Image Studios 360

## Executive Summary

IMAGE Studios 360 represents a compelling real estate play in the booming salon suite industry. With 112+ locations open across 25 states and zero reported closures to date, the brand has demonstrated strong execution since its 2010 founding and 2015 franchise launch. The $833,000-$1.74M investment is substantial but generates recurring revenue through weekly rental payments from beauty professionals. However, with estimated average revenue of approximately $308,000 per location and a 6-9 year payback period, this is a long-term capital investment rather than a quick return opportunity. IMAGE Studios has climbed to No. 344 on Entrepreneurs Franchise 500, reflecting its growing momentum.

## The Business

IMAGE Studios 360 operates as a salon suite franchisor, providing turnkey, ultra-modern spaces for independent beauty and wellness professionals including hairstylists, estheticians, nail technicians, lash artists, and massage therapists. Each location houses 22-38 individual studios ranging from 100-250 square feet.

Founded in 2010 in Salt Lake City by serial entrepreneurs Jason and Shaun Olsen, the company began franchising in 2015 and has since partnered with MPK Equity Partners. The business model is essentially real estate management - franchisees build or lease commercial space, build out individual suites with turnkey amenities, and collect weekly rental payments from beauty professionals who operate their independent businesses.

Key differentiators include larger-than-average suite sizes, same-day lease-to-operation capability, and the proprietary IMAGE Pro Business program providing ongoing education to suite tenants.

## The Numbers

**Investment Range:** $833,000 - $1,740,000 (some sources cite up to $2,804,000)

**Franchise Fee:** $64,500

**Royalty:** 6% of gross revenue (increased from 5.5%)

**Brand Development Fund:** 2%

**Financial Requirements:** - Initial Investment: $1,056,000+ typical - Net Worth: Information suggests targeting C-level executives and seasoned investors

**Item 19 Highlights:** - Estimated average revenue: $307,947 per unit - 2024 FDD reports data from 60 franchisee-owned salons operating full year - Performance broken out by occupancy tiers: 90%+, 80-89%, 70-79%, under 70% - Mature stores target 90%+ occupancy

## System Health

**Unit Count:** 112+ locations open across 25 states, 200+ in development

**Growth Trajectory:** Strong and accelerating - 2024: 41 signed agreements, 26 openings - 2025: 35 new openings, 50 units awarded, entered 3 new states - March 2025: Opened 100th location in Austin, TX - Climbed 146 spots to No. 344 on Entrepreneur Franchise 500 (2025)

**Closures:** Zero closures reported to date - a remarkable track record

**Geographic Presence:** Operating in 25 states with expansion into Minnesota, Arkansas, Illinois, Louisiana, and Rhode Island

## Franchisee Experience

**Sentiment:** Generally positive based on available information

**Ideal Candidate Profile:** - C-level executives - Seasoned investors - Commercial property owners - Established beauty industry professionals - No beauty industry experience required but management experience preferred

**Training and Support:** - One week initial training at corporate headquarters - Operational best practices and marketing strategies covered - Ongoing support and business tools - In-house designers and project management team for buildout - National real estate partners for site selection - AI integration into support systems announced for 2025

**Tenant Support:** Proprietary IMAGE Pro Business program provides ongoing education to help beauty professionals succeed, which in turn supports franchisee occupancy.

## Risk Assessment

**Key Risks:** - High capital requirements ($1M+) with long payback period (6-9 years estimated) - Real estate dependent - location selection critical - Occupancy-driven economics mean vacant suites directly impact revenue - Competition from Sola Salon Studios (700+ locations), MY SALON Suite, Phenix Salon Suites - Economic sensitivity - beauty services can decline during recessions - Interest rate environment affects commercial real estate financing

**FDD Disclosures:** The franchise discloses lawsuits and/or bankruptcy information in its FDD, though specific details were not publicly available.

**Positive Indicators:** - Zero closures to date suggests strong unit economics when executed well - Private equity backing (MPK Equity Partners) provides capital and resources - Industry tailwind as beauty professionals increasingly prefer suite model over traditional salons - 97 Net Promoter Score indicates high franchisee satisfaction

## Competitive Position

**Industry Context:** The salon suite industry has grown from 350 locations to over 3,300 in the past decade, with 110,000+ beauty professionals now operating in suites. Market valued at $88 billion in 2024, projected to exceed $160 billion by 2033.

**Major Competitors:** | Franchise | Systemwide Sales | Units | Notes | |-----------|-----------------|-------|-------| | Sola Salon Studios | $318M | 700+ | Industry leader | | Phenix Salon Suites | $181M | 249+ | Month-to-month leases | | MY SALON Suite | $147M | 270+ | Larger spaces | | IMAGE Studios | $32M+ | 112+ | Modern, high-end |

**Competitive Advantages:** - Largest single and double studios in industry - Same-day lease-to-operation turnkey model - Zero closure track record - Strong occupancy targets (90%+ for mature stores)

**Competitive Disadvantages:** - Smaller network than established leaders - Higher investment than some competitors - Newer brand with less name recognition

## Validation Questions

1. How long did it take to reach 80% occupancy? 90% occupancy? 2. What is your actual monthly revenue per suite compared to projections? 3. What are your biggest challenges in attracting and retaining beauty professionals? 4. How effective is the corporate marketing support in generating leads for suites? 5. What was your total buildout cost compared to FDD estimates? 6. How has corporate responded when you have had operational challenges? 7. What is your current tenant turnover rate?

## Data Gaps

- Complete Item 19 financial data by market type and tenure - Specific litigation history from FDD Item 3 - Franchisee satisfaction survey results beyond NPS - Detailed tenant turnover and retention rates - Same-store revenue growth trends - Comparison of buildout costs across different markets - Breakdown of revenue by suite type and size

--- *Report compiled from publicly available sources including VettedBiz, Franchise Grade, Franchise Times, company press releases, and franchise disclosure document summaries. Data current as of January 2026.*