About DAKOTA LONDON™ Franchise
Dakota London is an upscale salon franchise specializing in hair extension services, including expert installation, maintenance, and removal performed by licensed cosmetologists.
The brand also offers a curated selection of approved hair care products.
The franchise fee is $49,500, and the company began franchising in 2024 under AZ Strands, LLC.
DAKOTA LONDON™ Franchise Cost & Fees
Minimum Investment
$372K
Average Investment
$448K
Maximum Investment
$523K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,500 | One-time payment upon signing |
| Royalty Fee | 7% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Sales (not currently charged) | National brand fund |
| Total Investment Range | $372,350 – $523,350 | Includes build-out, inventory, working capital |
The investment range of $372K–$523K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Gross Sales) and marketing fee (Up to 2% of Gross Sales (not currently charged)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,500 | $49,500 |
| Initial Training Expenses | $1,500 | $4,000 |
| Lease Deposit & Rent (3 months) | $20,000 | $40,000 |
| Architect Fees | $3,000 | $5,500 |
| Construction | $45,000 | $80,000 |
| Signage | $4,500 | $15,000 |
| Technology Systems | $3,200 | $6,000 |
| Professional Tools/Supplies | $8,000 | $9,000 |
| Opening Inventory Package | $120,100 | $130,250 |
| Fixtures, Furniture & Décor | $60,000 | $95,000 |
| Preopening Advertising | $5,000 | $5,000 |
| Utility Deposits | $100 | $1,000 |
| Business Licenses & Permits | $1,000 | $2,500 |
| Professional Fees | $1,000 | $10,000 |
| Insurance Premium (3 months) | $450 | $600 |
| Additional Funds (3 months) | $50,000 | $70,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $2,500 |
| Renewal Fee | $10,000 |
| Technology Fee | Not to exceed $750 per month – currently ranges from $376 - $488 per month |
| Audit Fee | Actual cost of audit (including Travel Expenses for audit team) |
| Local Marketing Commitment | $3,000 per month |
| Training Fee | Not to exceed $750 per person per day (plus Travel Expenses for onsite training) |
| Conference Registration Fee | Not to exceed $500 per person per day |
| System Program Fees | Up to $150 per month per program (not currently charged) |
| Communication Management Program | Up to $3,000 per month (currently up to $1,500 per month for optional SMS text client communication management program) |
| Product Purchases | Varies by item purchased (estimated cost is roughly 25%-28% of Gross Sales) |
| New Product or Supplier Testing | Actual cost of testing (Up to $1,000 per test) |
| Relocation Fee | $2,500 |
| Franchise Resale Service Fee | 50% of then-current initial franchise fee |
| Transfer Fee [ADA] | $5,000 |
| Reimbursement of Quality Assurance Program Costs | Actual cost paid to company we hire |
| Reimbursement of Reinspection Costs | All Travel Expenses and other costs we incur to inspect your Salon |
| Late Fee | $100 plus default interest at lesser of (a) 18% per annum (prorated on daily basis) or (b) highest rate allowed by applicable law |
| Noncompliance fee | $100 per incident per day |
| Default Reimbursements | All costs we incur to cure your default |
| Management Fee | $275 per day plus Travel Expenses |
| Indemnification | Amount of our damages, losses or expenses |
| Attorneys’ Fees and Costs | Amount of attorneys’ fees and costs we incur |
| Liquidated Damages | 2 years of royalty & brand fund fees |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 37 hours of self-paced online training, 5 days of in-person training, and 1 to 3 days of onsite training. |
| Classroom Training | 42.5-43.5 hours |
| On-the-Job Training | 36-39 hours |
| Training Location | Phoenix, Arizona (corporate headquarters and company-owned Salon) and franchisee's Salon for onsite training. |
| Additional Training | Periodic refresher or supplemental training courses (mandatory or optional), remedial training for operational deficiencies, and additional training upon franchisee request. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Minimum population of 100,000 women; most Salon Territories include populations ranging from 100,000 to 150,000 women. |
| Description | Boundaries designated by prescribed radius, zip code(s), marked area on a map, or geographic markers, based on U.S. Census Bureau data at the time of designation. Franchisor reserves the right to sell competitive or identical goods/services through Alternative Channels of Distribution within the territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 5 years |
| Renewal Fee | $10,000 |
| Renewal Conditions | Must not be in default, give timely notice (270 days to 1 year before expiration), sign then-current franchise agreement and general release, pay renewal fee, remodel Salon and upgrade furniture/fixtures/equipment to current standards, and extend lease term. |
| Transfer Fee | $2,500 |
| Transfer Conditions | Transferee must meet franchisor qualifications, complete training, obtain licenses, assume obligations, sign then-current franchise agreement (or assign existing), remodel Salon within 1 year, and franchisor must not exercise right of first refusal. Transferor must be compliant, assign lease, pay transfer fee, subordinate transferee's payments, and sign general release. |
