How to Finance a Drybar Franchise: Blowout Bar Costs and SBA
By Chris Cornella
A Drybar franchise loan finances a build-out-heavy beauty business: a shop dedicated to blowouts and styling, with custom cabinetry and millwork, styling stations, wash areas, a technology package and the cash to carry the business through its first months. Because the build-out is the largest and most variable cost, how you borrow for it shapes everything that follows.
Below we cover the costs and fees in Drybar’s 2026 Franchise Disclosure Document (FDD), the brand’s SBA Franchise Directory notes, the loan types that fit and what lenders look for.
US Professional Funding is not affiliated with, sponsored by or endorsed by Drybar; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice, and buyers should review the current FDD and franchise agreement with a qualified franchise attorney and accountant.
Drybar Franchise Loan at a Glance
- Initial franchise fee: $50,000 for a single shop, according to the 2026 FDD issued April 1, 2026.
- Royalty: 7% of gross receipts.
- Brand marketing fund: 2% of gross receipts, which the franchisor may raise to as much as 4%.
- Technology fee: currently $775 per month.
- Estimated initial investment: $391,229 to $1,096,999 for a traditional shop, or $401,929 to $705,999 under the value engineering approach.
- Development fees: tiered by number of shops under an area development agreement.
- System size: 205 franchised shops at December 31, 2025, including 198 in the U.S., with no franchisor-owned shops.
- Franchisor financing: none; the FDD states the franchisor does not offer direct or indirect financing.
- SBA Franchise Directory: listed as Drybar (code S0524), with notes on the lease rider and a real estate purchase option.
What Is Drybar?
Drybar is a blowout bar: a salon concept built around washing, blow-drying and styling rather than cuts or color. According to the FDD, the concept dates to 2008, when its founder began providing in-home styling services in West Los Angeles. The first Drybar shop opened in Brentwood, California, in February 2010, and franchises have been offered since April 2012.
The current franchisor, DB Franchise, LLC, is a Delaware limited liability company based in Denver, Colorado. It acquired the franchise system’s assets in February 2021. The FDD states that the franchisor does not directly own or operate any shops, so the system is fully franchised.
The shop format. Drybar shops are designed spaces with branded cabinetry and millwork, styling chairs, wash stations, audio-visual systems and a retail product area. Clients book appointments, and the shop sells styling services and retail hair care products.
Why lenders view Drybar the way they do. Lenders see a recognized brand with a long operating history and a fully franchised system. They also see a high build-out cost relative to many service franchises, a business that depends on stylist staffing and repeat visits, and a lease-based site. Underwriting therefore focuses on the location, the build-out budget, the staffing plan and the borrower’s liquidity.
Drybar Franchise Costs
Initial franchise fee. The 2026 FDD sets the initial franchise fee at $50,000 for a single shop, paid in a lump sum and nonrefundable. Qualifying veterans and active-duty service members, and qualifying minority-owned businesses, may receive a 20% discount on the initial franchise fee.
Leasehold improvements. Construction is the largest and widest-ranging line. The FDD estimates leasehold improvements, net of any landlord allowances, at $145,000 to $600,000 for a traditional shop and $145,000 to $270,000 under value engineering. Site condition, the size of the space, local construction costs and the tenant improvement allowance a landlord offers all drive where a project lands.
Cabinetry, equipment and opening package. Cabinetry, millwork, furniture and decor run $52,000 to $118,000 for a traditional shop. The initial opening package, which covers items such as supplies, inventory and certain fixtures from a franchisor affiliate, runs $45,000 to $51,000. Computer systems and audio-visual technology add $22,000 to $35,000.
Opening costs and working capital. The FDD includes a $20,000 grand opening spend requirement and additional funds of $20,000 to $110,000 for the first nine months.
