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Before opening

Lemon Tree

Table of Content
1. Franchise Snapshot
2. Franchise Overview
3. Performance and Metrics
4. Our Take
5. Additional Resources

1. Franchise Snapshot

Franchise Status
Active
Basic Information
Industry
Beauty & Personal Care
Category
Other
Investment Range
$180,794 - $273,939
Total US Locations
46
Franchise Units
34
Founding Year
2009
Started Offering Franchises
2009
Management Capacity
Owner Operator
Job Count
10
Prior E2 Investors?
Yes
Prior Visa Franchise Clients?
No
Royalty Fee
6%
Marketing Fee
$135
Franchise Fee
$35,000
Headquarters (City, State)
Parsippany, NJ
Square Footage
800 - 1200
Retail Location?
Yes
Agreement Term Length
10 years
Video

In these videos you will learn about the company firsthand. And they will also tell you in a short form about the financing of the enterprise.

*Information presented in these videos may change over time and may not reflect the most current franchise offering. Prospective franchisees should review the latest Franchise Disclosure Document (FDD) and consult directly with the franchisor for updated information.

2. Franchise Overview

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Overview

Lemon Tree Hair Salons is a full-service, family hair salon franchise. They have been in the market for over 50 years, and provide customers with value-priced professional haircare services including cutting, coloring, straightening, conditioning, and facial waxing for men, women, and children. Lemon Tree has developed a strong competitive advantage as one of the few salon franchises that offers the full range of salon services — not just haircuts — combined with a prestigious Paul Mitchell Focus Salon partnership that provides ongoing style classes, training, and an alternate product revenue stream. In addition, they offer a semi-absentee ownership model, comprehensive support and training, strong unit economics with top 25% salons averaging over $604k in revenue, and a low investment range of $180k to $273k, making it one of the most affordable full-service salon franchise opportunities in the industry.

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Management team / founders

The Lemon Tree business was built on family values spanning three generations. In 1964, Anthony Shaw, a hairdresser, and his son Robert, a CPA, opened their first beauty salon in New Jersey called Style-Rite. Over subsequent decades, the family evolved with industry trends — from Style-Rite to Le Salon in the 1970s and then Cutting Crew in the 1980s. Jonathan Shaw, the third generation, gained valuable franchising experience as a Boston Chicken (now Boston Market) franchise owner, opening his first location in 1990 and developing four more before selling in 1996. He purchased Lemon Tree in 2009 and serves as President and CEO, leveraging his family's close to 60 years of salon expertise and his own franchising background to lead the brand's national expansion. Jonathan is also President of Salon Development Corp, which owns and operates over 40 salons across New York, New Jersey, and Connecticut. Now the largest salon franchise on Long Island with over 70 locations across six states, Lemon Tree is dedicated to the continued success of franchisees. Franchise owners receive ongoing education, marketing support, and hands-on guidance from a management team with decades of both salon and franchise development experience.

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Focus of owner for daily business operations

As a Lemon Tree Hair Salons franchise operator, the main facets of the business entail: 1. Managing your salon staff, including hiring, scheduling, and retaining talented stylists; 2. Ensuring a high-quality customer experience and maintaining service standards; 3. Building community ties and conducting local marketing efforts to attract and retain clients; 4. Review of financials, salon performance metrics, and product sales.

3. Performance & Metrics

Franchisor Fees | Item 6
Franchise Value
Industry Median
All Franchises Median
Royalty Fee
6%
6%
6%
Marketing Fee
$135
Franchise Fee
$35,000
$45,000
$40,000
Total Investment Cost | Item 7
Type of Expenditure
Low Amount
High Amount
When due
Initial Franchise Fee
$35,000
$35,000
Upon signing the Franchise Agreement
Your Training Expenses
$1,000
$2,000
As required by suppliers
Premises deposits
$4,500
$9,500
As required by landlord, utility providers
Leasehold Improvements, Construction and/or Remodeling
$63,100
$120,000
Before opening, as required by supplier
Furniture, Fixtures and Equipment
$23,000
$28,000
Before opening
Exterior & Interior Signage
$7,000
$10,000
Before opening
Business Licenses and Permits
$800
$2,295
Before opening, as required by government agencies
Computer Systems
$1,000
$2,000
Before opening
E-mail Address
$144
$144
Before opening
Initial Inventory to Begin Operating
$4,000
$5,000
Before opening
Security and Surveillance System
$750
$1,000
Before opening
Professional Fees
$3,500
$5,000
As incurred
Grand Opening Advertising
$4,000
$8,000
As required by supplier
Insurance
$3,000
$6,000
Before opening
Operating Expenses / Additional Funds – 4 months
$30,000
$40,000
As arranged
TOAL
$180,794
$273,939
Outlets and Franchisee Information | Item 20
Outlet type
Year
Outlets at the start of the year
Outlets at the end of the year
Net change
N/A
2022
33
32
-1
Franchised
2023
32
34
2
N/A
2024
34
34
0
N/A
2022
9
9
0
Company-Owned
2023
9
12
3
N/A
2024
12
12
0
N/A
2022
42
41
-1
Total Outlets
2023
41
46
5
N/A
2024
46
46
0
Net Unit Growth (Recent year)
Net Unit Growth (Recent 3 years)
Franchise Health Metrics
Growth Rate
1 year / 3 years
Failure Rate
1 year / 3 years
Franchise for Sale Rate
1 year / 3 years
Lemon Tree
0% / 3%
0% / 6%
0% / 9%
Industry median
5% / 17%
0% / 6%
0% / 6%
Franchise Health Metrics
Franchise Historical Loan Metrics
10 Year Cumulative Charge Offs by $ of Loans
10 Year Cumulative Defaults
3 Year Predicted Default Rate
*Please note the information provided here is sourced from Lumos. We do not guarantee its accuracy or completeness. For verification, please refer to Lumos directly.
Item 19 – Financial Performance Representations
Historical financial performance representations
Franchise Financials
Franchisor company financial information, if disclosed by the franchisor.
Litigation & Bankruptcies
% of Franchisees Undergoing Litigation
0
% of Franchisees with Completed Litigation
0
Number of Bankruptcies Disclosed
0
*The litigation information displayed has been reviewed by our Product Development team. Franchises featured on this platform have been thoroughly assessed. However, Visa Franchise strongly recommends consulting with your own legal counsel for further guidance.

4. Our Take

Lemon Tree Hair Salons provides a great opportunity for an investor looking for an onwer operator opportunity model in the recession-resistant $60+ billion salon industry. The proven success of the full-service, value-priced model, combined with over 50 years of multi-generational salon expertise and a prestigious Paul Mitchell partnership, make the investment relatively safe. Additionally, the brand's national expansion from its established Northeast stronghold, strong unit economics, and low investment range compared to other salon franchises provide potential investors with a scalable opportunity in a consistently growing industry where demand for affordable, quality haircare services remains strong.