Knockout Beauty

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.