Lemon Tree Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$180,794 - $273,939
Franchise Fee
$10,000
Total US Locations
46
Business Summary
Lemon Tree Family Salon operates retail salons that provide affordable hair care and other related services for every member of a customer's family. The business offers a distinctive operating system, trade dress, service techniques, and promotional programs.
Corporate History
Lemon Tree Development LLC was formed as a limited liability company in New Jersey in October 2009 and began offering franchises in December 2009. The franchisor's parent company, Lemon Tree Holdings, LLC, and an affiliate, Lemon Tree IP, LLC, were both formed in June 2017. Lemon Tree IP, LLC owns the 'Lemon Tree' trademarks and licenses them exclusively to Lemon Tree Development LLC. Affiliates have operated hair salon businesses under the 'Lemon Tree' brand since December 2009.
Financial Overview
Investment Range
$180,794 - $273,939
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$35,000
Royalty %
6%
Equipment Costs (Low)
$93,100
Equipment Costs (High)
$158,000
Working Capital
$35,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Lemon Tree Development LLC's financial condition has been highlighted as a special risk in the FDD, with the franchisor stating that its financial condition calls into question its ability to provide services and support. The company's financial statements show a member's deficit (negative equity) of $(86,906) in 2024 and $(110,491) in 2023, with total liabilities exceeding total assets in both years. Despite these challenges, Lemon Tree Development LLC reported positive net income of $23,585 in 2024 and $14,705 in 2023. The auditor issued an unqualified opinion on the financial statements, meaning they present fairly in all material respects, but the FDD's special risk disclosure should be considered.
Financing Details
Lemon Tree Development LLC does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other financial obligations on behalf of its franchisees.
Performance Metrics
Total US Locations
46
Franchised Units
34
Corporate Units
12
Avg Square Footage
1,000
Franchising Since
2009
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Lemon Tree Development LLC reports no litigation that is required to be disclosed in Item 3 of the FDD, indicating a clean legal record for the franchisor.
Bankruptcy History
Lemon Tree Development LLC has no bankruptcy information required to be disclosed in Item 4, indicating that neither the franchisor nor its key personnel have a bankruptcy history.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Lemon Tree Family Salon franchise agreement, franchisees must be in full compliance with the agreement, have no more than three defaults during the current term, and provide written notice at least six months before the term ends. They will need to sign a new franchise agreement, maintain their location to current brand standards and trade dress, sign a general release of claims against Lemon Tree Development LLC, and comply with current qualifications and training requirements, including completing additional training.
Training & Support Program
Franchisor Assistance
Before opening, Lemon Tree Family Salon provides franchisees with site selection guidelines, approval for their location, specifications for salon layout, design, appearance, and signage, and loans them the operations manual and other training aids. The franchisor also provides a list of required equipment and products and conducts an initial training program for up to two individuals. Upon opening, Lemon Tree Family Salon provides up to five days of on-site training and assistance at the franchisee's location. Ongoing support includes optional and mandatory additional training programs, an annual business meeting or convention, corrective on-site training upon request (for a fee), individualized assistance by telephone, video conferencing, or email within reasonable limits, samples of advertising and promotional materials, inspections of the franchised business, and updated lists of approved suppliers. Lemon Tree Family Salon also sets minimum and maximum prices for products and services and monitors social media accounts.
Initial Training Hours
78
Training Location
Virtually at the franchisee's salon or at the franchisor's headquarters or another specified location.
Ongoing Support
After opening their Lemon Tree Family Salon, franchisees are offered mandatory or optional additional training programs, including an annual business meeting or convention, which they must attend for up to three days per year at a location designated by the franchisor. Upon request or as deemed appropriate, the franchisor provides corrective on-site training and assistance (for a fee, plus trainer expenses). Franchisees can also receive individualized assistance within reasonable limits by telephone, video conferencing, electronic mail, or postage service. Lemon Tree Family Salon provides samples or digital artwork for advertising, conducts inspections of the franchised business, and updates lists of approved equipment, products, and services suppliers. The franchisor also sets minimum and maximum prices for products and services and monitors social media accounts.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
limited
Territory Size Requirements
Lemon Tree Family Salon territories are defined differently based on the state. In New Jersey, Connecticut, Pennsylvania, and the New York counties of Nassau and Suffolk, a territory is a one-mile radius around the franchised salon. In all other areas, the territory size is anticipated to range from 0.5 miles to 2 miles, depending on population and competition.
Staffing Notes
Lemon Tree Family Salon franchisees are required to employ a general manager to handle day-to-day operations, who must successfully complete the franchisor's Initial Management Training Program and devote full-time effort to the business. All personnel providing hair care or other esthetic services at the salon must hold the necessary barber, cosmetology, or esthetician licenses as required by the state. Franchisees must hire qualified individuals trained according to the franchisor's standards, ensuring employees maintain a neat and clean appearance, adhere to the dress code in the operations manual, and provide competent and courteous service to patrons.