In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Blo Blow Dry Bar franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Blo Blow Dry Bar franchise, based on Item 7 of the company’s 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Blo Blow Dry Bar franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned Blo Blow Dry Bar outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Blo Blow Dry Bar’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2019 and 2020 average quarterly gross revenues for the franchised Blo Blow Dry Bar businesses that were open and operating for more than 3 years as of January 1, 2019

• 2019 and 2020 average quarterly gross revenues for the franchised Blo Blow Dry Bar businesses that were open and operating for more than 1 year, but less than 3 years as of January 1, 2019

• 2019, 2020, and 2021 average monthly gross revenues for the months of January through June for the franchised Blo Blow Dry Bar businesses that were open and operating for more than 3 years as of January 1, 2019

• 2019, 2020, and 2021 average monthly gross revenues for the months of January through June for the franchised Blo Blow Dry Bar businesses that were open and operating for more than 1 year, but less than 3 years as of January 1, 2019

Section I – Background Information

22 Things You Need to Know About the Blo Blow Dry Bar Franchise

Receives Significant Investment from NewSpring

1.  In mid-March 2021, Blo Blow Dry Bar announced that it had received a significant capital injection from NewSpring, a family of private equity strategies. NewSpring is partnering with Blo to accelerate the brand’s worldwide franchise expansion and secure its leadership position in the burgeoning industry.

2.  At the time of the announcement, Blo Blow Dry Bar had 130 locations open and in development. This investment will help the blow dry bar concept reach its goal of opening 300 new locations over the course of the next five years.

3.  Vanessa Yakobson, CEO of Blo Blow Dry Bar, said, “The investment from NewSpring is a testament to Blo’s distinct brand reputation, our proven success and the strong growth potential in the blow dry bar category.”

4.  Blo Blow Dry Bar is a well-styled machine with a beautifully crafted business model designed to set up its franchise partners to achieve reliable and consistent results. Blo Blow Dry Bar’s impressive expansion track record and promising franchise development plans represent the type of business NewSpring aims to target through NewSpring Franchise, the firm’s newest strategy focused on investing in innovative franchise and multi-unit concepts.

5.  According to Patrick Sugrue, partner at NewSpring Franchise, “NewSpring’s investment in Blo Blow Dry Bar is a landmark for our firm as it represents the first franchise added to our newly formed franchise portfolio. Our extensive diligence on the brand revealed the strength of a unique concept in a high-growth sector with growing demand, healthy income potential for its franchise partners, and a strong management team.”

6.  Yakobson added, “We’re eager to build on the momentum of this partnership to make our catwalk-quality blow outs accessible to women worldwide. Our strong culture paired with the best quality service in the industry, along with a winning business model with huge opportunities for growth, results in a resilient force in the industry.”

Perseveres Through Pandemic with Impressive Mid-Year Success

7.  In late July 2021, Blo Blow Dry Bar announced that it was heading into the post-pandemic era with high growth numbers and exciting plans for the remainder of 2021. Already having locked in 19 signed agreements so far this year, the brand is ahead of its 2019 and 2020 development numbers. Blo Blow Dry Bar projects 35 total units to be sold by year-end.

8.  Kickstarting this year’s growth was a multi-unit deal out of New Jersey that will bring two additional units into the state. Husband and wife duo, Shar and Alichia Pourreza, will open their first location in Morristown by the end of Q4 and plans for the second location to open a year later.

9.  In May, Blo Blow Dry Bar hit a new record by inking the largest individual deal in company history. Heather Stankard, owner and operator of the Blo Blow Dry Bar in Jacksonville, signed a six-unit franchise agreement to expand the brand into northern Florida.

10.  Rounding off its latest growth, Blo solidified a multi-unit deal in Indiana, marking the entrance into its 24th state through three locations. Behind the deal is Theresa Shadley, a seasoned franchisee in the boutique and fitness industry, who will expand the brand’s presence into the Midwest.

11.  Patrick Pantano, vice president of franchise development for Blo Blow Dry Bar, said, “The blow dry bar sector investors are jumping at the chance to get in on the ground floor. Interest in owning a Blo is at an all-time high and we love showing off our proven business model, strong culture and exceptional franchise owners. Our sector is still in its infancy and will continue to grow over the next few years.”

12.  Blo Blow Dry Bar said that it would be unveiling a new Look Book on August 26. The revamped Look Book combines all hair and makeup looks in one place, showcasing the brand’s iconic styles on diverse hair types, skin tones, and face shapes to represent all the people who make up their community. With the addition of one new hairstyle, Blo Blow Dry Bar will include an array of inspiration pictures for guests to create their own customized looks and updos.

13.  Vanessa Yakobson, CEO of Blo Blow Dry Bar, said, “We walked into 2021 with some big goals and have been delivering on every single one. We’ve expanded through existing franchisees and added a number of strong new ones to our roster this year. This has allowed Blo Blow Dry Bar to enter key markets, making our catwalk-quality blow outs accessible to more women across the country.”

