How to Finance a My Salon Suite Franchise: Beyond SBA Loans
By Chris Cornella
A My Salon Suite franchise loan finances a business that looks more like a specialized landlord than a salon. The owner builds out a large space into private, furnished suites and rents them to independent stylists and other beauty professionals, who run their own businesses inside. That model, the size of the investment and the brand’s unusual SBA Franchise Directory status all shape how a deal gets financed.
This article covers what the franchisor says a location costs, how the rent-based revenue model affects underwriting, why conventional financing is usually the main route and how to prepare a strong request.
US Professional Funding is not affiliated with, sponsored by or endorsed by My Salon Suite; 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 lender review and approval. Nothing here is legal, tax or investment advice. Review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and an accountant before you sign.
My Salon Suite Franchise Loan at a Glance
- Initial franchise fee: $50,000, according to the franchisor.
- Total initial investment: $994,971 to $1,820,417, which the franchisor says is based on 2025 openings of 5,000 to 8,000 square feet.
- Royalty: 5.5% of location gross revenues, paid monthly.
- Marketing contribution: currently $200 per month.
- Financial qualifications: a minimum net worth of $1,500,000 and at least $500,000 in liquid capital, plus a minimum credit score and the ability to cover living expenses for 9 to 12 months during pre-opening and ramp-up.
- Location size: generally 6,000 to 8,000 square feet, with flexibility by market.
- Time to open: 12 to 18 months from signing the franchise agreement, according to the franchisor.
- Owner time: most owners work 5 to 10 hours per week, the franchisor says.
- SBA Franchise Directory: listed as “My Salon Suite/Salon Plaza” with a note that the brand is eligible only for SBA Disaster Assistance loans.
What Is My Salon Suite?
My Salon Suite opened its first location in Metairie, Louisiana, in 2010, according to the company’s own history. The brand later grew through franchising under its franchisor, Suite Management Franchising, and it partnered with Salon Plaza in 2015, which is why the SBA Franchise Directory lists the two names together. The franchisor says the system grew from 12 to 275 locations over ten years.
The concept. Stylists, colorists, estheticians and other beauty professionals rent private, furnished suites from the franchise owner. The franchisor puts it plainly: the owner is the landlord, and the professionals rent their salon space from the owner. Each professional sets their own prices, keeps their own clients and sells their own products.
The revenue model. The franchise owner earns rent from the professionals who occupy the suites. Revenue grows as suites fill, and a stabilized location depends on keeping them occupied.
The owner’s role. The franchisor describes a semi-absentee model, with most owners working 5 to 10 hours per week once occupancy is stable. Each franchisee is assigned a marketing manager to help recruit members. Salon experience is not required, though business experience is encouraged.
Why lenders view My Salon Suite the way they do. Lenders see a large build-out financed up front and a revenue stream that resembles commercial rent. The key questions are how fast suites will lease, what happens to cash flow if occupancy dips and whether the owner has the liquidity to carry the location while it fills.
My Salon Suite Franchise Costs
The franchisor publishes a total initial investment of $994,971 to $1,820,417, based on 2025 openings ranging from 5,000 to 8,000 square feet. It does not publish the Item 7 line items on its website, so request the current FDD for the detailed breakdown. The categories below are the ones a budget generally needs to cover.
Initial franchise fee. The fee is $50,000. Item 5 of the FDD explains when it is paid and any multi-unit terms.
Leasehold improvements. Turning a shell space into many private suites is the heart of the investment. Expect demising walls, plumbing to each suite, shampoo bowls, electrical capacity for dryers and tools, HVAC and ventilation sized for chemical services, lighting, restrooms, corridors and a reception area. Construction costs and landlord allowances vary widely by market, which is a major reason the published range is so wide.
Furniture, fixtures and equipment. Suites are furnished, so budget for styling chairs, stations, mirrors, shampoo units, cabinetry, laundry equipment, access control and security cameras.
Signage, technology and pre-opening marketing. Exterior signs, building management and member-billing systems, and marketing aimed at recruiting professionals before opening all belong in the budget.
Working capital. Suites fill over time, not on day one. The franchisor asks candidates to be able to maintain their lifestyle for 9 to 12 months during pre-opening and ramp-up. Lenders will expect a separate reserve for rent, utilities and debt service while occupancy builds.
- Initial franchise fee
- Leasehold improvements and construction
- Furniture, fixtures and salon equipment for each suite
- Signage and building technology
- Security deposits, permits and professional fees
- Pre-opening recruiting and marketing
- Additional funds for the ramp-up period
When you receive the FDD, match each Item 7 line to a funding source: your equity, a term loan, equipment financing or a landlord allowance.
Ongoing Fees and How They Affect Your Loan
Royalty. The royalty is 5.5% of location gross revenues, calculated on the prior month’s revenue and due by the 10th of the following month.
Marketing contribution. The franchisor currently requires $200 per month toward brand marketing.
Other fees. Item 6 lists technology, transfer, renewal and training fees. Confirm each before finalizing projections.
