How to Finance a Magnolia Soap and Bath Franchise: Store Costs
By Chris Cornella
A Magnolia Soap and Bath franchise loan pays for something a little different from a typical retail store: a shop that sells plant-based soaps, bath products and home goods while also hosting soap-making and candle-making parties. Buyers are financing a leased storefront, a build-out, fixtures, opening inventory and enough working capital to carry the store until local customers and party bookings take hold.
US Professional Funding is not affiliated with, sponsored by or endorsed by Magnolia Soap and Bath; the name is used only to describe the business. Figures from the franchisor’s website and disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Magnolia Soap and Bath Franchise Loan at a Glance
- Initial franchise fee: $60,000, according to the franchisor’s franchising website.
- Royalty: 7% of gross sales.
- National marketing fee: 2% of gross sales.
- Estimated total investment: $271,900 to $498,500, depending on location and store layout.
- Owner-operator requirements: minimum net worth of $350,000 and at least $100,000 in liquid capital.
- Executive owner requirements (hiring a general manager): minimum net worth of $500,000 and at least $150,000 in liquid capital.
- Typical store size: 1,200 to 1,500 square feet in high-traffic, visible locations.
- System size: the company reports more than 50 family-owned and operated stores.
- SBA Franchise Directory: listed under code S6651, with a note about lien position on collateral.
What Is Magnolia Soap and Bath?
Magnolia Soap and Bath Co. was founded in 2016 by Magen Bynum, who, according to the company, began looking for safer, plant-based alternatives for her daughter’s sensitive skin. That search grew into a line of hand-crafted products, and the company now describes each store as family-owned and locally operated.
The product line. The company sells bar and liquid soaps, shave soap, face and body skincare, shampoo and conditioner bars, bath bombs, bath salts and scrubs, laundry products such as wash and dryer balls, candles and home goods, men’s products and pet care. It describes its products as plant-based and locally made, and says products are hand-crafted in front of customers.
How a store earns revenue. The franchising website lists several revenue streams: in-store product sales, pickup and same-day delivery orders, parties and events such as soap-making and candle-making, and online affiliate commissions.
Why lenders view the brand the way they do. Lenders see a small-format specialty retailer, so underwriting centers on the lease, the build-out budget, the owner’s liquidity and a realistic sales ramp.
Magnolia Soap and Bath Franchise Costs
Initial franchise fee. The franchising website lists a $60,000 initial franchise fee. Item 5 of the current FDD shows when it is due and whether any part is refundable.
Real estate and build-out. Stores typically occupy 1,200 to 1,500 square feet in high-traffic, visible locations, usually a leased storefront. Build-out costs depend on the space, landlord allowances and local construction costs, and they are a major reason the investment range is wide.
Fixtures and equipment. A store needs display fixtures, shelving, signage, a point-of-sale setup and supplies for product creation and parties.
Opening inventory and working capital. A store opens with a full assortment of soaps, bath products, candles and laundry items, and needs funds for payroll, rent and marketing until sales are steady.
Total investment. The franchisor reports an estimated total investment of $271,900 to $498,500, depending on location and store layout. Its website does not break out line items, so review the Item 7 table in the current FDD, which addresses categories such as:
- The initial franchise fee
- Leasehold improvements and store build-out
- Fixtures, furniture and signage
- Point-of-sale system and technology
- Opening inventory and product-making supplies
- Training, travel and grand opening marketing
- Security deposits, insurance, licenses and professional fees
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Royalty. Stores pay a royalty of 7% of gross sales.
National marketing fee. Stores contribute 2% of gross sales to national marketing. Item 6 of the FDD will show whether there is also a local advertising requirement, technology or software fees, a transfer fee or renewal fees.
How lenders factor these costs in. Both fees come off gross sales before rent, payroll, cost of goods or debt payments. Lenders build them into projected cash flow and test whether a Magnolia Soap and Bath franchise loan can still be repaid if sales come in below plan. A high lease rate makes that test harder, so review the lease and fees together.
Franchisor Requirements for New Owners
Magnolia Soap and Bath sets financial requirements by ownership style.
- Owner-operators: minimum net worth of $350,000 and at least $100,000 in liquid capital.
- Executive owners: owners planning to hire a general manager need a minimum net worth of $500,000 and at least $150,000 in liquid capital.
- Training: the franchisor provides product creation training, operational training, marketing support and site selection assistance.
Ways to Own a Magnolia Soap and Bath
Opening a new store. Financing covers the franchise fee, build-out, fixtures, opening inventory and working capital, and lenders underwrite on projections and the buyer’s background. Our page on retail start-up financing covers how new-store loans are structured.
Buying an existing store. Existing locations sometimes change hands. A resale gives a lender actual sales, margins and party revenue to review, along with an existing lease. The franchisor’s transfer approval, any training requirements for the buyer and the remaining franchise term all matter. Read our guide to buying a franchise resale and our overview of retail business acquisition financing.
Financing Options for a Magnolia Soap and Bath Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, the SBA 7(a) loan program is often a natural fit for a new store or a resale. A 7(a) loan can cover the franchise fee, leasehold improvements, fixtures, inventory and working capital in one package.
SBA 504 loans. The 504 program is designed for owner-occupied real estate and long-lived fixed assets. Since stores are typically leased storefronts, 504 financing usually does not fit unless an owner is buying the building the store occupies.
Conventional term loans. Owners with strong liquidity, other business income or an existing operating history may use a conventional business loan, which can be useful for a second store or a refinance.
Equipment financing. Fixtures, point-of-sale hardware and product-making equipment can sometimes be financed separately. See our retail equipment financing and leasing options.
Working capital and lines of credit. A gift-oriented bath and body store often sees stronger sales around holidays, and party bookings can be uneven. A line of credit helps an owner build inventory before peak periods and cover slower months. Explore retail working capital and lines of credit.
Seller financing on resales. In a resale, a seller may agree to carry part of the price. Any seller note would need to fit the senior lender’s structure and is typically subordinate to the main loan. SBA program rules may limit how a seller note can be used toward the buyer’s equity.
SBA Loans for Magnolia Soap and Bath Franchisees
SBA lenders rely on 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 or guarantee a loan; it clears the franchise relationship so lenders can move forward with their own underwriting.
The directory listing. Magnolia Soap and Bath appears on the directory under code S6651. The listing carries a note that the lender must make sure it secures the appropriate lien position on all collateral in accordance with SBA lending rules.
What that note means in plain English. Before closing, the lender must confirm and take the lien position the SBA requires on the business’s fixtures, equipment and inventory. If another agreement gives someone else rights in those assets, priority has to be sorted out first, so provide complete franchise documents early.
Program limits. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
Application tips. Bring a complete project budget that mirrors the Item 7 categories, a signed or proposed lease, a personal financial statement, tax returns and a business plan with monthly projections. Our SBA loan calculator gives rough planning estimates, not an offer or approval.
How Lenders Evaluate a Magnolia Soap and Bath 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. Beyond the franchisor’s thresholds, lenders look at the cash left after closing, since retail stores need reserves for slow periods.
Retail and management experience. Experience managing a store, a team or a customer-facing business strengthens a request.
Business plan and projections. Projections should break out walk-in product sales, pickup and delivery orders and party revenue, apply the 7% royalty and 2% marketing fee, and reflect seasonal peaks and the time a new store needs to build a customer base. Our article on how lenders read a Franchise Disclosure Document explains which FDD items shape these assumptions.
The FDD and franchise agreement. Lenders read Items 5, 6, 7, 12 and 17 closely, along with Item 10 for any franchisor financing. The franchisor’s website references Item 19 of the 2025 FDD, so the document includes financial performance information; review it with your accountant, but build your projections on your own market and lease.
Site and lease. Lenders review the lease term, rent, escalations and tenant improvement allowances.
Historical financials for resales. For an existing store, expect to provide several years of profit and loss statements, sales reports and tax returns.
Store Build-Out, Fixtures and Product Creation
Stores are compact, so a layout must fit display walls and tables, a checkout, inventory storage and room for soap-making or candle-making parties, plus any product creation area. Lenders treat leasehold improvements as low-collateral assets because they stay with the building, while fixtures and equipment hold some resale value.
