Knockout Beauty franchise
2024 filing · April 19, 2024GrowingShares sales figures
Knockout Beauty at a glance
A beauty boutique selling luxury beauty products and offering skin care and esthetic services. At the end of 2023 there were 5 Knockout Beauty locations in the US, 2 franchised and 3 company-owned, so most are run by the company itself.
The business
- Franchisor
- Knockout Beauty Retail Group, LLC
- The company that sells the franchises
- Current franchisor selling since
- 2021
- 3 years of selling franchises
- Franchisor based in
- Los Angeles, California
- Typical size
- About 1,000 sq ft
What you pay
- Cost to open
- $181K–$438K
- Fee, build-out and opening working capital
- Franchise fee
- $45,000
- Paid once, when you sign
- Royalty
- 8%
- 8% of gross sales, paid monthly, plus 3% to the national brand fund
- Brand fund
- 3%
- 3% of gross sales, paid monthly
- Agreement length
- 10 years
- Territory
- Protected
- Protected territory
- Franchisor financing
- None offered
Where it is
- US locations, 2023
- 5
- Franchised and company-owned
- Franchised
- 2
- Company-owned
- 3
- Change in 3 years
- +2
- Franchised locations, 2021–2023
- States
- 3
- Most in New York, California and Colorado
From Knockout Beauty Retail Group, LLC’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Knockout Beauty among all franchises with the same figure.
| Figure | Knockout Beauty | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $309,750 | Costs less than 55% of franchises |
| Franchise feePaid once, when you sign | $45,000 | Higher than 55% of franchises |
| RoyaltyShare of sales paid to the franchisor | 8% | Higher than 85% of brands with a set rate |
| US locationsFranchised and company-owned | 5 | Fewer than 71% of franchises |
How much a Knockout Beauty franchise costs
Opening one Knockout Beauty costs an estimated $181,200 to $438,300. That covers the franchise fee and everything else needed to open, through the first months of working capital.
Source: Knockout Beauty Retail Group, LLC, 2024 filing, page 19
Knockout Beauty franchise fee
The franchise fee is $45,000. You pay it when you sign the franchise agreement.
Source: Knockout Beauty Retail Group, LLC, 2024 filing, page 12
Royalty and ongoing fees
| Royalty | 8% of gross sales, paid monthly, plus 3% to the national brand fund. |
|---|---|
| Brand or marketing fund | 3% of gross sales, paid monthly. |
| Technology Fee | Currently $200 per month |
| Transfer Fee | 50% of then-current franchise fee |
| Local Advertising | 1% of Gross Sales that you spend directly on local advertising. |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Knockout Beauty Retail Group, LLC, 2024 filing, page 13
Other fees as filed, from pages 13–14. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Knockout Beauty publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Knockout Beauty Retail Group, LLC, 2024 filing, page 57
How Knockout Beauty compares
Of the 121 spa franchises on this site, Knockout Beauty is the 18th cheapest to open and the 65th largest by number of locations.
| Figure | Knockout Beauty | Typical spa brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $181K | $334K | $222K |
| Cost to open, high end | $438K | $670K | $477K |
| Franchise fee | $45K | $50K | $40K |
| Royalty | 8% | 6% | 6% |
| Brand fund | 3% | 2% | 2% |
| US locations | 5 | 9 | 21 |
| Closed or left per year | 0% | 2.1% | – |
| Shares earnings figures | Yes | 85 of 121 | 2,147 of 3,352 |
Typical is the median across the 121 brands in spa franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 1 (+1) | 3 | +1 | 0 |
| 2022 | 1 (0) | 3 | 0 | 0 |
| 2023 | 2 (+1) | 3 | +1 | 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: Knockout Beauty Retail Group, LLC, 2024 filing, page 61
Where Knockout Beauty locations are
At the end of 2023, Knockout Beauty had locations in 3 states. The most are in New York, California and Colorado.
- New York3
- California1
- Colorado1
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| New York | 1 | 2 | 3 |
| California | 0 | 1 | 1 |
| Colorado | 1 | 0 | 1 |
Source: Knockout Beauty Retail Group, LLC, 2024 filing, page 61
Who owns Knockout Beauty?
Knockout Beauty franchises are sold by Knockout Beauty Retail Group, LLC.
From Knockout Beauty Retail Group, LLC’s 2024 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| 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: Knockout Beauty Retail Group, LLC, 2024 filing, litigation on page 12, bankruptcy on page 12
Knockout Beauty filings
The figures on this page come from Knockout Beauty Retail Group, LLC’s 2024 filing, issued April 19, 2024, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | April 19, 2024 | NASAA depository | Costs, fees and locations, 2021–2023 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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