Lemon Tree
Lemon Tree offers affordable hair care services in retail salons, suitable for families. Known for accessible pricing and comprehensive services, it operates in the personal care and beauty salon franchise industry.
Lemon Tree franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Lemon Tree franchise ranges from $184,794 to $277,939. This includes $35,144 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee is Thirty-Five Thousand Dollars ($35,000.00) [p.10, p.56]. This payment is fully earned by the franchisor when you sign the Franchise Agreement and is not refundable under any circumstances [p.10, p.56].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is based on a percentage of the franchisee's gross revenues or a predetermined minimum fee, as defined in each respective franchise agreement [p.135]. Additionally, the franchisee must spend at least $250 per month on local advertising throughout the term of the agreement, with up to half of this amount potentially allocated to a regional advertising cooperative [p.74].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement typically has an initial term of 10 years with the option to renew [p.134]. Subject to the Company's approval, a franchisee may generally renew the franchise agreement upon its expiration [p.134].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified factors [p.5(g)]. This means you cannot freely sell or transfer your franchise without the franchisor's approval, which may be granted or denied based on their discretion and the defined criteria of "good cause."
On what grounds can the franchisor terminate the agreement?
According to [p.161], the franchisor may terminate the agreement on any grounds available by law. However, [p.5] specifies that a provision permitting termination prior to the expiration of the term except for good cause is included, where good cause includes failure to comply with lawful provisions and curing such failures within 30 days after notice. This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific net worth or liquid capital requirements for franchisees to qualify.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You are subject to potential competition from other Lemon Tree Family Salon outlets and other businesses within your designated Territory [p.30]. The franchise agreement provides limited protection by preventing the franchisor from opening another outlet in your Territory during the term of the agreement, provided you are not in default [p.30], but it also allows for the sale of products and services through alternative distribution channels within the Territory [p.30].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training through an Initial Training Program, which must be completed at least two weeks before opening the Franchised Business. This training is typically conducted virtually or in person at specified locations [p.28]. Additionally, the franchisor offers ongoing support including pre-opening services such as site selection and management of the brand fund [p.134], and can provide on-site remedial training upon request [p.59].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does provide some financial performance information, but it is limited. Specifically, they may offer actual records of an existing outlet if you are purchasing one, and they can include historic representation based on the past performance of their existing outlets from 2025 [p.40]. However, they do not make any representations about future financial performance or past performance of company-owned or franchised outlets beyond what is included in the FDD [p.44].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling all services that are part of the System, as well as any new services or products that the franchisor incorporates into the System in the future. You may only offer services and products that have been previously approved by the franchisor [p.34]. Additionally, you must purchase equipment, fixtures, inventory, supplies, and services from the franchisor's designated suppliers or in accordance with their specifications [p.19] [p.5].