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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.

757locations
$48K–$263K
Since 1934
RetailLos Angeles, CAwww.merlenorman.comDisclaimer

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Franchise Costs

Franchise Fee
$0
Initial Investment
$47,870 – $262,938
Royalty Rate
N/A
Brand Fund
N/A
Fixed Monthly Fees
$420 – $420

No ongoing royalty or brand fund fees. $35/mo for Social Media, Digital Email, and SMS Marketing services.

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

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How MERLE NORMAN COSMETICS Compares

Key Insights

  • One of the lowest investment costs in Specialty Retail (ranked #1 of 47)
  • #2 largest franchise system in Specialty Retail
  • Lower than average SBA loan default rate in Specialty Retail
FranchiseInvestmentFeeRoyaltyLocations
MERLE NORMAN COSMETICS
Current
$48K – $263KN/AN/A757
CORNWELL$80K – $324KN/AN/A793
BATTERIES PLUS$285K – $537K$50K5.0%601
PET SUPPLIES PLUS$537K – $2.0M$50K3.0%502
WILD BIRDS UNLIMITED$232K – $376K$40K4.0%344
MUSIC-GO-ROUND$346K – $460K$25K5.0%309
Specialty Retail Average
47 franchises
$287K – $705K$39K5.0%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 47 Specialty Retail franchises by location count.

Locations & Growth


Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2025)

Outlets by state across the United States

Top States
1TX
108
2GA
57
3AL
51
4TN
49
5FL
36
6NC
34
7LA
33
8IL
33
9MS
33
10KY
31
11AR
29
12OH
26
13SC
26
14OK
25
15IN
25

+34 more states

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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.

35 SBA loans on record

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Franchisee Contacts

631 franchisee contacts on file from official FDD filings.

631 Contacts Available

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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
0
Non-Renewals
0
Reacquired
0
Ceased Ops
44
Transfers
33
Sold to Franchisees
0
Projected New
11

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Frequently Asked Questions

The total initial investment to open a MERLE NORMAN COSMETICS franchise ranges from $47,870 to $262,938.