Franchising Since: 2002
Headquarters: Minneapolis, Minnesota
Estimated Number of Units: 85
Franchise Description: Roosters MGC International, LLC is the franchisor. Its parent company is Regis Corporation. Roosters Men's Grooming Center franchisees operate a unique full service grooming center that provides personal grooming services primarily to men, including haircuts, under the service mark and trade name “Roosters Men's Grooming Center.”
Training Overview: At least 30 days prior to opening the center, franchisees (or if franchisees are a corporation, their manager) and their employees must complete the on-site portion of the mandatory training program to the franchisor’s satisfaction (and the franchisor may conduct this training online). The other portions of the training program will be held at the franchisor’s corporate headquarters or such other place it designates, including online. The franchisor may require that franchisees and certain employees attend additional courses, seminars, and other training programs that it may periodically require.
Territory Granted: Franchisees must only operate their center at a site that the franchisor approves at the time they enter into the Franchise Agreement, or thereafter, in writing. The approved site must be located within the designated market area (DMA) the franchisor designates in the Franchise Agreement. Typically, the DMA is described in terms of street boundaries or other geographical/political demarcation and may vary in size from other DMAs depending on the following: population density and other demographic factors. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor and/or its affiliates own, operate or franchise, the sale of the franchisor’s products/services in other channels of distribution and/or competitive brands that it controls.
Obligations and Restrictions: During the term of the Franchise Agreement, except as we otherwise approve in writing, franchisees or their manager, who has successfully completed the required initial training programs to the franchisor’s satisfaction, must devote full time and best efforts to the management and operation of the center. Either franchisees or their fully-trained manager must at all times provide supervision of the center. Franchisees must keep the center open and in normal operation for the minimum hours and days the franchisor specifies in the manual or otherwise in writing. Franchisees must operate the center in strict conformity with the specifications contained in the manual or otherwise in writing. Franchisees must not deviate from the franchisor’s specifications and procedures. Franchisees must not use or permit the use of the premises for any other purpose or activity at any time without first obtaining the franchisor’s written consent.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One 10-year term is available provided franchisees are in good standing and meet requirements.
Financial Assistance: Neither the franchisor nor any agent or affiliate offers direct or indirect financing to franchisees, guarantees any of their notes, leases or obligations, except as described. While franchisees are required to locate the site and lease the center location, the franchisor reserves the right to lease directly from the landlord and requires franchisees to sublease the center location from the franchisor or its affiliate.
Estimated Initial Investment
| Name of Fee | Low | High |
| Initial Franchise Fee | $39,500 | $39,500 |
| Travel and Living Expenses During Initial Training | $0 | $3,000 |
| Grand Opening Advertising | $15,000 | $20,000 |
| Insurance | $250 | $350 |
| Rent (first and last months’ rent) | $10,800 | $15,800 |
| Computer Software (Point of Sale System; $170 per month) | $2,040 | $2,040 |
| Computer Hardware/Installation | $1,876 | $2,418 |
| Professional Fees | $6,000 | $12,000 |
| Exterior Signage | $6,000 | $12,000 |
| Leasehold Improvements | $75,000 | $150,000 |
| Furniture, Fixtures & Equipment | $55,000 | $70,000 |
| Opening Inventory | $5,000 | $10,000 |
| Construction Management Services Fee | $5,500 | $7,500 |
| Construction and Design Plan Review | $500 | $1,000 |
| Post Build Review | $1,500 | $3,000 |
| Additional Funds (first three months) | $15,000 | $25,000 |
| ESTIMATED TOTAL | $238,966 | $373,608 |
Other Fees
| Type of Fee | Amount |
| Royalty | 4% of gross sales until first year anniversary. From first year anniversary through end of Franchise Agreement term: 6% of gross sales. |
| Transfer – Legal Entity | $100 |
| Transfer – 3rd Party | $1,500 per center. |
| Franchise Renewal Fee | $2,500 per center. |
| National Advertising Fund | Up to 2% of gross sales (currently required to pay 1%). |
| Interest on Overdue Payments (Finance Charges) & Late Fees | 1.5% per month or highest commercial contract interest rate the law allows, whichever is less. In addition, franchisees must pay a $100 administrative fee. Franchisees must also pay a $100 late fee for failure to submit report of gross revenues with weekly continuing fees payment. |
| Additional Training Fee | Then-current tuition fee $100 per day plus expenses and costs of training materials and supplies. |
| Annual Convention | Up to $1,000 per person attending. |
| Franchisor-Obtained Insurance | Out-of-pocket cost reimbursement. |
| Indemnification | Will vary under circumstances – depends on nature of claim. |
| Local Advertising Cooperative | Up to $500 per month, as approved by co-op. |
| Local Advertising Expenditures | Minimum of $1,000 per month. |
| E-mail Exchange Mailbox | $15 per month per mailbox. |
| Supplier Testing | Reasonable cost of inspection and actual costs of test(s). |
| Ongoing Supplies/Inventory Purchases | Cost of requested inventory/supplies. |
| Tax Reimbursement | Reimbursement of the franchisor’s tax payments. |
| Lease Payments | $3,000 - $5,000 per month. |
| Lease Renewal Fee | $1,500 |
| Lease Guaranty Fee | The amount by which 12% of the monthly gross revenues exceed the monthly lease payments for as long as such guaranty is in effect. |
| Gift Card Transactions | $45 per download software download fee and $15 per terminal annual software maintenance fee (both if franchisees supply their own terminal device); per transaction fees range from $.0225 to $.07; non-sufficient funds recovery fee of $.05 per card. |
Franchise Direct's Disclaimer