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Earnings Claims of Top Franchises Revealed

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Considering a Drybar Franchise? Don’t Overlook These 28 Important Franchise Fees

by Franchise Chatter on May 24, 2017

in Franchise Fees, Salon Franchise



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Don't Invest in a Franchise Until You Check Out This List

If you are considering a Drybar franchise, don’t get blindsided by these 28 important franchise fees (from the initial franchise fee, to the royalty fee, to 26 other fees found in Items 5 and 6 of Drybar’s 2017 FDD).

1.  Initial Franchise Fee:  $50,000



  • When you sign the Franchise Agreement, you will pay Drybar a $50,000 initial franchise fee. The initial franchise fee is generally uniform for all franchisees, and is nonrefundable upon payment.
  • During 2016, Drybar charged franchise fees ranging from $30,000 to $50,000. A reduced initial franchise fee may be offered to you if you agree to open additional Shops after the opening of your first Shop.
  • The franchise fee is revenue to Drybar and used as it deems appropriate.

2.  Site Selection Assistance:  varies under circumstances

  • Before you select a site for your Shop, if you use Drybar’s designated national tenant broker, Drybar will provide you with certain site selection assistance as it deems appropriate and as you request, and also visit up to two proposed sites for your Shop at no extra cost.
  • If Drybar needs to visit additional sites for Shops beyond two visits, then you must pay it for its site selection assistance at an hourly rate of $300 and also pay or reimburse it the out-of-pocket expenses that it incurs in providing the site selection assistance, including costs of transportation, lodging, meals, and the costs of the concurrent assistance from Drybar’s designated national tenant broker.
  • Drybar estimates the site assistance payments per additional visit would be approximately $5,000 (including $1,500 to $2,000 to be retained by Drybar).
  • If you do not use Drybar’s designated national tenant broker, Drybar will still provide you with certain site selection assistance as it deems appropriate and also visit one proposed site for your Shop at no extra cost.
  • If Drybar needs to visit additional sites for Shops beyond the 1st visit, then you must pay Drybar for its site selection assistance at an hourly rate of $300 and also pay or reimburse Drybar the out-of-pocket expenses that it incurs in providing the site selection assistance, including costs of transportation, lodging, meals, and the costs of the concurrent assistance from its designated national tenant broker.
  • Drybar estimates the site assistance payments per additional visit would be less than $5,000 (including $1,500 to $2,000 to be retained by Drybar).

3.  Construction Visits:  $500 to $1,500 per visit

  • Drybar reserves the right to conduct on-site inspections during the construction of your Shop as it deems appropriate. Drybar may require you to pay it (or reimburse it for the cost of its selected vendors, including Heitler Houstonn Architects) for its out-of-pocket expenses that it incurs in conducting such on-site inspections, including costs of transportation, lodging, and meals.
  • Drybar estimates that construction visit payments to it could range from $500 to $1,500 per visit.

4.  Royalty Fee:  7% of Gross Revenue

  • Due Date:  Monthly.

5.  Marketing Allocation:  up to 3% of Gross Revenue; Drybar currently requires up to 1.5% of Gross Revenue be contributed to its Brand Development Fund, and the greater of 1.5% of Gross Revenue or $750 per month spent on local advertising

  • Due Date:  Monthly.
  • Drybar has the right to implement a Brand Development Fund and to form local and regional advertising cooperatives.

6.  Call Center Program:  currently $2,600 per month; but may fluctuate with Drybar’s actual costs

  • Due Date:  Monthly.
  • Drybar has implemented a phone and online scheduling system (“Call Center Program”) which you must participate in. The monthly amount due to Drybar is currently 100% pass-through of its related expenses, divided equally among all Drybar Shops open and operating.

7.  Customer Relationship Management License Fee:  $1,800 per calendar year



  • Due Date:  Annually.
  • This software helps keep track of all feedback, client profiles, client refunds, and other forms of compensation and complaint dispositions for training purposes.

8.  Media Movie Player Fees:  $40

  • Due Date:  Monthly.
  • Drybar’s required Media/Movie player provider charges a monthly fee to cover media hosting, content delivery, and ASP management.

9.  Music Subscription:  $75

  • Due Date:  Monthly.
  • Drybar’s required music provider charges a monthly fee to cover updates of playlists and payment of ASCAP license fees.

