IMAGE Studios franchise unit economics
IMAGE Studios franchisees build 20 to 45 private salon studios and let them weekly to independent beauty professionals, so the revenue line is rent collected. The 82 salons reporting all of 2025 averaged $531,385 at 90% occupancy cost or better and $327,883 below 70%, with earnings after key operating expenses and royalties of 42.86% against 9.59%. Rent accounts for it: 35.82% of revenue at the top of the range and 58.93% at the bottom. On a cost base that changes by less than a tenth.
- Primary source
- IMAGE Studios Franchise, LLC, 2026 Franchise Disclosure Document
- Items read
- Items 5 and 6 for fees; Item 7 for cost to open; Item 19 for sales and any profit figure; Item 20 for the location count
- Population
- 82 of 127 locations
- Our calculations
- Marked on the page with an asterisk. Method
- Last reviewed
- 26 September 2026
Disclosure-based. Not a forecast, not an offer to sell a franchise, and not advice.
Move a salon from 90% occupancy cost down below 70% and revenue drops $203,502 while earnings drop $196,302, 96.5% of the fall lands straight on the bottom line. The cost base holds: the emptiest group spends $271,852 on key operating expenses against $263,789 at the fullest. Everything in this model turns on how many studios are let.
- 96.5% of the revenue gap between the fullest and emptiest salons lands on earnings. Revenue falls $203,502 and earnings fall $196,302 *, because key operating expenses at the emptiest group run $8,063 higher than at the fullest.
- Rent is 35.82% of revenue at 90% occupancy cost and 58.93% below 70%. And the 80 to 89% group pays $210,271 of rent against the fullest group’s $190,364 while billing $69,520 less *, a bigger box filled less well.
- Below 70% occupancy cost the marketing minimum is five times higher. $2,000 a month against $400 above that line, which is $24,000 a year against $4,800 *, and the sub-70% group’s filed advertising line is $24,344.
- Revenue peaks in year three at $411,265 and then holds. $291,079, $397,177 and $411,265 across the first three years, then $385,178, $387,864 and $397,446 *. The plateau arrives early and stays.
- Month twelve bills 5.71 times month one. $34,975 against $6,129, with month six already at $27,848, or 79.6% of month twelve *.
How much does a IMAGE Studios franchise make?
The average IMAGE Studios unit reported $445,097 of revenue in the 2026 FDD. The brand’s disclosure document puts the profit line at 32.8% of revenue. Fees come off the top first, at about 10.3% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling businesses are below.
Top performers
What separates the top IMAGE Studios performers
IMAGE Studios splits its locations into groups instead of publishing one average. The best group averaged $531,385 a year. The worst averaged $327,883. Both run the same brand, on the same agreement, paying the same fees.
Decided before you open
- Trade area and site.A 1.6× gap between bands is not an operating gap. Catchment, daytime population and what sits next door set the ceiling before the first customer arrives.
- Capacity, fixed at build.Locations run 4,000 to 8,500 square feet. capacity is 45 studio floor multiplied by hours multiplied by how full they run. What you can sell is set by the build, and the build does not change after opening.
- What you spend to open.Opening costs $773,392 to $1,734,462, a 2.2× range inside one brand. The high end usually buys more capacity, so the cheapest build is not always the cheapest route to the top band.
Live operating levers
- Accounts, the operating driver.This model bills on accounts. An account signed this year still bills next year, so keeping accounts matters more than winning them. It is worth watching every week, because by the time it turns up in a monthly close the quarter is half gone.
- Fees, and where the minimum bites.Fees run about 10.3% of sales. A minimum sits underneath the percentage, so the low-volume location pays the higher effective rate. The brand charges the weakest locations the most. Work out the sales level where the percentage overtakes the minimum and know which side of it you are on, because the answer changes what an extra dollar of sales is worth.
- The first year.This filing shows how a new location builds up, so the ramp can be underwritten from the document rather than assumed. Read two things out of it: the month sales cross the point where costs are covered, and how much cash you fund before that month arrives. Everything before break-even is paid for by you.
Context you underwrite around
- The reporting screen.82 of 127 locations are behind these figures. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, as are locations under the brand’s current size standard, so the numbers describe locations that cleared that screen, not the system as a whole.
- What the disclosure leaves out.Item 19 publishes no median, no attainment figure. Anything below the sales line has to come from the franchisor or from owners you call.
The first year, month by month
Month one to month twelve, and year one to year six.
