Things may change, but one thing that cannot be altered is the relationship between women & salons.
With a consistent rise in the salon industry and a never-ending line of customers, Drybar- a popular name in the salon industry might have popped in your head.
And if you are looking to invest in the Drybar Franchise, then this guide answers all your questions on how much does a Drybar franchise owner make, how one qualifies for this franchise, whether it is even worth it, etc.
To find answers to all your burning questions, keep reading!
About Drybar
Drybar is a hair salon that is known for offering hair blowouts with or without a haircut. This means a person can get their hair styled anytime, any day, and that too for a lesser price.
This unique hair salon was founded by Alli Webb and its first store was opened in Brentwood, CA, in 2010, and owing to its unique concept, it became an instant hit.
Today, Drybar has more than 140+ locations across the U.S., and the company is actively offering franchise opportunities to expand its business furthermore.
In order to qualify for a Drybar franchise, you do not need to have any previous experience in the industry.
However, you must have a net worth of $750,000, liquidity of $250,000, along with retail or hospitality experience.
To learn more about this franchise opportunity, keep reading!
How Much Does A Drybar Franchise Owner Make?
As per records, individual Drybar franchise owner makes $809,000 per year in revenue on average.
Please note that this data is based on the average revenue per unit for Drybar salons that have been open for more than three years and for those that were opened in the year 2021.
Also, the revenue a Drybar Franchise owner makes may vary depending on a number of factors such as location, service, operating cost, etc.
Drybar Franchise Key figures
| Franchise fee | $50,000 |
| Royalty fee | 7.0% |
| Payback period* | 7 years |
| Marketing fee | 2.0% |
| Investment (mid-point) | $813,000 |
| Revenue per sq. ft. | $558 |
| Revenue per unit | $809,000 |
| Minimum net worth | $750,000 |
| Minimum liquid capital | $250,000 |
Drybar Initial Investment Breakdown
| TYPE OF EXPENDITURE | AMOUNT |
|---|---|
| Initial Franchise Fee | $50,000 |
| Initial Inventory | $38,700 – $44,700 |
| Real Property and Utility Security Deposits | $9,750 – $60,000 |
| Furniture and Fixtures | $22,000 |
| Leasehold Improvements (net of landlord tenant allowances) | $313,544 – $568,802 |
| Site Survey Fee | $2,500 |
| Site Development Fee | $7,500 |
| Initial Software License and Set Up | $2,500 |
| Other Service & Marketing Items | $3,000 – $7,200 |
| Computer System | $34,975 – $56,785 |
| Pre-Opening Stylist Training | $5,000 – $10,000 |
| Training Program & Shop Educator Program | $9,000 – $15,750 |
| Architectural Design & MEP Fees | $13,750 – $20,750 |
| Marketing & Promotional Inventory | $5,500 – $6,800 |
| Signage | $9,416 – $24,734 |
| Grand Opening Spend Requirement | $15,000 |
| Business Supplies | $3,000 – $7,927 |
| Business Licenses and Permits | $500 – $15,000 |
| Professional Fees | $1,800 – $12,300 |
| Insurance Deposits and Premiums (first year) | $3,900 – $9,786 |
| Additional Funds (3 months) | $45,000 to $70,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $596,335 – $1,030,034 |
How Much Does A Drybar Employee Earn?
According to ZipRecruiter, a Drybar employee earns an average of $22 /hour with a salary ranging from $8.41 /hour – $37.32 /hour.
In yearly terms, this comes down to an average of $46,793 /year, with a salary ranging from $17,492 per year to $77,622 per year.
Please note that the salary of a Drybar employee may vary based on their skills, designation, department, location, etc., and this is a ballpark number.
Pros & Cons Of Drybar Franchise
Pros Of Drybar Franchise
- Provide training and support
- Offers site selection and construction help
- Offers exclusive territory protection
- Higher profit margin
- Offers authority to decide hours and pricing
Cons Of Drybar Franchise
- Require a lot of space
- High cost investment
- Local competition
- No absentee ownership
Drybar Franchise Average Revenue & Profit
As per the Drybar FDD, individual Drybar franchise units make revenue of $809,000 per year and profit of $247,000 per year on average after adjusting the 31% EBITDA margin.
