Cost to Start a My Salon Suite Franchise in 2026

Per the current FDD filed under the FTC Franchise Rule (16 CFR Part 436), total estimated initial investment for a My Salon Suite franchise runs $785,000–$1,650,000. The investment range reflects the commercial build-out of a multi-suite facility:

• Franchise fee: $55,000
• Real estate and leasehold improvements: $530,000–$1,100,000 (build-out of 20–40 individual salon suites with plumbing, electrical, HVAC, and shared common areas)
• Fixtures, suite furnishings, and cabinetry: $75,000–$180,000 (built-in shampoo bowls, mirrors, styling stations, retail displays)
• Signage and branding: $10,000–$30,000
• Technology (tenant management, lease tracking, digital check-in): $5,000–$15,000
• Training and travel: $5,000–$15,000
• Grand opening marketing: $10,000–$25,000
• Working capital (3 months): $50,000–$140,000
• Permits, licenses, insurance, and professional fees: $30,000–$60,000

My Salon Suite is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. At $785K–$1.65M, financing typically involves a combination of products:

• SBA 7(a) loan: Covers franchise fee, leasehold improvements, suite build-out, and working capital per the SBA 7(a) program. Maximum $5M — the My Salon Suite range fits standard SBA 7(a) structures.
• SBA 504 loan: For operators acquiring commercial real estate, the SBA 504 program provides below-market fixed-rate financing on up to 40% of the real property component alongside a conventional first mortgage.
• Conventional commercial real estate loan: The real-estate-centric model means many franchisees structure the build-out as a commercial real estate transaction.
• Equipment financing: Suite fixtures, built-in cabinetry, and plumbing can be financed separately to preserve working capital.
• Working capital line of credit: Supports the occupancy ramp-up period and initial marketing spend to recruit beauty professional tenants.

My Salon Suite suits operators with commercial real estate, property management, multi-unit operations, or leasing backgrounds. This is a real estate business — franchisees manage lease agreements, facility maintenance, tenant relationships, and occupancy, not beauty services. Typical financial benchmarks include net worth of $750K+ and liquid capital of $200K+. Target markets are suburban areas with dense populations of licensed independent beauty professionals seeking private studio space away from traditional salon employment or booth rental.

SBA lenders underwriting a $785K–$1.65M My Salon Suite franchise evaluate five core factors. Because the franchisee is a real estate operator — not a beauty service provider — lenders model this deal like a commercial leasing operation: occupancy ramp, tenant pipeline quality, and lease term alignment are the primary underwriting variables.

• Occupancy ramp DSCR: Revenue is suite rental income. Lenders model DSCR using conservative ramp occupancy — typically 40–60% in months 1–6, scaling to 80–90% stabilized by month 12–18. Pre-opening letters of intent or signed suite lease agreements from prospective tenants materially improve the pro forma and accelerate underwriting approval.
• Leasehold collateral discount: At $500K–$900K in leasehold improvements, My Salon Suite is collateral-intensive. Lenders discount leasehold improvements 50–70% for collateral purposes (not portable; improvements revert to landlord on non-renewal). The equity injection and personal liquidity carry more underwriting weight than the improvement value.
• Lease term alignment: The master lease on the commercial space must align with the loan repayment period. For a 10-year SBA 7(a) term, lenders require a 10-year initial lease or a minimum of a 5-year lease with documented renewal options extending to 10+ years, plus a landlord consent/estoppel letter.
• SBA 7(a) vs. SBA 504 structure: SBA 7(a) (up to $5M) is the standard path for leasehold build-out + working capital. If the franchisee also acquires the commercial real estate, SBA 504 covers the fixed-asset purchase at a lower fixed rate — a meaningful rate advantage on $1M+ real estate components.
• Operator real estate and property management experience: Lenders favor operators with prior commercial real estate management, multi-tenant leasing, or property operations background. Demonstrated ability to manage tenant relationships and facility maintenance reduces perceived operational risk.