HairClub franchise
2022 filing · April 20, 2022Fewer locationsShares sales figures
HairClub at a glance
A hair care center offering hair regrowth, replacement and restoration services and hair care products. At the end of 2021 there were 104 HairClub locations in the US, 21 franchised and 83 company-owned, so most are run by the company itself.
The business
- Franchisor
- HCM Industries, Inc
- The company that sells the franchises
- Franchising since
- 1996
- 26 years of selling franchises
- Franchisor based in
- Boca Raton, Florida
- Typical size
- 2,000–5,000 sq ft
What you pay
- Cost to open
- $492K–$1.52M
- Fee, build-out and opening working capital
- Franchise fee
- $25K–$50K
- Depending on the number of TV households in the market area
- Royalty
- 6%
- 6% of gross sales, paid each period, plus a share of the marketing and media fund's yearly budget
- Agreement length
- 10 years
- Franchisor financing
- None offered
Where it is
- US locations, 2021
- 104
- Franchised and company-owned
- Franchised
- 21
- Company-owned
- 83
- Change in 3 years
- −1
- Franchised locations, 2019–2021
- States
- 40
- Most in California, Florida and New York
From HCM Industries, Inc’s 2022 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
HairClub among all franchises with the same figure.
| Figure | HairClub | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $1,003,908 | Costs more than 83% of franchises |
| Franchise feePaid once, when you sign | $25,000 | Lower than 82% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 104 | More than 77% of franchises |
| Sales per locationYearly, as the brand reports it | $2,101,837 | Higher than 89% of brands that share sales figures |
| Sales against cost to openYearly sales over the cost midpoint | 2.1× | Higher than 66% of brands that share sales figures |
How much a HairClub franchise costs
Opening one HairClub costs an estimated $491,733 to $1,516,083. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are construction costs ($260,000 to $750,000) and additional funds (3 months) ($100,000 to $350,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $25,000 | $50,000 | |
| Lease | $13,333 | $145,833 | |
| Utility Deposit | $150 | $250 | |
| Architect Fees | $10,000 | $50,000 | |
| Construction Costs | $260,000 | $750,000 | |
| Expenses for Initial Training | $6,000 | $12,000 | |
| Business Licenses and Permits | $250 | $500 | |
| Business Insurance | $5,000 | $12,500 | |
| Initial Inventory | $15,000 | $20,000 | |
| Computer Hardware & Software | $10,000 | $30,000 | |
| Initial Tech Fee | $5,000 | ||
| Furniture, Fixtures, & Eqpt | $20,000 | $50,000 | |
| Signage | $2,000 | $5,000 | |
| Grand Opening Marketing Program | $10,000 | $15,000 | |
| Professional Fees | $10,000 | $20,000 | |
| Additional Funds (3 months) | $100,000 | $350,000 | |
| Total | $491,733 | $1,516,083 | |
Source: HCM Industries, Inc, 2022 filing, page 22
HairClub franchise fee
The franchise fee is $25,000 to $50,000, depending on the number of TV households in the market area. You pay it when you sign the franchise agreement.
Source: HCM Industries, Inc, 2022 filing, page 15
Royalty and ongoing fees
| Royalty | 6% of gross sales, paid each period, plus a share of the marketing and media fund's yearly budget. |
|---|---|
| Technology Management, & Support Fee (“Technology Package Fee”) | Currently $200 per month |
| Additional Training | $1,500 per person |
| Local Marketing Program | 2% of Franchisee’s gross sales |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: HCM Industries, Inc, 2022 filing, page 16
Other fees as filed, from pages 16–19. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures HairClub publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
- Average revenue
- $2,101,837
- Median revenue
- $1,929,961
Yearly figures for 2021, covering U.S. franchised centers open all of 2021 (four joint ventures). The average is about 2.1 times the midpoint of the cost to open.
Sales are what a location takes in before rent, payroll, royalties and other costs, not what its owner keeps.
Source: HCM Industries, Inc, 2022 filing, pages 51–52
Growth and closures
Share of franchised locations, 2021 / 2019–2021. Typical means the median: half of brands are above it, half below.
| Measure | HairClub | Typical salon brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | −4.5% / −4.5% | +4.6% / +15% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 0% / 0% | 2.7% / 7.2% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 4.5% / 4.5% | 0% / 0% | 0% / 0% |
Typical salon brand is the median of the 42 brands in salon franchises with three years of counts.
How HairClub compares
Of the 101 salon franchises on this site, HairClub is the 83rd cheapest to open and the 28th largest by number of locations.
| Figure | HairClub | Typical salon brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $492K | $303K | $222K |
| Cost to open, high end | $1.52M | $531K | $477K |
| Franchise fee | $25K | $45K | $40K |
| Royalty | 6% | 6% | 6% |
| Sales per location | $2.1M | $487K | $794K |
| US locations | 104 | 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 | 22 (0) | 84 | 0 | 0 |
| 2020 | 22 (0) | 84 | 0 | 0 |
| 2021 | 21 (−1) | 83 | 0 | −1 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating. Franchised counts include four centers run as joint ventures.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: HCM Industries, Inc, 2022 filing, page 55
Where HairClub locations are
At the end of 2021, HairClub had locations in 41 states and territories. The most are in California, Florida and New York.
- California12
- Florida8
- New York8
- Texas7
- Illinois4
- Massachusetts4
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| California | 0 | 12 | 12 |
| Florida | 4 | 4 | 8 |
| New York | 2 | 6 | 8 |
| Texas | 0 | 7 | 7 |
| Illinois | 3 | 1 | 4 |
| Massachusetts | 4 | 0 | 4 |
| Pennsylvania | 1 | 3 | 4 |
| Georgia | 0 | 3 | 3 |
| Maryland | 0 | 3 | 3 |
| New Jersey | 1 | 2 | 3 |
All 41 states
Source: HCM Industries, Inc, 2022 filing, page 56
Who owns HairClub?
HairClub franchises are sold by HCM Industries, Inc.
From HCM Industries, Inc’s 2022 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 13–14. |
|---|---|
| Bankruptcy | A French sister company under the same Japanese parent entered receivership in Paris in February 2022; the matter was pending at filing. The franchisor itself has no bankruptcy to disclose. |
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: HCM Industries, Inc, 2022 filing, litigation on pages 13–14, bankruptcy on page 14
HairClub filings
The figures on this page come from HCM Industries, Inc’s 2022 filing, issued April 20, 2022, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2022 filing | April 20, 2022 | NASAA depository | Costs, fees and locations, 2019–2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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