Freecoat franchise
2022 filing · April 30, 2022GrowingShares sales figures
Freecoat at a glance
A nail studio offering non-toxic, fume-free nail and beauty services. At the end of 2021 there were 5 Freecoat locations in the US, 2 franchised and 3 company-owned, so most are run by the company itself.
The business
- Franchisor
- Freecoat Franchising, LLC
- The company that sells the franchises
- Franchisor based in
- Charlotte, North Carolina
- Typical size
- 1,200–1,800 sq ft
What you pay
- Cost to open
- $222K–$563K
- A single Freecoat studio
- Franchise fee
- $49,500
- A later studio is 80% of the then-current fee
- Royalty
- 6%
- 6% of gross sales, paid weekly, plus 1% to 3% to the brand marketing fund
- Brand fund
- Yes
- 1% to 3% of gross sales, paid with the royalty
- Renewal fee
- $2,500
- When the agreement ends and you sign again
- Agreement length
- 10 years
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2021
- 5
- Franchised and company-owned
- Franchised
- 2
- Company-owned
- 3
- Change in 3 years
- +2
- Franchised locations, 2019–2021
- States
- 1
- Most in North Carolina
From Freecoat Franchising, LLC’s 2022 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Freecoat among all franchises with the same figure.
| Figure | Freecoat | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $392,000 | Costs more than 54% of franchises |
| Franchise feePaid once, when you sign | $49,500 | Higher than 64% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 5 | Fewer than 71% of franchises |
How much a Freecoat franchise costs
Opening a single Freecoat studio costs an estimated $221,500 to $562,500. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements ($80,000 to $300,000) and furniture, fixtures and equipment ($25,000 to $60,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Franchise Fee | $49,500 | ||
| Delayed Opening Fee | $0 | $16,000 | |
| Lease Security Deposit | $2,500 | $5,000 | |
| Leasehold Improvements | $80,000 | $300,000 | |
| Utility Deposits | $500 | $1,000 | |
| Furniture, Fixtures and Equipment | $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 | ||
| Insurance Premiums | $2,500 | $6,500 | |
| Professional Expenses | $0 | $5,000 | |
| Architect Fee | $5,000 | $10,000 | |
| Additional Funds (3 Months) | $15,000 | $40,000 | |
| Total | $221,500 | $562,500 | |
Source: Freecoat Franchising, LLC, 2022 filing, page 18
Freecoat franchise fee
The franchise fee is $49,500, a later studio is 80% of the then-current fee. You pay it when you sign the franchise agreement.
Source: Freecoat Franchising, LLC, 2022 filing, page 10
Royalty and ongoing fees
| Royalty | 6% of gross sales, paid weekly, plus 1% to 3% to the brand marketing fund. |
|---|---|
| Brand or marketing fund | 1% to 3% of gross sales, paid with the royalty. |
| Renewal Franchise Fee | $2,500 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Freecoat Franchising, LLC, 2022 filing, page 11
Other fees as filed, from page 14. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Freecoat publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Freecoat Franchising, LLC, 2022 filing, page 50
How Freecoat compares
Of the 101 salon franchises on this site, Freecoat is the 33rd cheapest to open and the 64th largest by number of locations.
| Figure | Freecoat | Typical salon brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $222K | $303K | $222K |
| Cost to open, high end | $563K | $531K | $477K |
| Franchise fee | $50K | $45K | $40K |
| Royalty | 6% | 6% | 6% |
| US locations | 5 | 26 | 21 |
| Shares earnings figures | Yes | 75 of 101 | 2,147 of 3,352 |
Typical is the median across the 101 brands in salon franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2019 | 0 (0) | 0 | 0 | 0 |
| 2020 | 0 (0) | 2 | 0 | 0 |
| 2021 | 2 (+2) | 3 | +2 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: Freecoat Franchising, LLC, 2022 filing, page 52
Where Freecoat locations are
At the end of 2021, Freecoat had locations in 1 state. The most are in North Carolina.
- North Carolina4
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| North Carolina | 2 | 2 | 4 |
Source: Freecoat Franchising, LLC, 2022 filing, page 52
Who owns Freecoat?
Freecoat franchises are sold by Freecoat Franchising, LLC. It is a subsidiary of Freecoat Holdings, LLC.
From Freecoat Franchising, LLC’s 2022 filing, page 7.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on page 10. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Freecoat Franchising, LLC, 2022 filing, litigation on page 10, bankruptcy on page 10
Freecoat filings
The figures on this page come from Freecoat Franchising, LLC’s 2022 filing, issued April 30, 2022, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2022 filing | April 30, 2022 | NASAA depository | Costs, fees and locations, 2019–2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other salon franchises
All salon franchises
Freecoat is also on these lists: spa franchises.