Risk Score
Pending analysis
Investment Range
$409,979 - $1,029,249
Franchise Fee
$25,000
Min Cash Required
$85,000
Total US Locations
176
Business Summary
Drybar operates upscale shops that provide hairstyling services, specifically blow-dry services without haircuts or coloring, in a spa-like setting. Drybar also offers its services at off-site locations and sells related hair styling products. The business aims to offer a relaxing and fun environment for customers to receive high-end blow-dry styles at a reasonable price.
Corporate History
Drybar, DB Franchise, LLC, was formed in Delaware on January 29, 2021. The Drybar brand concept originated in 2008 with founder Allison Webb providing in-home hair styling. The first Drybar shop opened in Brentwood, California, in February 2010, offering high-end blow-dry services in a spa-like environment. Drybar Franchising LLC, a predecessor entity, began offering Drybar franchises in April 2012. On February 8, 2021, DB Franchise, LLC acquired most of the franchise system's assets from Drybar Holdings LLC and its affiliates, thereby becoming the current franchisor.
Financial Overview
Investment Range
$409,979 - $1,029,249
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$85,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$226,300
Equipment Costs (High)
$736,000
Working Capital
$111,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Drybar (Steele Pomp Investment, LLC and Subsidiaries) has shown improved financial performance, shifting from net losses in 2022 and 2023 to a net income of $1,732,996 in 2024. The company's cash balance significantly increased to $5,740,237 in 2024 from $2,392,608 in 2023, and it maintains positive working capital. The independent certified public accountants issued an unqualified opinion, indicating the consolidated financial statements present fairly and do not raise substantial doubt about the company's ability to continue as a going concern. However, Drybar is involved in pending litigation with Radiant Waxing franchisees (an affiliate), which is a contingent liability.
Financing Details
Drybar does not offer any direct or indirect financing to its franchisees and does not guarantee any notes, leases, or other obligations. Franchisees must arrange their own funding through external sources.
Performance Metrics
Total US Locations
176
Franchised Units
176
Corporate Units
0
Avg Square Footage
1,650
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Drybar (DB Franchise, LLC) currently has one pending lawsuit involving a group of franchisees who filed a consolidated complaint on October 19, 2023, against Radiant Waxing Franchise, LLC (an affiliate), WellBiz Brands, Inc. (an affiliate), Steele Pomp LLC (a parent), Lunchbox Franchise, LLC (a predecessor's brand), and Jeremy Morgan (an individual). The franchisees allege breach of their franchise agreements, tort claims, equitable claims, and a consumer protection act claim. These claims stem from the acquisition of the LunchboxWax franchise system by Radiant Waxing Franchise, LLC and subsequent system changes, as well as the handling of funds paid into the Brand and System Development Fund. The Denver District Court has dismissed the tort claims entirely and substantially limited the contract, equitable, and consumer protection act claims. Radiant Waxing Franchise, LLC has asserted counterclaims against certain franchisees for breach of their franchise agreements. The trial is set for May 2025.
Bankruptcy History
Drybar has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
Drybar franchisees can renew their franchise for one additional 10-year term if they provide written notice of their election to acquire a successor franchise, are not in default of their agreement, and sign the then-current form of the franchise agreement, which may contain materially different terms. Franchisees must also sign a general release and pay a successor franchise fee. Additionally, they are required to update or remodel their shop to meet Drybar's then-current standards.
Training & Support Program
Franchisor Assistance
Drybar provides franchisees with significant assistance and support. Before opening, Drybar helps with site selection and lease approval, provides mandatory specifications for shop development, and grants access to the Operations Manual. Franchisees, their Operating Partner, and Designated Manager must complete an initial training program covering business drivers, recruiting, operations, and point-of-sale systems. After opening, Drybar offers ongoing general guidance based on reports and inspections and administers a Brand Marketing Fund for advertising. Drybar also provides additional training programs for Shop Educators, sales, and managers, and requires attendance at annual conferences and regional meetings.
Initial Training Hours
58
Training Location
Virtual, Franchisee Training Shop, and Colorado Support Center
Ongoing Support
Drybar provides ongoing general guidance to franchisees regarding their shop's operation, based on reports or inspections. This guidance covers facility appearance, client-service procedures, quality control, equipment maintenance, inventory management, supplier relations, advertising and marketing strategies, and administrative and reporting systems. Drybar may also provide guidance virtually or through telephonic conversations and consultations at its offices. Franchisees and/or certain employees may be required to attend various in-person or electronic training courses, trade shows, ongoing education programs, franchisor-sponsored performance groups, and webinars. Drybar also requires franchisees or their Operating Partner and Designated Manager to attend scheduled annual franchise owner conferences and may require attendance at regional meetings.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Semi-Absentee
Territory Type
Protected
Staff Count
11
Territory Size Requirements
Drybar typically defines a Protected Area as a circle with a 1.5-mile radius centered at the shop. In densely populated urban areas, the Protected Area may be the lesser of a 1.5-mile radius or a radius reflecting a 50,000 person population density. Boundaries can also be defined by political subdivisions, streets, or ZIP codes.
Staffing Notes
To open a Drybar shop, franchisees must hire at least 10 full-time hair stylists and a Shop Educator. The Shop Educator must complete a specialized training program to train stylists on Drybar techniques, products, and brand philosophy. Each stylist needs 15-25 hours of training with the Shop Educator to become 'floor ready.' Front desk staff, known as 'Bartenders,' typically undergo four days of virtual training and an additional 2-3 days of in-shop training. Franchisees, Designated Managers, and Bartenders also participate in a four-call virtual Sales Training Series. Franchisees are responsible for ensuring all stylists are properly licensed and for conducting background checks on all employees.