Drybar Franchise Costs, Fees & FDD

Year Business Began: 2008

Franchising Since: 2011

Headquarters: Denver, Colorado

Estimated Number of Units: 175

Franchise Description: The franchisor is DB Franchise, LLC. The parent company is Pomp Holdings, LLC. Franchisees will operate an upscale shop offering hairstyling services in a spa-like setting and at off-site locations under the trade name and service mark “DRYBAR.”
Training Overview: Franchisees (or the operating partner) and their designated manager must attend and satisfactorily complete the initial training program. The franchisor expects to provide the training program both virtually and at a certified Franchisee Training Shop, or at another location that it designates, such as its Support Center in Colorado. Franchisees may be required to complete the training program, in whole or in part, and receive styling services at another Drybar shop. The franchisor reserves the right to provide the training program, in whole or in part, virtually as well. Currently, training consists of 34 hours of classroom instruction and 24 hours of in-shop immersion. Franchisees must hire, and at all times maintain, a “shop educator” at their shop who has completed the shop educator training program. The Shop Educator Program typically takes between 40 and 80 hours to complete, primarily depending on the anticipated shop educator’s level of prior experience and familiarity with the Drybar system. Other training programs are required depending on staff function. Franchisees (or the operating partner) and any applicable designated manager are required to attend any scheduled annual franchise owner conferences. The franchisor may additionally require franchisees (or the operating partner) to attend regional meetings for franchise owners. The franchisor may require franchisees and/or certain other employees of the shop (including any applicable designated manager) to attend or otherwise complete various in-person or electronic training courses, trade shows, ongoing education or certification programs, franchisor-sponsored performance groups, and/or webinars.

Territory Granted: Franchisees will not receive an exclusive territory. However, if franchisees remain in compliance with the Franchise Agreement the franchisor will not own or operate, or authorize any person or entity to own or operate, shops in the “protected area” identified in the Franchise Agreement, which the franchisor will typically define as a circle with the shop at its center and a radius of 1.5 miles unless otherwise specified in the Franchise Agreement at the time the franchisee signs the Franchise Agreement. In some cases (for instance in densely populated urban areas), the franchisor may define the boundaries of the protected area by political subdivisions, streets, ZIP codes, or other similar designations, and the protected area in that case may be the lesser of: (i) a circle with a 1.5-mile radius; or (ii) a circle with a radius reflecting a 50,000 person population density. The franchisor determines the boundaries of each protected area on a case-by-case basis based on various factors.

Obligations and Restrictions: Franchisees are solely responsible for the management, direction and control of the shop. However, franchisees (or the operating partner if the franchisee is an entity) may elect not to supervise the shop on a full-time basis; provided that franchisees appoint a manager who has completed the then-current training program (or alternatively, the manager training program as the franchisor may determine) to work full-time at the shop. If franchisees are signing the Franchise Agreement as a legal business entity, they must designate an individual with at least a 25% ownership and voting interest in the franchise to act as the “operating partner.” Franchisees must sell or offer for sale all products and services the franchisor requires using the method and manner of distribution the franchisor prescribes. Franchisees must conduct all services in accordance with the franchisor’s system standards.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One additional term of 10 years is available if requirements are met.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation. The franchisor offers a 20% discount on the Initial Franchise Fee for veterans and active-duty members of the United States armed forces who will hold at least a 51% ownership interest in their shop or members of a minority race or ethnicity (Black, Hispanic, Asian, Pacific Islander, or American Indian/Alaska native) who will hold at least a 51% ownership interest in their shop. The veterans’ and active-duty military and minority-owned business discounts cannot be combined with any other discounts offered.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$50,000	$50,000
Real Property, Utility, and Other Security Deposits	$1,500	$9,000
Leasehold Improvements (net of landlord tenant allowances)	$81,500	$493,500
Cabinetry, Millwork, Furniture and Décor	$66,000	$130,500
Initial Opening Package	$50,000	$55,000
Initial Software Set-Up and Technology Fees	$2,124	$2,124
Computer System & Other A/V Technology	$22,000	$33,000
Training Program and Other Training Expenses	$9,600	$11,000
Architect, Engineer, Drawings	$8,300	$23,000
Grand Opening Spend Requirement	$20,000	$20,000
Signage and Graphics	$6,800	$24,000
Office and Business Supplies	$3,300	$8,720
Business Licenses and Permits	$525	$17,325
Insurance (initial 20% payment)	$1,350	$1,550
Professional Fees	$1,980	$13,530
Additional Funds (three months)	$85,000	$137,000
ESTIMATED TOTAL	$409,979	$1,029,249