How lenders factor these costs in. A lender subtracts the royalty and marketing contribution from projected suite rent, then deducts your own lease payment, utilities, cleaning, insurance and other operating costs before testing whether the remaining cash flow covers loan payments with a cushion. Because your own rent and loan payments are fixed while suite income depends on occupancy, lenders often stress-test the projections at lower occupancy.
Franchisor Requirements for New Owners
The franchisor lists these qualifications on its franchising pages:
- A minimum net worth of $1,500,000
- At least $500,000 in liquid capital
- A minimum credit score
- The ability to maintain your lifestyle for 9 to 12 months during pre-opening and ramp-up
Salon experience is not required, though the franchisor encourages business experience. New owners attend several days of training at the brand’s franchise university. Because the requirements are high relative to many franchises, lenders often view a qualified My Salon Suite candidate as well capitalized, which helps in a conventional loan request.
Ways to Own a My Salon Suite
A new location. Most owners sign a franchise agreement, find a site, negotiate a lease and build out a new location. Lenders underwrite a start-up on the owner’s liquidity, experience, lease terms and occupancy assumptions. Our franchise start-up financing explains how new-unit requests are structured.
Buying an existing location. Operating locations occasionally change hands. A resale lets a lender review actual occupancy, rent rolls and expenses, and the franchisor must approve the transfer. Read our article on buying a franchise resale before making an offer.
Multiple locations. The franchisor promotes multi-unit ownership. See the multi-unit section below.
Financing Options for a My Salon Suite Franchise
Because the brand’s SBA directory listing limits it to SBA Disaster Assistance loans, a My Salon Suite franchise loan is typically built from non-SBA sources. The franchisor itself lists conventional financing, 401(k) rollovers, cash and refinancing existing debt among the options buyers use.
Conventional term loans. A conventional business loan is usually the core of the financing for a qualified buyer. Expect lenders to focus on liquidity, net worth, outside income and the lease. Our conventional loan calculator can help with rough payment estimates during planning; it is not an offer or approval.
Equipment financing. Styling chairs, shampoo units, stations, laundry equipment and security systems can often be financed separately from the build-out, preserving cash. Learn more about franchise equipment financing and leasing.
401(k) rollovers. Some buyers use retirement funds through a rollover structure to provide equity. These arrangements carry tax and compliance requirements, so work with qualified advisors. Our article on using a 401(k) to buy a franchise explains how they work.
Working capital and lines of credit. A line of credit can carry the location through the ramp-up period, fund recruiting campaigns and cover the gap when a member moves out. See our franchise working capital options.
Refinancing existing debt. Owners with stabilized locations sometimes refinance construction or short-term debt into longer-term financing once occupancy is proven. Our franchise debt refinancing page covers that process.
Seller financing on resales. When buying an existing location, a seller may agree to carry part of the price. Any seller note would typically be subordinate to the senior lender, and lenders may limit how it is structured.
SBA Rules and the My Salon Suite Franchise Loan
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility, and SBA lenders generally check it before making an SBA-guaranteed loan to a franchisee. The directory listing for this brand is different from most.
What the directory note says. My Salon Suite appears as “My Salon Suite/Salon Plaza” with a note stating that the brand is eligible only for SBA Disaster Assistance loans. In plain English, SBA 7(a) and SBA 504 loans are not available for a My Salon Suite franchise under the current listing. SBA Disaster Assistance is a separate program for businesses affected by a declared disaster, not a way to fund a new location or an acquisition.
The lease addendum note. The listing also says that when the real estate where the franchise operates secures an SBA-guaranteed loan, the franchisee may not execute the Lease Addendum and Collateral Assignment of Lease Agreement. In plain English, those lease documents are meant for owners who rent their space; when the owner’s own building is the collateral, they are not used.
Why the restriction matters. The directory does not explain its reasoning. SBA rules generally restrict lending to passive businesses that earn their income mainly as landlords, and a suite owner’s revenue comes from renting space. Whatever the reason, buyers should plan on conventional and other non-SBA financing and check the current directory before applying, since listings can change.
How Lenders Evaluate a My Salon Suite Franchise Loan Request
Personal credit and financial history. Lenders review credit reports, tax returns and a personal financial statement, and owners typically sign a personal guarantee.
Net worth and liquidity. The franchisor’s $1,500,000 net worth and $500,000 liquidity minimums align with what conventional lenders look for on a project of this size. Expect to show equity for the project plus reserves after closing. Our article on how much franchise you can afford walks through the math.
Experience and outside income. Because the model is semi-absentee, many owners keep other jobs. Lenders view steady outside income as a strength, but they also want a clear plan for who handles recruiting, maintenance and member relations. Our article on financing a semi-absentee franchise covers what lenders want to see.
Business plan and projections. Projections should show the number of suites, expected weekly or monthly suite rents in your market, a month-by-month lease-up schedule, stabilized occupancy, royalty, marketing, your own rent and operating costs. Support suite rent assumptions with local research.
The FDD and franchise agreement. Lenders read the term, renewal, transfer and territory provisions and whether Item 19 includes financial performance representations. Review Item 19 of the current FDD with your advisors.
Site and lease. The lease is central. Lenders want a term, with renewals, that outlasts the loan, a landlord allowance that reduces build-out cost, and a site with parking and visibility for the professionals’ clients.
