MERLE NORMAN COSMETICS

MERLE NORMAN COSMETICS

Merle Norman Cosmetics, Inc. franchises independently-owned retail stores called 'Studios' that sell high-quality proprietary skin care, color cosmetics, and related products manufactured by the franchisor, while providing free individualized makeover lessons and customer instruction. The business model centers on distributing Merle Norman products through these Studios, with franchisees required to purchase initial inventory packages, adhere to merchandising and operational standards, and focus primarily on MN Products. The target market includes consumers seeking cosmetics priced between department stores and drug stores, emphasizing personalized service and product education in a professional studio environment.

797
Locations
$48K–$260K
Investment
Since 1934
Franchising
RetailLos Angeles, CAwww.merlenorman.comDisclaimer

Franchise Costs


Franchise Fee
$0
Item 5 of FDD
Initial Investment Range
$47,566 $260,437
Low: $47,566High: $260,437
Item 7 of FDD
Royalty Rate
N/A
Brand Fund
N/A
Item 6 of FDD
Fixed Monthly Fees
$25 – $67
Item 6 of FDD

No royalty or ad fund + $300/yr ($25/mo) POS support required first year + optional $28/mo email marketing + $14/mo SMS + $144/yr social media

Financial Performance


Item 19 Financial Performance

This franchise did not provide Item 19 financial performance data.

Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.

Extracted Item 19 Section

How MERLE NORMAN COSMETICS Compares


Key Insights

  • One of the lowest investment costs in Specialty Retail (ranked #1 of 46)
  • #1 largest franchise system in Specialty Retail
  • Lower than average SBA loan default rate in Specialty Retail
FranchiseInvestmentFeeRoyaltyLocations
MERLE NORMAN COSMETICS
Current
$48K – $260KN/AN/A797
CORNWELL$80K – $324KN/AN/A793
BATTERIES PLUS$263K – $497K$45K5.0%604
PET SUPPLIES PLUS$537K – $2.0M$50K3.0%502
WILD BIRDS UNLIMITED$227K – $379K$40K4.0%340
YOUR CBD STORE$96K – $151K$20K2.0%275
Specialty Retail Average
46 franchises
$285K – $708K$38K5.0%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 46 Specialty Retail 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

Top States
1TX
116
2GA
59
3AL
52
4TN
52
5NC
37
6LA
37
7FL
35
8IL
34
9MS
33
10KY
33
11AR
31
12SC
28
13OH
26
14IN
25
15OK
25

+34 more states

SBA Loan History


Historical SBA 7(a) loan data for MERLE NORMAN COSMETICS franchisees (20102025)

Total Loans
35
Average Loan
$91,074
Total Volume
$3.2M
Default Rate
8.6%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

Franchisee Contacts


805 franchisee contacts on file from official FDD filings.

NameSBA Loan
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active

805 Contacts Available

Unlock all MERLE NORMAN COSMETICS franchisee contacts with verified contact information

Due Diligence


Litigation (Item 3)

Franchisee Cases0
No litigation involving franchisees reported

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
4
Non-Renewals
0
Reacquired
0
Ceased Ops
35
Transfers
32
Sold to Franchisees
0
Projected New
14

Frequently Asked Questions


The total initial investment to open a MERLE NORMAN COSMETICS franchise ranges from $47,566 to $260,437.

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