A month-by-month first-year build-up across all 129 salons, set beside a year-by-year series by opening group, maps the whole lifecycle.
| Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Average revenue | $6,129 | $14,914 | $19,866 | $22,221 | $25,559 | $27,848 | $28,338 | $30,523 | $30,748 | $32,417 | $32,846 | $34,975 |
| Share of month twelve * | 17.5% | 42.6% | 56.8% | 63.5% | 73.1% | 79.6% | 81.0% | 87.3% | 87.9% | 92.7% | 93.9% | 100% |
The monthly figures are as the brand reported it and the share row is marked *.
Month twelve annualizes to $419,700. $34,975 across twelve months *, within $8,435 of the $411,265 the system averages in year three.
Half the first-year climb happens by month four. $22,221 against $34,975 is 63.5% *, and the last six months add $7,127 a month between them.
| Opened | Salons | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Average by year |
|---|---|---|---|---|---|---|---|---|
| 2019 | 10 | n/a | $271,100 | $343,224 | $377,701 | $413,424 | $403,126 | $361,715 |
| 2020 | 8 | $282,830 | $362,747 | $396,878 | $406,317 | $403,963 | $391,767 | $374,084 |
| 2021 | 7 | $299,443 | $408,139 | $397,152 | $413,408 | $346,205 | n/a | $372,870 |
| 2022 | 13 | $219,202 | $388,992 | $435,640 | $343,286 | n/a | n/a | $346,780 |
| 2023 | 31 | $317,040 | $477,717 | $483,431 | n/a | n/a | n/a | $426,063 |
| 2024 | 26 | $334,889 | $474,363 | n/a | n/a | n/a | n/a | $404,626 |
| 2025 | 34 | $293,073 | n/a | n/a | n/a | n/a | n/a | $293,073 |
| All 129 | 129 | $291,079 | $397,177 | $411,265 | $385,178 | $387,864 | $397,446 | $378,335 |
Every figure is as the brand reported it.
Year two adds 36.4% and year three adds 3.5%. $291,079 to $397,177 to $411,265 *, so the second year does almost all the work the first year left.
Weekly studio rent at opening has risen 50.5% since 2019. $283 to $426 *, which is 7.0% a year compounded, a newer salon starts with a higher rate per studio and a higher rent bill behind it.
Building costs and earnings
What each salon builds, and what it earns on the build.
Building costs at the end of 2025 sorts the 82 reporting salons into groups, each with a full operating statement of its own. So the arithmetic of this model reads straight off.
| Building costs at year end | Salons | Average revenue | Median revenue | Key operating expenses | Expenses as a share | Earnings before royalties | Royalty and brand fund | Earnings after key expenses | Margin |
|---|---|---|---|---|---|---|---|---|---|
| 90% and above | 32 | $531,385 | $546,866 | $263,789 | 49.64% | $267,596 | $39,854 | $227,742 | 42.86% |
| 80 to 89% | 21 | $461,865 | $398,072 | $284,781 | 61.66% | $177,084 | $34,640 | $142,444 | 30.84% |
| 70 to 79% | 11 | $353,871 | $287,507 | $225,557 | 63.74% | $128,314 | $26,540 | $101,774 | 28.76% |
| Below 70% | 18 | $327,883 | $312,633 | $271,852 | 82.91% | $56,031 | $24,591 | $31,440 | 9.59% |
| All 82, weighted * | 82 | $445,097 | n/a | n/a | n/a | n/a | n/a | $145,909 | 32.78% |
Every group is as the brand reported it and reconciles line by line. Revenue less key operating expenses returns the filed earnings before royalties in all four groups. Subtracting the royalty line returns the filed earnings after key expenses.
The full salon earns 7.24 times the empty one. $227,742 against $31,440 *, on revenue that runs only 1.62 times as high.
Key operating expenses at the emptiest group run $8,063 above the fullest. $271,852 against $263,789 *. The box costs what it costs whether the studios are let or standing empty.
Where the money goes.
| Expense | 90% and above | 80 to 89% | 70 to 79% | Below 70% | Share of revenue, top band * | Share of revenue, bottom band * |
|---|---|---|---|---|---|---|
| Rent and CAM | $190,364 | $210,271 | $163,531 | $193,224 | 35.82% | 58.93% |
| Utilities | $24,868 | $22,680 | $17,684 | $21,219 | 4.68% | 6.47% |
| Advertising | $12,374 | $14,984 | $16,869 | $24,344 | 2.33% | 7.42% |
| Janitorial | $11,395 | $11,864 | $6,897 | $10,174 | 2.14% | 3.10% |
| Repairs and maintenance | $10,928 | $9,450 | $7,650 | $8,636 | 2.06% | 2.63% |
| Accounting | $5,124 | $6,376 | $5,799 | $4,604 | 0.96% | 1.40% |
| Insurance | $4,834 | $4,496 | $3,519 | $6,763 | 0.91% | 2.06% |
| Office supplies | $2,614 | $2,536 | $1,924 | $2,100 | 0.49% | 0.64% |
| Cleaning supplies | $898 | $902 | $820 | $536 | 0.17% | 0.16% |
| Legal | $390 | $1,222 | $863 | $253 | 0.07% | 0.08% |
| Total | $263,789 | $284,781 | $225,557 | $271,852 | 49.64% | 82.91% |
Every dollar figure is as the brand reported it and the two share columns are marked *.