Partners with Saks Fifth Avenue to Introduce the Blo American Dream Pop Up

14.  At the end of September 2021, Blo Blow Dry Bar announced that it has partnered with Saks Fifth Avenue to create the “Blo American Dream Pop Up” located in the American Dream Mall at 1 American Dream Way, East Rutherford, NJ. This 5-week partnership brings a pop up Blo Blow Dry Bar location to the mall’s luxury wing dubbed “The Avenue,” offering visitors a destination for quality blow outs through Monday, October 25.

15.  Behind Blo Blow Dry Bar’s first steps onto this new pink carpet is multi-unit franchisee Kari Valcich, who owns and operates locations in Greenwich, CT, Franklin Lakes, NJ and Jersey City, NJ. Having opened her first Blo Blow Dry Bar less than three years ago, Valcich has already grown to become amongst the company’s top performing franchisees who cultivates success and innovation in each of her locations. Valcich’s own career journey has had highs and lows over the last two decades but ultimately has come full circle, resembling the true American Dream.

16.  Valcich said, “Collaborating with Saks to bring a one-of-a-kind Blo Blow Dry Bar pop up location holds a special meaning to me. Within each of my locations, I aim to create an experience that is specifically tailored to meet the needs and wants of the surrounding community. I look forward to the Blo American Dream Pop Up becoming a beauty destination for both local and visiting luxury-minded shoppers.”

17.  Vanessa Yakobson, CEO of Blo Blow Dry Bar, added, “We believe that innovation and experimentation are keys to success, and that partnerships with brands that align with our values and mission are crucial opportunities for us to grow. The chance to participate in high-profile projects is desirable to our franchisees and we look forward to exploring the potential of expanding partnerships, like this one with Saks, across our system.”

18.  As e-commerce takes shoppers out of the mall, Blo Blow Dry Bar’s services represent an important strategy to attract customers back into the retail environment. The American Dream Mall itself represents this strategy through the offering of experiences that can’t be replicated at home.

Company History

19.  Blo Blow Dry Bar was founded in 2007 in Canada by an unnamed mother and daughter business team, who initially grew the brand to three locations. Not long after the third location opened, Ari Yakobson and his wife Vanessa Melman Yakobson became interested in Blo’s concept. After reviewing the numbers, the Yakobsons realized that a salon specializing only in blow outs and hair styling was a viable business.

20.  In 2009, the Yakobsons, Paul Spindler, and a group of investors acquired Blo Blow Dry Bar. The team already had experience opening and operating a successful children’s hair salon franchise. Using this experience, the team began franchising Blo Blow Dry Bar.

21.  After opening more locations in Canada, Blo Blow Dry Bar expanded to the United States in 2010. Today, there are Blo Blow Dry Bar locations around North America.

Entrepreneur’s Franchise 500

22.  Blo Blow Dry Bar did not rank on Entrepreneur’s 2021 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Blo Blow Dry Bar franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Blo Blow Dry Bar’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  57
• Outlets at the End of the Year:  71
• Net Change:  +14

2019

• Outlets at the Start of the Year:  71
• Outlets at the End of the Year:  79
• Net Change:  +8

2020

• Outlets at the Start of the Year:  79
• Outlets at the End of the Year:  72
• Net Change:  -7

Company-Owned

2018

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

Part 1 – Average Quarterly Gross Revenues for Bars Open More Than 3 Years During the 2019 and 2020 Calendar Years

• 39 Bars were open and operating for at least 3 years during the 2019 and 2020 calendar years (the “Part 1 Bars”).

• 4 Bars that were open for at least 3 years as of January 1, 2019 were excluded from the results presented in the table below because these Bars permanently closed due to the impact of COVID-19 and the impact of Government mandated shut-downs.

Q1 2019

• Number of Bars in Sample:  39
• Average Quarterly Gross Revenues:  $94,644
• Highest Quarterly Gross Revenues:  $210,813
• Lowest Quarterly Gross Revenues:  $32,760
• Median Quarterly Gross Revenues:  $90,027
• Number and Percent That Attained or Surpassed Stated Average:  18 / 46%

Q2 2019

• Number of Bars in Sample:  39
• Average Quarterly Gross Revenues:  $86,214
• Highest Quarterly Gross Revenues:  $146,644
• Lowest Quarterly Gross Revenues:  $36,781
• Median Quarterly Gross Revenues:  $82,794
• Number and Percent That Attained or Surpassed Stated Average:  19 / 48.72%

Q3 2019

• Number of Bars in Sample:  39
• Average Quarterly Gross Revenues:  $83,358
• Highest Quarterly Gross Revenues:  $168,316
• Lowest Quarterly Gross Revenues:  $34,020
• Median Quarterly Gross Revenues:  $76,481
• Number and Percent That Attained or Surpassed Stated Average:  14 / 35.90%

Q4 2019

• Number of Bars in Sample:  39
• Average Quarterly Gross Revenues:  $109,808
• Highest Quarterly Gross Revenues:  $242,029
• Lowest Quarterly Gross Revenues:  $38,363
• Median Quarterly Gross Revenues:  $103,395
• Number and Percent That Attained or Surpassed Stated Average:  17 / 43.59%

