Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
  • Firehouse Subs
  • Jimmy John's
  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
  • Yogurt Land
  • And Hundreds More...

No, thanks. I'm not interested in uncovering the actual earnings of hundreds of franchises at this time.

Considering a Blo Blow Dry Bar Franchise? Don’t Overlook These 29 Important Franchise Fees

by Franchise Chatter on August 26, 2017

in Franchise Fees, Salon Franchise



Franchise Chatter Membership Information

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

If you are considering a Blo Blow Dry Bar franchise, don’t get blindsided by these 29 important franchise fees (from the initial franchise fee, to the royalty fee, to 27 other fees found in Items 5 and 6 of Blo Blow Dry Bar’s 2017 FDD).

1.  Initial Franchise Fee:  $39,000

  • The initial franchise fee is $39,000. You will pay this fee in a lump sum to Blo when you sign the Franchise Agreement and is fully earned by Blo. The initial franchise fee is imposed uniformly on all franchisees and it is not refundable.
  • The initial franchise fee is payment, in part, for expenses incurred by Blo in furnishing assistance and services to you as set forth in the Franchise Agreement and for costs incurred by Blo, including general sales and marketing expenses, training, legal, accounting, and other professional fees.
  • If you are a qualified United States Veteran, then Blo will discount the initial franchise fee by 10% (currently, $3,900 for your first franchise).

2.  Blo U and Franchisee Training and Payments:  $5,700 to $7,300

  • Trainers will conduct staff training at your location prior to opening (Blo refers to this as “Blo U”), including franchise partner training and software training.
  • You must pay the trainers’ expenses including travel, lodging, and meals. Blo estimates these costs will be between $5,700 and $7,300. This is not refundable.

3.  Multi-Unit Developer Fee:  100% of the initial franchise fee for each Franchised Business to be developed under the Multi-Unit Development Agreement



  • In the event that Blo sells you an area to be developed containing multiple Franchised Businesses, Blo will charge a multi-unit developer fee that is based on the number of Franchised Businesses that you commit to open within your Exclusive Area.
  • The multi-unit developer fee is equal to 100% of the initial franchise fee for each Franchised Business to be developed under the Multi-Unit Development Agreement.
  • You will pay this total amount in a lump sum when you sign the Multi-Unit Development Agreement, and it is not refundable under any circumstances, regardless of whether you open any Franchised Business in the Exclusive Area.
  • For the first Franchised Business to be developed, the initial franchise fee is $39,000. For the second Franchised Business to be developed, the initial franchise fee is $29,000. For the third and any additional Franchised Businesses to be developed, the initial franchise fee is $15,000.
  • Only multi-unit developers signing a Multi-Unit Development Agreement with Blo are eligible for these reduced fees.
  • You will sign a Franchise Agreement for each Franchise Agreement you agree to develop as part of your Multi-Unit Development Agreement. It is expected that you will sign the Franchise Agreement for your first Franchised Business at the same time the Multi-Unit Development Agreement is signed. For each Franchised Business developed after the first one, you will sign the Franchise Agreement when you sign a lease or purchase agreement for the Franchised Business.

4.  Royalty Fee:  6% of Gross Sales

  • Due Date:  Payable on the 5th day of each month for the prior calendar month.
  • If the 5th of any month is not a business day, then the Royalty Fee is due on the next business day.
  • Payments are made by electronic funds transfer.

5.  Advertising Fund Contribution:  $200

  • Due Date:  Payable at the same time and in the same manner as the Royalty Fee.
  • With 30 days prior written notice to you, Blo can increase the Advertising Fund Contribution up to 2% of Gross Sales.

6.  Brand Maintenance Fee:  $150

  • Due Date:  Payable at the same time and in the same manner as the Royalty Fee.
  • This fee covers social media, web, public relations, best practices coaching, and corporate direction and collaboration around event planning and management.

7.  Local Advertising:  1% of Gross Sales

  • Due Date:  Must be spent monthly.
  • You pay directly to your local suppliers, but all advertising you want to use is subject to Blo’s approval.

8.  Cooperative Advertising:  as determined by the members

  • Due Date:  As determined by the members.
  • Blo may form (or approve the formation of) advertising cooperatives where there are multiple franchises in a geographical area.
  • Any amounts you contribute to an advertising cooperative will count toward your local advertising requirement.

9.  Additional On-Site Training:  Blo’s then-current per diem rate per trainer, plus Blo’s representatives’ expenses; current per diem rate is $360

  • Due Date:  15 days after billing.
  • If you request that Blo provide additional training at your Franchised Business to you and/or your employees.
  • You must also reimburse Blo’s representatives’ expenses in providing on-site training, including travel, lodging, and meals.

