Merle Norman Cosmetics franchise unit economics
Merle Norman Cosmetics studio owners run retail studios that sell the franchisor’s skin care and color cosmetics and give free makeover lessons.
Merle Norman Cosmetics franchise at a glance
Merle Norman Cosmetics’ 2026 FDD, issued 14 May 2026, makes no financial performance representation in Item 19, so it gives no sales or profit figure. A Merle Norman Cosmetics studio costs $47,870 to $262,938 to open depending on format, and none of the three Item 7 totals includes rent.
- Merle Norman Cosmetics charges no initial franchise fee, no royalty and no advertising fund contribution; a new studio must buy an initial package of product and supplies for $24,861 to $46,926.
- Merle Norman Cosmetics lists recurring service charges in Item 6 that add to $1,228 a year* for a studio enrolled in all of them.
- Merle Norman Cosmetics reports that studio purchases of additional product ranged from $1,956 to $297,728 in its 2025 fiscal year, at wholesale prices.
- Merle Norman Cosmetics had 757 franchised studios and no company-owned studios at December 31, 2025, down from 858 at the start of 2023.
- Merle Norman Cosmetics studios opened 4 and ceased operations 44 in 2025, and 33 studios transferred to new owners.
These figures come from Merle Norman Cosmetics's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors. The $1,228 a year of service charges is an Averan total of the Item 6 amounts.
Own this franchise?
See what your numbers should look like every month.
Talk to Averan → Averan Merle Norman Cosmetics Conversion Package →- Merle Norman Cosmetics charges no franchise fee, royalty or advertising fund contribution. Item 5 states there is no required initial franchise fee, and Item 6 lists no royalty or fund contribution. The recurring charges in Item 6 are for point-of-sale support and marketing services, $1,228 a year* for a studio enrolled in all of them.
- Studio purchases of additional product ran from $1,956 to $297,728 in 2025. Item 6 reports this range for the franchisor’s 2025 fiscal year. The figures are wholesale purchases from the franchisor, not studio sales, and the highest is 152 times* the lowest.
- The three Item 7 totals exclude rent. Item 7 states rents for a suitable site of $102 to $342 a square foot a year. On a regional mall studio of 400 to 600 square feet that is $40,800 to $205,200 a year*.
- The studio count fell from 858 to 757 between the start of 2023 and the end of 2025. Item 20 shows 22 openings* against 7 terminations* and 116 studios that ceased operations for other reasons* over the three years. There were no company-owned studios in any year.
- A studio owner may end the agreement without cause on 10 days’ written notice. Item 17 shows the term is 10 years from opening with a single 10-year renewal, and the franchisor has no right to terminate without cause.
Revenue
What the Merle Norman Cosmetics FDD discloses about revenue
The 2026 Merle Norman Cosmetics FDD makes no financial performance representation. Item 19 states that the franchisor makes no representations about a franchisee’s financial performance or the past financial performance of company-owned or franchised outlets. There is no average, median or profit figure to report.
A buyer of an existing studio may receive that studio’s actual records. Item 19 allows this. Exhibit F.1 lists every studio owner with the studio address and telephone number, and Item 20 states that the franchisor signed no confidentiality clauses with current or former studio owners in the last three fiscal years.
The one figure on studio activity is the range of product purchases. Item 6 reports that studio purchases of additional product ranged from $1,956 to $297,728 in the 2025 fiscal year. These are purchases at wholesale prices. A studio’s retail sales would be its purchases plus the margin it holds on them, and the FDD gives no retail sales figure.
The franchisor’s own net sales were $50,719,000 in 2025. The Item 21 financial statements show $52,668,000 in 2024 and $54,584,000 in 2023. That total includes sales to studios, online sales to retail customers and co-op advertising revenue, so it is not a measure of studio revenue.
Product purchases
Product purchases by studios, 2025
| Measure | Lowest studio | Highest studio |
|---|---|---|
| Purchases in the year | $1,956 | $297,728 |
| Purchases a month | $163* | $24,811* |
| Compared with the lowest studio | n/a | 152 times* |
Source: Merle Norman Cosmetics 2026 FDD, Item 6, note 3. Figures are purchases from the franchisor at wholesale prices after a studio opens, not studio sales. The FDD gives no average or median.
The highest-purchasing studio bought 152 times* as much product as the lowest in 2025. That is $163 a month* at the low end and $24,811 a month* at the high end. The FDD reports the two ends of the range and nothing between them.
Item 6 lists the factors the franchisor says affect purchases. They are the owner’s plans for the business, whether another business operates at the studio, the retail maturity of the location, the owner’s management skill and experience, the local market and competition.
