OVO Salon franchise unit economics
OVO Salon franchisees run hair salons where stylists work as chair renters or commissioned independent contractors, and the salon's revenue comes from chair rental and commissions from stylists.
OVO Salon franchise at a glance
OVO Salon's Item 19 reports 2025 gross revenue, customer spend, transactions and expenses for its one affiliate-owned salon, with imputed franchise fees added to the expenses.
OVO Salon’s Item 19 covers one affiliate-owned salon in Cumming, Georgia, which had $748,885 of gross revenue in 2025, according to Item 19 of OVO Salon’s 2026 FDD, issued 30 April 2026. Fees paid to OVO Salon come to about 6.32%* of sales. An OVO Salon franchise costs $387,202 to $638,702 to open.
- An OVO Salon franchise costs $387,202 to $638,702 to open, according to Item 7, including the $69,000 initial franchise fee.
- OVO Salon charges a 6% royalty on gross revenue, a $199 monthly technology fee and a brand fund contribution that is 0% today and may rise to 2%.
- OVO Salon requires a minimum of $1,000 a month on local marketing, paid to third parties.
- OVO Salon customers spent $2,334,418 at that salon in 2025, on 16,347 transactions at an average of $143.
- OVO Salon’s affiliate salon showed $170,800, or 22.80% of gross revenue, after its disclosed expenses and imputed franchise fees.
- OVO Salon had 2 salons at December 31, 2025: the affiliate salon in Georgia and one franchised salon in Tennessee.
- OVO Salon's $170,800 left after disclosed expenses and imputed fees is 7.32%* of what customers spent at the salon.
These figures come from OVO Salon's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Averan OVO Salon Conversion Package →- The affiliate salon’s gross revenue was $748,885 in 2025, up from $695,277 in 2024. That is a rise of 7.71%*. Gross revenue includes $35,743 of stylists’ tips in 2025, and the stylist commission line includes the same tips.
- Customers spent $2,334,418 at the salon in 2025. Service sales were $2,188,983 and product sales $145,435. The salon’s gross revenue was 32.08%* of customer spend.
- The average transaction rose from $117 to $143 while transactions fell from 16,800 to 16,347. Item 19 prints the changes as 21.7% and −2.7%. Total customer spend rose 18.4%.
- The salon showed $170,800 after disclosed expenses and imputed franchise fees, or 22.80% of gross revenue. Item 19 calls this gross profit less disclosed expenses and imputed fees. The affiliate salon does not pay franchise fees, so Item 19 adds a royalty, local advertising and a technology fee as if it did.
- The 27 stylists listed in Item 19 have a median tenure of 123 months, or 10.25 years. The average is 111 months. The longest-serving stylist has 195 months and the newest 2. The salon has 23 chairs.
Revenue and costs
How much does an OVO Salon franchise make?
| Line | 2025 | % of gross revenue, 2025 | 2024 |
|---|---|---|---|
| Total gross revenue | $748,885 | 100% | $695,277 |
| Stylist commission | $166,593 | 22.24% | $152,353 |
| Cost of goods sold | $100,993 | 13.48% | $91,217 |
| Direct labor | $64,237 | 8.57% | $66,851 |
| Gross profit | $417,062 | 55.69% | $384,856 |
| Occupancy expense | $69,008 | 9.21% | $69,219 |
| Management salary | $39,538 | 5.28% | $33,705 |
| Merchant processing fees | $12,012 | 1.60% | $5,312 |
| Office supplies | $10,944 | 1.46% | $9,916 |
| Software licensing fees | $10,666 | 1.42% | $8,101 |
| Utilities | $9,496 | 1.27% | $8,579 |
| Cleaning expenses | $9,210 | 1.23% | $8,575 |
| Professional fees | $7,775 | 1.04% | $4,555 |
| Beverage bar | $7,136 | 0.95% | $6,622 |
| Repairs and maintenance | $4,822 | 0.64% | $2,823 |
| Insurance expense | $2,393 | 0.32% | $4,903 |
| Advertising and marketing | $2,093 | 0.28% | $1,029 |
| All other expenses | $3,941 | 0.53% | $11,887 |
| Gross profit less disclosed expenses | $228,028 | 30.44% | $209,630 |
| Imputed royalty | $44,933 | 6% | $41,716 |
| Imputed local advertising | $9,907 | 1.32% | $4,971 |
| Imputed technology fee | $2,388 | 0.32% | $1,500 |
| Gross profit less disclosed expenses and imputed fees | $170,800 | 22.80% | $161,443 |
Source: OVO Salon 2026 FDD, Item 19, Table 2. Unaudited. The brand fund is shown as N/A in both years. The 2024 percentage column is left out here: from office supplies downward it prints figures about one tenth of each line’s share of 2024 revenue.
