Drybar's franchise system is accelerating, 22 net new shops opened in 2025 alone, with a strong pipeline of 23 signed agreements not yet open.

Source: DB Franchise, LLC April 2026 FDD, Item 20, Table 1.

Drybar's franchise system demonstrates strong and growing performance, backed by audited corporate financials and franchisee-reported gross revenue data from the 2026 FDD.

206 total studios operating globally as of Dec 31, 2025 (including UK and Saudi Arabia locations). Royalty revenue growth of 38.6% over two years signals strong franchisee performance. Source: DB Franchise, LLC April 2026 FDD, Exhibit E (Steele Pomp audited financials).

Franchisee-reported gross revenue data from the 2026 FDD reveals a wide performance range across the system, with mature and top-performing shops significantly outpacing the system average.

Source: DB Franchise, LLC April 2026 FDD, Item 19, Table 1.

The blowout bar industry, though specialized, features a dynamic competitive environment. Understanding this landscape is crucial to reinforcing Drybar's leadership and strategic positioning.

Drybar is strategically positioned as a leader in providing a high-quality, premium blowout experience at an accessible price point, distinguishing it from both budget options and traditional full-service salons. This sweet spot appeals to its target demographic who value both luxury and convenience.

A closer look at the demographics and economic indicators for our four target markets reveals significant potential for Drybar franchise growth.

While some areas like UWS have higher overall competition, the specific market for premium, dedicated blowout services remains strong due to Drybar's unique brand loyalty and specialized offering.

Venue counts reflect blowout and blow dry service providers listed on Fresha (2025). Upper West Side has the highest concentration of competitors, while Montclair and Harlem represent significantly underserved markets with strong demographic demand, a compelling whitespace opportunity for Drybar. Source: Fresha.com market listings, 2025.

This analysis reflects the actual Montclair Pro Forma unit economics, projecting performance over a 24-month period.

Per the signed ADA and April 2026 FDD, the development schedule includes three locations: Montclair, Jersey City, and Harlem / Upper Manhattan. Each shop must meet its contractual lease and opening deadlines, and each location opened on time earns a $5,000 franchisor incentive payment.

Strategic expansion into high-value markets requires a thoughtful allocation of capital. Our plan details the startup costs per location and a phased deployment strategy to optimize investment.

This capital will be deployed in a staged approach, aligning with our rollout strategy for Montclair, Jersey City, and Harlem / Upper Manhattan. The $550K to $700K per-unit range is consistent with the FDD Item 7 Value Engineering model ($401,929 to $705,999) and reflects realistic NJ/NYC market buildout costs.

Value Engineering model is the preferred path for new franchisees entering the system. The Initial Franchise Fee for Montclair is $0, waived per Exhibit B of the signed Franchise Agreement, while subsequent units carry the standard $50,000 IFF.

Understanding the full fee structure is essential for accurate unit economics modeling.

Source: DB Franchise, LLC April 2026 FDD, Items 5, 6, and 7.

This phased approach allows for operational refinement and market adaptation, minimizing risk during expansion.

The revenue ramp showcases consistent growth, demonstrating the increasing financial performance over the first two years of operation.

This chart illustrates the transition from early-stage gains to stronger EBITDA as the business matures, reflecting expanding operating leverage.

This chart shows steady margin expansion as fixed costs are absorbed over a larger revenue base and the unit economics improve.

After debt service of $96,495/year, free cash flow is $5,568 in Year 1 and $170,132 in Year 2, demonstrating the unit's ability to service debt and generate meaningful cash returns by Year 2.

Understanding our member acquisition strategy and projected revenue ramp-up is crucial for sustainable franchise growth, focusing on key membership tiers and their contribution to overall performance.

The line chart above illustrates the actual Montclair pro forma revenue ramp, showing steady growth from Year 1 into Year 2.

Year 2 annualized metrics reflect the updated Montclair pro forma (April 2026), with revenue of $1,681,499 and a monthly average of $140,125. EBITDA of $266,627 (15.9% margin). After debt service of $96,495, free cash flow is $170,132.

Source: DB Franchise, LLC April 2026 FDD, Item 19, Table 1.

A detailed breakdown of Montclair's pro forma revenue, operating expenses, and key financial metrics demonstrates the path to profitability and improving returns over the first two years.

Year 3 is a modeled projection assuming ~10% revenue growth and stable cost ratios. Not an actual pro forma.

Year 1 EBITDA of $102,062 (8.5% margin) reflects strong early performance. Year 2 EBITDA of $266,627 (15.9% margin) shows significant operating leverage. Year 3 (modeled) projects $363,956 EBITDA (19.7% margin) with stable cost ratios.

