How Much Does a Roosters Men's Grooming Center Franchise Owner Make?

The modeled manager-run result is approximately $2,000 in the Conservative scenario, $23,000 in the Base scenario, and $58,000 in the Upside scenario. These estimates apply to one traditional U.S. shop and use the medians of the bottom, middle, and top Item 19 sales groups as revenue anchors.

The scenario definition is estimated pre-tax owner earnings: cash remaining after modeled normal shop-level operating expenses and recurring franchise charges, but before financing interest, financing principal, depreciation, capital expenditures, and personal income taxes. The model treats normal paid management as included in the parent-company salon expense proxy, although that expense is not separately disclosed.

The revenue anchors are official Item 19 group medians. The margins and resulting earnings are independent scenarios. A location can lose money even when Gross Sales are positive, so the Conservative figure is not a floor.

Item 19 discloses Gross Sales, not owner earnings. For Fiscal Year 2025, the 67 reporting franchised shops produced average Gross Sales of $487,106 and median Gross Sales of $461,761. The FDD explicitly states that the figures do not reflect cost of sales, operating expenses, or other deductions needed to determine net income or profit.

How representative is the reporting cohort?

The cohort is broad among the shops counted at fiscal-year end, but it may exclude weaker units that did not operate or report for all 12 months. Item 19 states that 69 franchised outlets were open during the period and that 67 reported sales every month. Item 20 separately shows 76 franchised shops at the start of Fiscal Year 2025 and 69 at the end, with three terminations and four non-renewals.

The 67-shop cohort equals 97.1% of the 69 outlets cited in Item 19, but only 88.2% of the 76 outlets at the fiscal-year start. Because Item 19 requires 12 months of reported sales, the sales table does not describe the full economics of the seven outlets that left the system during the year. This is a material survivorship limitation, not proof that any specific closure was caused by poor financial performance.

The Base estimate starts with $462,709 of official middle-group median Gross Sales and ends with $23,156 of modeled pre-tax owner earnings. The calculation uses a 12.7% parent-company store contribution proxy, subtracts the mature 6% royalty and current 1% National Advertising Fund contribution, and then subtracts $3,220 of modeled fixed recurring charges.

What is included in the $3,220 fixed-charge allowance?

The allowance includes the disclosed $170 monthly point-of-sale software cost, the maximum $1,000 annual convention registration fee, and one $15 monthly email mailbox. The one-mailbox count is an editorial assumption. The actual convention charge may be lower, and additional mailboxes would increase cost.

• Included: $2,040 annual point-of-sale software, up to $1,000 annual convention registration, and $180 for one email mailbox.
• Not separately subtracted: the $1,000 monthly local-advertising minimum, because the parent company's broad “company-owned salon expense” proxy includes other salon-related costs and may already capture ordinary local marketing.
• Not modeled: a local advertising cooperative contribution of up to $500 per month, additional training, late fees, supplier testing, lease-guaranty fees, or unusual required programs.
• Potential downside: if the parent expense proxy does not include spending equivalent to the required local-advertising minimum, subtract as much as another $12,000 annually from the modeled residual.

Owner involvement changes the composition of the benefit more than the underlying shop economics. Item 15 requires either the owner or a fully trained manager to devote full time and best efforts to the shop and provide continuous supervision. The FDD therefore supports both an actively managed owner model and a manager-run model, but not an unsupervised passive-income assumption.

Manager-run pre-tax owner earnings

The residual business cash after normal operating costs, including a paid-management cost within the parent-company salon expense proxy. This is the basis of the $2,000-$58,000 headline range.

Estimated owner-operator benefit

The manager-run residual plus any manager compensation the active owner genuinely avoids by performing that work. The added amount is labor compensation, not passive profit.

Why is no manager wage added to the headline estimate?

The FDD does not disclose Roosters manager compensation, and the parent-company salon expense line does not isolate manager pay. Adding a generic salary would imply precision that the evidence does not support. A buyer should obtain the actual manager payroll, payroll taxes, benefits, scheduled hours, and owner duties for comparable Roosters shops before calculating an owner-operator benefit.

Labor productivity, occupancy, and sales position within the Item 19 distribution are the largest modeled drivers. The $2,000-$58,000 range is deliberately broad, but it still cannot capture every site, lease, staffing model, first-year ramp, or financing structure.

• Sales mix and ticket: Item 19 combines service and product revenue and does not disclose customer count, average ticket, retail mix, or appointment utilization by performance group.
• Labor: stylist and barber compensation, payroll taxes, benefits, turnover, recruiting, and manager coverage are not disclosed for the 67-shop cohort.
• Occupancy: Item 7 estimates traditional-shop rent at $3,000-$10,000 per month, while the parent proxy averages rent across a different mix of company-owned brands and locations.
• Advertising: the model assumes ordinary local marketing is captured in the broad salon-expense proxy. A separate $12,000 minimum or cooperative dues would reduce the residual if that assumption is wrong.
• Franchise charges: the National Fund is currently 1% but may rise to 2%; the royalty is 4% only until the first anniversary and 6% thereafter.
• Capital and debt: depreciation, replacement equipment, remodels, financing interest, and principal payments are excluded. A highly financed owner may have little or no distributable cash even when operating earnings are positive.

Why does the parent-company proxy reduce confidence?

Regis Corporation's company-owned salon segment is a useful operating reference, but it is not a Roosters franchised-shop profit disclosure. The segment primarily includes Supercuts, SmartStyle, Cost Cutters, and other regional trade names, with a different brand mix, price architecture, geography, scale, and corporate overhead structure. The model uses only the disclosed salon-expense and rent relationship, then applies Roosters-specific fees; it does not claim those company-owned salons are economically identical to Roosters.

A buyer should replace every proxy with shop-level evidence wherever possible. Item 19 substantiation, Item 20 franchisee contacts, and actual operating statements from comparable shops are more decision-useful than a generalized scenario midpoint.

• Request the written substantiation supporting the Fiscal Year 2025 Item 19 tables and confirm how the top, middle, and bottom groups were constructed.
• Ask for comparable-shop profit-and-loss statements that separate service revenue, product revenue, barber and stylist labor, manager compensation, payroll burden, rent, common-area charges, utilities, supplies, insurance, local advertising, and technology.
• Interview current and former franchisees from Item 20 about owner hours, manager coverage, staffing vacancies, wage structure, customer retention, and capital replacement.
• Reconcile the proposed lease to the Item 7 shop size and six-station format, including base rent, percentage rent, common-area maintenance, taxes, insurance, and any lease-guaranty fee.
• Model debt service separately using the buyer's actual financed amount, rate, term, and required reserves. Item 10 states that the franchisor does not generally provide financing.
• Confirm in writing which recurring technology, advertising, cooperative, training, remodel, and supplier charges apply to the specific shop and market.