Total investment. The 2026 FDD’s Item 7 table for a traditional shop under a franchise agreement includes these line items:
- Initial franchise fee: $50,000
- Real property, utility and security deposits: $3,000 to $12,000
- Leasehold improvements, net of allowances: $145,000 to $600,000
- Cabinetry, millwork, furniture and decor: $52,000 to $118,000
- Initial opening package: $45,000 to $51,000
- Initial software set-up and technology fees: $2,124
- Computer system and audio-visual technology: $22,000 to $35,000
- Training program and other training expenses: $9,600 to $11,000
- Architect, engineer and drawings: $8,300 to $23,000
- Grand opening spend requirement: $20,000
- Signage and graphics: $7,300 to $24,000
- Office and business supplies: $3,300 to $8,720
- Business licenses and permits: $525 to $17,325
- Insurance (initial payment): $1,100 to $1,300
- Professional fees: $1,980 to $13,530
- Additional funds (nine months): $20,000 to $110,000
Those lines total $391,229 to $1,096,999. The value engineering column, which narrows the construction and cabinetry ranges, totals $401,929 to $705,999. The FDD notes that the franchisor does not currently finance any part of the initial investment.
Ongoing Fees and How They Affect Your Loan
Royalty. The 2026 FDD sets the royalty at 7% of gross receipts.
Brand marketing fund. Franchisees contribute 2% of gross receipts, and the franchisor may increase that contribution up to 4%. Projections should test the higher rate.
Local advertising. Item 6 also lists local advertising obligations, including a $2,000 monthly local advertising fee. Read the table carefully to understand how local spending is calculated.
Technology. The technology fee is currently $775 per month, and the FDD lists a $35 monthly media fee for required music and media.
Transfer and renewal. The transfer fee is 50% of the then-current initial franchise fee, reduced to $2,500 for transfers of 10% or less of an ownership interest, and a $5,000 transfer deposit applies. The successor franchise fee for renewal is 25% of the then-current initial franchise fee.
How lenders factor these costs in. With royalty and the brand fund tied to gross receipts and several fees fixed monthly, a Drybar franchise loan must be sized to cash flow after franchise fees, rent and stylist payroll. Lenders typically model the monthly fixed fees separately from the percentage fees so that a slower month does not leave debt service uncovered.
Franchisor Requirements for New Owners
The FDD sets out timing and site obligations that directly affect the financing schedule:
- Site acceptance: find a site within a non-exclusive search territory and obtain the franchisor’s acceptance within 120 days of the franchise agreement’s effective date.
- Lease approval: get written approval before signing a lease, include the required provisions of the franchisor’s lease rider, and submit the executed lease and rider within 180 days.
- Opening deadline: open within 12 months of signing, which the franchisor may extend to up to 18 months in regions where finding a site takes longer. The franchisor estimates 12 to 18 months from signing to opening.
- Training: complete the franchisor’s training program, budgeted at $9,600 to $11,000 in Item 7.
Financial qualifications. We did not verify a published minimum net worth or liquid capital figure from the franchisor. Ask the franchise development team for current requirements, and expect a lender to look for liquidity that covers the equity injection plus reserves beyond the nine-month additional funds estimate.
Ways to Own a Drybar
Open a new shop. A single-shop franchise agreement covers one location. Financing typically combines the owner’s cash with a term loan for the fee, construction, equipment and working capital. Our overview of franchise start-up financing explains how these packages are typically assembled.
Buy an existing shop. Because the system is fully franchised, any established shop a buyer acquires comes from another franchisee. Lenders can underwrite the shop’s actual results, lease and staffing, and the franchisor must approve the transfer. Our article on buying a franchise resale covers the approval and diligence process.
Develop multiple shops. Under an area development agreement, a developer commits to opening a set number of shops on a schedule and pays a development fee based on that number. Read more about financing an area development agreement.
Financing Options for a Drybar Franchise
SBA 7(a) loans. Because Drybar is on the SBA Franchise Directory, an SBA 7(a) loan is a natural fit for a new shop. One loan can cover the franchise fee, leasehold improvements, cabinetry, technology, signage and working capital.
SBA 504 loans. The SBA 504 program finances owner-occupied real estate and long-lived fixed assets. Most Drybar shops lease space, so 504 is relevant mainly when an owner or an affiliate buys the building. That situation brings the directory notes discussed below into play.