Multi-Unit Growth
Lenders underwrite a second store on the first store’s results, combined cash flow and the owner’s remaining liquidity. Ask the franchisor about territory rights for additional stores and any development schedule, and read our guide to multi-unit franchise financing for how lenders view growing operators.
Real-World Scenarios
A first-time owner-operator. A buyer with retail management experience signs a lease in a busy shopping center, uses an SBA 7(a) loan for the franchise fee, build-out, fixtures and opening inventory, and keeps personal reserves beyond the franchisor’s liquidity minimum.
An executive owner hiring a manager. A professional who plans to keep a full-time job meets the higher executive owner thresholds and budgets a general manager’s salary in the projections. The lender asks for a larger cash cushion to cover the manager’s cost during the ramp-up.
A resale buyer. A buyer acquires a store from a relocating owner. The lender reviews sales history and party bookings, confirms the remaining lease and franchise terms, and accepts a subordinate seller note.
Common Mistakes to Avoid
- Budgeting only for the franchise fee and underestimating the build-out
- Signing a lease before the lender and franchisor have reviewed it
- Leaving out the 7% royalty and 2% marketing fee when testing cash flow
- Assuming party revenue will be steady from the first month
- Holding too little working capital for slow months and holiday inventory
- Overlooking the lien-position note in the SBA directory listing
- Choosing the executive owner model without budgeting a manager’s salary
For more pitfalls that apply across the industry, read the retail store loan mistakes owners should avoid.
Next Steps to Finance Your Magnolia Soap and Bath Franchise
Step 1: Confirm you meet the requirements. Decide whether you will be an owner-operator or an executive owner and confirm you meet the matching net worth and liquidity thresholds.
Step 2: Review the FDD with advisors. Study Items 5, 6, 7, 12, 17 and 19 with a franchise attorney and accountant.
Step 3: Talk with a financing specialist early. Learn how much you can borrow and how much equity you will need before you commit to a location.
Step 4: Find a site. Work with the franchisor on site selection and get lease terms that fit your loan.
Step 5: Apply and close. Submit your loan package, provide franchise documents for the lender’s collateral review and coordinate closing with the franchisor’s timeline.
Magnolia Soap and Bath Franchise Loan FAQs
How much does a Magnolia Soap and Bath franchise cost?
The franchisor reports an estimated total investment of $271,900 to $498,500, depending on location and store layout.
What is the Magnolia Soap and Bath franchise fee?
The initial franchise fee is $60,000, according to the franchising website.
What royalty does Magnolia Soap and Bath charge?
Stores pay a 7% royalty on gross sales plus a 2% national marketing fee.
How much liquid capital do I need?
Owner-operators need at least $100,000 in liquid capital and a $350,000 minimum net worth. Executive owners who hire a general manager need at least $150,000 in liquid capital and a $500,000 minimum net worth.
Is Magnolia Soap and Bath on the SBA Franchise Directory?
Yes. It is listed under code S6651, with a note that the lender must secure the appropriate lien position on all collateral under SBA rules.
Can a first-time business owner get a Magnolia Soap and Bath franchise loan?
Yes, if the franchisor approves the candidate and the lender is comfortable with the borrower’s credit, liquidity and experience.
Can I use a Magnolia Soap and Bath franchise loan to buy an existing store?
Yes. Existing stores are sometimes sold, subject to franchisor approval, and a resale lets the lender review actual financial results.
Does Magnolia Soap and Bath offer financing?
Its franchising website does not describe in-house financing. Check Item 10 of the current FDD for any financing the franchisor offers.
How long is the franchise term?
The franchising website does not state the term. Item 17 of the current FDD sets out the term, renewal and transfer conditions, which lenders compare with the loan term.
Does the FDD include financial performance information?
The franchisor’s website references Item 19 of its 2025 FDD, so financial performance information is included. Review it with an accountant before relying on it.
Final Thoughts
A Magnolia Soap and Bath store combines specialty retail with in-store experiences, and the financing should reflect both. Buyers who meet the capital thresholds, choose a lease that supports their projections and plan for seasonal inventory put their Magnolia Soap and Bath franchise loan request on strong footing.
US Professional Funding helps franchise owners and buyers finance new stores, acquisitions, equipment and working capital. Learn more about our franchise financing programs and retail business financing solutions.
