Townhouse franchise unit economics
Townhouse franchisees run nail salons, typically in shopping or entertainment areas, that sell nail treatments, events, drinks, memberships, treatment series and retail products.
Townhouse in the news
- Townhouse Taps Veteran Franchise and Quick-Service Restaurant Executives to Fuel U.S. Expansion · Franchising.com ·
- Townhouse Signs 40-Salon Development Agreement for Italy · Franchising.com ·
Each Townhouse headline above is the publisher's own and links to the publisher. Averan Advisors checked these Townhouse links on 11 October 2026. Franchise news lists news on 88 brands, including Townhouse. Townhouse is in the Health and Wellness franchise guide.
Townhouse franchise at a glance
Townhouse’s 2026 FDD, issued 28 January 2026, makes no financial performance representation in Item 19, so it gives no sales or profit figure. A Townhouse franchise costs $604,100 to $759,700 to open, of which $50,000 is paid to the franchisor.
- A Townhouse franchise costs $604,100 to $759,700 to open, according to Item 7, of which $50,000 is paid to the franchisor.
- Townhouse charges a 7% service fee and a 2% Brand Marketing Fund contribution on Net Revenue, 9%* in all, plus a $100 monthly booking platform fee.
- Townhouse’s Net Revenue includes gift cards at their sale value when sold, and excludes retail products sold in store and treatments paid for by gift card, membership, treatment series or loyalty point redemptions.
- Townhouse had no franchised salons at December 31, 2025, and 4 salons operated by an affiliate: 2 in California and 2 in New York.
- A Townhouse franchise term is 10 years from the salon’s opening, with one further 10-year successor term.
- A Townhouse salon protected area is generally 0.25 miles in an incorporated city or similar high-density location and 0.5 miles elsewhere.
These figures come from Townhouse's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors. The 9% (7% service fee + 2% Brand Marketing Fund) is an Averan calculation.
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Talk to Averan → Averan Townhouse Conversion Package →- Item 19 contains no financial performance representation. The franchisor states that it does not make any financial performance representations or give the past financial performance of company-owned or franchised outlets. A buyer of an existing salon may be given that salon’s actual records.
- The service fee and Brand Marketing Fund together are 9%* of Net Revenue. Item 6 lists the 2% fund contribution as subject to the franchisor’s right to increase it. The $100 monthly booking platform fee, $1,200* a year, may rise with the Consumer Price Index or a similar benchmark.
- Retail products sold in store are outside Net Revenue. So are treatments delivered through loyalty points, gift card redemptions and membership or treatment series redemptions. Gift cards count at their sale value when sold, and memberships and treatment series count as the money is received.
- Leasehold improvements, construction and equipment are $415,000 to $485,000 of the $604,100 to $759,700 total. That is 68.70% of the low estimate and 63.84% of the high*. Item 7 includes no amount for a landlord’s security deposit, which it says may be 1 to 6 or more months of rent.
- No franchised salon was open at the end of 2025. An affiliate operated 4 salons in the US: one California salon opened in May 2024, and three salons opened from July to September 2025. Item 20 projects no franchised or affiliate openings in 2026 and lists no agreements signed but not opened.
Revenue
What the Townhouse FDD discloses about revenue
The FDD makes no financial performance representation. Item 19 states that the franchisor does not make any financial performance representations or give the past financial performance of company-owned or franchised outlets. The FDD gives no average revenue, median, range or profit figure for any salon.
A buyer of an existing salon may receive that salon’s records. Item 19 says that if you are purchasing an existing outlet, the franchisor may provide you with the actual records of that outlet. There were no franchised salons to buy at the end of 2025.
The 4 US salons are operated by an affiliate, Townhouse Holdings US LLC. Item 1 says it opened salons in California in May 2024 and July 2025, and in New York in August and September 2025. Item 19 gives no figures for any of them.
The group also operates salons in the UK. Item 1 says affiliates own and operate 33 Townhouse salons in the UK, and that a UK affiliate offers franchises there, with 6 franchised salons open. The FDD gives no results for those salons.
