Salons by JC franchise unit economics
Salons by JC franchisees build a 5,000 to 7,000 square foot location divided into private salon suites and sublease those suites to independent beauty and wellness practitioners, earning rent. Across 147 operational franchised salons the smallest group ran 89.59% occupancy cost on $459,380 of gross sales, while the largest ran 78.42% on $714,041. A leased suite produces about $16,400 a year whatever the salon’s size.
- Primary source
- J ’N C Real Estate Development, 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
- Population
- 142 of 154 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.
A leased suite produces about $16,400 a year here, and that holds across every size of salon. What changes is how many of them are let: 89.59% in the smallest group and 78.42% in the largest. Twelve months after opening the gap is wider still, 90.89% against 68.36%.
- Building costs falls 11.17 points as salons get bigger. 89.59% in the 4,500 to 6,500 square foot group and 78.42% above 8,500 *, so the larger box buys revenue and gives back fill rate.
- A small salon is full at twelve months; a large one is two thirds full. 90.89% against 68.36% *, a 22.53-point difference in how fast the building pays for itself.
- A leased suite produces about $16,400 a year regardless of salon size. $16,541, $16,495 and $16,303 across the first three groups *, so the business is suites let.
- The advertising requirement rises as occupancy cost falls. $1,500 a month below 50% occupancy cost, $1,000 between 50% and 75%. $600 above it, a $10,800 annual swing that lands when the salon can least afford it.
- The build is $1,352,200 to $1,900,500 before a landlord allowance averaging $429,853. Which the estimates leave out *, so the net figure is closer to $922,347 to $1,470,647.
How much does a Salons by JC franchise make?
The average Salons by JC unit reported $509,569 of revenue in the 2026 FDD. The brand’s disclosure document discloses revenue and not profit, so what an owner keeps depends on the cost structure set out below. Fees come off the top first, at about 7.9% 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 Salons by JC performers
Salons by JC splits its locations into groups instead of publishing one average. The best group averaged $714,041 a year. The worst averaged $459,380. 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 4,500 to 6,500 square feet. What you can sell is set by the build, and the build does not change after opening.
- What you spend to open.Opening costs $1,352,200 to $1,900,500, a 1.4× 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
- Suites rented, the operating driver.This model bills on suites rented. The suites are built once and then let, so the business is how many are occupied and how long each tenant stays. 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 7.9% 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.142 of 154 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 profit or cost data for franchised locations, no median, no attainment figure. Anything below the sales line has to come from the franchisor or from owners you call.
Bigger box, emptier box
Every extra square foot costs a point of occupancy cost.
| Salon size | Salons | Building costs | Gross sales | Suites * | Revenue a leased suite * |
|---|---|---|---|---|---|
| 4,500 to 6,500 sq ft | 30 | 89.59% | $459,379.97 | 31 | $16,541 |
| 6,500 to 7,500 sq ft | 39 | 85.81% | $509,568.59 | 36 | $16,495 |
| 7,500 to 8,500 sq ft | 36 | 84.18% | $562,664.29 | 41 | $16,303 |
| Over 8,500 sq ft | 37 | 78.42% | $714,041.30 | 49 | $18,582 |
The salon counts, occupancy cost rates and gross sales are as the brand reported it. The suite counts come from the separate five-year opening table and the per-suite figures divide sales by leased suites, marked *.
Revenue rises 55% from the smallest group to the largest while occupancy cost falls 11.17 points. $459,380 to $714,041 *, so the bigger salon does earn more, and it does so by carrying more empty suites.
A leased suite returns about $16,400 a year in the first three groups. $16,541, $16,495 and $16,303 *, within 1.5% of each other.
The largest group breaks that pattern at $18,582 a leased suite. *, consistent with the biggest salons sitting in the highest-selling markets, where the suite rent itself is higher.
The brand’s own salons sit almost entirely outside the recommended size. Nine of its 12 reporting locations exceed 7,500 square feet, so the company table describes a different building from the one a franchisee is guided to.
