My Salon Suite franchise startup costs run $785K–$1.65M for a salon-suite rental facility. The model — leasing private suites to independent stylists, estheticians, and nail techs — generates landlord-style recurring rental income with 300+ US locations.
My Salon Suite franchise costs at a glance
Total investment
$785,000–$1.6M
Franchise fee
$55,000
Royalty
5.5%
Liquid capital required
$200,000
Net worth required
$750,000
Source: My Salon Suite Franchise Disclosure Document (FDD) · as of 2026-05-06. Figures vary by market and site; verify against the current FDD before signing.
Key takeaways
Total estimated startup cost: $785,000–$1,650,000 (salon-suite rental real estate concept)
Franchise fee: $55,000
Ongoing royalty: 5.5% of gross revenues; marketing fund contribution applies
300+ locations across the US; one of the largest salon-suite franchise networks
Listed on the SBA Franchise Directory — but SBA treats the suite-rental model as an ineligible passive business
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
2 Ongoing fees
My Salon Suite charges a 5.5% royalty on gross revenues plus marketing fund contributions. Revenue is purely rental income collected weekly or monthly from suite tenants. At full occupancy (typically 80–95%), a 30-suite facility generates stable recurring cash flow. Tenant recruitment and retention are the primary operational variables — franchisees must actively attract independent beauty professionals and minimize vacancy between tenants.
3 Financing options
My Salon Suite is listed on the SBA Franchise Directory, but a Directory listing does not override SBA's rule that salon-suite rental businesses are ineligible. At $785K–$1.65M, financing typically involves a combination of products:
SBA 7(a) loan — generally not available: SBA SOP 50 10 8.1 lists office suites (aka salon suites) that earn rent from independent professionals as ineligible passive businesses unless revenue is membership dues, members have no assigned suite, and the operator maintains and equips the space. The My Salon Suite model leases private suites to independent beauty professionals, so it doesn't fit that exception.
SBA 504 loan — generally not available for the same reason: an ineligible business can't use SBA financing for any purpose, including buying its own building. Franchisees who buy their building use a conventional commercial real estate loan.
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.
4 Realistic ROI timeline
Salon-suite real estate concepts at the $785K–$1.65M investment level typically target breakeven within 36–54 months depending on occupancy ramp speed. My Salon Suite's national brand recognition among independent beauty professionals accelerates tenant recruitment compared to independent or lesser-known concepts. Once a facility reaches 80%+ occupancy, the recurring rental model produces predictable monthly cash flow. Markets with high concentrations of licensed independent beauty professionals and limited existing salon-suite supply reach stabilized occupancy fastest.
5 Who's a good fit
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.
7 What lenders look for in a My Salon Suite franchise application
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 loan 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.
Conventional, not SBA, structure: SBA 7(a) and 504 are generally unavailable for a suite-rental business, so build-out is financed with bank term loans or equipment financing plus equity, and a building purchase with a conventional commercial real estate loan.
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.
Sources
My Salon Suite is listed on the SBA Franchise Directory, but a Directory listing does not override SBA's business-type eligibility rules. — SBA Franchise Directory
SBA SOP 50 10 8.1 lists office suites (aka salon suites) that earn rent from independent professionals as ineligible passive businesses unless revenue is membership dues, members have no assigned suite, and the operator maintains and equips the space; an ineligible business can't use SBA financing for any purpose, including buying its own building. — SBA SOP 50 10 8.1, Section A, Ch. 1, Para. E
Conventional commercial real estate loans finance suite-facility purchases that SBA programs exclude; SBA 504 is limited to eligible, owner-occupying businesses. — SBA 504 Loan Program
All franchise cost and fee disclosures are governed by the FTC Franchise Rule requiring a Franchise Disclosure Document (FDD) be delivered at least 14 days before signing. — FTC Franchise Rule — 16 CFR Part 436
Qualifying suite fixtures, built-ins, and equipment placed in service during the tax year may be immediately expensed under IRS Section 179. — IRS Publication 946
Frequently asked questions
How much does a My Salon Suite franchise cost in 2026?
Per the current FDD, total estimated initial investment runs $785,000–$1,650,000. The build-out of 20–40 individual salon suites with dedicated plumbing, electrical, and HVAC is the primary cost driver.
What does a My Salon Suite franchisee actually do?
My Salon Suite franchisees are real estate operators. They build, manage, and lease a multi-suite facility to independent beauty professionals — stylists, estheticians, nail technicians, massage therapists. Revenue is rental income; franchisees do not provide beauty services directly.
What is the My Salon Suite royalty rate?
My Salon Suite charges a 5.5% royalty on gross revenues plus marketing fund contributions. Revenue is rental income from occupied suites.
Can I finance a My Salon Suite franchise with an SBA loan?
Generally not. SBA SOP 50 10 8.1 lists office suites (aka salon suites) that earn rent from independent professionals as ineligible passive businesses unless revenue is membership dues, members have no assigned suite, and the operator maintains and equips the space, and an ineligible business can't use SBA financing for any purpose, including buying its own building. My Salon Suite franchisees typically combine cash or ROBS equity with conventional commercial real estate loans, bank term loans, and equipment financing for build-out; confirm eligibility with an SBA lender before planning around SBA terms.
How many suites does a typical My Salon Suite location have?
A typical My Salon Suite location has 20–40 individual private suites. At 80–95% occupancy, recurring rental income from suite tenants creates a predictable monthly cash flow base.
What DSCR do lenders require for a My Salon Suite franchise?
Lenders typically require a DSCR of at least 1.25× once suites stabilize; For salon-suite real estate concepts, lenders model DSCR using stabilized occupancy projections — typically 80–90% of total suites. Year-one pro formas should reflect the ramp from opening occupancy (~40–60%) through stabilization, with DSCR exceeding 1.25× by month 12–18. Pre-signed suite lease agreements or letters of intent from beauty professionals are the strongest supporting evidence.
How much equity do I need to open a My Salon Suite franchise?
Because SBA financing is generally unavailable for suite-rental models, equity follows conventional commercial lending standards. Lenders on real estate-intensive franchise projects at this investment level typically require 20–25% ($157,000–$412,500) to cover the build-out risk and occupancy ramp period before rental income stabilizes. Equity can be from personal savings, ROBS (retirement funds), or home equity — all must be documented with source-of-funds verification.
Summary:
My Salon Suite franchise startup costs run $785K–$1.65M for a salon-suite rental facility. The model — leasing private suites to independent stylists, estheticians, and nail techs — generates landlord-style recurring rental income with 300+ US locations.
This article is for educational purposes and is not financial, legal, or tax advice. Rates,
fees, qualification requirements, and product availability are illustrative ranges that vary
by lender, market conditions, and individual business profile. ClearValue Lending is a
funding platform; all financing is subject to lender partner approval and terms. Always read
your contract end-to-end and verify specific numbers before signing.