Montclair shows a clear improvement in profitability from Year 1 to Year 2, with revenue growth outpacing expense growth and EBITDA expanding sharply as the location matures.

The complete ongoing fee burden investors need to understand for unit economics modeling is shown below.

Navigating expansion requires a proactive approach to potential challenges. Our comprehensive risk analysis identifies key areas of concern and outlines robust mitigation strategies to ensure sustainable growth and protect investment.

Our diligent preparation and adaptable strategies are designed to mitigate these risks, positioning Drybar for resilient and profitable growth across all target markets.

The global beauty and wellness market is undergoing significant transformation, driven by shifting consumer preferences and a strong post-pandemic rebound. This card highlights key growth drivers and market forecasts.

The line chart illustrates the robust recovery of the beauty and wellness market post-2020, with steady projected growth in both market rate and consumer spending through 2028. This indicates a resilient and expanding industry.

We invite you to connect with ZAG Equity Partners to explore this compelling investment.

ZAG Equity Partners www.zagequity.com Email: invest@zagequity.com Phone: (212) 555-0188

Our team is ready to provide all necessary documentation and answer any questions to facilitate your informed decision.

Our partnership offers a compelling opportunity for sustained growth and strong returns, built on a foundation of proven success and strategic advantages.

Our comprehensive implementation plan outlines key milestones and critical path dependencies for the successful launch of all three Drybar locations. This phased approach ensures efficient capital deployment and market penetration.

This 12-month timeline illustrates our commitment to a rapid yet controlled expansion, leveraging ZAG Equity's operational expertise to minimize delays and optimize market entry for each location.

Three Units. One Cohesive Investment.

Base case anchored to actual Montclair pro forma (April 2026): Year 2 EBITDA $266,627 (15.9% margin). Each additional unit improves platform margin through shared overhead compression across three units.

Multi-unit portfolios command premium multiples. Active institutional buyers in franchise beauty.

Our investment thesis is built on a clear path to value creation and liquidity, offering attractive returns through strategic exit opportunities.

These diverse pathways ensure investor capital appreciation within a projected timeline of 3-5 years.

Returns are driven by three compounding factors: (1) strong base-case unit economics anchored to the actual pro forma (Year 2 EBITDA: $266,627/unit, 15.9% margin), (2) multi-unit overhead leverage across 4 locations, and (3) exit to an active buyer market. The 4.75x, 5.5x multiple range is defensible based on current franchise beauty transaction comps. At base case Year 4, 5 platform EBITDA of ~$1.46M, a 5.0x multiple implies a ~$7.3M exit valuation. After debt service of $96,495/unit/year, Year 2 free cash flow is $170,132 per unit.

Top transfer markets in 2025: TX (7), PA (4), DC (2)

The surge in transfers, from 6 in 2024 to 20 in 2025, validates an active secondary market and provides a clear liquidity path for investors. Source: DB Franchise, LLC April 2026 FDD, Items 17 & 20.

Our financial projections incorporate the actual Montclair pro forma results across a 24-month horizon, showing a clear path from early-stage breakeven to improving profitability.

Revenue grows from $77,109 in Month 1 to $159,322 in Month 24, a 107% increase. EBITDA improves from $579 in Month 1 to $28,811 by Month 24, with breakeven achieved in Month 1 itself. Year 1 EBITDA of $102,062 (8.5% margin) and Year 2 EBITDA of $266,627 (15.9% margin) reflect strong operating leverage.

EBITDA turns positive around Month 1, signaling early operating leverage in the base case.

Our marketing strategy focuses on data-driven decisions to optimize customer acquisition and maximize lifetime value, leveraging a balanced mix of digital and traditional channels.

We meticulously track the performance of each marketing channel to ensure optimal return on investment and continuous improvement in our acquisition efforts.

The column chart demonstrates strong ROI across all our primary marketing channels, with social media and paid search leading the way in driving profitable customer acquisition.

Our operational model is designed for efficiency and talent retention, ensuring high-quality service delivery while optimizing labor costs across all locations.

Our real estate strategy is meticulously designed to secure prime locations that maximize visibility, accessibility, and profitability, leveraging ZAG Equity's deep market knowledge and relationships.

Our rigorous analysis framework evaluates each potential site against these criteria, ensuring every Drybar location is positioned for optimal success.

This framework integrates comprehensive market demographics, competitor analysis, site-specific feasibility studies, and financial modeling to identify and validate ideal locations.

Drybar's success is deeply rooted in a comprehensive franchise support system designed to empower owners from day one. This ecosystem provides the tools, training, and operational blueprint necessary for consistent performance and growth.

This dedicated support infrastructure significantly de-risks the franchise investment, offering a proven pathway to operational excellence and financial success.