How to Finance a Blo Blow Dry Bar Franchise: No Cuts, No Color
By Chris Cornella
A Blo Blow Dry Bar franchise loan funds a focused salon concept: blowouts and styling, with no haircuts and no color. That narrow menu keeps the business simpler than a full-service salon, but the build-out, styling stations and pre-opening costs still add up, and most buyers combine their own cash with financing.
Below we cover the brand’s published fees and investment range, its owner requirements, how its SBA Franchise Directory listing works and how lenders evaluate a blow dry bar deal.
US Professional Funding is not affiliated with, sponsored by or endorsed by Blo Blow Dry Bar; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website 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; review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and accountant.
Blo Blow Dry Bar Franchise Loan at a Glance
- Initial franchise fee: $45,000, with a 10% discount for qualified U.S. and Canadian veterans, according to the franchisor’s investment page.
- Royalty: 6% of gross sales, paid monthly.
- Ad fund: 2% of gross sales per month, plus a monthly brand fee of $200.
- Estimated initial investment: $327,860 to $424,071 for a U.S. bar, as listed on the franchisor’s investment page with reference to Item 7 of its FDD.
- Owner requirements: net worth of $375,000 and liquid capital of $100,000.
- Experience: the franchisor says no hair experience is needed.
- System size: the franchisor reports more than 100 franchise locations.
- Franchisor financing: Blo says it does not provide financing.
- SBA Franchise Directory: listed under code S0227 with no additional notes.
What Is Blo Blow Dry Bar?
According to the franchisor, the Blo concept was created in 2007 by two Canadian women and grew to three locations in Vancouver. A new ownership group acquired the brand in 2009 and relaunched it as a franchise system, and Blo expanded into the U.S. in 2010. It calls itself North America’s original blow dry bar.
The concept is built on a simple promise: “no cuts, no color.” Guests come in for professionally styled hair, and bars operate seven days a week. Blo says it is seeking single-unit and multi-unit operators across the U.S. and Canada.
Why lenders view it the way they do. A blow dry bar is a service business with a short, repeatable menu, so revenue depends on traffic, stylist capacity and repeat visits rather than on a large inventory. Lenders like the simplicity, but they focus closely on the location, local demand for event and weekly styling, and the owner’s plan for hiring and keeping stylists.
Blo Blow Dry Bar Franchise Costs and Loan Needs
Initial franchise fee. The franchisor lists a $45,000 initial franchise fee. Qualified veterans receive a 10% discount. Lenders treat the fee as an intangible cost, which an SBA 7(a) loan can include. Veterans should also read our guide to franchise financing for veterans.
Real estate and build-out. Leasehold improvements are the largest line item. A blow dry bar needs a styling floor, shampoo area with plumbing, dryer-ready electrical capacity, lighting, finishes and a guest-friendly front of house. Most owners lease retail space, so landlord improvement allowances can make a real difference.
Equipment and furniture. Furniture, fixtures and equipment include styling chairs and stations, shampoo bowls, dryers and tools, a reception desk and retail displays.
Opening costs and working capital. Supplies and inventory, software and training, grand opening marketing, property and administrative costs and additional funds round out the budget.
Total investment. The franchisor’s investment page lists the following U.S. ranges, which total $327,860 to $424,071:
- Leasehold improvements: $151,450 to $206,700
- Furniture, fixtures and equipment: $51,135 to $54,926
- Franchise fee: $45,000
- Supplies and inventory: $28,895 to $35,515
- Additional funds: $15,000 to $25,000
- Software and training: $12,780 to $18,680
- Grand opening marketing: $12,500 to $15,000
- Property and administrative costs: $11,100 to $23,250
The franchisor notes that costs depend on the size of the space and local construction costs. Confirm every figure in the current FDD, because the investment page and the disclosure document may be updated at different times.
Ongoing Fees and How They Affect Your Loan
Royalty. 6% of gross sales, paid monthly.
Ad fund and brand fee. An ad fund contribution of 2% of gross sales per month, plus a flat $200 monthly brand fee.
Other fees. Review Item 6 for technology, training, transfer and renewal fees, and the franchise agreement for any remodel or refresh obligations.
