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In 1973, newlyweds Dennis and Ann were having dinner at a restaurant when the conversation turned to their jobs. Dennis had been working for his father’s chain of Washington area beauty parlors, Louis Creative Hairdressers, but he was ready to venture out on his own. Ann was uninspired by the conservative cuts at the downtown Washington beauty salon where she was a Stylist. The couple agreed—it was time to break free.

Together, Dennis and Ann drew up a rough business plan on a napkin detailing a new kind of hair salon where ...