Knockouts franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.16 ↗

Franchise fees and ongoing costs

Franchise fee

$40,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

6% · 6% of Gross Sales, paid monthly on the 10th day of the following month

Marketing contribution

2% (basis not captured; see original filing)

Technology fee

Not captured

Other fees

Brand Development Fee 2% of Gross Sales monthly; Extension Fee $5,000 (site-selection deadline); Audit/inspection costs $1,000-$10,000 if a discrepancy is found

Working capital (FDD Item 7)

$20,000 to $75,000 (FDD labels this a six-month, not three-month, additional operating funds estimate; covers professional fees, three months' payroll for a manager and four hourly employees, and a $3,000 EFT checking minimum)

Fees sourceFDD p.12 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.16 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Expense reports (net sales, cost categories, and operating profit) for the 2 company-owned salons; not a systemwide average, median, or franchisee-based figure

Reporting period

Partial year 2025: Salon 1 from 8/29/2025-12/31/2025; Salon 2 from 10/24/2025-12/31/2025

Sample

2 company-owned salons in central Texas

Reported average

Not captured

Reported median

Not captured

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.42 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

54

Year-end outlets

54

Net change

+0

Derivation

ending minus starting outlets

Openings

3

Terminations

0

Non-renewals

0

Other closures

4

Reacquisitions

2

Transfers

1

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.44 ↗

SBA loan history

Loan activity

8 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$216,100

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

4 loans

Historical charge-off share

Suppressed: fewer than 10 seasoned loans

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

0 / 5

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does Knockouts franchise cost?

standard (single Salon, Franchise Agreement): $224,250 to $423,800; multi-unit development (first 3 Salons): $274,250 to $473,800 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $40,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.16 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Knockouts owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Expense reports (net sales, cost categories, and operating profit) for the 2 company-owned salons; not a systemwide average, median, or franchisee-based figure. Sample: 2 company-owned salons in central Texas. Period: Partial year 2025: Salon 1 from 8/29/2025-12/31/2025; Salon 2 from 10/24/2025-12/31/2025.

Item 19 performance sourceFDD p.42 ↗

What's the SBA charge-off rate for Knockouts?

Suppressed: fewer than 10 seasoned loans; numerator / denominator: 0 / 5. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $216,100; window: FY2023-FY2026 YTD through 2026-06-30; sample: 4 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