Returns of additional product are limited. Item 6 note 2 allows returns for shipping or ordering errors reported within 10 days, a studio closure, or certain products under the Premiere Privilege Return Policy postmarked within 60 days of the invoice. Returned product must be current, in original packaging and saleable.
Account credits
Programs that credit the studio account
| Program | Amount | Condition |
|---|---|---|
| Studio Branch Bonus Program | $5,000 a branch | Each net new branch studio an existing owner opens; repayable if it closes within 3 years |
| Studio Referral Program | $5,000 a referral | Each referred applicant who opens a new studio within one year |
| Point-of-sale software, branch studios | 33% discount credit | On the $1,800 software purchase for each branch studio |
| Studio’s Choice Co-operative Advertising | 60% of approved costs | Local advertising approved in advance by the franchisor |
| Online Sales Revenue Allocation | 50% of wholesale cost | Online orders where the customer selects the studio or it is chosen from participating studios within 20 miles |
Source: Merle Norman Cosmetics 2026 FDD, Items 1, 5, 7, 11 and 12. All credits are made to the studio account. The franchisor may change or end the incentive programs and may vary the co-op share.
Local advertising is not required, and the franchisor currently reimburses 60% of approved local advertising costs. Item 11 describes this as the Studio’s Choice Co-operative Advertising Program. Requests are filed within 60 days after the advertising runs and are credited to the studio account. Advertising outside the studio’s trade area is not allowed.
The online program credits 50% of the wholesale cost of a qualifying order within 30 days. The franchisor fills and ships the order and debits the studio account for any return. Where the customer selects no studio and no participating studio is within 20 miles, the franchisor keeps the sale. To take part, a studio must be on the 2005 or later agreement, be current on its obligations, process cards through the franchisor’s processor and join the SOCi social media service.
The two $5,000 credits apply to new studios. A studio bought from an existing owner does not qualify for either the branch credit or the referral credit.
Studio formats
Studio formats, space and rent
| Format | Typical space | Total investment, rent excluded | Rent a year at $102–$342 a sq ft |
|---|---|---|---|
| Regional mall | 400–600 sq ft | $134,470–$262,938 | $40,800–$205,200* |
| Strip center or other location | 800–1,800 sq ft | $88,404–$154,896 | $81,600–$615,600* |
| Inside an existing business | 200–500 sq ft | $47,870–$84,481 | $20,400–$171,000* |
Source: Merle Norman Cosmetics 2026 FDD, Item 7 and its note 3, and Item 11. Item 7 gives one rent range for all locations; applying it to each format’s space range is an Averan calculation and gives the widest possible span. A studio inside an existing business may not pay separate rent.
Item 19 does not report results by studio, so it gives no bands, quartiles or rankings. The FDD does split the cost to open by format, and this section sets the three formats side by side.
A regional mall studio costs $86,600* more than a studio inside an existing business at the low end of Item 7, and $178,457* more at the high end. Construction is $20,790 to $96,000 in a mall and $9,240 to $31,500 in other locations, and there is no construction line for a studio inside an existing business.
Item 7 states that rents for a suitable site vary from $102 to $342 a square foot a year. The franchisor adds that rent depends so much on local conditions that any estimate may prove inaccurate, and that in new shopping centers a tenant may have to pay part of the cost of completing the space.
Studios typically open 4 to 8 months after the agreement is signed. Item 11 says a studio inside an existing retail business typically opens sooner, and one in a shopping center under construction may take up to 12 months.
Brand charges
Brand charges
| Charge | Amount | A year | Paid to |
|---|---|---|---|
| Initial franchise fee | None | None | n/a |
| Royalty | None | None | n/a |
| Advertising fund | None | None | n/a |
| Point-of-sale upgrades and support | $25 a month | $300 | Franchisor |
| Digital email marketing | $28 a month | $336 | Franchisor, for Constant Contact |
| SMS texting marketing (needs email service) | $14 a month | $168 | Franchisor, for Constant Contact |
| Studio microsite license (waived for Gold Medallion studios) | $15 a month | $180 | Franchisor, for SOCi |
| Microsite maintenance and content | $25 a quarter | $100 | Franchisor, for SOCi |
| Social media management (needed for the online program) | $144 a year | $144 | Franchisor, for SOCi |
| All recurring charges | $1,228* |
Source: Merle Norman Cosmetics 2026 FDD, Item 5 and Item 6. The point-of-sale software itself costs $1,800 once and sits in the Item 7 computer line. No percentage-of-sales charge is listed, so no fee share of sales can be computed, and there is no Item 19 average to compare the fixed charges with.