Rent and utilities together are 40.50% of revenue at the top and 65.40% at the bottom. $215,232 against $214,443 in dollars *. The same occupancy cost carried by two very different revenue lines.
Advertising doubles as occupancy cost falls. $24,344 at the emptiest group against $12,374 at the fullest *, which is 7.42% of revenue against 2.33%. The salons with the least cash are the ones required to spend most.
Everything beyond rent, utilities and advertising is roughly $33,000 either way. $36,183 at the fullest group and $33,066 at the emptiest *, seven lines that move very little with how full the salon is.
What the fees come to
7.5% of revenue, and a marketing minimum tied to occupancy cost.
The royalty is 6% of sales or $300 a week, whichever is greater, and the brand development fund is 2% or $110 a week. Both minimums index to inflation each year. The local marketing requirement is the lever worth understanding: $2,000 a month until occupancy cost passes 70%, then $400.
| Building costs band | Average revenue | Royalty at 6% | Brand fund at 2% | Marketing minimum | Software and accounting | All in | Share of revenue |
|---|---|---|---|---|---|---|---|
| 90% and above | $531,385 | $31,883 | $10,628 | $4,800 | $7,539 | $54,850 | 10.32% |
| 80 to 89% | $461,865 | $27,712 | $9,237 | $4,800 | $7,539 | $49,288 | 10.67% |
| 70 to 79% | $353,871 | $21,232 | $7,077 | $4,800 | $7,539 | $40,648 | 11.49% |
| Below 70% | $327,883 | $19,673 | $6,558 | $24,000 | $7,539 | $57,770 | 17.62% |
| The minimums alone | n/a | $15,600 | $5,720 | $24,000 | $7,539 | $52,859 | n/a |
The rates, the weekly minimums, the marketing requirement and the software and accounting fees are as the brand reported it. The revenue figures come from the filed occupancy cost groups. Every dollar amount and share is marked *.
The marketing minimum swings $19,200 a year on one occupancy cost point. $24,000 below 70% against $4,800 above *, and at the sub-70% group that $24,000 is 7.32% of revenue.
The advertising line confirms it. The sub-70% group spent $24,344 against a $24,000 requirement *, and the 90% group spent $12,374 against $4,800. The minimum sets the minimum, and the full salons choose to go past it.
Crossing 70% occupancy cost is worth more than it looks. Moving from the third group to the second adds $107,994 of revenue and cuts the marketing minimum by $19,200 *.
Building the store
$773,392 to open, and 62.69% of it is the build.
| Line | Low | High | Share of the low column * |
|---|---|---|---|
| Building work | $484,831 | $1,135,081 | 62.69% |
| Furniture, fixtures and equipment | $122,783 | $241,803 | 15.88% |
| Initial franchise fee | $64,500 | $64,500 | 8.34% |
| Additional funds, three months | $35,000 | $75,000 | 4.53% |
| Architectural plans and engineering | $23,750 | $50,500 | 3.07% |
| Lease costs, first month and deposit | $21,028 | $71,578 | 2.72% |
| Site development fee | $6,500 | $6,500 | 0.84% |
| Advertising and marketing, three months | $6,000 | $18,000 | 0.78% |
| Insurance, annual | $3,000 | $16,000 | 0.39% |
| Computer equipment | $1,500 | $3,000 | 0.19% |
| Miscellaneous opening and grand opening | $1,500 | $5,000 | 0.19% |
| Business formation | $1,000 | $3,000 | 0.13% |
| Operating supplies | $1,000 | $2,500 | 0.13% |
| Initial floor plan layout | $500 | $1,000 | 0.06% |
| Licensing and permits | $500 | $35,000 | 0.06% |
| Initial training expenses | $0 | $2,500 | 0.00% |
| Utility deposits | $0 | $3,500 | 0.00% |
| Total | $773,392 | $1,734,462 | 100% |
Amounts are as the brand reported it and the share column is marked *; both columns add to their stated totals to the dollar.
