Image Studios Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Health & Wellness
• Initial Investment: $867,552 to $1,874,789
• Franchise Fee: $64,500
• Royalty: 6% of gross revenues or $300 per week minimum, whichever is greater
• Marketing / Ad Fee: 2% brand development fund or $110 per week minimum, whichever is greater; local marketing minimum of $2,000 per month until above 70% occupancy, then $400 per month
• Key additional recurring fees: Accounting software fee ($99 activation plus $100/month per location), accounting services ($500/month per location for the first two years), EFT processing fee ($1.95 per salon professional tenant per week per transaction)
• Number of locations: 95 total outlets at year-end 2024, including 94 franchised and 1 company/affiliate-owned
• Best Fit: Manager-led or active oversight owner

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The estimated initial investment ranges from $867,552 to $1,874,789, which places this in a high-cost franchise category. The initial franchise fee is listed as $64,500, but the larger capital requirement is likely tied to real estate, buildout, and opening a physical salon property.

The disclosure also lists additional funds of $35,000 to $75,000, which suggests a meaningful working capital requirement beyond the upfront buildout and opening costs. Other pre-opening or setup costs can include site selection support, lease review, preliminary test-fit floor plans, and training for additional personnel.

This is not a low-cost or home-based concept. The investment profile points to a real-estate-heavy, location-based operation with substantial upfront capital needs.

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• Royalty: 6% of gross revenues or $300 per week minimum, whichever is greater
• Brand Development Fund: 2% of gross revenues or $110 per week minimum, whichever is greater
• Local Marketing Requirement: $2,000 per month minimum until the salon exceeds 70% occupancy, then $400 per month minimum
• Accounting Software Fee: $99 activation fee plus $100 per month per location
• Accounting Services: $500 per month per location for the first two years of operations
• EFT Payment Processing Fee: $1.95 per salon professional tenant per week per transaction
• Additional training/support fees: Various as incurred, including in-person assistance and refresher training

Overall, the recurring fee load appears substantial because it combines percentage-based fees, weekly minimums, local marketing minimums, and required software/accounting costs.

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Yes, Item 19 includes historical 2024 results for certain franchisee-owned salons. The disclosure states the figures cover 60 franchisee-owned Image Studios Salons that were open from January 1 through December 31, 2024 and submitted monthly financial reports for the full year. The data is broken into occupancy-based cohorts.

90%+ occupancy cohort

• Average total revenue: $503,685
• Median total revenue: $520,480
• Average key operating expenses: $248,399 (49.32% of revenue)
• Median key operating expenses: $240,208 (46.15% of revenue)
• Average estimated earnings before royalties: $255,286 (50.68% of revenue)
• Median estimated earnings before royalties: $280,272 (53.85% of revenue)
• Average total royalty/BDF expense: $37,776 (7.50% of revenue)
• Median total royalty/BDF expense: $39,036 (7.50% of revenue)
• Average estimated earnings after key expenses: $217,510 (43.18% of revenue)
• Median estimated earnings after key expenses: $241,236 (46.35% of revenue)

Lower-occupancy cohort shown in the disclosure

• Average total revenue: $396,333
• Median total revenue: $351,482
• Average key operating expenses: $228,318 (57.61% of revenue)
• Median key operating expenses: $211,787 (60.26% of revenue)
• Average estimated earnings before royalties: $168,014 (42.39% of revenue)
• Median estimated earnings before royalties: $139,695 (39.74% of revenue)
• Average total royalty/BDF expense: $29,725 (7.50% of revenue)
• Median total royalty/BDF expense: $26,361 (7.50% of revenue)
• Average estimated earnings after key expenses: $138,289 (34.89% of revenue)
• Median estimated earnings after key expenses: $113,334 (32.24% of revenue)

What the numbers suggest

The disclosed results indicate that occupancy matters materially. The 90%+ occupancy group shows higher revenue and higher estimated earnings after the listed expenses than the lower-occupancy cohort shown.

That said, revenue is not profit. The disclosure presents estimated earnings after key expenses, not net profit. It does not clearly establish that all operating costs, owner compensation, debt service, taxes, depreciation, or all location-specific expenses are included. The disclosure also does not clearly establish a full system-wide average, median, or range across all 60 reporting salons in the extracted figures provided here.

The figures are based only on salons that met reporting requirements and had at least 12 months of operations in 2024. One company-owned outlet was excluded. The disclosure provided here does not clearly state whether the Item 19 figures are audited.

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• B2B / B2C: Primarily B2B based on salon professional tenants
• Revenue pattern: Recurring, tied to ongoing occupancy and tenant payments
• Operational characteristics: Physical location, lease obligations, property-related expenses, technology and accounting systems, payment processing, and direct day-to-day supervision by the owner or a trained manager

This appears to be a multi-studio location model where occupancy and retention of salon professionals are central operating drivers. Rent and related occupancy costs are a major expense line in the disclosed results.

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Advantages

• Item 19 includes actual 2024 revenue and expense-based performance data for 60 reporting salons with at least 12 months of operations.
• The system had 95 total outlets at year-end 2024, including 94 franchised units.
• The model appears to generate recurring revenue rather than relying only on one-time transactions.
• The disclosure provides occupancy-based performance segmentation, which helps show how unit economics may shift as locations fill.

Considerations

• The startup investment is high at $867,552 to $1,874,789.
• Ongoing fees are layered: royalty, brand fund, local marketing minimums, software, accounting services, and transaction-related processing fees.
• The franchise is not exclusive territory, which can limit geographic protection.
• The owner cannot be fully passive; the disclosure requires the owner or a trained manager to directly supervise day-to-day operations.
• Reported Item 19 results depend heavily on occupancy, and lower occupancy corresponds with lower revenue and lower estimated earnings after listed expenses.

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This franchise may fit someone comfortable with a high initial investment, a location-based operating model, and active oversight through either direct involvement or a trained manager. It may also fit an operator who is comfortable managing lease-related costs, occupancy targets, and recurring administrative systems.

It likely does not fit someone seeking a low-cost startup, a simple fee structure, exclusive territory protection, or a passive ownership model.

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• The franchisor entity was formed in February 2024 and acquired the system in March 2024, so the current franchisor is relatively recent even though the brand has predecessor history.
• Weekly minimum royalty and brand fund payments can create pressure if revenue ramps slowly.
• Local marketing minimums remain elevated until the salon exceeds 70% occupancy.
• Rent and NNN/CAM expense represented a large share of revenue in the disclosed cohorts, at 37.10% and 43.09% on average in the tables shown.
• Required use of approved accounting services for the first two years reduces flexibility in back-office operations.

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Image Studios is a high-investment, manager-led salon property model with recurring revenue characteristics and occupancy-driven economics. The main tradeoff is that the disclosure shows meaningful revenue and estimated earnings potential at higher occupancy levels, but that comes with substantial upfront capital, a heavy recurring fee stack, and ongoing execution risk tied to filling and maintaining the location.

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