No charge in Item 6 is a percentage of sales. The franchisor charges no initial franchise fee, no royalty and no advertising fund contribution. Its income from a studio comes from the initial package and the additional product the studio buys at wholesale.
The recurring charges add to $1,228 a year* for a studio enrolled in every service. Point-of-sale upgrades and support are required for one year, and for longer while any amount financed through the franchisor for the point-of-sale system is unpaid. The social media service is required to take part in the online program, and the texting service requires the email service.
The initial package of product and supplies is the main payment to the franchisor at opening. It costs $24,861 to $46,926 ($23,438 to $46,926 for studios outside a regional mall). A new owner pays 55% at the end of initial training and the rest in 3 equal monthly installments with no interest; a branch owner pays 30% before shipment. Product in the package may be exchanged within 90 days. A buyer of an existing studio does not have to place an initial order.
Initial training and point-of-sale training carry no tuition fee. The owner pays travel and living costs for any additional training held in person. Studios must process card payments through the franchisor’s card processor.
Cost to open
Cost to open
| Line | Regional mall | Other location | Inside an existing business |
|---|---|---|---|
| Initial package of inventory and supplies | $24,861–$46,926 | $23,438–$46,926 | $24,861–$46,926 |
| Millwork fixtures | $23,025–$26,308 | $15,725–$19,075 | $8,082–$9,999 |
| Construction | $20,790–$96,000 | $9,240–$31,500 | Not listed |
| Working capital, deposits, insurance and advertising | $46,200–$63,525 | $20,790–$28,875 | $1,732–$4,042 |
| Acrylic organizers | $4,231–$5,121 | $4,231–$5,121 | $44,231–$6,730 as printed |
| Exterior signage | $3,500–$6,000 | $3,500–$6,000 | $300–$2,500 |
| Flooring | $3,200–$5,300 | $2,000–$3,200 | Not listed |
| Computer hardware and software | $1,800–$5,390 | $1,800–$5,390 | $1,800–$5,390 |
| Interactive play table | $2,500 | $2,500 | $2,500 |
| Lighting | $1,850–$2,600 | $1,850–$2,600 | $1,850–$2,600 |
| Tables and chairs | $1,160 | $1,160–$1,685 | $1,160–$1,685 |
| Other fixtures (graphics, mirrors, merchandising pieces, digital stick) | $1,353–$2,108* | $747–$2,023* | $1,353–$2,108* |
| Real estate | Variable | Variable | Variable |
| Printed total | $134,470–$262,938 | $88,404–$154,896 | $47,870–$84,481 |
Source: Merle Norman Cosmetics 2026 FDD, Item 7. The “other fixtures” row combines four printed lines (Averan). Totals exclude rent, freight, installation and sales tax. Working capital covers about 6 months of start-up expenses and no owner salary.
The regional mall column adds exactly to its printed totals; the other two columns do not. The lines of the other-location column add to $86,981 to $154,895* against a printed $88,404 to $154,896. The acrylic organizer line inside an existing business prints as $44,231 to $6,730; read as $4,231, that column adds to $47,869 to $84,480* against a printed $47,870 to $84,481.
Item 8 puts the initial package at about 8% to 58% of the cost of establishing a studio. The franchisor’s revenue from initial packages in 2025 was $86,958, about 0.16% of its total revenue.
Qualifying for the Gold Medallion Program after opening may cost $0 to $10,500. That covers fixtures, renovations and signs. The program is optional for new studios and required for newly developed branch studios.
The point-of-sale software costs $1,800 and must be bought from the franchisor. Item 7 puts computer hardware at $950 to $1,100 from any source.
Locations
Locations, 2023 to 2025
| Measure | 2023 | 2024 | 2025 | Three years |
|---|---|---|---|---|
| Studios at start | 858 | 831 | 797 | 858 |
| Opened | 13 | 5 | 4 | 22* |
| Terminated | 3 | 4 | 0 | 7* |
| Non-renewed | 0 | 0 | 0 | 0 |
| Reacquired by the franchisor | 0 | 0 | 0 | 0 |
| Ceased operations, other reasons | 37 | 35 | 44 | 116* |
| Studios at end | 831 | 797 | 757 | 757 |
| Net change | -27 | -34 | -40 | -101* |
| Exits as a share of studios at start | 4.66%* | 4.69%* | 5.52%* | 14.3%* |
| Transfers to new owners | 27 | 32 | 33 | 92* |
Source: Merle Norman Cosmetics 2026 FDD, Item 20, Tables 1 to 3. Exits are terminations plus studios that ceased operations for other reasons. The franchisor operated no studios in any year.