Conventional term loans. Experienced multi-unit operators or buyers of established shops may qualify for a conventional business loan based on cash flow and collateral.
Equipment financing. Styling chairs, wash stations, dryers and tools, audio-visual systems, point-of-sale hardware and some fixtures can be financed separately. See our franchise equipment financing and leasing options.
Working capital and lines of credit. The FDD budgets additional funds for nine months, but a shop can see uneven bookings around holidays, weddings and events, and payroll runs every pay period. A line of credit can smooth those swings and cover the grand opening period. Learn more about franchise working capital.
Seller financing on resales. A selling franchisee may carry part of the price in some deals. Any seller note is typically subordinate to the senior lender, and loan programs may limit how it is structured.
SBA Loans for Drybar Franchisees
The SBA Franchise Directory lists franchise brands whose documents have been reviewed for SBA eligibility. A listing does not approve any borrower, but it clears the franchise relationship for review.
Drybar’s listing and notes. Drybar appears on the directory under code S0524 with two notes:
- Lease rider: when the real estate where the shop is located will secure the SBA-guaranteed loan, the franchisor’s lease rider may not be executed. In plain English, the lease rider is designed for a landlord relationship. If the owner or an affiliate owns the building and pledges it as collateral, that rider cannot be used.
- Purchase option: the franchisor may not enforce its purchase option on real estate owned by the franchisee or an affiliate when that property is collateral for the SBA loan. This protects the lender’s collateral position.
For most buyers who lease their space, these notes do not change anything. They matter when an owner buys or already owns the property.
Program size and tips. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Bring the FDD, a lease proposal or letter of intent, contractor bids and a monthly projection to your first meeting. Our SBA loan calculator can help with early payment estimates, which are for planning only. Veterans eligible for the fee discount may also find our article on veteran franchise financing useful.
How Lenders Evaluate a Drybar Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement, and personal guarantees from significant owners.
Net worth and liquidity. Lenders want to see the equity injection plus reserves. Because construction costs can exceed estimates, extra liquidity is a real strength in a Drybar franchise loan request.
Industry and management experience. Salon, spa, hospitality or retail management experience helps, especially experience hiring and scheduling service staff.
Business plan and projections. Projections should start from the site’s trade area, model a ramp in bookings and retail sales, and include the 7% royalty, the brand fund at both 2% and 4%, the fixed monthly fees, stylist compensation and rent.
The FDD and franchise agreement. Lenders review Items 5, 6, 7, 11, 12 and 17. Our guide to how lenders read a Franchise Disclosure Document explains why each matters. Review Item 19 of the current FDD to see whether it includes financial performance representations.
Site and lease. Lenders look at rent, the lease term against the loan term, the landlord’s tenant improvement allowance and the franchisor’s lease rider.
Historical financials for resales. For an existing shop, expect to provide several years of financial statements, sales reports and payroll records.
Build-Out and Equipment
The Drybar build-out is design-driven. The FDD requires approved architects and designers, and cabinetry and millwork from a designated supplier. Point-of-sale hardware and booking software must come from approved suppliers, and initial supplies, inventory and certain decor, stylist chairs and wash stations come through a franchisor affiliate.
For financing, that means much of the cost is specified in advance, which helps lenders, but there is less room to cut corners if bids come in high. The value engineering approach in Item 7 narrows the construction and cabinetry ranges, and a good landlord allowance can reduce what you need to borrow.
Multi-Unit Growth and Development Agreements
The 2026 FDD sets development fees by the number of shops in an area development agreement:
- 2 shops: $100,000
- 3 to 5 shops: $35,000 per shop
- 6 to 9 shops: $30,000 per shop
- 10 or more shops: $25,000 per shop
Financing a development schedule. Lenders usually finance one shop at a time, so the developer needs equity and reserves for each opening. Once the first shop has a track record, its cash flow can support the next. Our article on multi-unit franchise financing explains how lenders approach growing operators.