10.  Transfer Fee (Franchise Agreement):  50% of Blo’s then-current initial franchise fee

  • Due Date:  With request for approval of transfer.
  • No fee is imposed for a one-time transfer to a corporate entity formed by you for the convenience of ownership.

11.  Transfer Fee (Multi-Unit Development Agreement):  $25,000

  • Due Date:  With request for approval of transfer.
  • No fee is imposed for a one-time transfer to a corporate entity formed by you for the convenience of ownership.

12.  Renewal Fee:  25% of Blo’s then-current initial franchise fee

  • Due Date:  Prior to renewal.
  • You must satisfy all renewal requirements; payable before renewal of the Franchise Agreement.

13.  Relocation of Your Franchised Business:  reimbursement of Blo’s expenses



  • Due Date:  Upon demand.
  • If you request permission to relocate your Franchised Business, you must reimburse Blo’s costs and expenses related to reviewing your request and any proposed new location.

14.  Interest on Overdue Amounts:  18% per year or the highest rate allowed by law, whichever is less

  • Due Date:  Upon demand.
  • Applies to all overdue Royalty Fees, Advertising Fund Contributions, and other amounts due to Blo that are not received within five days of their due date.
  • Also applies to any understatement in amounts due revealed by an audit.

15.  Audit Expenses:  all costs and expenses associated with audit

  • Due Date:  Upon demand.
  • Audit costs payable only if the audit is required due to your failure to provide required reports, or if the audit shows an understatement in amounts due of at least 2%.

16.  Salon Account Management Software:  $120

  • Due Date:  Monthly.
  • Payable to the approved software provider.
  • You must maintain a contract to obtain all updates and/or upgrades for the required software.

17.  Approval of Products or Suppliers:  all reasonable costs of evaluation (not to exceed $500)

  • Due Date:  Time of evaluation.
  • Applies to new suppliers you wish to purchase from or products you wish to purchase that Blo has not previously approved.
  • Blo is not required to approve any additional products or suppliers.

18.  Insurance Policies:  amount of unpaid premiums, plus Blo’s reasonable expenses in obtaining the policies

  • Due Date:  Upon demand.
  • Payable only if you fail to maintain required insurance coverage and Blo obtains coverage for you.

19.  System Modifications:  all costs and expenses of modifications

  • Due Date:  As required.
  • If Blo decides to modify the System by requiring new equipment, fixtures, software, trademarks, etc., you must make the modifications at your expense.

20.  Remodeling and Refurbishment:  all costs and expenses for remodeling or refurbishment

  • Due Date:  As required.
  • Blo may require you to remodel and/or refurbish your Bar to meet Blo’s then-current image for Blo Blow Dry Bars.
  • Blo will not make this request more frequently than every five years.

21.  Costs and Attorneys’ Fees:  will vary under circumstances

  • Due Date:  Upon demand.
  • Payable upon your failure to comply with the Franchise Agreement.

22.  Indemnification:  will vary under circumstances

  • Due Date:  Upon demand.
  • You must reimburse Blo if it is held liable for claims arising from your Bar’s operations.

23.  Gift Card Program:  will vary

  • You must participate in Blo’s gift card program.
  • Gift cards are available for sale through Blo’s website and at all Blo Blow Dry Bars in the System, and may be redeemed at any Blo Blow Dry Bar in the System, regardless of where they were purchased.

24.  Liquidated Damages:  liquidated damages are equal to the average monthly Royalty Fees you paid or owed to Blo during the 12 months of operation preceding the effective date of termination multiplied by (a) 24 (being the number of months in two full years), or (b) the number of months remaining in the Agreement had it not been terminated, whichever is higher

25.  Replacement Manual:  reimbursement of Blo’s costs

  • Due Date:  On demand.
  • If your copy of the Manual is lost or destroyed, you must reimburse Blo’s costs for providing you a replacement copy.

26.  Securities Offering:  reimbursement of Blo’s expenses

  • Due Date:  On demand.
  • If you request Blo’s consent to your private or public offering of securities.

27.  Charges for “Secret Shopper” Quality Control Evaluation:  $150 to $175 per visit

  • Due Date:  Upon demand, if incurred.
  • The secret shopper program will be separate from Blo’s programs for customer surveys and customer satisfaction audits (which may require you to accept coupons from participating customers for discounted or complimentary items).

28.  Annual Meeting:  Blo’s then-current per person fee; current per person fee is $250

  • Due Date:  Upon demand, if incurred.
  • If Blo chooses to hold an annual meeting, attendance will be mandatory for you and your manager. The cost of the annual meeting does not include travel, lodging, meals, or wages for the attendee.

29.  Yelp:  $30

  • Due Date:  Monthly.
  • Payable to supplier. You must participate on Yelp in the Beauty & Spas section.


Franchise Matching Quiz


Franchise Matching Quiz


{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: