Roosters Men's Grooming Center Franchise Costs, Fees & FDD

Year Business Began: 1999

Franchising Since: 2002

Headquarters: Minneapolis, Minnesota

Estimated Number of Units: 70

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 shop. Either franchisees or their fully-trained manager must at all times provide supervision of the shop. Franchisees must keep the shop 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 shop 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.

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
First and Last Month’s Rent and Security Deposit	$9,000	$30,000
Computer Software (Point of Sale System; $170 per month)	$2,040	$2,040
Computer Hardware/Installation	$400	$2,000
Professional Fees	$6,000	$12,000
Exterior Signage	$6,000	$12,000
Leasehold Improvements	$85,000	$175,000
Furniture, Fixtures & Equipment	$75,000	$90,000
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	$365,690	$432,390

 
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	$5,000 per shop.
Franchise Renewal Fee	$2,500 per shop.
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 and 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 - $10,000 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	ACH monthly settlement service fees of $10/month per bank account.

The above information has been compiled from the FDD of Roosters Men's Grooming Center. Year of FDD: 2025.
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