The affiliate-owned salon in Cumming, Georgia had $748,885 of gross revenue in 2025. It is the one salon in Item 19. The franchised salon in Tennessee was left out because it was not open for a full 12 months. The salon opened in January 2009, has 3,600 square feet and 23 chairs, and is open 45 hours a week, Tuesday to Saturday.
Item 19 states that revenue from stylists includes chair rental and commissions from stylists. Gross revenue also includes stylists’ tips of $35,743 in 2025 and $31,827 in 2024, and the stylist commission line includes the same tips. Cost of goods sold covers retail products, commissions paid on product sales and products used in the salon.
After its disclosed expenses the salon showed $228,028, or 30.44% of gross revenue. Item 19 then deducts imputed franchise fees, because the affiliate salon pays no royalty, technology fee, brand fund contribution or local advertising requirement. The result is $170,800, or 22.80%.
The imputed local advertising of $9,907 is below the $12,000* a year that the $1,000 monthly minimum in Item 6 requires. With $12,000 in its place, the 2025 result would be $168,707*. In 2024 Item 19 imputed $4,971 of local advertising and $1,500 of technology fee.
The payroll detail in Table 3 totals direct labor at $67,051. Table 2 carries direct labor at $64,237, a difference of $2,814*. Item 19 does not explain the difference.
Customer spend
Customer spend and transactions, 2024 and 2025
| Year | Service sales | Product sales | Total sales | Transactions | Average transaction |
|---|---|---|---|---|---|
| 2024 | $1,837,219 | $133,875 | $1,971,094 | 16,800 | $117 |
| 2025 | $2,188,983 | $145,435 | $2,334,418 | 16,347 | $143 |
| Change | 19.1% | 8.6% | 18.4% | −2.7% | 21.7% |
Source: OVO Salon 2026 FDD, Item 19, Table 2a. These are sales to customers through the salon, not the salon’s own gross revenue.
Customers spent $2,334,418 on services and products at the affiliate salon in 2025. The salon’s own gross revenue of $748,885 was 32.08%* of that amount. In 2024 customers spent $1,971,094.
Services were $2,188,983 of customer spend and products $145,435. Product sales were 6.23%* of the total.
Transactions fell 2.7% and the average transaction rose 21.7%. The salon recorded 16,347 transactions at an average of $143 in 2025, against 16,800 at $117 in 2024.
Per chair, customer spend was $101,496* and the salon’s gross revenue $32,560*. Both divide the 2025 figures by the 23 chairs in Item 19, Table 1.
Stylists and staff
Stylist tenure and salon staff, 2025
| Measure | Months | Years |
|---|---|---|
| Median | 123 | 10.25 |
| Average | 111 | 9.25 |
| Highest | 195 | 16.25 |
| Lowest | 2 | 0.17 |
| Stylists above the average | 14 of 27 |
Source: OVO Salon 2026 FDD, Item 19, Table 4. Unaudited.
Item 19 does not split salons into performance bands. It reports one salon. Instead of a spread across salons, it lists the tenure of each of that salon’s 27 stylists.
The median stylist has worked at the salon for 123 months, or 10.25 years. 14 of the 27 stylists have been there for more than the average of 111 months. The salon has 23 chairs.
