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The Barbershop A Hair Salon for Men Franchise Cost & Fees

Date of Incorporation: 2005
Franchising Since: 2008
Headquarters: De Pere, Wisconsin

Business Description: The Barbershop A Hair Salon For Men, LLC is the franchisor. Customers receive quality hair care including cut, shampoo and conditioner, a hot facial towel, eyebrow trim, neck and shoulder massage, and free neck trims between haircuts. Entertainment provided includes television, newspapers and magazines, free coffee, and peanuts.

Franchise Offer: The franchisor offers franchises for the right to establish and operate hair salons specifically geared toward the hair care needs of men and boys. The Barbershop A Hair Salon For Men, LLC welcomes female clients, but the look, products, styles and service offerings are targeted toward male customers.

Financial Assistance: The franchisor does not offer financing either directly or indirectly. It does not guarantee any financial obligations incurred by franchisees, nor does it guarantee any lease or other obligations franchisees may enter into or incur.

Training and Assistance: The training program consists of two mandatory and one recommended program. Between one and four weeks before the opening of the Franchised Salon, the franchisor recommends that franchisees, their Designated Manager, and/or at least one other employee visit one franchisor affiliate-owned location for initial training. The purpose of the visit is to observe a fully operational salon. Pre-Opening Training will be conducted at the franchisee’s Franchised Salon over the three days prior to the scheduled opening of the Franchised Salon. Most, if not all of the training, is provided on-the-job and generally on an as-needed basis. Franchisees must keep the franchisor’s training team on site for post-opening assistance and training. Post-Opening Training shall be for a minimum of three days, including the date of opening, however, the franchisor recommends no less than five days of Post-Opening Training.

Territory: The franchisor will designate a “Protected Area” in the Franchise Agreement which will generally be a 5 mile radius from the Approved Location. The franchisor does not grant exclusive territories. The franchisor will not develop or allow another The Barbershop A Hair Salon For Men Franchise within the Protected Area.

Term of Agreement and Renewal: The length of the initial franchise term is 20 years. If requirements are met, franchisees can renew for five additional terms of 20 years each.

Obligations and Restrictions: Franchisees have no obligation to participate directly in the operation of the Franchised Salon. In most cases they are required to hire an on-premises supervisor to operate the business. Franchisees must sell only the goods or services that the franchisor has approved.

Estimated Number of Units: 40

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $25,000 $25,000
Training Expenses $1,500 $3,500
Rent $1,500 $4,000
Lease Deposits $0 $4,000
Leasehold Improvements $60,000 $150,000
Utility Deposits $0 $1,500
Fixtures and Equipment $15,000 $25,000
Opening Inventory $1,500 $3,500
POS Computer System and Software $2,000 $6,000
Office Equipment and Supplies $500 $1,000
Professional Fees $500 $3,000
Licenses and Permits $75 $300
Signage $4,000 $10,000
Miscellaneous Opening Costs $3,500 $7,000
Insurance $200 $400
Grand Opening Advertising $10,000 $30,000
Additional Funds/Working Capital - 3 months $20,000 $75,000
Estimated Total $145,525 $349,200
Other Fees
Type of Fee Amount
Royalty 3% of Gross Sales starting the 1st day of the 1st full month the location is open. In order to encourage ownership of multiple locations, the royalties decrease with ownership of certain number of locations.
Website Development Fee $200-$500
Training Fee $200 per day including travel days, plus all expenses including airfare, lodging and meals.
System Modification Limited to (i) $1.00 in first year of term; and (ii) $20,000 during entire term.
Interest The lesser of 1.5% per month, or the maximum permitted by law.
Fee for Failure to Maintain POS Computer System Communication $35 per week for each week, or portion of a week, that the franchisee’s POS Computer System is not maintained so that the franchisor can access your data.
Transfer Fee $3,000 for first store; $1,000 for each additional in same transaction.
Termination Fee $20,000 plus 50% of estimated royalties for remainder of term.
Indemnification All costs including attorneys’ fees.
Audit Cost of audit.
Costs of Enforcement All costs including attorneys’ fees.
Alternative Product Review Fee Reasonable costs, not to exceed $1,000
Additional Operations Assistance $120 per hour.
Additional Training Market rates, plus your expenses as well as employees’ expenses in attending, including salaries.

The above information has been taken from the FDD of The Barbershop A Hair Salon for Men. Year of FDD: 2015

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