Merle Norman Cosmetics

Merle Norman Cosmetics began in 1931 when Merle Nethercutt Norman formulated cosmetics in her home kitchen in Santa Monica, California. She opened her first official studio for $150 during the Great Depression, and 94 franchises were operating across America by 1934. The company incorporated Merle Norman Cosmetics, Inc. on June 12, 1974, as the successor to its earlier businesses. It remains privately held, family owned, and family operated. Its corporate headquarters are at 9130 Bellanca Avenue in Los Angeles, California. Merle Norman’s nephew, J.B. Nethercutt, became the company’s first employee in 1932 and assumed leadership in 1963. After his death in 2004, his son, Jack Nethercutt II, and Jack’s wife, Helen Richards Nethercutt, became Chairman and Vice Chairman of the Board, respectively. Jack Nethercutt II also serves as Chairman and President. The company manufactures its full line of skincare, personal care, and makeup products in the United States. Production is primarily handled at its manufacturing plant and distribution center in Westchester, Los Angeles. A secondary plant in Sylmar, Los Angeles, opened in 1971 and produces containers and packaging. The brand combines domestic production with a try before you buy approach and has long been associated with American beauty retail and women entrepreneurs. In 2021, it reported 1,007 locations across seven countries: the United States, Canada, Guatemala, Bahrain, the United Arab Emirates, Hong Kong, and Taiwan. More recent 2025 data lists 797 total franchised units, while another source cites 831 locations across North America. The company is classified within All Other Miscellaneous Store Retailers except Tobacco Stores. Its studio format emphasizes personal service rather than mass market distribution, giving franchise buyers a beauty retail model with a long operating history and a distinct store concept.

Beauty and personal care make up a large and durable part of the global economy. Consumers continue to purchase products connected with appearance and well being. The broader category includes skincare, makeup, and personal care, with demand shaped by greater health awareness, interest in personalized beauty solutions, and preference for retail experiences that allow guidance and product interaction. Merle Norman benefits from the continuing appeal of heritage brands, interest in American made products, and demand for expert help when selecting beauty products. Its try before you buy approach addresses that desire directly. Many consumers view beauty products as recurring purchases, which can support relatively stable demand. Product sales may also produce high margins when combined with service offerings, although results depend on each studio’s costs and sales mix. Competition comes from department store chains, big box retailers, specialized boutiques, and direct to consumer online brands. Merle Norman’s independently owned and operated studios occupy a more personal position within that market. Customers receive a consultative sales experience instead of a purely transactional purchase. Interest in self care, authentic brand experiences, and expert recommendations supports a model built around personal connection and product effectiveness. The company’s United States manufacturing, primarily from its Los Angeles facilities, also appeals to customers who value domestic production and quality control. These features give the brand a defined position within a fragmented beauty retail sector.

Merle Norman Cosmetics does not charge an initial franchise fee or ongoing royalty fees. That structure removes two costs commonly found in franchise systems. The total initial investment varies by studio format and location. Reported ranges include $37,671 to $177,888, $38,000 to $178,000, $48,000 to $260,000, $117,708 to $218,823, $34,216 to $215,415, and $34,803 to $186,500. Another stated approximate range is $95,725 to $186,500. Franchise Disclosure Document figures provide additional format specific detail. A Merle Norman Cosmetic Studio in a regional mall requires $129,489 to $260,437. A studio outside a regional mall requires $88,787 to $154,712. A studio located within an existing business, such as a salon or boutique, requires $47,566 to $82,135. The initial inventory and supply package for a regional mall studio ranges from $23,348 to $45,111. Other sources estimate initial product and supply packages at approximately $17,000 to $26,000. The total investment figures generally exclude rent for the business location, which is an additional operating expense. Franchisees are not required to pay into a marketing or advertising contribution fund. Instead, Merle Norman contributes 60% to approved local advertising campaigns. Reported liquid capital requirements include $40,000 to $50,000 minimum, $60,000 to $100,000, and an ideal profile of $25,000 to $100,000. One source states minimum cash required of $117,708, while another cites a cash investment of $65,000. The stated ideal net worth is $100,000 to $250,000. With no initial franchise fee or royalty fees, the opportunity ranges from accessible to mid tier, particularly for a studio inside an existing business. Merle Norman also offers veterans a $5,000 discount toward the initial product order.

