Salon and barbershop valuations in Illinois are heavily influenced by the business model — employee-based or booth rental. Employee-model salons generate higher revenue per chair but have more complexity; booth rental models generate lower gross revenue but near-zero labor management. Typical multiples range from 1.5x to 3x SDE.
Employee vs. Booth Rental Models
An employee-model salon where the owner employs stylists generates higher revenue and has more control over customer experience, but stylist turnover is a constant challenge. Booth rental salons collect fixed weekly fees from independent stylists and have lower gross revenue but much simpler operations. Each model has a different pool of potential buyers.
Client Portability
The biggest risk in salon sales is client portability — stylists taking their clients to a new location. Salons with strong walk-in traffic, recognizable branding, and diverse stylist rosters have less client portability risk than those where one or two stylists have loyal personal followings. Non-solicitation agreements with stylists, while difficult to enforce, provide some protection.
Franchise salon concepts (Great Clips, Sport Clips, Supercuts) have formal resale processes. Independent salons rely more heavily on local reputation and the transition plan for staff and clients.