About The Salon Professional Academy Franchise
The Salon Professional Academy is a beauty education franchise that operates cosmetology and beauty training schools where students earn professional licenses in hair, skin, and nail services.
Each academy provides hands on instruction in a salon style learning environment, preparing graduates for careers in the beauty industry.
The brand has been franchising since 2008.
The Salon Professional Academy Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $45,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently no required Ad Fund, but subject to change (up to 2% of monthly Gross Revenues if established) | National brand fund |
| Total Investment Range | $532,800 – $1,670,800 | Includes build-out, inventory, working capital |
The investment range of $533K–$1.7M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Revenues) and marketing fee (Currently no required Ad Fund, but subject to change (up to 2% of monthly Gross Revenues if established)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $45,000 | $45,000 |
| Website Fee | $1,800 | $1,800 |
| Real Estate Improvements | $165,000 | $980,000 |
| Equipment/Furnishings | $140,000 | $350,000 |
| Exterior Building Signage | $11,500 | $35,000 |
| Initial Training Attendance | $5,000 | $7,500 |
| Computer Equipment/Phone and Alarm Systems | $30,000 | $40,000 |
| Inventory to Begin Operating | $20,000 | $30,000 |
| Insurance | $4,000 | $8,000 |
| Utility Deposits and Other Prepaid Expenses | $2,000 | $6,000 |
| Licenses and Permits | $3,500 | $7,500 |
| Professional Fees | $5,000 | $10,000 |
| Initial School Opening Marketing and Advertising Funds | $25,000 | $30,000 |
| Additional Funds (3-month initial phase) | $75,000 | $120,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $25,000 |
| Renewal Fee | Up to $5,000 |
| Technology Fee | Currently no required Technology Fee, but subject to change (up to $250 per month if adopted) |
| Audit Fee | Understated amount and interest plus costs and expenses of audit/inspection |
| Monthly Website Fee | $119 per month |
| Post-Opening Training (Advanced or Refresher) | $1,800 per day (minimum $3,600) for on-site; $150 per hour (minimum 3 hours) for Zoom/web-based; $150 per hour for phone; $150-$500 per attendee for regional; $250-$400 per attendee for annual conference |
| Special Assistance | $1,800 per day (minimum $3,600) for on-site; $150 per hour (minimum 3 hours) for Zoom/web-based; $150 per hour for phone (first 12 hours free of charge to franchisor, but out-of-pocket expenses apply) |
| Reinspection | $150 per hour (minimum 4 hours) plus out-of-pocket expenses |
| Interest on Late Payments | Lesser of 18% per year or maximum legal rate |
| Late Payment Charge | $200 per late payment |
| Unauthorized Marketing Fee | $100 per occurrence |
| No Show Training Fee | $250 per occurrence |
| Review of Unapproved Suppliers | Reasonable cost of inspection and actual cost of testing |
| Special Assessment for Non-Approved Vendors | Initial $250-$500, subsequent up to $2,500 per violation per month |
| Liquidated Damages – Expiration of Designated Brands IP | $500 per occurrence |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 178 hours of pre-opening Initial Franchise Training |
| Classroom Training | 178 hours |
| On-the-Job Training | Not Applicable |
| Training Location | On-site, online, at franchisor's principal training facilities in Fargo, North Dakota, or other designated US locations (table specifies Online/webcast; telephone) |
| Additional Training | Post-Opening Training is offered: 164 hours (1st year), 121 hours (2nd year), 100 hours (3rd-4th years), and 76 hours (subsequent years). Refresher, advanced, or additional programs and seminars may also be offered. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Approximately 600,000 to 1 million individuals in population |
| Description | Your franchise is granted for a specific, approved location that cannot be changed without franchisor consent. While you receive a 'protected territory' (generally 600,000 to 1 million population), it is not exclusive. You may face competition from other franchisees or company-owned outlets operating under a different proprietary mark. The franchisor reserves the right to operate or grant third parties the right to operate beauty schools using different proprietary marks within your protected territory. You can solicit customers outside your territory as long as they are not within another franchisee's protected territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years |
| Renewal Term | One additional 15-year term |
| Renewal Fee | Up to $5,000 |