| Termination for Cause | Franchisor can terminate for various defaults, including insolvency, bankruptcy, failure to complete training, failure to open on time, abandonment, health/safety hazards (24-hour cure), financial defaults (10-day cure), loss of license (20-day cure), underreporting Gross Sales (2nd instance), unauthorized transfers, intellectual property misuse, breach of brand protection covenants, breach of Franchise Owner Agreement, lease termination due to default, 3+ default notices in 12 months, or breach of any other provision (30-day cure). |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term and for 2 years after termination/expiration/transfer, franchisee and owners cannot be involved in a competing business within 15 miles of their Salon or any other Salon. This includes owning, operating, or having any interest (except <5% in a publicly-traded company), disparaging the brand, diverting business, or soliciting clients. If a court deems 2 years too long, it defaults to 1 year. The non-compete does not apply to having an interest in a competing business outside the Restricted Territory during the Post-Term Restricted Period. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee must designate an approved Managing Owner who dedicates full-time efforts to the business and holds at least a 20% ownership interest. The Managing Owner is not required to provide onsite management if a trained manager is present. Managers and Stylists must complete required training and sign Nondisclosure and Nonsolicitation Agreements. Stylists must hold an active cosmetology license. |
| Required Suppliers | Franchisees must purchase all hair extension and hair care products exclusively from the franchisor's affiliate, DKL Products, LLC. Certain Technology System components must be purchased from approved or designated suppliers. Other source-restricted goods and services, such as fixtures, furnishings, décor, and signage, must meet franchisor standards and specifications, with some requiring purchase from designated or approved suppliers. |
| Supply Restrictions | Approximately 90% of total purchases and leases are source-restricted. Franchisees cannot purchase proprietary and/or branded products from alternative suppliers. For non-proprietary items, franchisees can propose alternative suppliers, subject to franchisor approval based on quality, delivery, performance, design, appearance, price, dependability, reputation, and financial strength, and may require product samples and supplier compliance with insurance, indemnification, and confidentiality requirements. |
| Franchisor Revenue from Suppliers | The franchisor is the exclusive supplier for software and technology covered by the technology fee (e.g., email accounts, DAKOTA LONDON ACADEMY™, POS system), collecting fees and remitting to third parties for some. Its affiliate, DKL Products, LLC, is the exclusive supplier of hair extension and hair care products. The franchisor and its affiliate may generate profit from these purchases. As of December 31, 2024, neither the franchisor nor any affiliate generated revenue from franchisee purchases from designated or approved suppliers, but officers Scott Cotten and Katy Cotten own an interest in DKL Products, LLC. The franchisor may receive rebates or other benefits from suppliers, which it is not obligated to pass on to franchisees. |
DAKOTA LONDON™ Franchise Earnings — Item 19
Revenue Range
$873K – $1.4M
Sample Size
3 units
Past financial performance does not guarantee future results. Individual results will vary.
DAKOTA LONDON™ Litigation & Risk Flags
Clean Litigation RecordDAKOTA LONDON™ has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
DAKOTA LONDON™ System Growth
Total Units
3
Franchised
0
Company-Owned
3
DAKOTA LONDON™ currently operates 0 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 1 | 0 | 3 |
| 2023 | 0 | 0 | 3 |
| 2024 | 0 | 0 | 3 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
DAKOTA LONDON™ Franchise — FAQ
The total investment to open a DAKOTA LONDON™ franchise ranges from $372,350 to $523,350, per their Franchise Disclosure Document. This includes the initial franchise fee of $49,500. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
DAKOTA LONDON™ charges a royalty fee of 7% of Gross Sales of gross sales, plus a Up to 2% of Gross Sales (not currently charged) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the DAKOTA LONDON™ Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from DAKOTA LONDON™ to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, DAKOTA LONDON™ franchise owners report . This is based on a sample of 3 units. Past performance does not guarantee future results.
DAKOTA LONDON™ has been franchising since 2024. The FDD shows an investment range of $372,350-$523,350, a 7% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $49,500 and the total investment ranges from $372,350 to $523,350 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from DAKOTA LONDON™ and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with DAKOTA LONDON™ or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com