance across locations indicates strong consumer loyalty and a thriving market for luxury beauty services.
Which key factors impact the average revenue performance of Drybar franchisees?
The strong performance of U.S. franchisee median gross sales at Drybar can be attributed to several key factors. First, the brand’s niche focus on blowouts and a unique, high-quality experience has created a loyal customer base, driving repeat business. Additionally, Drybar’s strategic locations in affluent areas, along with its strong marketing and social media presence, have increased brand visibility and foot traffic. The consistent delivery of services, supported by comprehensive training programs and a recognizable, trendy brand image, has also played a significant role in maintaining high sales across franchise locations. Furthermore, the franchise’s ability to adapt to market trends and consumer preferences has ensured sustained growth and customer satisfaction.
Drybar Franchise Operational Costs
When opening a Drybar franchise, it’s essential to understand the key ongoing operational costs that will impact your bottom line. These expenses will be critical to maintaining smooth operations and ensuring profitability. Here are some of the primary operational costs you should plan for:
- Staffing Costs Salaries and wages for stylists, front desk staff, and management are significant, as Drybar relies on skilled professionals to deliver consistent service quality.
- Product and Inventory Costs Regular replenishment of hair products, styling tools, and other supplies necessary to deliver services is a continual expense.
- Rent and Utilities Depending on your location, commercial lease payments and utilities like electricity and water can be a major ongoing cost.
- Maintenance and Equipment Upkeep Regular maintenance of salon equipment, furniture, and the space itself is essential to uphold the brand’s high standards.
By keeping these costs in mind, you’ll be better prepared to manage your franchise’s day-to-day operations and ensure long-term success.
Drybar Franchise Fees
When opening a Drybar franchise, it’s crucial to factor in the various fees associated with maintaining your franchise rights and supporting the brand’s overall growth. These fees are designed to help sustain the franchise system, drive customer traffic, and ensure consistency across all locations. Below are the key fees you should consider:
- Royalty Fee A 7% royalty fee on gross receipts is payable monthly, ensuring that you contribute to the ongoing support and development of the franchise network. This fee covers access to the brand’s systems, trademarks, and continued operational guidance.
- Brand Marketing Fund You’ll also be required to contribute 2% of your gross receipts to the Brand Marketing Fund, which supports national advertising campaigns and brand-building initiatives. This fee may increase at the franchisor’s discretion, ensuring that the brand remains competitive and visible in the market.
- Local Advertising Fee A $2,000 monthly fee is allocated for local advertising efforts to drive traffic directly to your location. Like the Brand Marketing Fund, this fee may increase as needed to maintain effective local marketing strategies.
- Additional Fees There are additional fees for training programs, technology, and other items provided by Drybar that may be applied.
By carefully managing these fees, you’ll help maintain the high standards associated with Drybar while benefiting from the brand’s strong reputation and customer base.
Drybar Franchise Earnings
The earnings of a Drybar franchise owner can vary depending on factors like location, sales volume, and operational efficiency. However, for those actively managing their franchise, the potential for significant income is promising. With a median gross sales figure of $734,771, an owner-operator can expect estimated earnings of around $132,000, reflecting an 18% operating profit margin.
By taking a hands-on approach, franchise owners can optimize operations and potentially increase their profitability. The relatively high operating profit margin suggests that with effective cost management and strong customer engagement, Drybar franchisees can achieve substantial returns. These figures highlight the financial potential for those committed to the day-to-day management of their business.
How to Open a Drybar Franchise
Becoming a Drybar franchisee involves a structured process that helps ensure you are well-prepared to operate successfully. The journey from initial inquiry to the grand opening of your business involves several key steps. Below is an overview of the typical process:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Discovery Day After reviewing the FDD, you’ll be invited to a Discovery Day at Drybar’s headquarters. This is an opportunity to meet the team, learn more about the brand, and determine if it’s the right fit for you.
- Franchise Agreement If both parties agree to proceed, you’ll sign the Franchise Agreement, solidifying your commitment to opening a Drybar franchise. At this stage, you will also pay the initial franchise fee.
- Site Selection and Lease Negotiation With the franchisor’s assistance, you will begin selecting a suitable location for your Drybar salon. Once a site is chosen, you’ll negotiate the lease terms with the property owner.
- Training Program Before opening, you’ll participate in an extensive training program covering operations, customer service, and brand standards. This ensures you’re fully prepared to manage your Drybar location effectively.
- Build-Out and Design Following training, the build-out of your salon begins. Drybar provides design guidelines to ensure consistency across all locations, and you’ll work with contractors to prepare the space.
- Marketing and Pre-Opening Activities As your location nears completion, you’ll start local marketing efforts and pre-opening promotions to build awareness and excitement in the community.
- Grand Opening Once the build-out is finished and staff training is complete, you’ll officially open your Drybar location to the public, marking the start of your franchise operations.
Pros & Cons
Pros
Established Brand: Drybar is a well-known brand in the beauty industry with a strong reputation, making it easier to attract customers from day one.
Proven Business Model: With over 150 locations nationwide, Drybar has demonstrated success and growth.
High Demand for Services: Blowout bars are increasingly popular, and Drybar’s niche focus on this service positions it well in a growing market.
Marketing Power: With a strong brand presence and national marketing campaigns, Drybar helps drive customer traffic to your location.
Cons
Competitive Market: The beauty and personal care industry is competitive, and while Drybar has a strong brand, local competition could affect your business.
Limited Service Offerings: While Drybar’s focus on blowouts is a strength, it also means limited diversification of services, which could limit customer reach compared to full-service salons.
Economic Sensitivity: As a luxury service, Drybar may be more susceptible to economic downturns, where consumers might cut back on non-essential spending like frequent blowouts.
