LEMON TREE
Lemon Tree franchises operate retail family salons offering affordable hair care services and other related services for all members of a customer's family. Franchisees use the Lemon Tree marks, distinctive trade dress, operating procedures, standards, and systems including management, training, advertising, and promotions. The target market is families seeking budget-friendly hair care and salon services.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
6% royalty (greater of 6% or $75/wk) + $135/wk brand fund + $250/mo local marketing + $150/mo software + $100/mo digital marketing + up to $95/mo quality review
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: 32 franchised outlets open and reporting for at least one full year as of December 31, 2024.
* Average Gross Revenue: Calculated as the simple average of the 'Mean' values across the four quartiles, as each quartile consisted of 8 franchised units (equal weighting). Formula: (Q1 Mean + Q2 Mean + Q3 Mean + Q4 Mean) / 4 = ($604,874 + $366,722 + $278,631 + $157,919) / 4 = $352,036.50. Median Gross Revenue: Calculated as the average of the 'Median' values of Quartile 2 ($359,910) and Quartile 3 ($300,203), as these represent the middle two quartiles in a 32-unit sample. Formula: (Q2 Median + Q3 Median) / 2 = ($359,910 + $300,203) / 2 = $330,056.50. Revenue Top Quartile: Taken directly from the 'Mean' of Quartile 1: $604,874. Revenue Bottom Quartile: Taken directly from the 'Mean' of Quartile 4: $157,919. Best Guess Profit Range (Low and High): Estimated by subtracting the calculated total annual expenses (low and high estimates) from the average gross revenue ($352,036.50). Expense Estimation Methodology: Midpoints of provided expense ranges were used, weighted by reported percentages. For categories with partially unstated percentages (due to OCR limitations) or 'X or greater' ranges, conservative assumptions were made for low and high estimates: 1. Monthly Rent (32 responses): - Ranges: $2000-$3000 (40.6%), $3001-$4000 (50%). Remaining 9.4% for $4001-$5000, $5001-$6000, $6001+. - Low Estimate: Assumed the unstated 9.4% falls into the $4001-$5000 range (midpoint $4500). Calculated monthly: (0.406 * $2500) + (0.50 * $3500) + (0.094 * $4500) = $3,188.00. Annual: $38,256.00. - High Estimate: Assumed the unstated 9.4% falls into the highest category '$6001 or greater' (estimated average $7000). Calculated monthly: (0.406 * $2500) + (0.50 * $3500) + (0.094 * $7000) = $3,423.00. Annual: $41,076.00. 2. Weekly Payroll (32 responses): - Ranges: $1000-$2000 (34.4%), $2001-$3000 (25%), $3001-$4000 (18.8%), $4001-$5000 (9.4%), $5001-$6000 (12.5%). - Weighted average of midpoints: (0.344 * $1500) + (0.25 * $2500) + (0.188 * $3500) + (0.094 * $4500) + (0.125 * $5500) = $2,909.50. Annual: $151,294.00. 3. Weekly Supplies (32 responses): - Ranges: $0-$500 (9.4%), $501-$1000 (43.8%), $1001-$1250 (28.1%), $1501-$2000 (9.4%). Remaining 9.3% for $1251-$1500 and $2001+. - Assumed the unstated 9.3% is split equally (4.65% each) between $1251-$1500 (midpoint $1375) and $2001 or greater. - Low Estimate: Assumed '$2001 or greater' average is $2250. Calculated weekly: (0.094 * $250) + (0.438 * $750) + (0.281 * $1125) + (0.0465 * $1375) + (0.094 * $1750) + (0.0465 * $2250) = $1,001.19. Annual: $52,061.75. - High Estimate: Assumed '$2001 or greater' average is $3000. Calculated weekly: (0.094 * $250) + (0.438 * $750) + (0.281 * $1125) + (0.0465 * $1375) + (0.094 * $1750) + (0.0465 * $3000) = $1,036.06. Annual: $53,875.25. 4. Yearly Insurance (32 responses): - Ranges: $2500-$3000 (9.4%), $3001-$3500 (18.8%), $3501-$4000 (9.4%), $4001-$4500 (18.8%), $4501-$5000 (43.8%). - Weighted average of midpoints: (0.094 * $2750) + (0.188 * $3250) + (0.094 * $3750) + (0.188 * $4250) + (0.438 * $4750) = $4,101.50. Annual: $4,101.50. 5. Monthly Utilities (32 responses): - Ranges: $501-$750 (18.8%), $751-$1000 (40.6%), $1001-$1250 (21.9%), $1251 or greater (18.8%). - Low Estimate: Assumed '$1251 or greater' average is $1500. Calculated monthly: (0.188 * $625) + (0.406 * $875) + (0.219 * $1125) + (0.188 * $1500) = $1,001.13. Annual: $12,013.50. - High Estimate: Assumed '$1251 or greater' average is $2000. Calculated monthly: (0.188 * $625) + (0.406 * $875) + (0.219 * $1125) + (0.188 * $2000) = $1,095.13. Annual: $13,141.50. Total Estimated Annual Expenses Low: $38,256.00 (Rent) + $151,294.00 (Payroll) + $52,061.75 (Supplies) + $4,101.50 (Insurance) + $12,013.50 (Utilities) = $257,726.75. Total Estimated Annual Expenses High: $41,076.00 (Rent) + $151,294.00 (Payroll) + $53,875.25 (Supplies) + $4,101.50 (Insurance) + $13,141.50 (Utilities) = $263,488.25. Best Guess Profit High: $352,036.50 - $257,726.75 = $94,309.75. Best Guess Profit Low: $352,036.50 - $263,488.25 = $88,548.25.
Extracted Item 19 Section
How LEMON TREE Compares to Other Beauty & Spa Services Franchises
Key Insights
- Lower investment than 80% of Beauty & Spa Services franchises
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
LEMON TREE Current | $181K - $274K | $35K | 6.0% | 34 |
| SPORTS CLIPS (SINGLE UNIT) | $289K - $475K | $30K | 6.0% | 1,754 |
| SUPERCUTS | $186K - $323K | $40K | 6.0% | 1,701 |
| DaVi Nails and Em Lash Studio | $61K - $144K | $65K | N/A | 400 |
| PALM BEACH TAN | $648K - $1.1M | $30K | 6.0% | 397 |
| DAVI NAILS | $57K - $125K | $65K | 0.0% | 387 |
Beauty & Spa Services Average 45 franchises | $397K - $729K | $49K | 6.1% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 45 Beauty & Spa Services franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a LEMON TREE franchise?
The total initial investment to open a LEMON TREE franchise ranges from $180,794 to $273,939. This includes a franchise fee of $35,000. Ongoing royalty fees are 6.0% of gross sales.
How much revenue does a LEMON TREE franchise make?
According to the 2025 FDD, the average gross revenue for a LEMON TREE franchise is $352,036.5. The median revenue is $330,056.5.
How much profit can you make with a LEMON TREE franchise?
Based on the financial performance data in the FDD, estimated profit for a LEMON TREE franchise ranges from $88,548.25 to $94,309.75 per year. Actual results vary based on location, management, and market conditions.
How many LEMON TREE franchise locations are there?
As of the 2025 FDD, LEMON TREE has 34 franchise locations. The company has been franchising since 2009.
Is LEMON TREE a good franchise to buy?
LEMON TREE shows several positive indicators: transparent financial performance data (Item 19). However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
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