Company salons above 8,500 square feet billed $1,155,023. Against $714,041 for franchised ones in the same group, at 87.06% occupancy cost against 78.42%, on a sample of two.
How fast it fills
The small salon fills in a year. The big one is still filling.
| Salon size | Salons | Total suites | Leased at 12 months | Building costs at 12 months | Highest | Lowest |
|---|---|---|---|---|---|---|
| 4,500 to 6,500 sq ft | 4 | 31 | 28 | 90.89% | 31 | 27 |
| 6,500 to 7,500 sq ft | 12 | 36 | 28 | 80.01% | 38 | 16 |
| 7,500 to 8,500 sq ft | 13 | 41 | 29 | 70.97% | 39 | 12 |
| Over 8,500 sq ft | 20 | 49 | 34 | 68.36% | 55 | 10 |
Every figure is as the brand reported it for operational franchised salons opened during the previous five years, measured after their first year of operation.
The smallest group is already past its own mature occupancy cost at twelve months. 90.89% against 89.59% *, so a small salon reaches steady state inside a year and then holds.
The largest group still has 10.06 points to climb after a year. 68.36% against a mature 78.42% *, which on 49 suites at about $16,400 each is roughly $80,900 of revenue still to arrive.
The range inside the largest group runs from 10 leased suites to 55. Against 27 to 31 in the smallest, so the big format produces both the best and the worst first years in the system.
Every extra suite let at twelve months is worth about $16,400 a year. *, and the gap between the median and the low in the 7,500 to 8,500 group is 17 suites, or roughly $277,000.
Twenty of the 49 recently opened salons are above 8,500 square feet. 41% of them, the size group with the slowest fill and the widest first-year range.
Fees and what it costs to open
Seven and a half percent, and an advertising bill that rises when you empty.
| Charge | Rate | 4,500–6,500 | 6,500–7,500 | 7,500–8,500 | Over 8,500 |
|---|---|---|---|---|---|
| Royalty | 5.5% or $500 a month | $25,266 | $28,026 | $30,947 | $39,272 |
| Brand development fund | 1%, cap 3% | $4,594 | $5,096 | $5,627 | $7,140 |
| Local marketing | $600 to $1,500 a month by occupancy cost | $7,200 | $7,200 | $7,200 | $7,200 |
| Total | n/a | $37,060 | $40,322 | $43,773 | $53,613 |
| Share of sales | n/a | 8.07% | 7.91% | 7.78% | 7.51% |
The rates and minimums are as the brand reported it and the dollar figures apply them to each group's filed gross sales at its filed occupancy cost, marked *.
The local marketing requirement is set by occupancy cost. $1,500 a month under 50%, $1,000 from 50% to 75% and $600 above it, a $10,800 annual swing. Every group in this system sits in the cheapest tier.
A salon that drops below 50% occupancy cost pays $18,000 a year of advertising. On top of royalty and the brand fund *, so the requirement bites hardest exactly when suites are empty.
The $500 monthly minimum royalty holds until sales reach $109,091. *, well below every group here, so the percentage governs throughout, and it is waived for the first 90 days.
The brand fund may triple from 1% to 3%. Which at the largest group would add $14,281 a year *, worth modeling, since the cap is stated and the current rate is a third of it.
Four franchisees had royalties discounted to between $600 and $800 during 2025. And three were granted deferments, so the stated 5.5% is negotiable in practice when a salon struggles.
Territory and the system
Two miles, and a building that costs more than the business bills.
| Measure | Low | High |
|---|---|---|
| Total investment | $1,352,200 | $1,900,500 |
| Construction and building work | $875,000 | $1,260,000 |
| Furniture, fixtures and equipment | $235,000 | $310,000 |
| Professional fees | $75,000 | $89,000 |
| Less average landlord allowance | $429,853 | |
| Net build * | $922,347 | $1,470,647 |
Every investment line and the five-year average tenant improvement allowance are as the brand reported it. The net build subtracts one from the other, marked *.