How lenders factor these costs in. When sizing a Blo Blow Dry Bar franchise loan, remember that together, royalty and ad fund take 8% of gross sales before rent, payroll and supplies. Lenders subtract these fees from projected revenue, then test whether the remaining cash flow covers loan payments with room to spare. Because stylist labor is the largest operating cost, lenders pay close attention to staffing assumptions.
Franchisor Requirements for New Owners
- Net worth: $375,000.
- Liquid capital: $100,000.
- Experience: no hair experience is needed, according to the franchisor.
- Traits: Blo looks for owners with a passion for customer service, strong people skills, commitment to a proven system and community involvement.
Training and support. Blo describes training and coaching that covers site selection, lease negotiation, recruiting, marketing, operations and blow-drying techniques, and says its team helps find and design locations.
Timeline. The franchisor says it typically takes about 6 to 9 months from signing to the first blowout. Plan your loan closing, lease and construction schedule around that window. To check whether your finances fit, see how much franchise you can afford.
Ways to Own a Blo Blow Dry Bar
Opening a new bar. Most buyers start with a new location. Lenders underwrite projections, your equity and the lease. Read about franchise start-up financing.
Buying an existing bar. With more than 100 franchise locations, resales can come up. A resale gives lenders actual sales, client counts and staffing history, and the franchisor must approve the transfer under Item 17. See our article on buying a franchise resale.
Multiple bars. Blo actively recruits multi-unit operators. Lenders typically finance the first bar and then look at its results before funding the next.
Financing Options for a Blo Blow Dry Bar Franchise
SBA 7(a) loans. For most buyers, a Blo Blow Dry Bar franchise loan is built around an SBA 7(a) loan, which can cover the franchise fee, build-out, equipment, opening supplies and working capital in one package.
SBA 504 loans. Bars usually lease retail space, so an SBA 504 loan fits only when an owner buys the building or a commercial condo for the bar.
Conventional term loans. Buyers with strong liquidity, collateral and business experience may qualify for a conventional business loan, especially for a second or third bar.
Equipment financing. Styling stations, chairs, shampoo bowls, dryers, tools and point-of-sale hardware can be financed separately. Learn about franchise equipment financing and leasing.
Working capital and lines of credit. A new bar builds its client base over several months while payroll and rent start right away. Weekend peaks and event seasons also create uneven cash flow. See our franchise working capital options.
Seller financing on resales. A seller may carry part of the price on an existing bar. Seller notes are typically subordinate to the senior loan, and loan programs may limit their terms.
SBA Loans for Blo Blow Dry Bar Franchisees
SBA lenders use the SBA Franchise Directory to confirm that a brand’s franchise agreement has been reviewed for SBA eligibility. A listing does not approve any borrower, but it removes a hurdle.
Blo Blow Dry Bar’s listing. Blo is listed under code S0227 with no additional notes. In plain terms, the franchise relationship is eligible for SBA review without special conditions flagged on the directory. Blo’s own materials also note that it is registered with the SBA and that SBA loans may be an option. Confirm current status when you apply.
Program limits. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
Application tips. To strengthen a Blo Blow Dry Bar franchise loan request, bring a signed lease or letter of intent, a contractor’s build-out estimate, the equipment package, a staffing plan and monthly projections. Our SBA loan calculator can help with early payment estimates; results are for planning only and are not an offer or approval.
How Lenders Evaluate a Blo Blow Dry Bar Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and typically require a personal guarantee.
Net worth and liquidity. Meeting the franchisor’s $375,000 net worth and $100,000 liquidity thresholds is a start. Lenders also want reserves left after your equity injection.
Industry and management experience. Hair experience is not required, but management, hospitality or retail experience helps show you can lead a team of stylists and front desk staff.
Business plan and projections. Model service mix, stylist schedules, chair utilization, weekday versus weekend demand, retail product sales and a realistic ramp-up period. Keep revenue projections conservative and grounded in your market.
The FDD and franchise agreement. Lenders review the franchise term, renewal and transfer rights, territory and any franchisor financing in Item 10. Blo’s FDD includes an Item 19 financial performance representation; lenders read it as background, not as a forecast for your bar. Our article on reading a Franchise Disclosure Document for financing explains what to focus on.
Site and lease. Visibility, parking, nearby residential and office density and co-tenants all matter. The lease term, with options, should generally match or exceed the loan term.
Build-Out and Equipment: Where the Money Goes
Leasehold improvements and furniture, fixtures and equipment together make up well over half of the investment range, so construction planning drives the loan.
