About Freecoat Franchise
Freecoat Nails is a full service nail and beauty studio franchise that sets itself apart with a commitment to non toxic, fume free, and eco friendly services.
Franchising since 2020 under Freecoat Holdings, LLC, the brand offers a healthier alternative to traditional nail salons by using clean beauty products in a thoughtfully designed studio environment.
The initial franchise fee is $49,500.
Freecoat Franchise Cost & Fees
Minimum Investment
$222K
Average Investment
$392K
Maximum Investment
$563K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,500 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% to 3% of Gross Sales | National brand fund |
| Total Investment Range | $221,500 – $562,500 | Includes build-out, inventory, working capital |
The investment range of $222K–$563K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (1% to 3% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee | $49,500 | $49,500 |
| Delayed Opening Fee | $0 | $16,000 |
| Lease Security Deposit (See Note 1) | $2,500 | $5,000 |
| Leasehold Improvements (See Note 2) | $80,000 | $300,000 |
| Utility Deposits | $500 | $1,000 |
| Furniture, Fixtures and Equipment (See Note 3) | $25,000 | $60,000 |
| Inventory | $25,000 | $45,000 |
| Signage | $5,000 | $10,000 |
| Travel and Living Expenses While Training | $1,000 | $3,000 |
| Business Licenses | $500 | $1,500 |
| Grand Opening Marketing and Event and Pre-Sales | $10,000 | $10,000 |
| Insurance Premiums (See Note 4) | $2,500 | $6,500 |
| Professional Expenses | $0 | $5,000 |
| Architect Fee | $5,000 | $10,000 |
| Additional Funds (3 Months) (See Note 5) | $15,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% - 75% of the then current Initial Franchise Fee plus any commissions due to salespersons |
| Renewal Fee | $2,500 |
| Technology Fee | $250/month prior to opening, $550/month after opening |
| Audit Fee | Between $600 and $15,000 |
| Accounting and Bookkeeping Services | $250 to $900 per month |
| Financial Services Fee | $300/month for one unit; $250/month per unit for 2-5 units; $200/month per unit for 5+ units |
| Additional Site Visit | $500/day plus expenses |
| Delayed Opening Fees | $1,000 for first month, $5,000 for second month, $10,000 for third month and each month thereafter |
| Reimbursement of monies paid by Company on your behalf | Varies |
| Indemnification | Will vary under circumstances |
| Insufficient Funds Fee | $100 per occurrence |
| Private/Public Offering Fee | $10,000 - $15,000 |
| Liquidated Damages | 24 months (or the number of months remaining in your current term, if less, of your average monthly Royalty payable for the one year preceding termination) |
| Interest on Late Payment | Lesser of 18% per annum or the maximum allowed under applicable state law |
| Relocation Fee | 30% of the then current Franchise Fee |
| Default Fee | At least 3% (per occurrence) and no more than cumulative 12% of Gross Sales |
| Vendor Approval Fee | $1,000 |
| Purchasing Cooperative Fee | Up to 2% of Gross Sales |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to 3 weeks (14 hours classroom, 70 hours on-the-job) for initial training, plus 3-5 days annually for additional training. |
| Classroom Training | 14 |
| On-the-Job Training | 70 |
| Training Location | Corporate headquarters, regional training center, Charlotte training store, or franchisee's location for opening assistance. |
| Additional Training | Franchisee, designated manager, staff, and employees may be required to attend additional training programs (3 to 5 days per year) at corporate headquarters, the Franchised Business, or other designated locations. Attendance is at the franchisee's sole expense, estimated at $300 per day plus travel, living expenses, and wages. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Typically a one-half mile to 5-mile radius from the Approved Location, which may be reduced in densely populated areas. |
| Description | The franchisor grants a franchise for a specific approved location, typically within a one-half mile to 5-mile radius, but this is not an exclusive territory. Franchisees may face competition from other franchisees, company-owned outlets, or competitive brands controlled by the franchisor. The franchisor reserves the right to own, operate, license, or franchise other businesses outside the territory, sell products through various channels (including online), and implement multi-area marketing programs without granting the franchisee any rights or compensation. Relocation of the franchised business requires prior written approval. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 Years |
| Renewal Term | 2 successive 5-year terms |
| Renewal Fee | $2,500 |
| Renewal Conditions | To renew, franchisee must give 180 days' advance notice, sign the then-current franchise agreement (which may have materially different terms), execute a general release of claims (subject to state law), complete any required retraining, pay a $2,500 renewal fee, and upgrade the store to current entry standards and design elements, including point-of-sale system and other equipment, at the end of the initial and second renewal terms. |
| Transfer Fee | 50% - 75% of the then current Initial Franchise Fee plus any commissions due to salespersons. |
| Transfer Conditions | Franchisor approval is required and will not be unreasonably withheld if conditions are met. Conditions include satisfying all monetary obligations, executing a release of claims, transferee attending an in-person evaluation, transferee executing the then-current franchise agreement and personal guarantees, transferee meeting educational, managerial, business, moral character, credit rating, and financial resource standards, upgrading/remodeling premises to current standards, and paying a transfer fee and reasonable expenses. |
| Termination for Cause | The franchisor may terminate the agreement with written notice for curable defaults (e.g., failure to cure monetary default within 5 days, non-monetary within 30 days) or immediately for incurable defaults (e.g., abandonment, felony conviction, unauthorized transfer, false records, unapproved lease, material misrepresentation, understatement of payments, failure to maintain insurance, prohibited activities on premises, failure to complete training, affiliate default, anti-terrorism law violation, unapproved website, disclosure of confidential information, failure to open within 12 months). |
| Non-Compete Period | During the term of the Franchise Agreement and for a period of two years after termination, transfer, or expiration. |
| Non-Compete Details | During the term, franchisee may not engage directly or indirectly in any 'competing business' (nail and/or beauty services) wherever located. After termination/transfer/expiration, for two years, franchisee may not engage in any competing business within their Territory and within the Applicable Radius (10 miles) from any Freecoat Store listed on the franchisor's website at the time of termination. Certain individuals must also sign confidentiality and non-competition agreements. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Each Franchised Business must have an 'Owner-Operator' (with at least 5% equity) or a 'Designated Manager' on premises who is actively involved. This individual must devote full time to supervising day-to-day operations, promoting the business, operating professionally, communicating with the franchisor, and curing defaults. They must attend and complete Freecoat University and receive prior written approval for any replacement. |
| Required Suppliers | Franchisee must purchase all inventory from approved vendors (which may include the franchisor or its affiliates), and all products, equipment, supplies, and materials used or sold by the Franchised Business solely from the franchisor or approved suppliers. Franchisee must also purchase and install a computer-based point-of-sale (POS) and store management system from approved suppliers, and maintain an accounting service provided by the Franchisor. |
| Supply Restrictions | Franchisee must not use nonconforming items and may only sell products and services expressly approved by the franchisor. Unapproved products or services must be discontinued. The franchisor reserves the right to require products/services from itself, its affiliates, or approved suppliers. A $1,000 vendor approval application fee is required for non-approved suppliers. |
| Franchisor Revenue from Suppliers | The franchisor and its affiliates have the right to receive rebates or other payments from distributors, suppliers, and other service providers based on sales to franchisees and company-owned stores. These revenues will be deposited back into the Brand Fund. As a new franchise, no rebates/referral fees have been received from required purchases or leases from franchisee purchases, and affiliates do not currently derive revenues from required purchases or leases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Freecoat Franchise Earnings — Item 19
Average Revenue
$357K
Sample Size
2 units
Past financial performance does not guarantee future results. Individual results will vary.
Freecoat Litigation & Risk Flags
Clean Litigation RecordFreecoat 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.
Freecoat System Growth
Total Units
5
Franchised
2
Company-Owned
3
Freecoat currently operates 2 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 |
|---|---|---|---|
| 2019 | 0 | 0 | 0 |
| 2020 | 0 | 0 | 2 |
| 2021 | 2 | 0 | 5 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Revenue
$305K
Net Income
$-280,311
Total Assets
$124K
Audited by REESE CPA LLC for year ending December 31.
Freecoat Franchise — FAQ
The total investment to open a Freecoat franchise ranges from $221,500 to $562,500, 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.
Freecoat charges a royalty fee of 6% of Gross Sales of gross sales, plus a 1% to 3% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Freecoat 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 Freecoat to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Freecoat franchise owners report average revenue of $357K. This is based on a sample of 2 units. Past performance does not guarantee future results.
Freecoat has been franchising since 2020. The FDD shows an investment range of $221,500-$562,500, a 6% 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 $221,500 to $562,500 depending on location size and market. A minimum of $15,000 in liquid capital is required. 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 Freecoat and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Freecoat or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com