In this FDD Talk 2015 post, you’ll learn the following:
- Section I – Background information on the V’s Barbershop franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a V’s Barbershop franchise, based on Item 7 of the company’s 2015 FDD
- Section III – Presentation and analysis of V’s Barbershop’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
- 2014, 2013, and 2012 actual and average gross revenue for the 2 company-owned V’s Barbershops that have been open for at least 2 years as of December 31, 2014
- 2014, 2013, and 2012 actual and average gross revenue for the 14 franchised V’s Barbershops that have been open for at least 2 years as of December 31, 2014
- 2014 actual and average gross revenue, payroll costs, occupancy costs, other operating expenses, total store operating expenses, and net operating income for 3 mature, company-owned V’s Barbershops that have operated for several years in the metropolitan Phoenix area
Section I – Background Information
V’s Barbershops Offer Vintage Experience With Modern Touches
Father-and-son traditional barbershop experiences are the focus of V’s Barbershops, which was founded to fill the niche of the dwindling industry.
The shops are nostalgic, with black-and-white checkered floors, wood cabinets and decor featuring classic sports photos and memorabilia, paired with modern amenities such as big-screen TVs. Barbers wear classic smocks and use straight razors, hot lather and hot towels.
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V’s, headquartered in Phoenix, has more than 30 full-service, upscale barbershops in 10 states — Arizona, California, Georgia, Indiana, Missouri, New Jersey, North Carolina, Pennsylvania, Texas and Washington. More locations and expansions to other market areas are planned as demand continues to grow for updated classic barbershops.
V’s shops provided 315,000 haircuts in 350,000 visits in 2014. The 23,000 straight razor shaves in 2014 were more than any other barbershop in the United States.
Founder Wanted Nostalgic Barbershop Experience
Founder and CEO Jim “V” Valenzuela grew up going to classic barbershops with his dad in Tucson, Arizona. Years later in Phoenix, he noticed small, tired barbershops, nearly pushed out by the more popular salons that catered to everyone. These small shops lacked the ambiance he remembered.
He wanted to establish the same tradition with his son, who was born in 1994, so he decided to open his own barbershop, even though he was not a barber. The first V’s Barbershop opened in 1999.
“My dad died in 2003, and in his memory I sincerely hope that the barber shop experience at V’s is something that you and your child remember for a long time,” Valenzuela wrote on the company website.
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Services Include Neck Shaves, Shoulder Massages
V’s Barbershops offer both traditional short haircuts as well as more contemporary styles. A haircut includes a hot lather neck shave and ends with a shoulder massage. Most locations also offer shoeshines (walk-ins or drop-offs). Customers can get haircuts, shaves, facial and massage, and beard and mustache trims. Shaves feature hot lather and traditional straight razors. Established V’s customers can stop in for a free neck shave.
The shops also include packages. “The Works” provides a shampoo, haircut, shave and shoeshine. Add a facial and face massage for “The Whole Deal.” The “Tune-Up,” for those between haircuts, provides a trim and a neck shave. Wedding packages for the groom and groomsmen come with free cigars.
The barbershops sell several product lines of hair and skin products: The Art of Shaving, American Crew, Jack Black and Lucia Bay, as well as Kent Combs; Oster Massagers (the same massagers used in the barbershops); and V’s T-shirts and caps. V’s also sells items from its collection of sports memorabilia.
The company won a Bronze Telly Award in May 2015 for its three-tiered advertising campaign that focused on tradition and its theme of “bringing back handsome.” The Telly Awards honor outstanding local, regional and national television and online commercials, programs and productions.
Some V’s locations offer wine and beer; in downtown Phoenix, the V’s CityScape location was a critic’s pick for “Best Shave and a Beer” in AZCentral’s Best of 2014, announced in December 2014.
V’s was No. 3 on Franchise Gator’s Top Emerging Franchises list for 2014 and No. 27 in the overall Top 100. In 2015, the company was No. 25 on the Top Emerging Franchises List and No. 49 on the overall Top 100.
In Phoenix, V’s has been named to the Best of Phoenix list for a decade; individual shops have been named to various “best of” lists in their cities.
Section II – Estimated Costs
- Please click here for detailed estimates of V’s Barbershop franchise costs, based on Item 7 of the company’s 2015 FDD (updated).