Direct labor in Table 3 is 1.89 full-time equivalents. Five guest relations staff make up 1.13 and laundry 0.75. Management labor adds 0.87 full-time equivalents, with total management salaries of $39,538.
Item 1 states that stylists may work as chair or booth renters or as 1099 independent contractors paid on commission. The franchisee must follow each state’s rules on those arrangements.
Brand charges
Brand charges
| Charge | Amount | On $748,885 of gross revenue |
|---|---|---|
| Royalty | 6% of gross revenue, monthly | $44,933 |
| Brand fund contribution | 0% today, may rise to 2% of gross revenue | $0, or $14,978* at 2% |
| Local marketing and advertising, paid to third parties | $1,000 a month minimum, may rise up to 5% a year | $12,000* |
| Technology fee | $199 a month, may rise up to 10% a year | $2,388 |
| Paid to the brand: royalty and technology fee | 6% plus $199 a month | $47,321*, or 6.32%* of gross revenue |
Source: OVO Salon 2026 FDD, Item 6. Dollar amounts on gross revenue are Averan calculations, except the royalty and technology fee, which match the imputed fees in Item 19. The $500 monthly software licensing fee and the local marketing minimum, both paid to third parties, are not included in the total.
OVO Salon charges a 6% royalty on gross revenue, paid monthly. Gross revenue is all revenue from the salon, less sales tax, documented refunds and documented promotional discounts.
The brand fund contribution is 0% today and may rise to 2% of gross revenue. At 2%, the total paid to the brand on the affiliate salon’s revenue would be $62,299*, or 8.32%*.
Two fixed charges can rise each year. The $1,000 monthly local marketing minimum may rise up to 5% a year and the $199 technology fee up to 10% a year. Payments to an advertising cooperative count toward the local minimum; none has been formed.
Franchisees also pay a $500 monthly software licensing fee to third parties for the POS system and QuickBooks. The affiliate salon’s software licensing fees were $10,666 in 2025, inside its disclosed expenses.
Against customer spend of $2,334,418, the $47,321 paid to the brand is 2.03%*. Other Item 6 charges arise at set points: a $10,000 transfer fee, a $5,000 successor term fee and $500 a day for remedial training.
Cost to open
Cost to open
| Line | Low | High |
|---|---|---|
| Initial franchise fee | $69,000 | $69,000 |
| Training expenses | $750 | $2,500 |
| Premises deposits | $19,270 | $25,580 |
| Construction management fee | $0 | $10,000 |
| Leasehold improvements, construction and remodeling | $94,814 | $228,231 |
| Furniture and fixtures | $6,121 | $8,271 |
| Equipment | $97,200 | $151,874 |
| Signage, interior and exterior | $12,585 | $23,486 |
| Business licenses and permits | $180 | $180 |
| Computer systems | $5,089 | $9,289 |
| Initial inventory | $14,315 | $24,896 |
| Printing, stationery and office supplies | $783 | $1,057 |
| Professional fees | $14,426 | $14,426 |
| Grand opening advertising | $7,500 | $10,000 |
| Insurance | $3,209 | $3,209 |
| Additional funds, 3 months | $41,960 | $56,703 |
| Total | $387,202 | $638,702 |
Source: OVO Salon 2026 FDD, Item 7. The lines add to the printed totals.
Item 7 puts the cost to open one OVO Salon at $387,202 to $638,702. Of that, $69,000 is paid to the franchisor, which is 17.82%* of the low total.
Equipment is $97,200 to $151,874. The low end assumes 17 styling stations and the high end 28 stations, 6 shampoo bowls, a color bar, retail racks, a stylist breakroom and a washer and dryer. That is $5,718* a station at the low end and $5,424* at the high end.
Leasehold improvements are $94,814 to $228,231 for a space of about 2,500 square feet. The low end assumes a light retrofit or a landlord allowance; the high end assumes no allowance, a larger space and no free rent. The affiliate salon in Item 19 has 3,600 square feet.
