Blo Blow Dry Bar Franchise Review (2024)
One can choose from any of their seven signature styles featured in the Blo Blow Dry Bar Hair Menu, from the razor-straight “Executive Sweet”, to the runway-inspired “Pillow Talk”. For something a little more glammed up, ask for an “Up Do a La Carte”.
They also offer makeup, manicure, pedicure and waxing in some of their locations.
Blo Blow Dry Bar: Management Team
Blow Dry Bar was founded in 2007, however in 2009, Blo was acquired by Vanessa Yakobson and her husband and since then they have grown to over 115 locations and are expanding quickly. Blo’s low-cost franchise opportunities deliver a proven concept, a simple business model, intensive training programs, and ongoing support from their dedicated head-office team.
Blow Dry Bar provides Franchise Partners with all the tools and resources required to succeed, from ops and software to recruiting and marketing.
Blo U(niversity), is their one-of-a-kind stylist training program, which ensures that the staff is trained by one of their Corporate Style Directors. The head office team is passionately dedicated to your success. Their expert staff will support the franchisee from the minute of the signature, through the grand opening, and on a daily basis.
Franchise Health and Beauty Industry Analysis
Franchise Strengths
- Operationally simple with all the stylists already with their certifications
- Recurrent revenue streams
- Ability to have a manager run the day-to-day of the business
- Original Blow Dry Bar
Franchise Weaknesses
- Reliant on skilled stylists to deliver the service that the customer expects
- Operates in a competitive environment with low barriers of entry
Franchise Opportunities
- Boutique concept that still has much room to grow the brand presence in many markets
- Growing market as the Personal Care and Cosmetics industry has been growing steadily at 3% per year over the last few years, with growth forecasted to continue
- Very large and growing market – Global Hair Care Industry is $85bn industry with continued growth (Statista)
Franchise Threats
- Changing consumer preferences and styles
- Other nearby competition and growing national chains
- Many consumers see as “non-vital” good, and is thus is more prone to economic recessions
How much is a Blo Blow Dry Bar?
Blo Blow Dry Bar Franchise cost ranges from $214,443 to $337,352 according to the 2020 FDD.
How Much does a Blo Blow Dry Bar Franchise make?FDD Disclaimer:“The following representation is a historic financial performance representation about our existing franchised units. On March 31, 2020, there were 77 franchise operated Bars open. We have included the 55 Bars that were opened at least 1 year from January 1, 2018 to December 31, 2019. For locations open 1 to 3 years, 1 location was excluded as it was transferred during the reporting period and another was excluded for not following the system. For locations open 3 to 5 years, 1 location was excluded as it was transferred during the reporting period.”“For the Bars open 1-3 years, 10 of the 21 (or 48%) met or exceeded the Average and 11 of the 21 (or 52%) met or exceeded the Median. One Bar was excluded due to transfer of ownership. ~ 3-5 years, 6 of the 14 (or 43%) met or exceeded the Average and 7 of the 14 (or 50%) met or exceeded the Median. One Bar was excluded due transfer of ownership.~ 5+ years, 9 of the 20 (or 45%) met or exceeded the Average and 10 of the 20 (or 50%) met or exceeded the Median. None were excluded due transfer of ownership.”“The table below shows the average Revenue for bars open for at least 2 years (during the period Jan 1, 2019 and Dec 31, 2019):”Bottom 1/3 of Bars: $269,002Mid 1/3 of Bars: $366,439Top 1/3 of Bars: $505,337
| Item | Estimated Amount (in USD) | When Due | To Whom Payment is to Be Made | ||
| Low | High | ||||
| Initial Franchise Fee | $40,000 | $40,000 | When you sign the Franchise Agreement | Franchisor | |
| Real Estate/Rent (1st Month’s Rent) | 3,000 | 7,500 | Before Beginning Operations | Lessor | |
| Security Deposits | 5,000 | 9,500 | Before Beginning Operations | Lessor, Utilities | |
| Leasehold Improvements | 75,000 | 139,000 | Before Beginning Operations | Third Parties | |
| Furniture, Fixtures, & Equipment | 40,000 | 52,500 | Before Beginning Operations | Third Parties | |
| Computer System, Software, and Training | 1,900 | 2,012 | Before Beginning Operations | Third Parties | |
| Insurance | 600 | 750 | Before Beginning Operations | Third Parties | |
| Bar Supplies | 10,813 | 16,395 | Before Beginning Operations | Approved Suppliers | |
| Initial Inventory | 8,150 | 9,400 | Before Beginning Operations | Approved Suppliers | |
| Training | 8,980 | 14,795 | Before Beginning Operations | Franchisor | |
| Grand Opening Promotions, Advertising and Events | 12,500 | 15,000 | 1-2 Months Prior to Opening and First 3 Months of Operations | Approved Suppliers, Franchisor | |
| Licenses and Permits | 500 | 500 | Before Beginning Operations | Licensing Authority | |
| Legal & Accounting | 2,000 | 5,000 | Before Beginning Operations | Attorney, Accountant | |
| Additional Funds (3 Months) | 6,000 | 25,000 | As Necessary | You Determine | |
| TOTAL | $214,443 | $337,352 | |||
| Royalty | Ad-Fund | Local Marketing | |||
| 6% | $250 | 2% | |||
| Open | Average | Median | Low | High | # of Bars |
| 1-2 years | $246,331 | $253,936 | $134,013 | $361,616 | 10 |
| 2-3 years | $330,087 | $312,229 | $131,551 | $594,422 | 11 |
| 3+ years | $415,554 | $380,733 | $235,957 | $728,506 | 12 |
| 5+ years | $497,746 | $475,675 | $315,913 | $691,899 | 9 |
| Open | Average | Low | Median | High | # of Bars |
| 1-3 years | $254,555 | $124,863 | $251,108 | $411,278 | 21 |
| 3-5 years | $358,786 | $173,179 | $333,985 | $580,915 | 14 |
| 5+ years | $439,789 | $194,609 | $437,245 | $686,082 | 20 |