The gross build is 2.65 to 3.73 times a mid-group salon’s annual sales. And 1.81 to 2.89 times once the landlord allowance is applied *, which is why that allowance is the single most important number to negotiate.
Professional fees of $75,000 to $89,000 are unusually large for a franchise build. Because the model subleases space to independent operators, so the lease and license documents have real legal weight.
Additional funds cover only three months at $10,000 to $20,000. Against a format where the largest group is still 10 points short of mature occupancy cost after a full year. So the working capital assumption and the fill curve point in different directions.
The territory is generally two miles by road and expressly non-exclusive. The brand keeps out another Salons by JC location. But other franchisees and affiliate salons may sign operators who live inside your territory, so the protection covers the building.
The system added 30 salons in three years and 2 in the last one. 124 to 154 franchised, while company-owned rose from 11 to 14, so growth slowed sharply in 2025.
Questions we get asked
Questions an owner asks.
What does a Salons by JC location bill?
In 2025, franchised salons of 4,500 to 6,500 square feet averaged $459,380 of gross sales, 6,500 to 7,500 averaged $509,569, 7,500 to 8,500 averaged $562,664 and those above 8,500 averaged $714,041. Revenue is suite rent.
What is occupancy cost doing?
Falling as salons get bigger, 89.59%, 85.81%, 84.18% and 78.42% across the four size groups. At twelve months after opening the pattern is sharper still: 90.89%, 80.01%, 70.97% and 68.36%.
What is a suite worth?
About $16,400 a year in the first three groups, on our reading, $16,541, $16,495 and $16,303 per leased suite. The largest group runs higher at $18,582, consistent with those salons sitting in stronger markets.
What does the brand take?
The greater of 5.5% of gross sales or $500 a month in royalty, waived for the first 90 days. 1% to the brand development fund with a 3% cap. Local marketing runs $600 to $1,500 a month depending on occupancy cost. On our reading the total is 7.5% to 8.1% of sales across the four groups.
Why does the advertising requirement move?
Because it is set by occupancy cost. Below 50% occupancy cost the minimum is $1,500 a month, between 50% and 75% it is $1,000, and above 75% it drops to $600. That is a $10,800 annual swing, and it rises exactly when suites are sitting empty.
What does a salon cost to build?
$1,352,200 to $1,900,500 for 5,000 to 7,000 square feet, of which construction and building work are $875,000 to $1,260,000 and fixtures $235,000 to $310,000. Franchisees have averaged $429,853 of landlord allowance over five years, which the estimates leave out, so the net figure is nearer $922,347 to $1,470,647.
What territory do you get?
Generally two miles from the location in all directions travelable by road, smaller in dense downtowns and possibly limited to a single building in a captive-market site. An exclusive territory is expressly excluded: the brand will keep another Salons by JC out of it. But other franchisees and affiliate salons may sign operators who live there.
Which two numbers should run monthly?
Building costs against 85%, because it sets both your revenue and your advertising bill, and because crossing 75% cuts the requirement from $1,000 to $600 a month. And leased suites, because each one has about $16,400 a year and that figure changes littlewith the size of the building.
- No median. Only an average is published, which a few large locations can lift on their own.
- No profit figure. The filing reports sales and not earnings, so what an owner keeps is not disclosed.
- 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 Salons by JC
The filing answers what it answers. These are the gaps an owner or a buyer should close directly.
- What do locations at the median spend on wages and rent as a share of sales? The filing reports sales only.
- 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 Salons by JC 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 →How many suites are let this month?
A structured review of your unit economics, cash forecast. Reporting, built around $16,400 a leased suite, an 85% occupancy cost line that sets your advertising bill. A landlord allowance averaging $429,853 that the investment estimates leave out.
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Salons by JC reads against the rest of the salon suites group: IMAGE Studios · MY SALON Suite · Phenix Salon Suites · 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.
- How much of Item 19 can I rely on?What a financial performance representation does and does not tell you.
- What should I be looking at every week?The handful of numbers that move before the P&L does.