Salon UltimateSalon Ultimate
Mandatorydministrative fee. Computer Requirements You must use the point-of-sale cash register system and software we provide for you in the Store-In-A-Box Package. Currently, you must use Salon Ultimate Softw
From the filings
+1.887% units YoYHQ-led decisions
Knockouts Holdings
Personal servicesSoftware purchasing at Knockouts Holdings is controlled at the franchisor level, with Chief Executive Officer Nathan White and President Heather Sorrells identified as key executives in the 2026 FDD. The system mandates QuickBooks by Intuit Inc. and Salon Ultimate across its 54 franchised locations. This creates a concentrated, 54-unit addressable market for vendors selling into personal services franchises.
For software vendors selling into US franchise brands.
Live signals
Total units
54
54 franchised
Unit growth YoY
+1.887%
vs prior filing
AUV
—
Item 19, 2026
Royalty
6%
of gross sales
Ad fund
2%
national + local
Initial fee
$40K
per unit
Investment range
$145K–$345K
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
from the filing
Item 19
No 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.
8%of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
1 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.
FacebookMeta
any derivative of the Marks as part of any URL or domain name, as well as their registration as part of any user name on any gaming website or social networking web site (such as FACEBOOK, INSTAGRAM,
InstagramMeta
ative of the Marks as part of any URL or domain name, as well as their registration as part of any user name on any gaming website or social networking web site (such as FACEBOOK, INSTAGRAM, or X), wh
QuickBooksIntuit
, your computer hardware needs will consist of a personal computer with 2.0 GHz, 512 MB, 266 MHz memory, 40 GB, 7200 RPM Hard Drive, Windows XP, Windows Professional Software, and QuickBooks. We antic
Franchisor behaviours
What the franchisor requires
25 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 5 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 may independently poll your Gross Sales and other information input and compiled by your POS System from a remote location.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Franchisee shall furnish its annual financial statements to Knockouts within 60 days after Franchisee’s fiscal year end.
How the franchisor buys
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Franchisee expressly understands and agrees that Knockouts may from time to time change the components of the System including, but not limited to, altering the products, programs, services, methods, standards, forms, policies and procedures of that System
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
In 2024, we received no revenue from franchisee purchases or leases or from any suppliers.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We may receive payments from any of our suppliers based on franchisee purchases.
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?
85Item 8
We estimate that your purchases from us or our designated sources will be approximately 85% to 95% of your total initial investment (not including initial franchise fee) and approximately 85% to 95% of your ongoing purchases and leases in the operation of the Salon.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
We may charge a fee for testing, or the actual cost of the inspection and test, plus reimbursement of our related travel, lodging, and salary costs for the individual(s) performing the inspection or testing.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you wish to purchase, lease, or use any products or other items from an unapproved supplier, you must submit 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
Franchisee, at the option of Knockouts, shall assign to Knockouts all rights to the telephone numbers of the Salon and any related listing or other business listings and execute all forms and documents required by Knockouts and any telephone company at any time to transfer such service and numbers to Knockouts.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
Franchisee agrees that it will cause the Salon to meet or exceed, at all times, all applicable security standards developed by the Payment Card Industry Standards Council or its successor and other regulations and industry standards applicable to the protection of customer privacy and credit card information.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
Make periodic visits to the Salon and conduct evaluations of the products offered and the services rendered at the Salon as we reasonably determine.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 14
We may revise the contents of the Manuals and you must comply with each new or changed standard.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
Franchisee will not lease or otherwise acquire a site for the Salon until the site has been consented to by Knockouts, which consent is typically provided within 30 days after receiving all requested information from Franchisee.
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 create websites, social media accounts, e-mail marketing software accounts or other comparable accounts outside of those which we license to you.
Is a minimum grand opening advertising spend required?
YesItem 11
You must spend our then-current grand opening expenditure requirement to promote your Salon opening which is currently $10,000.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesFranchise agreement
Franchisee shall be required to spend the then-current expenditure requirement for the grand opening, but not less than $10,000.
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 16
You must participate in and offer to your customers all customer loyalty and reward programs and all contests, sweepstakes and other prize promotions that we may develop periodically.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase proprietary products, promotional materials, and exterior signage from us or a designated supplier.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase proprietary products, promotional materials, and exterior signage from us or a designated supplier.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
Franchisee shall participate in Knockouts’ then-current electronic funds transfer program.
People
Must employees wear uniforms specified by the franchisor?
YesItem 11
You will use the trademark “Knockouts” and the other Marks which now or hereafter may form a part of the System, on all signs, suppliers, business cards, uniforms, advertising materials, Technology platforms, signs and other articles in the identical combination and manner as we may prescribe in writing
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
All sales must be processed through the approved POS systems and reported as gross sales and no other supplemental or secondary POS system may be used.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We may independently poll your Gross Sales and other information input and compiled by your POS System from a remote location.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
If additional or refresher courses are held, Knockouts will notify Franchisee in writing, and, if mandatory, Knockouts will not charge Franchisee our then current training fee.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
Additionally, Knockouts will hold an annual convention and Franchisee will be required to attend.
