Magnolia Soap and Bath Co
Magnolia Soap and Bath Co offers high-quality personal care products in retail stores. Known for its soap and bath items, the franchise operates in the cosmetics and personal grooming products sector.
Magnolia Soap and Bath Co franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment required to open the initial Franchised Business ranges from $263,900 to $490,500. This includes the Development Fee and other necessary costs to commence operations [p.1].
What is the initial franchise fee?
The initial franchise fee is $60,000 and it is fully earned by the company at the time the Franchise Agreement is signed. This fee is not refundable under any circumstances [p.13, p.66].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 7% of Gross Sales [p.66], with an exception that starting from the 13th month, it will be $1,250 per month if this amount exceeds 7% of Gross Sales [p.66]. Additionally, Franchisees must spend at least 1% of their monthly gross sales on local advertising, and up to half of this can be allocated to a regional advertising cooperative as required by the franchisor [p.79].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is typically ten years, with the option to renew for a fee or transfer the franchise agreement to a new or existing franchisee. [p.131]
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 [p.6]. Additionally, there is a requirement to pay a transfer fee ranging from $10,000 to $15,000 as a condition for any transfer [p.133].
On what grounds can the franchisor terminate the agreement?
According to [p.6] (c) of the FDD, a franchisor may terminate a franchise agreement prior to expiration for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and failing to cure such failure after being given written notice and a reasonable opportunity to do so, not exceeding 30 days.
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 financial requirements such as net worth or liquid capital for franchisee qualification. However, it does mention that you must have sufficient business experience, aptitude, and financial resources to operate the Franchised Business [p.86]. Additionally, you are required to comply with the franchisor's then-current financial criteria [p.156], and must maintain the minimum insurance coverages as described in the FDD [p.27].
Do I get an exclusive or protected territory?
You do not receive an exclusive Development Area, but you have some protection during the term of your Development Agreement. The franchisor will not open another Magnolia Soap and Bath Co outlet in your designated area unless your agreement is terminated for default or non-compliance with the development schedule [p.38]. However, this protection does not extend to other distribution channels or competitive brands controlled by the franchisor [p.38].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training by or under the direction of Magen Bynum, the founder. Additional on-site remedial training can be provided upon request, with associated costs for any additional services [p.69]. This isn't specified in the excerpts, but it appears the franchisor also offers ongoing support through Franchise Directors of Training and Education [p.36].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2025, there are a total of 53 outlets in the system, including 42 franchised outlets, 1 licensee, and 10 affiliate-owned outlets. The FDD does not specify how many of these franchised outlets have closed or been terminated; it only mentions that sixteen franchised outlets were not open for the entire Measurement Period, with four temporarily closed due to relocation or resale [p.50].
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor shares historical performance data for certain outlets. Specifically, as of December 31, 2025, they disclose the performance of 27 reporting franchised outlets and one existing licensee that were open throughout the entire 2025 calendar year, along with the performance of 10 reporting affiliate-owned outlets that were also open for the entirety of the measurement period [p.50]. This information is provided based on actual records and may be supplemented under specific conditions [p.50].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling all products and services that are part of the System, and any future additions to it, which you have previously approved by the franchisor. Additionally, you may only engage in providing these products and services to end-consumers [p.42]. You must purchase all necessary items, equipment, fixtures, inventory, supplies, and services from the Approved Suppliers designated by the franchisor or its Affiliate, as specified in the Manuals or otherwise provided [p.25].