FacebookMeta
ther communications that can be accessed through electronic means, including but not limited to the internet, World Wide Web, social networking sites (including but not limited to Facebook, Twitter, L
From the filings
+100% units YoYHQ-led decisions
Knockout Beauty
Personal servicesSoftware purchasing decisions at Knockout Beauty are controlled at the headquarters level by Owner and Founder Cayli Cavaco Reck and EVP of Operations Nicole Angelico. The brand mandates Shopify by Shopify Inc. for its technology stack. With only 5 total units—2 franchised and 3 company-owned—the immediate addressable market for a vendor is extremely small, though the system doubled in size year-over-year.
For software vendors selling into US franchise brands.
Live signals
Total units
5
2 franchised
Unit growth YoY
+100%
vs prior filing
AUV
$383K
Item 19, 2023
Royalty
8%
of gross sales
Ad fund
3%
national + local
Initial fee
$45K
per unit
Investment range
$188K–$438K
all-in, Item 7
Procurement
Franchisor controlled
from the filing
Non-compete
2 years
from the filing
Item 19
Claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
11%of gross sales (FY2024)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
InstagramMeta
be accessed through electronic means, including but not limited to the internet, World Wide Web, social networking sites (including but not limited to Facebook, Twitter, LinkedIn, Instagram, etc.), bl
LinkedInLinkedIn
that can be accessed through electronic means, including but not limited to the internet, World Wide Web, social networking sites (including but not limited to Facebook, Twitter, LinkedIn, Instagram,
TwitterX
nications that can be accessed through electronic means, including but not limited to the internet, World Wide Web, social networking sites (including but not limited to Facebook, Twitter, LinkedIn, I
Franchisor behaviours
What the franchisor requires
28 requirements the franchisor states in this filing, each in its own words; 3 explicit no's; 3 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have the right at any time to access and retrieve data and information from your Computer System in any manner we deem necessary or desirable.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
You agree to submit financial and operational reports and records and documents to us at the times and in the manner specified in the Manuals or other written instructions.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Currently, you must purchase all products that will be sold at the Franchised Business from our affiliate KB BY KO40.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Additionally, we reserve the right, in our sole discretion, to vary the standards throughout the System, as well as the services and assistance that we may provide to some franchisees based upon the peculiarities of a particular site or circumstance, existing business practices, or other factors that we deem to be…
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
148590Item 8
During our 2023 fiscal year, our affiliate, KB BY KO40, received $148,590 in revenues from purchases and leases of products that franchisees were required to purchase.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We and our affiliates have the right to receive, collect and retain payments, manufacturing allowances, marketing allowances, rebates, credits, monies, or benefits (collectively, “Allowances”) offered by suppliers to you or to us or our affiliates based upon your and/or other franchisees’ purchases of products and…
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
60Item 8
approximately 60% to 90% of your total purchases in the continuing operation of the Franchised Business.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 6
Supplier Testing Cost of inspection and On demand Only payable if you evaluation, but no less propose a new supplier of than $1,000 per brand. products.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you would like to use or offer products and services that we have not approved, or to purchase from a vendor, supplier, distributor, or other source (together, “supplier(s)”) that we have not approved, then you must submit to us a written request for approval.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
In addition, you must stop making any use of any telephone number and/or any domain name, website, email address, and any other identifier (whether or not we have authorized its use) that you used in connection with the Franchised Business, and you must promptly execute such documents or take such steps necessary to…
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
You must comply with the Payment Card Industry Data Security Standards (“PCI DSS”) as they may be revised and modified by the Payment Card Industry Security Standards Council
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
You must participate in customer service programs that we have the right to specify from time to time in the Manuals.
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
We may conduct, as we deem advisable, periodic inspections of the Franchised Business, and we may interview employees and customers and review your business records.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 14
We have the right to amend and supplement the Manuals from time to time by letter, electronic mail, bulletin, videotape, audio tapes, software, or other forms of communication.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
You may not lease or otherwise acquire the right to occupy the proposed site without our prior written approval.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
You may not establish a website or permit any other party to establish a website that relates in any manner to your Franchised Business or referring to the Proprietary Marks, except as we may designate or approve in writing.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 11
Each month you are also required to spend a minimum of 1% of Gross Sales on local advertising.
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 11
You agree to participate in and comply with mandatory promotional activities and campaigns that we may prescribe from time to time for Franchised Businesses generally or in specific geographic areas or for specific types of venues.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If a Regional Fund for the area in which your Franchised Business is located has been established at the time you begin operations, you must immediately become a member of the Regional Fund.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
Currently, you must purchase all products that will be sold at the Franchised Business from our affiliate KB BY KO40.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must also purchase certain equipment that you will use to deliver skincare treatments from us or our affiliate.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesFranchise agreement
You must not use any such services or providers that we have not approved in writing or for which we have revoked our approval.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
We require payment via wire transfer to our bank account or electronic debit from your bank account, and you must maintain a sufficient balance in your operating account to meet the payment requirements.
Must the franchisee participate in a gift card program?
YesItem 11
You agree to participate in any mandatory program and to comply with any policies or requirements that we may specify in the Manuals or otherwise in writing.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must record all sales on computer-based point-of-sale systems that we have the right to designate or approve in the Manuals or otherwise in writing (“Point-of-Sale Systems” or “POS Systems”).