 
Other Fees

Type of Fee	Amount
Royalty	7% of gross receipts.
Brand Marketing Fund	2% of gross receipts (subject to the franchisor’s right to increase).
Local Advertising Fee	$2,000 per month (subject to the franchisor’s right to increase).
Local Spend Amount	2% of gross receipts (subject to the franchisor’s right to increase).
Default Fee	$250 - $2,500
Dishonored Check or Insufficient Funds Fee	$150
Interest on Late Payments	1.5% per month or highest commercial rate.
Monthly Management Fee (in event of the franchisee’s abandonment, default, or termination)	Up to $7,500 per month, plus direct out-of-pocket expenses.
Replacement or Remedial Training Program Fee	Then-current fee, currently $500 per attendee, plus costs and expenses.
Additional or Special Training	Then-current fee, currently, $500 per day per trainer or attendee (as applicable to the training program), plus costs and expenses.
Annual Conference Registration Fees	Then-current annual conference registration fees for at least one attendee (currently, $500 per person), plus costs and expenses. Default fee applies for non-attendance.
Manager Training Program	Then-current fee, currently $500 per day per attendee, plus costs and expenses.
Technology Fee	Currently, $775 per month.
Marketing Cooperatives	As established (none are currently in existence).
Successor Franchise Fee	25% of the then-current initial franchise fee.
Transfer Fee – Franchise Agreement	50% of the then-current Initial Franchise Fee; reduced to $2,500 for select ownership interest transfers.
Transfer Fee – Area Development Agreement	$2,500 for administrative costs and expenses in connection with ownership interest transfers. Development rights cannot be transferred.
Transfer Fee Deposit	$5,000
Inventory	Varies according to products purchased.
Royalty Underpayments (audit)	Varies. Difference between amount reported and correct amount, plus applicable interest (and if understated amount is more than 2%, plus the franchisor’s costs (including attorneys’ and accountants’ fees)).
Defense or Enforcement Costs	All costs including attorneys’ fees (variable).
Indemnification	All costs including attorneys’ fees (variable).
Collection Costs	Actual costs and expenses to collect past due or other amounts.
Arbitration and Proceeding Costs	The franchisor’s arbitration or other court costs plus attorneys’ fees and costs if the franchisor prevails in the arbitration or proceeding.
Liquidated Damages	An amount equal to the combined monthly average of royalties, brand marketing fund contributions, and any other fees under the agreement (without regard to any fee waivers, or other reductions) payable during the 12 months preceding the date of early termination, multiplied by the lesser of (i) 24 or (ii) the number of full months remaining in the term. The present value of the total calculated at a discount rate of 8%, assuming payment at the end of each month, will be the liquidated damages.
Alternative Supplier Evaluation	Varies according to administrative expenses in evaluating the request and its complexity.
Relocation Fee	$10,000, plus costs and fees associated with migrating clients to nearby shops.
Shop Educator Program Fee	Then-current training fee ($500 per day per attendee), plus costs and expenses.
Quality Assurance Inspections	Actual costs and expenses.
Media Licensing Fees	Actual annual costs and expenses.
In-House Legal Billing Rates	Then-current hourly billing rate for in-house attorneys (currently, $400 per hour) and paralegals (currently, $150 per hour).

The above information has been compiled from the FDD of Drybar. Year of FDD: 2025.
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