The franchise system consists of independently owned and operated studios centered on personal consultations and the try before you buy philosophy. A franchise owner may manage the studio, provide beauty consultations, perform makeup artistry, advise customers on skincare, and sell products. Specific staffing requirements are not stated, but the service model calls for beauty experts or consultants who can work directly with customers. The system offers several formats. These include a full scale Merle Norman Cosmetic Studio in a regional mall, a standalone Merle Norman Cosmetic Studio outside a regional mall, and a smaller studio located within an existing business such as a salon or boutique. The existing business format can provide a lower overhead entry point. Training begins with online modules and virtual classes covering business operations before opening. Franchisees receive 40 hours of initial classroom training. The program covers more than 200 products and 600 shades, professional makeup artistry, skincare knowledge, selling methods, staff management, business management, and operation of the Point Of Sale system. Corporate support continues after opening, including the company’s 60% contribution to approved local advertising campaigns. Specific information about field consultants, technology platforms, and supply chain procedures is not stated. The company’s long operating history and United States manufacturing provide support for product delivery and quality control. The structure is consistent with an owner operator model and with the company’s historical emphasis on women entrepreneurs. Specific multi unit requirements are not stated. Merle Norman has described a development campaign intended to add hundreds of franchise units and is seeking expansion into new markets, indicating room for growth by dedicated franchise owners.

The difference may reflect different reporting scopes, with the $100 million figure potentially representing sales across the company’s studio network and the lower figure potentially relating to a particular segment, an isolated corporate entity, or an interpretation of company data. The network declined by 269 studio units between 2012 and 2019. It then moved from 1,007 locations in 2021 to 797 total franchised units in 2025. Those figures make it difficult to connect overall network changes with the financial results of individual studios. Investors therefore need to assess the brand through its operating format, market presence, product offering, and corporate support for local advertising. The company contributes 60% to approved local campaigns, which can reduce a studio owner’s local marketing expense.

The network expanded rapidly in its early years, reaching 94 franchises by 1934. More recent figures show a decline of 269 studio units between 2012 and 2019. The system had 1,007 locations across seven countries in 2021 and 797 franchised units in 2025, indicating a net reduction over the past decade. At the same time, the company has announced a development campaign to add hundreds of franchise units and is seeking business minded individuals to enter new markets. No specific acquisitions or major rebrands are identified in the available information. Merle Norman remains privately held, family owned, and family operated, as it has been since its founding in 1931. It continues to manufacture its full line of skincare, personal care, and makeup products in the United States from its Los Angeles facilities. The brand has recognition built over nearly a century, particularly among its target customers. Its try before you buy approach gives customers an opportunity to test products before purchasing and supports customer loyalty and sales. United States manufacturing supports quality control and supply reliability while appealing to customers who prefer domestically produced goods. The 60% contribution to approved local advertising campaigns gives franchisees marketing support without a required advertising fund fee. The company’s effort to recruit franchisees and enter new territories reflects a current focus on rebuilding unit growth around its established brand and studio model.

The intended franchise candidate is a business minded person interested in beauty and personalized customer service. Prior beauty industry experience is not identified as a mandatory requirement. The training system is designed to teach new owners product knowledge, beauty expertise, and studio operations. Financial expectations vary by source. Prospective franchisees may need liquid capital of $25,000 to $100,000. Other figures identify minimum cash of $117,708 or a cash investment of $65,000. The stated ideal net worth is $100,000 to $250,000. The lack of an initial franchise fee and ongoing royalty fees may make the system accessible to a broad range of entrepreneurs, subject to the full investment required for the selected format and location. The company’s history of supporting women entrepreneurs aligns with owners who want to participate in daily studio management and customer interactions. Specific multi unit obligations are not stated, although the planned campaign to add hundreds of units and the search for franchisees in new markets could support multi unit development. Expansion opportunities are described across the company’s seven existing countries: the United States, Canada, Guatemala, Bahrain, the United Arab Emirates, Hong Kong, and Taiwan. The franchise agreement term length is not stated. Transfer and resale provisions are standard subjects for franchise agreement review, but specific terms are not provided in the available information.

Merle Norman Cosmetics combines a history beginning in 1931 with a family owned operating structure and a studio model built around personal service. Its financial structure excludes an initial franchise fee and ongoing royalty fees, while the company contributes 60% to approved local advertising campaigns. The available investment figures vary substantially by format, with the existing business model requiring $47,566 to $82,135 and the regional mall model requiring $129,489 to $260,437. The brand manufactures its full line of skincare, personal care, and makeup products in the United States and offers more than 200 products and 600 shades. Its try before you buy approach supports a customer experience based on product testing, consultation, and personalized recommendations. The network has declined from 1,007 locations in 2021 to 797 franchised units in 2025, but the company is pursuing a development campaign intended to add hundreds of units and is seeking franchisees in new markets. A buyer should compare the selected studio format, location costs, product and supply requirements, available capital, staffing needs, and expected local demand before proceeding. PeerSense is a commercial capital advisory firm that introduces franchise buyers to SBA and conventional lenders. PeerSense is not a lender and does not approve or provide loans.