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have the right at any time to access and retrieve data and information from your Computer System in any manner we deem necessary or desirable.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
We may charge you our then-current training fee and our out-of-pocket expenses for all additional training programs, whether mandatory or optional, or whether you request or we require such training, which fee will be as set forth in the Manuals or otherwise in writing.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
We may require your Manager and other designated employees to attend the conferences.
The filing answers no to 3 questions
- Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?Item 8
- Is there a franchisee advisory council, association or committee?Item 11
- Is a minimum grand opening advertising spend required?Item 11
Who buys here
The buyer at this brand
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
The franchisee/operator personally, or a small franchisor still owner-run. Wears every hat.
OwnerCEOPresidentPrincipal
- With 298 active personal services brands, I can't see which ones are growing or have the tech gaps my product fills, so I waste weeks chasing the wrong targets.A rep burning 10 hours/week on manual research at $50/hr loses $26,000/year. FranCloud's fit_scoring and corpus_search surface high-fit brands in seconds, reclaiming that time for selling.
- 68.6% of brands mandate no accounting system, meaning 93 brands are ripe for displacement, but I lack the unit-count and financial context to prioritize them.Focusing on the wrong 10 brands costs a rep 2+ deals per quarter. FranCloud's fit_scoring layers AUV and unit growth onto tech gaps, so reps chase only the 93 with real revenue potential.
- Even when I know which brands to target, I can't get reliable decision-maker contacts for the 277 brands with disclosed unit counts.SDRs spend 5+ hours/week hunting contacts. FranCloud's contact_enrichment delivers verified contacts in-line, saving 260 hours/year per rep and adding 15% more meetings.
The vendor opportunity at Knockout Beauty
Knockout Beauty is a personal services franchise based in California with a total footprint of just 5 units, 2 of which are franchised. The system reported an Average Unit Volume (AUV) of $383,392.35 in its 2024 FDD. While the brand doubled its unit count year-over-year—reporting 100% growth—the absolute number of locations remains tiny. For a software vendor, the immediate addressable market is limited to those 2 franchised locations, as the 3 company-owned units are under direct HQ control and purchasing decisions there are entirely internal. The royalty rate is 8.0% on gross revenue, and the initial franchise term runs for 10 years.
Who controls software purchasing
All technology purchasing authority sits at the headquarters level. The FDD lists Cayli Cavaco Reck as Owner and Founder, and Nicole Angelico as Executive Vice President of Operations. In a system of this size, these two individuals are the de facto buying center for any software evaluation or procurement. A third executive, Ludmila Daletskaya, holds the title of Master Esthetician, a role unlikely to influence back-office or operational technology decisions. Vendors should direct any outreach to Cavaco Reck and Angelico, framing conversations around how a solution supports the brand's single mandated platform and its small but growing franchise network.
Mandated and current tech stack
The 2024 FDD mandates exactly one technology system: Shopify by Shopify Inc. This is the designated platform for the franchise system, and all franchisees are required to use it. No other POS, CRM, scheduling, inventory, or financial software is disclosed as mandated or recommended in the filing. For a vendor, this means any proposed solution must either integrate tightly with Shopify or replace a manual process that the brand has not yet automated. The absence of additional named systems suggests either a lean tech stack or a gap in the FDD's disclosure, but vendors should assume Shopify is the operational backbone until further intelligence is gathered.
Procurement, renewals, and timing
Item 8 of the FDD provides no extract regarding procurement rules, designated suppliers, or approved vendor programs. This leaves the procurement model undefined in the public filing—vendors will need to ask directly whether Knockout Beauty operates an open purchasing environment or maintains a preferred vendor list. On the renewal side, Item 17 outlines a structured process: franchisees must provide written notice, complete all refurbishments 60 days before expiration, satisfy all monetary obligations, and execute a Successor Franchise Agreement. That successor agreement may carry materially different terms, including a higher royalty or advertising contribution. The successor franchise fee is $25,000, and the renewal term is 5 years. With only 2 franchised units and a 10-year initial term, natural contract windows for software evaluation tied to renewals will be infrequent.
How to read the Knockout Beauty FDD
The full 2024 Franchise Disclosure Document is available below. It contains the legal and financial disclosures that govern the franchise relationship, including the Item 19 financial performance representation showing the $383,392.35 AUV, the Item 11 list of mandated technology, and the Item 17 renewal conditions. Review these sections to validate the addressable market and to understand the contractual hooks that might create an opening for a new software vendor. For a ranked target list of franchise systems that match your ideal customer profile, FranCloud can help you prioritize outreach based on tech stack, growth rate, and decision-maker access.
Questions vendors ask
Knockout Beauty, answered from the filing
Owner and Founder Cayli Cavaco Reck and EVP of Operations Nicole Angelico are the key executives on file. As a small system, they likely form the entire buying center for any technology decisions.
The 2024 FDD mandates Shopify by Shopify Inc. No other operational, POS, or back-office systems are disclosed as required or recommended in the filing.
There are 5 total units: 3 company-owned and 2 franchised. The system reported 100% year-over-year unit growth from the previous period.
The FDD does not disclose a specific procurement model in Item 8. The filing contains no extract regarding designated or approved suppliers for technology or other products.
The initial franchise term is 10 years. Renewal requires a 5-year successor agreement, a $25,000 fee, and a new business plan. With only 2 franchised units, contract events are rare.
The FDD was filed with state franchise regulators in 2024. You can review the full document using the embedded PDF viewer below.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Knockout Beauty files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
5 operators run 5 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit5
Top states by locations
| WI | 1 |
|---|---|
| CO | 1 |
| CA | 1 |
| NY | 1 |
Related Personal services brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.