Historical financials for resales. For an existing location, expect to provide rent rolls, member agreements, occupancy history, profit and loss statements and tax returns.
Build-Out: The Biggest Financing Decision
A suite build-out is closer to a small commercial construction project than a typical retail fit-out. That creates several financing considerations.
- Plumbing and electrical: running water and power to many suites drives cost, so confirm the space can support it before signing.
- Construction timeline: the franchisor’s 12 to 18 month opening window means interest and rent may start before any suite income.
- Landlord contributions: a strong tenant improvement allowance can materially reduce the loan amount.
- Owning the building: some owners consider buying the property. Our franchise real estate expansion financing page covers that path; keep the SBA directory notes above in mind.
Multi-Unit Growth and Development Agreements
The franchisor actively promotes multi-unit ownership. Item 5 and Item 12 of the FDD describe any development fees, schedules and territory rights.
Financing additional locations. Lenders can consider a stabilized first location’s cash flow when underwriting the second. Because each new location needs its own build-out and ramp-up reserve, development schedules should match your liquidity. Our article on multi-unit franchise financing explains how lenders size growth.
Real-World Scenarios
A corporate executive keeping her job. An executive with substantial savings opens a location as a semi-absentee owner. Her lender relies on her outside income, liquidity and a conservative lease-up schedule, and the landlord’s improvement allowance reduces the loan.
A real estate investor adding an operating business. An investor who already owns commercial property opens a location in a center he controls. His lender evaluates the business and the property separately and reviews the lease between his entities.
A multi-unit owner refinancing. An owner with two stabilized locations refinances short-term construction debt into a longer term loan and uses the improved cash flow to plan a third.
Common Mistakes to Avoid
- Assuming SBA 7(a) financing is available without checking the directory listing
- Projecting full occupancy too soon after opening
- Underestimating plumbing and electrical costs in the build-out
- Leaving too little reserve for the 12 to 18 month path to opening and the ramp-up after
- Signing a lease with a term shorter than the loan
- Overlooking transfer conditions when buying an existing location
For broader pitfalls, read our article on the franchise loan mistakes that cost owners the most.
Next Steps to Finance Your My Salon Suite Franchise
Step 1: Request the current FDD. Review Items 5, 6, 7, 10, 12, 17, 19 and 20 with a franchise attorney and an accountant.
Step 2: Confirm your liquidity and net worth. Compare your finances with the franchisor’s minimums and document your sources of equity.
Step 3: Talk with a financing specialist. Learn how a My Salon Suite franchise loan would likely be structured without SBA 7(a) financing.
Step 4: Research suite rents in your market. Local rents and demand from beauty professionals drive your projections.
Step 5: Find a site and negotiate the lease. Confirm plumbing, electrical and parking, and push for a meaningful improvement allowance.
Step 6: Submit your loan request. Provide projections, a sources-and-uses table, the FDD, franchise agreement, lease and construction budget.
Step 7: Close, build and recruit. Coordinate construction with member recruiting so suites begin filling as soon as the doors open.
My Salon Suite Franchise Loan FAQs
How much does a My Salon Suite franchise cost?
The franchisor publishes a total initial investment of $994,971 to $1,820,417, based on 2025 openings of 5,000 to 8,000 square feet, including the $50,000 franchise fee.
What is the My Salon Suite franchise fee?
The initial franchise fee is $50,000.
What royalty does My Salon Suite charge?
The royalty is 5.5% of location gross revenues, due monthly, and the marketing contribution is currently $200 per month.
How much liquid capital and net worth do I need?
The franchisor lists a minimum net worth of $1,500,000 and at least $500,000 in liquid capital.
Can I get an SBA loan for a My Salon Suite franchise?
Not an SBA 7(a) or 504 loan under the current listing. The SBA Franchise Directory note says the brand is eligible only for SBA Disaster Assistance loans, so most buyers use conventional financing.
Does My Salon Suite offer financing?
The franchisor lists conventional financing, 401(k) rollovers, cash and refinancing among the options buyers use, and its FAQ mentions conventional and equipment loans through a lender network. Item 10 of the FDD discloses any direct or indirect financing.
Can I finance the furniture and salon equipment separately?
Often, yes. Chairs, stations, shampoo units and other equipment can typically be financed separately from the build-out.
Do I need salon experience?
No. The franchisor says salon experience is not required, though business experience is encouraged.
How long does it take to open?
The franchisor estimates 12 to 18 months from signing the franchise agreement, depending on site, permits and construction.
Can I own more than one location?
Yes. The franchisor promotes multi-unit ownership. Lenders typically want to see the first location performing before financing additional ones.
Can I buy an existing My Salon Suite?
Yes, when an owner sells and the franchisor approves the transfer. Lenders underwrite a resale on its actual occupancy and financial history.
Final Thoughts
My Salon Suite combines a substantial build-out with a semi-absentee, rent-based revenue model and high candidate requirements. Because the SBA Franchise Directory limits the brand to SBA Disaster Assistance loans, buyers should build their plans around conventional financing, equipment financing and strong equity, supported by a realistic lease-up schedule.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Explore our franchise financing solutions.
