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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.

Since 1934RetailLos Angeles, CAwww.merlenorman.com
No Item 19SBA Loan Data

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

Investment
$47,566 - $260,437
Franchise Fee
$0
Locations
797

Financial Requirements

Franchise Fee$0
Initial Investment Range$47,566 - $260,437
Royalty RateN/A
Brand FundN/A
Fixed Monthly Fees$25 - $67

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

Franchise Stats

Franchise Locations797
Corporate Locations0
States Operating50
Franchising Since1934
FDD Year2025

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 to Other Specialty Retail Franchises

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
FranchiseInvestment RangeFranchise FeeRoyaltyLocations
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 by Outlet Count
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 (2010 - 2025)

Total Loans
35
Average Loan Amount
$91,074
Total Loan Volume
$3,187,600
Default Rate
8.6%

Loans by Year

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

Franchisee Contacts

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Due Diligence

Litigation (Item 3)

Franchisee Litigation Cases0

No litigation involving franchisees reported in the FDD.

Bankruptcy (Item 4)

Bankruptcy HistoryNo

No bankruptcy history reported in the FDD.

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
4
Non-Renewals
0
Reacquired by Franchisor
0
Ceased Operations (Other)
35
System Transfers
32
Sold to Franchisees
0
Projected New Franchises
14

Frequently Asked Questions

How much does it cost to open a MERLE NORMAN COSMETICS franchise?

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

How many MERLE NORMAN COSMETICS franchise locations are there?

As of the 2025 FDD, MERLE NORMAN COSMETICS has 797 franchise locations. The company has been franchising since 1934.

Can you get an SBA loan for a MERLE NORMAN COSMETICS franchise?

Yes, SBA loans are available for MERLE NORMAN COSMETICS franchises. Historical data shows 35 SBA 7(a) loans have been approved for MERLE NORMAN COSMETICS franchisees, with an average loan amount of $91,074. The historical default rate is 8.6%.

Is MERLE NORMAN COSMETICS a good franchise to buy?

MERLE NORMAN COSMETICS shows several positive indicators: established brand with 797+ locations, low SBA loan default rate. 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.

Interested in MERLE NORMAN COSMETICS?

Talk to a franchise advisor to get personalized guidance and learn if MERLE NORMAN COSMETICS is the right fit for you.

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