- Hairhouse combines a hair salon with a retail hair care store, so you are buying two revenue streams with very different margins.
- Third-party listings put the total investment for a new salon at roughly $490,000 to $765,000, with a royalty reported at 6% of gross sales. Confirm current figures in the disclosure document.
- Stylist wages and stock are the biggest controllable costs. Test both before you sign.
Hairhouse opened its first store at Knox City in Victoria in 1992 and describes itself as Australia’s largest hair care retailer. Each franchised store pairs a salon offering cuts and colour with a retail floor selling professional hair care products and styling tools. That mix is what makes the model attractive, and it is also what makes the numbers more complicated than a straightforward salon.
This guide sets out what is publicly reported about the Hairhouse franchise, how the economics tend to work, and what we would test before you commit to a new or existing salon.
Hairhouse franchise at a glance
| Founded | 1992, first store at Knox City, Victoria |
|---|---|
| Format | Hair salon plus hair care retail, typically in shopping centres |
| Reported total investment | About $490,000 to $765,000 for a new salon (third-party listing) |
| Reported establishment fee | Listings vary, from about $66,000 to $92,000 plus GST |
| Reported royalty | 6% of gross sales (third-party listing) |
| Reported term | 7 years plus a 7 year option (third-party listing) |
Figures come from the public sources listed at the end of this guide and can change. Treat them as a starting point and confirm current numbers in the franchise disclosure document.
How the Hairhouse model works financially
A Hairhouse salon earns from two places. Salon services are labour heavy: most of each dollar goes to stylist wages, super and leave, so service margin depends on how fully booked your chairs are. Retail product sales carry a cost of goods but little labour, so a strong retail attach rate lifts overall margin.
Shopping centre occupancy is the other big fixed cost. Rent, outgoings and marketing levies are usually set by the lease, not by the franchisor, and they don’t fall when trade is slow. Royalties and marketing contributions are calculated on gross sales, so they rise with turnover whether or not profit does.
The numbers to test before you buy a Hairhouse franchise
- Split historical sales into services and retail, and check the gross margin on each separately.
- Chair utilisation: how many hours each stylist is booked against hours paid.
- Wages as a percentage of service revenue, including award penalty rates for weekend and late trading.
- Total occupancy cost (rent plus outgoings and centre marketing) as a share of sales.
- Stock on hand, ageing and any obsolete product that would be included in the price.
- Fit-out age and any refurbishment obligation due during your term.
Buying an existing Hairhouse salon
Established Hairhouse salons do change hands, often priced on weekly sales. A sale price expressed as a multiple of turnover tells you little on its own. Ask for profit and loss statements that tie to BAS lodgements, a staff list with tenure and pay rates, and the lease with its remaining term and option. Losing a senior stylist after settlement can move revenue quickly, so understand who holds the client relationships.
How Franchise Co. can help with a Hairhouse purchase
We work with buyers and owners of franchise businesses across Australia. For a Hairhouse salon we can:
- Review the numbers before you sign. Our business due diligence starts from $2,000 + GST and tests salon versus retail margins, stylist wages, lease terms and stock.
- Set up the structure and the books. Entity choice, GST, payroll and a chart of accounts that separates service revenue, retail sales and stylist costs. See accounting and tax and bookkeeping, BAS and payroll.
- Check your franchise fees. We reconcile royalties and marketing levies to the sales they’re calculated on. See royalties and franchise fees.
- Plan the next salon. If a second site is on the cards, we model the cash flow and funding first. See multi-site reporting.
Hairhouse franchise FAQs
How much does a Hairhouse franchise cost?
Third-party franchise listings report a total investment of roughly $490,000 to $765,000 for a new salon, including an establishment fee, fit-out and stock. These figures are not from Hairhouse and may be out of date, so confirm them in the current disclosure document.
What royalty does Hairhouse charge?
A 6% royalty on gross sales has been reported by third-party listings. Marketing contributions and other fees may apply on top. Your franchise agreement and disclosure document set out the actual fees.
Do I need to be a hairdresser to own a Hairhouse?
Franchise listings indicate the brand looks for qualified hairdressers or people with salon experience. Whatever your background, you will need a plan to recruit and keep good stylists, because they drive service revenue.
What should I check when buying an existing Hairhouse salon?
Check sales split between services and retail, wages as a share of service revenue, stylist tenure, stock value and the lease. We review these as part of our business due diligence.
Franchise Co. is an independent accounting practice. We aren’t affiliated with, endorsed by or connected to Hairhouse. Hairhouse is a trademark of its owner and is used here only to identify the brand this guide discusses.
Sources and further reading
Sources checked November 2026. Franchise costs and fees change. Confirm current figures with the franchisor before acting.
This guide is general information for people considering a franchise in Australia. It doesn’t take your circumstances into account and isn’t personal tax, legal or financial advice.
Talk it through
Every franchise is different. Ask us how this applies to yours.
