Analyst Answer
Average EBITDA for a mature hair salon franchise typically falls around 8–16% of revenue, depending on rent, labor, and the royalty plus ad-fund stack. On a $450,000 revenue unit, that implies roughly $36,000 to $72,000 of EBITDA before debt service and discretionary owner add-backs. EBITDA is useful for valuation and lender underwriting because it normalizes interest, taxes, depreciation, and amortization. Franchise buyers should still convert EBITDA to true owner cash flow after royalties and required CapEx. Weak utilization or high rent can push EBITDA below the lower end of that band.