The filing answers no to 4 questions
- Is the franchisor or an affiliate itself a supplier of required products, services or systems?Item 8
- Is there a franchisee advisory council, association or committee?Item 20
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
- Does the franchisor require minimum staffing levels or specific roles?Franchise agreement
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 franchisor's owner/CEO decides; an ops or franchise-development lead may evaluate.
VP SalesHead of SalesCROSales Director
- 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.
- 63.5% of personal services brands mandate no POS system, but I can't identify the 108 that do without digging through hundreds of FDDs.Manually reviewing one FDD takes 3+ hours. At 108 targets, that's 324 hours. FranCloud's tech_landscape reveals POS mandates instantly, turning a $16,200 research slog into a single query.
- 91.6% of brands don't mandate a CRM, but the 25 that do are hidden in static reports, delaying my outreach to high-intent prospects.Landing one CRM-displacing deal in this segment can yield $30k+ ARR. FranCloud's find_lookalikes pinpoints those 25 brands and their peers, accelerating pipeline by months.
The vendor opportunity at Knockouts Holdings
Knockouts Holdings operates a 54-unit, fully franchised system in the personal services segment, headquartered in Texas. With year-over-year unit growth of 1.887%, the brand is expanding slowly but steadily, creating a modest pipeline for new location deployments. The total addressable market for a software vendor is 54 locations, as no company-owned units are disclosed in the 2026 FDD. The royalty rate stands at 6.0%, and the initial franchise term is 10 years, indicating long franchisee commitments and stable, recurring operations where embedded software can achieve strong retention.
Who controls software purchasing
Purchasing authority sits at the franchisor level. The 2026 FDD Item 1 identifies Nathan White as Chief Executive Officer and Owner, and Heather Sorrells as President. Senior Vice President of Operations Chelsi Lee is also named. For a software vendor, the buying center likely involves this executive team, with operational systems decisions flowing through the President and SVP of Operations, while financial software decisions may involve the CEO. There are no multi-unit operators mapped in our corpus, suggesting a straightforward, HQ-driven sales motion rather than a fragmented, franchisee-influenced process.
Mandated and current tech stack
The FDD mandates two specific systems. QuickBooks by Intuit Inc. is required for financial management, and Salon Ultimate is mandated for operational or point-of-sale functions. These are named, required vendors, meaning any displacement effort must offer a compelling replacement for an entrenched, franchisor-mandated solution. Vendors offering complementary software that integrates with QuickBooks or Salon Ultimate may find an easier path than those attempting a full rip-and-replace. No other mandated or recommended systems are disclosed in the available data.
Procurement, renewals, and timing
Item 8 procurement signals are not extracted in the available data, so the specific mechanics of how the franchisor designates or approves suppliers remain unknown. However, the renewal structure provides timing insight. The initial 10-year term is followed by a 5-year renewal option, subject to a $12,000 renewal fee and a requirement for written notice between 90 and 180 days before expiration. Franchisees must also remodel to current specifications and execute the then-current franchise agreement, which may contain materially different terms. These renewal events, combined with modest unit growth, create periodic windows where system-wide technology evaluations could occur.
How to read the Knockouts Holdings FDD
The 2026 Franchise Disclosure Document is the foundational legal filing for this brand, containing detailed information on fees, territory, training, and the franchisor's obligations. Item 11 details the mandated systems named above. Item 1 lists the executives who control strategic decisions. For software vendors, the FDD is the single best source for understanding the contractual technology requirements imposed on every franchisee. The embedded viewer below provides the full document for your due diligence. When you are ready to prioritize franchise brands by tech fit and buyer access, FranCloud can build a ranked target list for your sales team.
Questions vendors ask
Knockouts Holdings, answered from the filing
The 2026 FDD lists Nathan White (CEO/Owner) and Heather Sorrells (President) in Item 1. Given the mandated tech stack, purchasing decisions likely route through this senior leadership team.
The FDD mandates QuickBooks by Intuit Inc. and Salon Ultimate. These are the core operational and financial systems required for all franchisees.
There are 54 total units, all of which are franchised. The number of company-owned locations is not disclosed in the FDD.
The FDD does not provide a specific extract for Item 8 procurement requirements. The procurement model regarding designated or approved suppliers is not disclosed in the available data.
The initial franchise term is 10 years. Renewals are for 5 years and require 90-180 days' written notice. Contract windows may align with these renewal cycles or new unit openings, with system growth at 1.887%.
The 2026 FDD was filed with state franchise regulators. You can review the embedded PDF viewer below to analyze the full legal document and compliance requirements.
Source
Read the filing itself
Every number on this page traces back to this document. Read it in full, page by page. Buy the original PDF to download, search, and annotate it.
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Knockouts Holdings files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
2 operators run 3 mapped locations. 1 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit1
2–9 units1
Top states by locations
| WI | 1 |
|---|
Related Personal services brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.