Franchisees sell treatments, events, drinks, gift cards, memberships, treatment series and retail products. Item 1 says payments are no-cash and all-digital unless local law prohibits it. Item 11 says the pre-opening plan may include membership sales before the salon opens.
Net Revenue
What the service fee is charged on
| Item | In Net Revenue? | When it counts |
|---|---|---|
| Treatments | Yes | When sold |
| Events, drinks and ancillaries | Yes | When sold |
| Cancellation and no-show fees | Yes | When collected |
| Gift cards | Yes, at sale value | At the point of sale |
| Memberships, treatment series and similar offerings | Yes | As funds are received |
| Retail products sold in store | No | |
| Treatments delivered via loyalty points | No | Subject to a true-up |
| Treatments delivered via gift card, membership or treatment series redemptions | No | Subject to a true-up |
| Bona fide discounts, tips paid directly to staff, sales tax | Deducted | |
| Credit card commissions, delivery charges, other charges | Not deducted |
Source: Townhouse 2026 FDD, Item 6, Note 1. The true-up mechanism is set out in the Operations Manual, which is not part of the FDD.
The 7% service fee and the 2% Brand Marketing Fund contribution are both charged on Net Revenue. Both are paid on the 10th day of each month on the prior month’s Net Revenue, by automatic debit from the franchisee’s bank account.
Gift cards, memberships and treatment series are charged when the money comes in. The treatments later delivered against them are left out of Net Revenue, so the fee falls on the sale and not on the later treatment.
A true-up covers loyalty points and redemptions. Item 6 says the mechanism is detailed in the Operations Manual and may result in additional service fee being charged or refunded.
Retail products sold in store are not in Net Revenue. Item 6 says Net Revenue does not include the value of retail products sold in store. Card processing costs are not deducted from Net Revenue.
Salons
The salons in operation
| Group | Operator | Salons | Opened |
|---|---|---|---|
| California | Affiliate, Townhouse Holdings US LLC | 2 | May 2024 and July 2025 |
| New York | Affiliate, Townhouse Holdings US LLC | 2 | August 2025 and September 2025 |
| US franchised salons | Franchisees | 0 | |
| UK | Affiliates | 33 | |
| UK franchised salons | Franchisees of a UK affiliate | 6 | |
| US total, end of 2025 | 4 |
Source: Townhouse 2026 FDD, Item 1 and Item 20, Tables 1 and 4. US counts are at December 31, 2025. The UK counts are from Item 1 and carry no date beyond the FDD’s.
Item 19 does not split salons into bands, quartiles or ranges. It contains no figures, so the FDD does not show how results vary from one salon to another.
Three of the 4 US salons opened between July and September 2025. At December 31, 2025 the California salon opened in May 2024 was the one US salon open for more than a year.
Affiliate salons may contribute to the Brand Marketing Fund but are not required to. Item 11 says so. Franchisees must contribute 2% of Net Revenue.
Each salon must meet minimum performance standards. Item 12 says they currently include an average Google rating of 3.8 out of 5.0, an average Zenoti rating of 3.8 out of 5.0, and opening an average of 48 hours a week with at least two team members on duty at all times.
