ScorecardWorth It?HistoryDatabaseCompareDistress Signals
Beauty/SalonLimited DataItem 19: ✗ Not DisclosedMedium Confidence · 60/100

Merle Norman Cosmetics, Inc. Franchise Cost and Profit

FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Merle Norman Cosmetics, Inc..

Based on 2025 FDD · 4 filings in corpus

FranchiseIQ Score
50
C
Moderate Risk
Composite score from 3 risk dimensions. Click for breakdown ↓
Health Score
D
48/100
3/7 metrics · Medium confidence
Full analysis unlocks:
✓ Cash-on-Cash return
✓ Payback period
✓ SBA default rate
✓ Red flags assessment
✓ Comparable franchises
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Cost and profit at a glance

How much does a Merle Norman Cosmetics, Inc. franchise cost and make?

Based on FDDIQ's FDD corpus, a Merle Norman Cosmetics, Inc. franchise shows an estimated initial investment of $89K – $260K. The franchisor does not provide enough Item 19 data for a clean profit estimate. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.

Startup Cost
$89K – $260K
Total initial investment
Profit / Revenue
Item 19 not disclosed
FDD Item 19 signal
Payback Signal
Estimate unavailable
Modeled return metric
SBA Default Rate
0.0%
Loan repayment history
Compare franchise costs →Estimate franchise ROI →Check SBA default rates →Browse Beauty/Salon franchises →Compare similar franchises →

Quick fee read: Fees not disclosed. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.

Free decision snapshot

Before you talk to Merle Norman Cosmetics, Inc., check the numbers buyers usually miss.

The unlocked report ties this brand's FDD disclosures to SBA outcomes, Item 20 movement, fee load, missing-data labels, and buyer assumptions — so you can decide whether this is worth deeper diligence.

FDD disclosure qualitySBA default outcomesItem 20 unit movementFee/cost stressComparable brands
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Total Investment Range$89K – $260K
MinMid: $175KMax

Key Metrics

Franchise Fee
-
Royalty Rate
-
Ad Fund Rate
-
Total Burden
-
Royalty + ad fund
Units (2023)
831
-34 vs prior yr
Net Unit Growth
↓ -4.0%
Year over year
Net Closure Rate
3.9%
From FDD Item 20
Cash-on-Cash Return
~8–15%
Annual estimated return
Payback Period
~5–12 yrs
Break-even timeline
SBA Default Rate
0.0%
vs ~7.2% industry avg
Median Revenue
~$800K–$2M
Item 19 disclosed
Red Flags Assessment
HIGH: Missing Item 19 disclosure
HIGH ×1
Premium Data

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CoC ReturnPayback PeriodSBA Default RateMedian RevenueEbitda MarginRisk Score
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Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.

Merle Norman Cosmetics, Inc. vs. Beauty/Salon Average

MetricMerle Norman Cosmetics, Inc.Beauty/Salon Avg
SBA Default Rate0.0%▲7.2%
Cash-on-Cash Return - 15.5%
Total Investment$175K$250K

Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.

SBA Loan Performance

Real lending data from SBA 7(a) loans (2018-2025). 9 loans across 5 states.

Default Rate
0.0%
Low Risk
Total SBA Loans
9
5 states
Total Loan Volume
$887K
SBA 7(a) approved
Avg Loan Size
$99K
Per franchisee
Loan Status Breakdown
3
Paid in Full (33%)
5
Currently Active
0
Charged Off
$0
Total Charged Off ($)
● Paid● Active● Charged Off

Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.

Compare

Merle Norman Cosmetics, Inc. vs The Barbershop A Hair Salon for Men, LLCMerle Norman Cosmetics, Inc. vs House of ColourMerle Norman Cosmetics, Inc. vs Bellacures

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Limited Data
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House of Colour
Limited Data
$33K–$52K
Bellacures
Revenue Only
$320K–$650K
The Barbershop A Hair Salon for Men, LLC
$207K – $353K
House of Colour
$33K – $52K
Bellacures
$320K – $650K
The Great American Barbershop
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Questions to Ask Before You Sign

5 data-driven questions every Merle Norman Cosmetics, Inc. franchise buyer should ask.

  1. 1.What is Merle Norman Cosmetics, Inc.'s SBA default rate compared to its competitors?Learn more →
  2. 2.Does Merle Norman Cosmetics, Inc. disclose Item 19 financial performance representations?Learn more →
  3. 3.What is the net unit growth trend over the past 3 years?Learn more →
  4. 4.What is the franchisee termination and transfer rate per Item 20?Learn more →
  5. 5.What do the FDD litigation disclosures (Item 3) reveal about franchisor legal history?Learn more →
Generate attorney questions for Merle Norman Cosmetics, Inc. →Validation call guide →
Data sourced from publicly filed Franchise Disclosure Documents (FDDs) submitted to state franchise regulators. SBA loan data from public SBA 7(a) records. Information reflects the most recent FDD filing in our database and may not reflect current terms. Always verify with the franchisor's current FDD before making any investment decision. Not legal or financial advice.

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