The Barbershop (A Hair Salon for Men) Franchise Costs, Fees & FDD

Year Business Began: 2005

Franchising Since: 2008

Headquarters: De Pere, Wisconsin

Estimated Number of Units: 50

Franchise Description: The Barbershop A Hair Salon For Men, LLC is the franchisor. Franchisees will establish and operate a franchise of “The Barbershop Salon” (or “The Guy’s Place Salon” – another brand of the franchisor) which is a casual hair salon offering haircuts, color and highlights, beard trims and waxing specifically geared toward the hair care needs of men and boys (although females are welcome) in accordance with the system and under the marks.



Training Overview: Franchisees, their designated manager, and/or at least one other employee must visit one of the franchisor’s affiliate-owned locations for a period of two to three days. The purpose of the visit is to observe a fully operational salon. On-site opening assistance will be conducted at the franchisee’s salon over the three days prior to the scheduled opening of the salon, the opening day and four days after. The franchisor will send at least one of its trainers to the salon. Most, if not all the training, is provided on-the-job and generally on an as-needed basis. One of the owners and the designated manager are required to complete the training to the franchisor’s satisfaction. The franchisor may also provide refresher programs to experienced managers and employees. Such programs are not mandatory at this time but may be deemed mandatory in the future.

Territory Granted: Franchisees must operate their salon at a specific location identified in the Franchise Agreement. The protected territory will be determined when both parties agree on the site. The protected territory will be tailored to the specific site’s demographics (there is no minimum geographic territory). Typically, the protected territory will be a three-mile radius around the salon unless it is in a densely populated area or a rural area. If franchisees are in a rural area, the protected territory may be much larger and if they are in a densely populated area, such as in a downtown metropolitan area, the protected territory may be smaller. So long as the Franchise Agreement is in force and franchisees are not in default under it or any other agreement with the franchisor or any affiliate of its, neither it nor its affiliates will own or operate or franchise or license others to own or operate a The Barbershop Salon or The Guy’s Place Salon within the protected territory.

Obligations and Restrictions: Although franchisees are not required to personally participate in the day-to-day management of the salon, the franchisor recommends that they do, and no matter what their participation in management is, franchisees are required to devote their best efforts to the operation of the salon. All owners of any entity franchisee and their spouses must sign a Guaranty and Assumption of Obligations in the form attached to the Franchise Agreement assuming and agreeing to discharge all of the obligations under the Franchise Agreement and an agreement to comply with all the restrictive covenants. The franchisor requires franchisees to offer and sell only those goods and services that it has approved. Franchisees are prohibited from offering or selling any products or services not authorized or approved by the franchisor and from using the premises of the salon for any other purpose than the operation of a salon in compliance with the Franchise Agreement. The franchisor requires franchisees, if permitted by applicable law, to participate in various programs and activities with other franchised salons, in accordance with the provisions either set forth in the manual or otherwise disclosed to franchisees.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for five additional terms of 10 years each.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$35,000	$35,000
Training and Living Expenses While Training (for two people)	$2,000	$4,000
Security Deposit and Rent	$2,000	$6,000
Licenses, Dues, Utilities Deposits	$500	$2,000
Furniture, Fixtures and Equipment	$10,000	$23,000
Leasehold Improvements	$70,000	$150,000
Opening Inventory	$2,000	$3,000
POS Computer System and Software	$2,000	$4,000
Office Equipment and Supplies	$1,000	$2,000
Professional Fees	$500	$3,000
Signage	$4,000	$8,500
Insurance (per quarter)	$600	$1,500
Grand Opening Advertising	$10,000	$10,000
Additional Funds – 3 Months	$15,000	$30,000
ESTIMATED TOTAL	$154,600	$282,000

 
Other Fees

Type of Fee	Amount
Royalty	4.5% of gross sales, but if franchisees own more than five salons, 4% of gross sales.
Advertising Fee	Up to 2% of gross sales.
Website and SEO Fee	$1,000 per year.
Additional Training and Assistance	Fee and all expenses.
Transfer Fee	50% of the then current initial franchise fee.
Renewal Fee	$2,500
Audit	Cost of audit.
Interest on Late Payments	Lesser of 1.5% per month or maximum legal rate.
Late Report Fee	$500 plus $500 for every week a report is late.
Indemnification	Will vary under circumstances.
Mediation Fees	Actual costs.
Dispute Resolution Fees	$50,000 plus attorneys’ fees and expenses.
Taxes	Actual costs.
Fee for Testing Alternative Supplier’s Goods	Actual cost of the test.
Costs and Attorneys’ Fees	Will vary under circumstances.

The above information has been compiled from the FDD of The Barbershop A Hair Salon for Men. Year of FDD: 2024.

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