Knockouts Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

51
+
11%
11%
Investment required

?

$245,000 - $388,000
Revenue (AUV)

?

$0
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$39,500
Royalty fees

?

6.00%
+
4.00%
Operating Profit

?

n.a.

Pro
Franchisees

?

51
+
11%
11%
Investment required

?

$245,000 - $388,000
Franchise fee

?

$39,500
Royalty fees

?

6.00%
+
4.00%
Revenue (AUV)

?

$0
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

n.a.

Pro

Knockouts: Redefining Men’s Grooming with a Knockout Experience

Knockouts Haircuts & Grooming is a dynamic franchise specializing in men’s grooming, blending classic barber techniques with the sophistication of modern salon care. Launched in 2002 by Thomas and Karin Friday, the brand opened its inaugural location in Addison, Texas, in 2003 and has since cultivated a strong national presence.

With its headquarters based in Irving, Texas, Knockouts entered the franchise space in 2004 and has grown to include 55 locations nationwide. The brand caters specifically to men, offering an array of services such as precision haircuts, beard trims, and relaxing massage treatments.

One of the brand’s most distinctive features is its themed environment inspired by boxing and MMA culture. The salons boast unique décor, including elements like faux boxing ring ropes, exposed brick walls, and an array of sports memorabilia. To complete the experience, every grooming station is outfitted with a flat-screen TV, creating a space that feels as entertaining as it is relaxing.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $39,500
Leasehold improvements $70,000 to $150,000
Lease payments and other rental expenses (first three months) $6,000 to $15,000
Store-In-A-Box Package $65,000 – $75,000
Freight and shipping charges, and state sales tax $1,550 – $5,650
Signage $4,000 to $7,500
Project Management Services Fee $20,000 to $21,500
Architectural/Engineering $5,000 to $12,000
Travel, lodging and meals for initial training $1,000 to $2,500
Business Supplies (stationery, business cards, brochures, paper and other materials) $1,000 to $2,000
Business licenses, permits, etc. (for first year) $1,250 to $2,000
Telephone and utility deposits and expenses $1,000 to $2,500
Insurance deposits and premiums (for first year) $1,000 to $1,800
Grand opening advertising $10,000
Computer hardware and software $500 to $1,500
Additional operating funds – three months $18,000 to $40,000
TOTAL $244,800 to $388,450

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

51

+
11%
11%
No growth
New

$39,500

$245,000

-

$388,000

n.a.

$0

Pro

n.a.

Pro

n.a.

Pro

Beauty

Training

Knockouts Holdings, LLC provides a structured and multi-layered training program for its franchisees to ensure operational success and adherence to brand standards. The training is divided into core programs designed to educate franchisees, managers, and staff on key aspects of operating a Knockouts salon.

  1. Initial Training Program
    The initial training is mandatory and spans three days, typically held in Fort Smith, Arkansas or another designated location. It includes classroom instruction on topics such as profit and loss review, employee compensation, salon maintenance, salon build-out, legal compliance, marketing, and operations. This training is complemented by 25 hours of on-the-job training at a salon facility.
  2. Manager Training Requirement
    If the franchisee is not a licensed cosmetologist, they must appoint a manager who is licensed and has completed the Knockouts training program. Replacement managers must also attend the next available training session, with an additional fee of $1,500 per participant if they are not part of the initial group.
  3. Additional and Remedial Training
    Knockouts offers periodic additional training sessions, which may be mandatory or voluntary and can be delivered in person, via video, online, or on-site. Franchisees may also request customized training, for which they would bear the cost, including travel and per diem fees. Furthermore, Knockouts hosts annual conventions that franchisees must attend, often involving additional training workshops.

Territory Protection

Knockouts Holdings, LLC provides a form of territory protection for its franchisees, but it is limited and subject to specific conditions. Upon signing the agreement, a franchisee is assigned a defined geographic area referred to as the “Territory.”

Within this Territory, Knockouts agrees not to authorize the establishment of another Knockouts salon, provided the franchisee remains in compliance with the franchise agreement. However, this protection does not extend to certain “Reserved Areas,” which include high-traffic venues such as airports, hospitals, hotels, and stadiums.

These areas are excluded from the territorial exclusivity, allowing the franchisor to operate or authorize others to operate in these spaces even within a franchisee’s general area. Additionally, Knockouts retains the right to open or allow similar businesses under different trademarks within the Territory, which limits the scope of competitive protection provided to franchisees.

Number of units

2023
Franchised units

46

47

51

Company-owned units

0

0

0

Total units

46

47

51

Competitors

Scissors & Scotch Barbershop

Investment required
$631,000
-
$845,000
Franchisees
16
+
23%
23%

Lemon Tree Hair Salons

Investment required
$179,000
-
$271,000
Franchisees
34
+
3%
3%

Sit Still Kid's Salon

Investment required
$125,000
-
$401,000
Franchisees
17
+
750%
750%

SmartStyle

Investment required
$184,000
-
$326,000
Franchisees
1234
+
-18%
-18%

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