Merle Norman Cosmetics ended 2025 with 757 franchised studios, 101* fewer than at the start of 2023. That is a fall of 11.8%* over three years. The yearly net change was -27, -34 and -40 studios.
Most exits were studios that ceased operations, not terminations. Over the three years there were 7 terminations* and 116 studios that ceased operations for other reasons*. The studio agreement lets an owner terminate without cause on 10 days’ written notice.
33 studios transferred to new owners in 2025. Transfers were 27 in 2023 and 32 in 2024. In 2025 the most were in Georgia (7), Tennessee (4) and Texas (4). The franchisor runs a Studio Resale Program to help owners find buyers and charges no fee for it.
Item 20 shows no signed agreements for unopened studios at the end of 2025 and projects 11 new franchised studios in 2026. Exhibit F.2 is described as listing 40 former owners for the last fiscal year, while Table 3 shows 44 studios that ceased operations in 2025.
Studio owners receive no exclusive territory. Item 12 lets the franchisor place other studios and other outlets selling its products at any location regardless of distance. A studio may sell only to customers present at the studio and at approved marketing events.
Questions we get asked
Questions owners ask
How much does it cost to open a Merle Norman Cosmetics studio?
Item 7 estimates $134,470 to $262,938 in a regional mall, $88,404 to $154,896 in another location and $47,870 to $84,481 inside an existing business. None of these totals includes rent, which Item 7 puts at $102 to $342 a square foot a year. Each total includes the initial package of product and supplies, $24,861 to $46,926.
What fees does Merle Norman Cosmetics charge?
There is no initial franchise fee, no royalty and no advertising fund contribution. Item 6 lists point-of-sale support at $25 a month and marketing services from $100 to $336 a year each; a studio enrolled in all of them pays $1,228 a year*. The franchisor earns its income on product the studio buys at wholesale.
How much does a Merle Norman Cosmetics studio make?
The 2026 FDD has no Item 19, so it gives no average revenue, median revenue or profit. Item 6 reports that studio purchases of additional product ranged from $1,956 to $297,728 in 2025, at wholesale prices. A buyer of an existing studio may receive that studio’s actual records.
How many Merle Norman Cosmetics studios are there?
There were 757 franchised studios and no company-owned studios at December 31, 2025. The count was 858 at the start of 2023. In 2025, 4 studios opened, 44 ceased operations and 33 transferred to new owners.
Does a Merle Norman Cosmetics studio get a protected territory?
No. Item 12 grants no exclusive territory, and the franchisor may place other studios and outlets at any distance. Under the online program, a participating studio may be credited 50% of the wholesale cost of online orders from customers who select it or are within 20 miles.
How long is the Merle Norman Cosmetics studio agreement?
The term is 10 years from the date the studio opens, with a single 10-year renewal. The owner may terminate without cause on 10 days’ written notice. The franchisor may terminate for default and has no right to terminate without cause.
Questions worth putting to Merle Norman Cosmetics
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- Which factors does Merle Norman Cosmetics see in its highest-selling locations, such as territory, years open and staffing?
- 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 Merle Norman Cosmetics locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check 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. It also checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Reporting for a Merle Norman Cosmetics owner
We review your unit economics and cash forecast and build your monthly reporting around the figures on this page.
Talk to Averanthe franchise library, all 431 brands · how franchise unit economics work · running the books across several locations · what Averan does for franchise owners
Other brands in the Health and Wellness guide:
All 38 brands
- 4Ever Young
- AFC Urgent Care
- Any Lab Test Now
- ARCpoint Labs
- beem Light Sauna
- Castle Rock Hormone Health
- ChiroWay
- Clean Your Dirty Face
- Clear Lakes Dental
- Degree Wellness
- dermani MEDSPA
- Elements Massage
- FYZICAL
- Hand & Stone
- HB Wellness
- HealthSource Chiropractic
- Heights Wellness Retreat
- HOTWORX
- Hydrate IV
- Live Hydration Spa
- Massage Envy
- MassageLuXe
- MaxLiving
- Medi-Weightloss
- Pause Studio
- Perspire Sauna Studio
- Prime IV Hydration
- QC Kinetix
- Restore Hyper Wellness
- Serotonin
- Spavia
- SweatHouz
- The DRIPBaR
- The Joint Chiropractic
- The NOW Massage
- Upgrade Labs
- VIO Med Spa
- Woodhouse Spa
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?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
Where these figures come from
Every figure here comes from Merle Norman Cosmetics, Inc.’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear. The figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Merle Norman Cosmetics is a trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Merle Norman Cosmetics, Inc., 2026 Franchise Disclosure Document, issued 14 May 2026.