Brand charges
Brand charges
| Charge | Amount | A year, where fixed |
|---|---|---|
| Service fee | 7% of Net Revenue, monthly | Not fixed |
| Brand Marketing Fund | 2% of Net Revenue, monthly, subject to the franchisor’s right to increase | Not fixed |
| Booking platform fee | $100 a month, a pass-through of a third-party charge; increases capped at the Consumer Price Index or similar | $1,200* |
| Local marketing | The amount set in the marketing plan agreed with the franchisor | Not fixed |
| Supply chain support charge | Cost plus a 5% handling fee, delivery at cost | Not fixed |
| Salon recruitment | $1,500 per person recruited beyond the free initial recruitment for the first two salons | As used |
| Salon team training | $400 per trainer a day, plus costs | As used |
| New salon on-site opening support | $400 per person a day plus travel; a set level is free for the first two salons | As used |
| User and IT training | $3,000 for 2 days of user and 3 days of IT training beyond the initial program | As used |
| IT support and graphic design | $50 an hour each | As used |
| Annual conference | Currently $500 per attendee, at least one attendee | $500 |
| Late payment | $100, plus interest at 1.5% a month | As incurred |
| Non-compliance fee | Up to $1,000 per occurrence and up to $1,000 a week | As incurred |
| Successor franchise fee | 50% of the then-current initial franchise fee | $20,000* at today’s fee |
| Transfer fee | 50% of the then-current initial franchise fee; $20,000 for an Area Development Agreement | At transfer |
| Liquidated damages | Two times the service fees of the last 12 full months; at least $250,000 if fewer than two salons are open | On termination without cause |
| Percentage charges | 9%* of Net Revenue | Plus $1,200* |
Source: Townhouse 2026 FDD, Items 5, 6 and 11. The FDD has no Item 19, so Averan cannot express the $1,200 booking platform fee as a share of an average salon’s sales.
The percentage charges total 9%* of Net Revenue. There is no minimum service fee. The booking platform fee of $100 a month is a fixed amount payable whatever the sales.
Local marketing spending is set in a plan agreed with the franchisor. The Franchise Agreement requires a marketing plan at least 45 days before opening and says the franchisee must spend the amount the plan requires. Any shortfall is paid into the Brand Marketing Fund. Item 6 sets no percentage or dollar minimum.
Items bought through the franchisor carry a 5% handling fee. Item 6 says the supply chain support charge is cost plus 5%, with delivery at cost, on both mandatory and optional purchases made via Townhouse.
Ending the Franchise Agreement without cause carries liquidated damages. Item 6 sets them at two times the service fees of the 12 full months before termination, which equals 14%* of that year’s Net Revenue, with a minimum of $250,000 if the franchisee has not opened at least two salons.
Cost to open
Cost to open
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $40,000 | $40,000 |
| Marketing launch fee | $10,000 | $10,000 |
| Real property, utility, security and other deposits | $5,000 | $15,000 |
| Leasehold, contractor improvements, construction costs and equipment | $415,000 | $485,000 |
| Computer and audio visual equipment | $13,500 | $13,500 |
| Architects and engineers fees | $20,000 | $40,000 |
| Start-up supplies and inventory | $25,000 | $35,000 |
| Business licenses and permits | $15,000 | $25,000 |
| Insurance | $600 | $1,200 |
| Professional fees | $15,000 | $20,000 |
| Additional funds, 3 months | $45,000 | $75,000 |
| Total | $604,100 | $759,700 |
Source: Townhouse 2026 FDD, Item 7. The estimate is for a salon of about 700 to 1,400 square feet. It includes no amount for a landlord’s security deposit, a utility security deposit, building permits, plan review fees, structural engineering or a free-standing building.
$50,000 of the total is paid to the franchisor. That is the $40,000 initial franchise fee and the $10,000 marketing launch fee, 8.28% of the low estimate and 6.58% of the high*. The marketing launch fee applies to each of the first two salons.
Leasehold improvements, construction and equipment are $415,000 to $485,000. Spread over the square footage, the full low estimate is $863 a square foot on 700 square feet and the full high estimate is $543 a square foot on 1,400 square feet*. Item 7 does not say which salon size each column assumes.
Additional funds for the first 3 months are $45,000 to $75,000. That is $15,000 to $25,000 a month*. Item 7 says they cover payroll, lease payments, local advertising, technology fees and other operating expenses, and exclude a draw or salary for the owner.
The salon must open within 9 months of signing the Franchise Agreement. Under an Area Development Agreement the first salon must open within 9 months of signing it. Item 1 says even a one-salon franchisee signs an Area Development Agreement for one salon as well as a Franchise Agreement.
A multi-salon developer pays a development fee on top of each salon’s $40,000 initial franchise fee. The development fee is $85,000 for up to 15 salons and $100,000 for 16 or more. For 15 salons the development fee and franchise fees come to $685,000, or $45,667 a salon; for 2 salons, $165,000, or $82,500 a salon*. The cover puts the investment for the first salon under an Area Development Agreement at $689,100 to $844,700 for up to 15 salons and $704,100 to $859,700 for 16 or more.