Opening costs 1.46 times what a full salon bills in a year. $773,392 against $531,385 *, and 24.6 times what a sub-70% salon earns after key expenses.
The build and the fit-out are $607,614 of the low column. 78.57% of the whole entry cost *. This is a property project before it is a salon business.
What the studios have to return.
Revenue here is studios multiplied by weekly rate multiplied by weeks let. At the $426 average weekly rate that salons opening in 2025 started on, the arithmetic is simple enough to run on a page.
| Studios | At 100% for 52 weeks * | At 90% * | At 75% * | At 65% * |
|---|---|---|---|---|
| 20, the smaller typical build | $443,040 | $398,736 | $332,280 | $287,976 |
| 30 | $664,560 | $598,104 | $498,420 | $431,964 |
| 45, the larger typical build | $996,840 | $897,156 | $747,630 | $647,946 |
The $426 average weekly rate at opening for salons that opened in 2025 and the 20 to 45 studio range for a typical location are as the brand reported it. Every dollar figure here is marked *, at studios times $426 times 52 weeks times the occupancy cost shown.
A 30-studio salon at 90% reaches $598,104. Against the filed 90% group averages of $531,385 *, the difference being older leases at lower weekly rates than the 2025 group started on.
Fifteen empty studios cost $332,280 a year. At $426 a week for 52 weeks *, which is more than the entire earnings of the three lower groups combined.
Questions we get asked
Questions owners ask.
What does an IMAGE Studios salon bill?
By occupancy cost group across the 82 salons reporting all of 2025. $531,385 average at 90% or better, $461,865 at 80 to 89%, $353,871 at 70 to 79% and $327,883 below 70%. Weighted across the four groups that is $445,097.
What does a salon keep?
After the ten named key operating expenses and the imputed royalty and brand fund. $227,742 at 90% and above, $142,444 at 80 to 89%, $101,774 at 70 to 79% and $31,440 below 70%. That is 42.86% down to 9.59% of revenue. Owner pay, debt service and depreciation sit outside those figures.
Why does occupancy cost matter so much?
Because the cost base holds. Key operating expenses run $263,789 at the fullest group and $271,852 at the emptiest, so $196,302 of the $203,502 revenue gap between them lands on earnings. Rent alone goes from 35.82% of revenue to 58.93%.
How long does a salon take to fill?
Month one averages $6,129 and month twelve $34,975, with month six at $27,848. By year the system runs $291,079, $397,177 and $411,265 across the first three, then holds between $385,178 and $397,446 through year six.
What does the brand take?
A 6% royalty with a $300 weekly minimum, a 2% brand development fund with a $110 weekly minimum. Required local marketing of $2,000 a month below 70% occupancy cost or $400 above. Property management software is $120 a month and the approved accounting vendor $500 a month for the first two years. At the fullest group that totals $54,850, or 10.32% of revenue.
What does it cost to open?
$773,392 to $1,734,462 for one salon, of which $484,831 to $1,135,081 is building work after any tenant improvement allowance and $122,783 to $241,803 is furniture, fixtures and equipment. The franchise fee is $64,500 plus a $6,500 site development fee. A typical build is 20 to 45 studios across 4,000 to 8,500 square feet.
- No median. Only an average is published, which a few large locations can lift on their own.
- No cost lines. Wages, rent and cost of goods are not broken out, so margin cannot be rebuilt from the document.
- No attainment figure. The filing does not say how many locations reached the average it publishes.
Questions worth putting to IMAGE Studios
The filing answers what it answers. These are the gaps an owner or a buyer should close directly.
- Is the profit figure in Item 19 before or after owner pay, and how many locations sit below it?
- What separates the highest-selling locations from the lowest: trade area, years open, size, or the owner?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many IMAGE Studios locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Finance Diagnostic runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. Checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →What is each empty studio costing?
A structured review of your unit economics, cash forecast. Reporting, built around sales per studio-week, rent and CAM as a share of collections. Where your occupancy cost sits against the filed groups.
Request the reviewthe franchise library, all 243 brands · how franchise unit economics work · running the books across several locations · what Averan does for franchise owners
IMAGE Studios reads against the rest of the salon suites group: MY SALON Suite · Phenix Salon Suites · Salons by JC · Sola Salon Studios. The salon suites guide compares all of them on the same figures.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?How royalty, ad fund and minimums actually work on a monthly statement.
- How much cash do I fund before a new location covers its own costs?A 13-week forecast for the months before break-even.
- My payroll percentage keeps climbing. Is that a payroll problem?Usually it is a revenue problem wearing a payroll costume.
- What does this location earn on the money I put into it?Payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?What a financial performance representation does and does not tell you.