Drybar Franchise Owner Salary, Profit & Failure Rate 2024

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!

How Much Does A Drybar Franchise Owner Make

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

Cost Or FeesAmount
Franchise fee$50,000
Royalty fee7.0%
Payback period*7 years
Marketing fee2.0%
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 EXPENDITUREAMOUNT
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? 

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 $250,790 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%.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%809000.00
Rent8.63%(69776.25)
Insurance4.31%(34888.13)
Salaries17.25%(139552.50)
Franchise Royalty Fees4.31%(34888.13)
Utilities1.73%(13955.25)
Cost of Goods Sold (COGS)21.56%(174440.63)
Labor (Variable)11.21%(90709.13)
Total (Expenses)69.00%(558210.00)
Net Profit31.00%250790.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Drybar Franchise Failure Rate

To find out the Drybar franchise failure rate, let us see the table below:

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20182335+12
20193549+14
20204953+4

For the Franchised outlets:

  • In 2018, the growth rate was (12)/23×100≈52.17%
  • In 2019, the growth rate was (14)/35×100≈40%
  • In 2020, the growth rate was (4)/49×100≈8.16%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20186681+15
20198191+10
20209190-1

For the Company-Owned outlets:

  • In 2018, the growth rate was (15)/66×100≈22.72%
  • In 2019, the growth rate was (10)/81×100≈12.34%
  • In 2020, the failure rate was (1)/91×100≈1.09%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201889116+27
2019116140+24
2020140143+3

For Total outlets:

  • In 2018, the growth rate was (27)/89×100≈30.33%
  • In 2019, the growth rate was (24)/116×100≈20.6%
  • In 2020, the growth rate was (3)/140×100≈2.14%

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

The franchised outlets for Drybar grew from 2018 to 2020, showing a growth rate between 52.17% and 8.16%.

The company-owned outlets of Drybar also experienced growth in the years 2018-2019, and the growth rate of Drybar was lying in the range between 22.72% and 12.34% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Drybar franchise has expanded in the years 2018-2020, showing a total growth rate between 30.33% and 2.14%.

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 PERCENTAGE31%
AVERAGE PROFIT PER YEAR$250,790
AVERAGE PAYBACK PERIOD3.5 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 $250,790.

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?

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 $250,790 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.

Where is the headquarters of Drybar?

Drybar is a retail chain exclusively for blow-drying hair. It is based in Irvine, California, United States.

How many locations does Drybar has?

There are 141 Drybar locations of which 87 are of Willbiz Brands Inc.

Who founded Drybar?

Drybar was founded by Alli Webb. She is an American businesswoman and a writer.

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