Locations
Locations, 2023 to 2025
| Year | Franchised, start | Franchised, end | Affiliate, start | Affiliate opened | Affiliate, end | Total, end |
|---|---|---|---|---|---|---|
| 2023 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2024 | 0 | 0 | 0 | 1 | 1 | 1 |
| 2025 | 0 | 0 | 1 | 3 | 4 | 4 |
| 2023 to 2025 | 0 | 0 | 0 | 4* | 4 | 4 |
Source: Townhouse 2026 FDD, Item 20, Tables 1, 3 and 4. No franchised salons opened, transferred, terminated, were not renewed, were reacquired or ceased operations in 2023 to 2025.
The franchisor began offering franchises in January 2026. Item 1 says Townhouse Franchising, LLC was formed in Delaware on April 29, 2025, and does not directly own or operate any salons.
No franchise agreements were signed but not opened at December 31, 2025. Item 20 Table 5 projects no new franchised salons and no new affiliate salons in 2026.
The franchisor’s audited balance sheet at December 31, 2025 shows $58,619 of cash and $58,619 of member’s equity. Item 21 says statements for earlier years are not included because the franchisor has not been in business for three years.
Several states require the initial franchise fee to be deferred until the salon opens. The Illinois addendum says the Illinois Attorney General’s Office imposed the deferral due to the franchisor’s financial condition. The Virginia addendum states that the franchisor’s financial condition calls into question its financial ability to provide services and support.
Some current and former franchisees sign provisions restricting what they may say about their experience. Item 20 states this. The term is 10 years from opening, with one 10-year successor term on payment of 50% of the then-current initial franchise fee.
Questions we get asked
Questions owners ask
How much does a Townhouse franchise make?
Townhouse’s 2026 FDD, issued 28 January 2026, makes no financial performance representation in Item 19, so it gives no sales or profit figure. A Townhouse franchise costs $604,100 to $759,700 to open, of which $50,000 is paid to the franchisor.
How much does it cost to open a Townhouse franchise?
Item 7 estimates $604,100 to $759,700 for one salon of about 700 to 1,400 square feet. Leasehold improvements, construction and equipment are $415,000 to $485,000 of it, and $50,000 is paid to the franchisor. No amount is included for a landlord’s security deposit.
What fees does Townhouse charge?
A 7% service fee and a 2% Brand Marketing Fund contribution on Net Revenue, 9%* in all, plus a $100 monthly booking platform fee. The franchisor may increase the fund contribution. Local marketing is spent to a plan agreed with the franchisor, and other charges are listed in Item 6.
What is the average revenue of a Townhouse salon?
The FDD does not say. Item 19 makes no financial performance representation, so there is no average, median or profit figure for any salon.
How many Townhouse salons are there?
Item 20 shows no franchised salons and 4 affiliate-operated salons in the US at December 31, 2025: 2 in California and 2 in New York. Item 1 says affiliates also operate 33 salons in the UK, where a UK affiliate has 6 franchised salons.
What counts as Net Revenue?
Treatments, events, drinks, cancellation and no-show fees, gift cards at sale value, memberships and treatment series as the money is received. Retail products sold in store are left out, as are treatments delivered through loyalty points and redemptions. Discounts, tips paid directly to staff and sales tax are deducted; card commissions are not.
Does opening several salons lower the fees?
No. A developer pays a development fee of $85,000 for up to 15 salons or $100,000 for 16 or more, and each salon still pays the $40,000 initial franchise fee. For 15 salons that is $685,000, or $45,667 a salon*.
Questions worth putting to Townhouse
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 Townhouse 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 Townhouse 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 Townhouse owner
We review your unit economics and cash forecast and build your monthly reporting around the figures on this page.
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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 Townhouse Franchising, 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. Townhouse 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: Townhouse Franchising, LLC, 2026 Franchise Disclosure Document, issued 28 January 2026.