Full Year 2019

• Average Annual Gross Revenues:  $374,024

Q1 2020

• Number of Bars in Sample:  39
• Average Quarterly Gross Revenues:  $81,355
• Highest Quarterly Gross Revenues:  $146,760
• Lowest Quarterly Gross Revenues:  $32,059
• Median Quarterly Gross Revenues:  $81,050
• Number and Percent That Attained or Surpassed Stated Average:  19 / 48.72%

Q2 2020

• Number of Bars in Sample:  39
• Average Quarterly Gross Revenues:  $14,376
• Highest Quarterly Gross Revenues:  $34,568
• Lowest Quarterly Gross Revenues:  $145
• Median Quarterly Gross Revenues:  $13,972
• Number and Percent That Attained or Surpassed Stated Average:  18 / 46%

Q3 2020

• Number of Bars in Sample:  39
• Average Quarterly Gross Revenues:  $33,270
• Highest Quarterly Gross Revenues:  $78,730
• Lowest Quarterly Gross Revenues:  $2,344
• Median Quarterly Gross Revenues:  $31,873
• Number and Percent That Attained or Surpassed Stated Average:  18 / 46%

Q4 2020

• Number of Bars in Sample:  39
• Average Quarterly Gross Revenues:  $50,304
• Highest Quarterly Gross Revenues:  $101,674
• Lowest Quarterly Gross Revenues:  $255
• Median Quarterly Gross Revenues:  $51,066
• Number and Percent That Attained or Surpassed Stated Average:  20 / 51.28%

Full Year 2020

• Average Annual Gross Revenues:  $179,305

Part 2 – Average Quarterly Gross Revenues for Bars Open More Than 1 Year But Less Than 3 Years During the 2019 and 2020 Calendar Years

• 4 Bars that were open for at least 1 year but less than 3 years as of January 1, 2019 were excluded from the results presented in the table below because these Bars permanently closed due to the impact of COVID-19 and the impact of Government mandated shut-downs.

Q1 2019

• Number of Bars in Sample:  10
• Average Quarterly Gross Revenues:  $41,143
• Highest Quarterly Gross Revenues:  $85,414
• Lowest Quarterly Gross Revenues:  $20,016
• Median Quarterly Gross Revenues:  $35,709
• Number and Percent That Attained or Surpassed Stated Average:  4 / 40%

Q2 2019

• Number of Bars in Sample:  16
• Average Quarterly Gross Revenues:  $50,533
• Highest Quarterly Gross Revenues:  $88,782
• Lowest Quarterly Gross Revenues:  $19,590
• Median Quarterly Gross Revenues:  $46,735
• Number and Percent That Attained or Surpassed Stated Average:  6 / 37.5%

Q3 2019

• Number of Bars in Sample:  17
• Average Quarterly Gross Revenues:  $53,654
• Highest Quarterly Gross Revenues:  $101,931
• Lowest Quarterly Gross Revenues:  $18,437
• Median Quarterly Gross Revenues:  $49,386
• Number and Percent That Attained or Surpassed Stated Average:  7 / 41.12%

Q4 2019

• Number of Bars in Sample:  23
• Average Quarterly Gross Revenues:  $62,860
• Highest Quarterly Gross Revenues:  $120,472
• Lowest Quarterly Gross Revenues:  $27,042
• Median Quarterly Gross Revenues:  $59,704
• Number and Percent That Attained or Surpassed Stated Average:  9 / 39.13%

Full Year 2019

• Average Annual Gross Revenues:  $208,190

Q1 2020

• Number of Bars in Sample:  25
• Average Quarterly Gross Revenues:  $39,518
• Highest Quarterly Gross Revenues:  $73,989
• Lowest Quarterly Gross Revenues:  $15,389
• Median Quarterly Gross Revenues:  $38,682
• Number and Percent That Attained or Surpassed Stated Average:  13 / 52%

Q2 2020

• Number of Bars in Sample:  25
• Average Quarterly Gross Revenues:  $8,834
• Highest Quarterly Gross Revenues:  $25,088
• Lowest Quarterly Gross Revenues:  $44
• Median Quarterly Gross Revenues:  $6,950
• Number and Percent That Attained or Surpassed Stated Average:  9 / 36%

Q3 2020

• Number of Bars in Sample:  25
• Average Quarterly Gross Revenues:  $22,365
• Highest Quarterly Gross Revenues:  $52,711
• Lowest Quarterly Gross Revenues:  $2,688
• Median Quarterly Gross Revenues:  $19,966
• Number and Percent That Attained or Surpassed Stated Average:  10 / 40%

Q4 2020

• Number of Bars in Sample:  23
• Average Quarterly Gross Revenues:  $29,803
• Highest Quarterly Gross Revenues:  $72,762
• Lowest Quarterly Gross Revenues:  $7,913
• Median Quarterly Gross Revenues:  $24,683
• Number and Percent That Attained or Surpassed Stated Average:  9 / 39.13%

Full Year 2020

• Average Annual Gross Revenues:  $100,520

Part 3 – Monthly Average Gross Revenues for Months of January Through June During the 2019, 2020, and 2021 Calendar Years for Bars Open More Than 3 Years*