| Renewal Conditions | Provide prior notice, satisfy all monetary obligations, not be in default (or have received more than three notices of default during term), sign a Successor Franchise Agreement (which may have different terms, including increased Royalty/Technology Fees), sign a release, reimburse franchisor for renewal expenses (up to $5,000), perform required renovations/replacements, and be lawfully entitled to occupy the Premises for the successor term. |
| Transfer Fee | $25,000 |
| Transfer Conditions | Franchisor has not exercised right of first refusal, franchisee is not in default, transferee has sufficient experience and completes application, transferee assumes obligations (or signs new agreement with potentially different terms), transferee agrees to perform required renovations, transferee completes training, transferor pays $25,000 transfer fee, and other reasonable conditions are met. |
| Termination for Cause | Franchisor can terminate for cause if franchisee defaults under the Franchise Agreement. Non-curable defaults include bankruptcy, abandonment, material misrepresentation, failure to pay amounts due within 10 days of notice, misuse of proprietary property, three or more notices of default in 12 months, or failure to obtain accreditation within four years. Curable defaults allow 30 days (or longer if specified by law) to cure after notice. |
| Non-Compete Period | During the term of the franchise: anywhere. After termination/expiration: 24 months. |
| Non-Compete Details | During the term, franchisee and restricted parties may not be connected with a competitive beauty school anywhere. For 24 months after termination or expiration, franchisee and restricted parties may not be connected with a competitive beauty school within 50 miles of the Premises or any other beauty school authorized to use the Selected Trademark. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchised Business must be supervised by an Operations Director who devotes full-time efforts to managing and operating the business. The Franchise Owner must either serve as the Operations Director or hire a qualified individual for this role. The Operations Director must complete Initial Franchise Training and meet minimum requirements for education, certification, and experience. If the Operations Director is not the Franchise Owner and fails to meet obligations, the Franchise Owner must fulfill these obligations until a new qualified Operations Director is designated. |
| Required Suppliers | Franchisees must purchase equipment, supplies, advertising materials, printed goods, training materials, and other products/services from franchisor-authorized suppliers, including Designated Brand Manufacturers. Specific required vendors include TC-Accounting LLP (for the first 12 months), Cengage, Inc. (exclusive for student training/curriculum materials under Milady brand), Great Exposure Inc. (exclusive for microsites/websites and admissions CRM software), and Fuel Productions, LLC (affiliate, exclusive for certain training materials). Designated Brands Manufacturers include L'Oréal USA Creative, Inc. (Redken and L'Oréal Professionnel trademarks). |
| Supply Restrictions | Franchisees must exclusively use and promote goods/services related to Designated Brands, maintain goodwill, utilize educational support materials, procure/install approved furniture/fixtures, and display trademarks in advertising. The franchisor may designate itself or an affiliate as an authorized or exclusive supplier for any product or service. |
| Franchisor Revenue from Suppliers | In 2021, the franchisor (SPEC) received 0% of its total revenues directly from required purchases or leases by franchisees. However, its affiliate, Fuel Productions, LLC, had $217,188 in revenues from franchisees' purchases of certain training materials. SPEC also received $82,000 in sponsorship fees from vendors for its annual franchise conference. No sponsorship fees were received from Redken or L'Oréal in 2021 as the educator competition was not held. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing, nor does it guarantee franchisee notes, leases, or other obligations. Franchisees are eligible for expedited and streamlined SBA loan processing through the SBA’s Franchise Registry Program (www.franchiseregistry.com). |
The Salon Professional Academy Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
The Salon Professional Academy Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
The Salon Professional Academy System Growth
The Salon Professional Academy currently operates 35 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 5 | 5 | 36 |
| 2020 | 0 | 3 | 35 |
| 2021 | 2 | 2 | 35 |
Transfers: 2 | Closures: 10
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Widmer Roel PC for year ending December 31, 2021.
The Salon Professional Academy Franchise — FAQ
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