Additional funds of $41,960 to $56,703 cover the first 3 months. They include rent, utilities, initial payroll and payroll taxes, and advertising and technology fees. The franchisor based the estimate on the licensed salon in Cool Springs, Tennessee.
A 3-salon development agreement costs $129,000 and a 5-salon agreement $179,000. That is $43,000 and $35,800 a salon. First responders and honorably discharged veterans receive 10% off the initial franchise fee. Item 11 puts the typical time from signing to opening at about 12 months.
Locations
Locations, 2023 to 2025
| Year | Franchised, start | Franchised, end | Affiliate-owned, start | Affiliate-owned, end | Total, end |
|---|---|---|---|---|---|
| 2023 | 0 | 0 | 2 | 1 | 1 |
| 2024 | 0 | 0 | 1 | 1 | 1 |
| 2025 | 0 | 1 | 1 | 1 | 2 |
Source: OVO Salon 2026 FDD, Item 20, Tables 1, 3 and 4.
OVO Salon had 2 salons at December 31, 2025. One is the affiliate-owned salon in Cumming, Georgia, and one is a franchised salon in Tennessee that opened in 2025.
The Tennessee salon in Cool Springs began under a know-how license agreement that the founder offered in 2024. OVO Salons Franchise, LLC was formed on January 27, 2025 and began offering franchises on October 23, 2025.
A second affiliate-owned salon in Georgia left the system in 2023. Item 20 states that the founder sold her interest in it to her partner, who agreed to stop using the OVO Salon marks.
No franchise agreements were signed but not yet open at December 31, 2025. The franchisor projected 16 franchised openings in the next fiscal year across 12 states. No franchised salons were terminated, not renewed, reacquired or transferred from 2023 to 2025.
The territory has a population of about 75,000 or a 3-mile radius, whichever is smaller. Item 12 states that the territory is not exclusive.
Questions we get asked
Questions owners ask
How much does it cost to open an OVO Salon franchise?
Item 7 of the 2026 FDD puts the total at $387,202 to $638,702 for one salon. That includes the $69,000 initial franchise fee. The largest lines are leasehold improvements, at $94,814 to $228,231, and equipment, at $97,200 to $151,874.
What fees does an OVO Salon franchisee pay?
The royalty is 6% of gross revenue. The brand fund contribution is 0% today and may rise to 2%. Franchisees must spend at least $1,000 a month on local marketing and pay a $199 monthly technology fee and a $500 monthly software licensing fee to third parties. On the affiliate salon’s 2025 gross revenue, the royalty and technology fee paid to the brand come to $47,321*, or 6.32%*. The local marketing minimum adds $12,000 spent with third parties.
How much revenue does an OVO Salon make?
Item 19 covers one affiliate-owned salon in Cumming, Georgia, open since January 2009. Its gross revenue was $748,885 in 2025 and $695,277 in 2024. Customers spent $2,334,418 on services and products there in 2025.
How much does an OVO Salon keep?
After its disclosed expenses and imputed franchise fees, the affiliate salon showed $170,800 in 2025, or 22.80% of gross revenue. Item 19 calls this gross profit less disclosed expenses and imputed fees. It is unaudited.
How many OVO Salon locations are there?
Item 20 shows 2 salons at December 31, 2025: one affiliate-owned salon in Georgia and one franchised salon in Tennessee. The franchisor projected 16 franchised openings in the next fiscal year.
How long does it take to open an OVO Salon?
Item 11 puts the typical time from signing the franchise agreement to opening at about 12 months. A franchisee that has not opened within 12 months needs the franchisor’s consent to extend.
Questions worth putting to OVO Salon
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 OVO Salon 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 OVO Salon 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 an OVO Salon owner
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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 OVO Salons Franchise, LLC’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. OVO Salon 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: OVO Salons Franchise, LLC, 2026 Franchise Disclosure Document, issued 30 April 2026.