Please note that the company has not revealed information on labor cost and cost of goods sold (COGS), so we used 40% and 3%, respectively, to calculate a profit margin of 31% which is close to the hair salon industry average of 25%.
| Profit and loss | Amount | % revenue |
|---|---|---|
| Revenue | $808,656 | 100% |
| Labor | $(323,462) | 40% (industry average) |
| Rent | $(72,000) | 9% |
| COGS | $(24,260) | 3% (industry average) |
| Marketing fees | $(40,433) | 5% |
| Royalties | $(44,476) | 6% |
| Other operating costs | $(56,606) | 7% (industry average) |
| EBITDA | $247,419 | 31% |
Drybar Franchise Failure Rate
To find out Drybar franchise failure rate, let us see the table below:
| Outlet type | Year | Outlets at start of the year | Outlets at the end of the year | Net change |
|---|---|---|---|---|
| Franchised | 2018 2019 2020 | 23 35 49 | 35 49 53 | +12 +14 +4 |
| Company-owned | 2018 2019 2020 | 66 81 91 | 81 91 90 | +15 +10 -1 |
| Total outlets | 2018 2019 2020 | 89 116 140 | 116 140 143 | +27 +24 +3 |
As we can see from the data shared in the table above, only one company-owned Drybar outlet closed, and there has been a consistent positive growth in the number of franchise outlets that opened.
This tells us that the Drybar franchise failure rate is low.
((https://www.franchimp.com/?page=pdf&f=109095_2021.pdf))
Drybar Franchise Payback Period
To find out the payback period of the Drybar Franchise, let us do some calculations by taking the following data into consideration:
| AVERAGE INVESTMENT | $813,000 |
| AVERAGE REVENUE PER OWNER | $809,000 |
| AVERAGE PROFIT PERCENTAGE | 31% |
| AVERAGE PROFIT PER YEAR | $247,000 |
| AVERAGE PAYBACK PERIOD | 3.5 years |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 813000/247000 = 3.2 = 3.5 Years based on median
The average investment for a Drybar Franchise is $813,000.
With an average profit percentage of 31%, the average profit per year is $247,000.
This means that the average payback period for a Drybar Franchise is 3.5 years, and the total investment of $813,000 would be recouped within this period.
Facts About Drybar
- Everything in Drybar is bar-themed, right from their hairstyles to hair products- all things are named around mocktails or cocktails.
- Drybar has a separate menu for kids called “Shirley Temple” that includes 4-5 styles.
- Drybar offers free hair wash and conditioning treatment with each blowout.
- On rainy days, Drybar offers complementary umbrellas to its customers.
- Some Drybar salons have private rooms for groups.
What Is Drybar Best Known For?
Drybar is a hair salon that is known for providing blowouts exclusively that include washing, blow dry, and hair styling.
The Drybar’s blowout treatment lasts for 45 minutes, and their customers prefer them because of the relaxation, service, and confidence they provide for an affordable price.
Apart from blowouts, Drybar also offers exclusive hair products and hair tools that you can purchase.
And additionally, they also offer deep conditioning or 10-minute scalp massage to relax and nourish your hair further.
Is Drybar Franchise Profitable?
Let us answer the most urgent question that you may have- Is the Drybar franchise profitable?
Yes, Drybar franchise is highly profitable with franchise owners earning a net profit of as much as $247,000 per year on average.
Well, yes, you are required to make a hefty initial investment of $596,335 – $1,030,034 to open a Drybar franchise, and a higher investment usually means higher profit.
Well, lucky for you, this is exactly the case with Drybar franchise and the best part is that your initial investment can be recovered within 3-5 years.
Dryout Franchise Earning Potential
The earning potential of a Dryout franchise may vary from location to location based on factors such as operating costs, advertisement costs, etc.
The hair salon industry has an average profit margin rate of 25%. However, Dryout franchise owners can enjoy a 30-35% profit margin.
So Dryout franchise has a high earning potential, and as per Fortune Business Insights, the hair salon industry is projected to grow by 7.4% by 2029.
So all these points collectively paint a very positive picture of the Dryout franchise.
Wrap Up
After studying the Drybar franchise opportunity, here is what we think:
Drybar requires you to put in a huge investment, but it is a very profitable business to own.
Drybar is a well-known and recognized brand, and its customers love them for their affordable and relaxing 45-minute service.
The company lets you set your franchise timing as per your convenience and offers decent flexibility.
Overall, Drybar is a good franchise to invest in.
Frequently Asked Question
Does Drybar offer financing?
Yes, Drybar offers third-party financing and can introduce you to brokers and lenders, but they independently cannot help you with the finance.
How long will it take to open my Drybar?
Opening a Drybar franchise may take 6-9 months from the date of signing the lease till opening day. Site selection, build-out, lease negotiation, and training is the most time-consuming process.
What is the selection criteria for Drybar franchise?
In order to be eligible for the Drybar franchise, you must have the following:
- Net worth of $750,000.
- Liquidity of $250,000.
- Development area availability.
- Retail or hospitality experience.
- Passion & willingness to work.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.