Real-World Scenarios
A first-time owner opening one shop. A former retail manager signs a single-shop agreement, negotiates a tenant improvement allowance and uses an SBA 7(a) loan for the fee, build-out, technology and working capital.
An operator signing for three shops. A multi-unit operator signs an area development agreement for three shops. The first shop is financed with an SBA loan, and later shops are financed as each site is approved, using the first shop’s results.
A buyer acquiring an existing shop. A buyer purchases a shop from a franchisee who is relocating. The lender reviews historical results and the lease, and the buyer budgets for the transfer fee and transfer deposit.
An owner who buys the building. An owner acquires the building housing the shop and pledges it as SBA collateral. The lease rider is not used, and the franchisor’s purchase option cannot be enforced against the collateral, per the directory notes.
Common Mistakes to Avoid
- Budgeting at the low end of the leasehold improvement range before receiving contractor bids
- Ignoring the 120-day site deadline and 12-month opening requirement when planning loan timing
- Modeling the brand fund at 2% without testing the possible increase to 4%
- Overlooking fixed monthly fees, such as technology and local advertising, in slow months
- Signing a lease without the franchisor’s approval and required rider provisions
- Committing to a development schedule without the equity to fund each shop
For broader pitfalls, read the franchise loan mistakes that cost owners the most.
Next Steps to Finance Your Drybar Franchise
Step 1: Review the FDD with advisors. Study Items 5, 6, 7, 11, 12, 17 and 19 with a franchise attorney and accountant.
Step 2: Talk with a financing specialist early. Learn how lenders will view your liquidity and experience before you sign.
Step 3: Plan your site search. Line up a commercial real estate broker so you can meet the 120-day site acceptance window.
Step 4: Get real build-out numbers. Obtain contractor bids, the landlord’s allowance and cabinetry and technology quotes.
Step 5: Build your projections. Model bookings, retail, stylist payroll, rent and every franchise fee month by month.
Step 6: Apply and coordinate approvals. Submit your loan request with the lease, bids and franchise documents, and align closing with the lease and construction schedule.
Step 7: Close and open. Fund construction, order equipment and keep working capital in place for the grand opening and early months.
Drybar Franchise Loan FAQs
How much does it cost to open a Drybar franchise?
The 2026 FDD estimates $391,229 to $1,096,999 for a traditional shop and $401,929 to $705,999 under value engineering.
What is the Drybar franchise fee?
The initial franchise fee is $50,000 for a single shop. Qualifying veterans, active-duty service members and minority-owned businesses may receive a 20% discount.
What royalty does Drybar charge?
The royalty is 7% of gross receipts, plus a 2% brand marketing fund contribution that may rise to 4%, and monthly technology and local advertising fees.
Can I get an SBA loan for a Drybar?
Yes, if you qualify. Drybar is on the SBA Franchise Directory under code S0524, with notes on the lease rider and purchase option when SBA collateral includes real estate owned by the franchisee or an affiliate.
Does Drybar offer financing?
No. The FDD states that the franchisor does not offer direct or indirect financing.
How long does it take to open a Drybar?
The franchisor estimates 12 to 18 months from signing. You must generally open within 12 months, with extensions up to 18 months in some regions.
Can I buy an existing Drybar shop?
Yes, from a franchisee who is selling, with franchisor approval. The transfer fee is 50% of the then-current initial franchise fee, and a $5,000 transfer deposit applies.
How much does it cost to open multiple shops?
Development fees range from $100,000 for two shops to $25,000 per shop for 10 or more, plus the investment for each shop.
What does renewal cost?
The successor franchise fee is 25% of the then-current initial franchise fee. Check Item 17 for the term and renewal conditions.
Final Thoughts
Drybar offers a recognized brand and a fully franchised system, but the shop build-out drives the budget. Owners who secure real bids, negotiate a strong lease, plan around the FDD’s site and opening deadlines and keep reserves give their Drybar franchise loan the best chance at approval.
US Professional Funding helps franchise owners and buyers finance new units, acquisitions, equipment, working capital and refinancing for established brands. Learn more about our franchise financing solutions.