Plumbing and electrical. Shampoo stations need water and drainage, and a room full of professional dryers needs adequate electrical capacity. A space that already has these can lower costs.
Stations and finishes. Styling chairs, mirrors, stations and lighting shape the guest experience and the bar’s capacity.
Equipment life. Dryers and tools wear out faster than furniture. Plan for replacements and consider financing them separately so you keep cash for operations.
Multi-Unit Growth and Development Agreements
Blo recruits multi-unit operators, and our multi-unit franchise financing guide explains how lenders handle growth.
Financing the second bar. Lenders usually want the first bar to show stable results first. They then underwrite combined cash flow and your remaining liquidity.
Development schedules. If you sign for several bars, read the opening deadlines and what happens if you miss one. Make sure your capital plan matches the schedule.
Real-World Scenarios
A first-time owner with management experience. A former operations manager with no hair background meets the net worth and liquidity requirements and uses an SBA 7(a) loan for the franchise fee, build-out, equipment and working capital. The lender focuses on her staffing plan and lease.
A veteran opening a bar. A veteran uses the fee discount and pairs savings with an SBA loan, keeping extra reserves for the ramp-up months.
Buying an existing bar. A buyer purchases a bar from its original owner. The lender reviews several years of sales and payroll records, and the deal combines a 7(a) loan with a small seller note.
An owner adding a second bar. After the first bar stabilizes, the owner signs for a second nearby and finances the build-out with a new loan while sharing management and marketing.
Common Mistakes to Avoid
- Underestimating build-out costs for plumbing and electrical work
- Projecting full stylist schedules from the first month
- Signing a lease shorter than the loan term
- Spending working capital on construction overruns
- Ignoring the combined 8% royalty and ad fund load in projections
- Committing to several bars before the first one proves out
For more pitfalls, read common franchise loan mistakes.
Next Steps to Finance Your Blo Blow Dry Bar Franchise
Step 1: Confirm you qualify. Check the $375,000 net worth and $100,000 liquid capital requirements against your finances.
Step 2: Review the FDD. Study Items 5, 6, 7, 17 and 19 with a franchise attorney and accountant.
Step 3: Talk with a financing specialist. Learn how much equity and reserves lenders will expect before you sign.
Step 4: Find and secure a site. Work with the franchisor on location and lease terms.
Step 5: Build your plan. Prepare monthly projections, a staffing plan and build-out bids.
Step 6: Apply and close. Submit your loan package, close, and schedule construction and training around the 6 to 9 month opening timeline.
Blo Blow Dry Bar Franchise Loan FAQs
How much does a Blo Blow Dry Bar franchise cost?
The franchisor’s investment page lists $327,860 to $424,071 for a U.S. bar, including the $45,000 franchise fee.
What is the Blo Blow Dry Bar franchise fee?
$45,000, with a 10% discount for qualified U.S. and Canadian veterans.
What royalty does Blo charge?
6% of gross sales monthly, plus a 2% ad fund contribution and a $200 monthly brand fee.
How much net worth and liquid capital do I need?
The franchisor lists a $375,000 net worth and $100,000 in liquid capital.
Can I get an SBA loan for a Blo Blow Dry Bar?
Yes, if you qualify. Blo is on the SBA Franchise Directory under code S0227 with no additional notes.
Do I need hair experience?
No. Blo says no hair experience is needed, though lenders value management experience.
Does Blo offer financing?
Blo says it does not provide financing but can connect candidates with funding sources. Check Item 10 of the FDD.
Can I finance equipment separately?
Yes. Styling stations, dryers and other equipment can be financed or leased separately to preserve cash.
Can I buy an existing Blo bar?
Yes, when one is for sale and the franchisor approves the transfer. Resales give lenders real operating history.
How long does it take to open?
The franchisor says about 6 to 9 months from signing to the first blowout.
What documents will lenders ask for?
A personal financial statement, tax returns, a resume, the FDD and franchise agreement, a lease or letter of intent, build-out bids and monthly projections.
Final Thoughts
A Blo Blow Dry Bar is a focused service concept with a clear published cost range. Financing works best when you budget carefully for the build-out, keep working capital for the ramp-up and present lenders with a realistic staffing plan.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital for salon and personal service concepts. Learn more about our franchise financing solutions.