10.  Additional Opening and Ongoing Assistance:  Drybar’s then-current fee, currently $300 per day per individual providing assistance, plus reimbursement of travel, lodging, and dining costs

  • Due Date:  Before assistance.
  • Drybar will provide three days of initial Shop opening assistance to you at no additional charge. If Drybar deems it necessary to provide additional opening or ongoing assistance, you must pay its then-current fee and expenses, for an additional five days of training.

11.  Additional Training:  reasonable tuition and/or materials costs

  • Due Date:  Upon demand.
  • Your Operating Partner must attend any additional training Drybar designates.

12.  New or Replacement Manager Training:  $2,500 per training session

  • Due Date:  Upon demand.
  • Drybar may require this training in its sole discretion.

13.  Replacement Shop Educator Training:  $2,500 per training session



  • Due Date:  Upon demand.
  • Drybar will train your initial Shop Educator during your initial training, but if you need to hire a new Shop Educator you will pay Drybar a fee to train the replacement.

14.  Continuing Education Requirements:  reasonable tuition and/or materials costs

  • Due Date:  Upon demand.
  • Each of your hairstylists and other employees who provide hair care services must comply with Drybar’s continuing education requirements.

15.  Supplier Approval Fee:  cost of inspection

  • Due Date:  Upon demand.
  • You may recommend suppliers to Drybar; however you must pay Drybar’s reasonable costs and expenses related to the inspection and evaluations of the proposed supplier.

16.  Renewal Fee:  the greater of 25% of the then-current initial franchise fee or $12,500

  • Due Date:  Before renewal.

17.  Administration Fee for Transfer of Non-Controlling Interest:  $1,000

  • Due Date:  Before transfer.

18.  Transfer Fee for Transfer of Controlling Interest:  50% of Drybar’s then-current initial franchise fee, if transferring to an existing Drybar franchisee; 75% of Drybar’s then-current initial franchise fee, if transferring to a new franchisee entering the system

  • Due Date:  Before transfer.

19.  Relocation Expenses:  reimbursement of Drybar’s actual expenses

  • Due Date:  Upon demand.
  • If Drybar approves relocation of the Shop, you must reimburse it for its out-of-pocket costs incurred in connection with the relocation, including travel for site visits and $100 per hour for any marketing assistance provided by Drybar specific to advertising and marketing your new Shop location.

20.  Manual Replacement Fee:  $250

  • Due Date:  Upon demand.
  • Payable only if you require an additional set of the Manuals due to loss or damage.

21.  Audit:  amount disclosed in the audit, plus Drybar’s costs to conduct the audit

  • Due Date:  Upon demand.
  • If an audit discloses an underpayment of the Royalty Fee due to Drybar of 2% or more, you must pay the amount in error plus Drybar’s costs and expenses for the audit.

22.  Quality Assurance Inspections/Mystery Shops:  up to $150

  • Due Date:  Monthly.
  • You must pay the actual cost of third-party quality assurance inspection and mystery shops undertaken at your location.

23.  Late Charges:  a rate of 18% per year or the highest amount allowed by law, whichever is less

  • Due Date:  Upon demand.
  • Payable only if any sums due Drybar are not paid promptly when due.

24.  Charge for Nonpayment Due to “Insufficient Funds”:  $100, plus reimbursement of Drybar’s costs and expenses from your non-payment

  • Due Date:  Upon demand.
  • Payable only if any check, draft, electronic, or other payment is unpaid because of insufficient funds or otherwise.

25.  Private or Public Offer of Securities:  Drybar’s costs and expenses associated with reviewing the proposed offer, including Drybar’s in-house and outside legal counsel fees

  • Due Date:  Before the offering.
  • No offering shall imply in any manner whatsoever that Drybar is participating in an underwriting, issuance, or offering of your securities.

26.  Costs and Attorneys’ Fees:  actual fees incurred

  • Due Date:  Payable as incurred.
  • You must reimburse Drybar for its expenses in enforcing or terminating the Agreements.

27.  Indemnification:  amount of loss suffered

  • Due Date:  Upon demand.
  • You must reimburse and pay Drybar’s attorneys’ fees and related costs if it is held liable for claims from your operation of the Shop.

28.  Insurance:  amount of insurance premium, plus administrative fee equal to 20% of insurance premium coverage

  • Due Date:  Upon demand.
  • Payable only if you fail to maintain minimum insurance coverage.

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