In this FDD Talk post, you’ll learn the following:
- Section I – Background information on The Barbershop A Hair Salon For Men franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for The Barbershop A Hair Salon For Men franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for The Barbershop A Hair Salon For Men franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of The Barbershop A Hair Salon For Men’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016 average total revenue, cost of goods sold, gross profit, franchise royalties, advertising, office supplies, shop supplies, payroll and related expenses, credit card expense, professional fees, insurance, dues and subscriptions, bank service fees, license and permits, miscellaneous expense, rent/maintenance/property taxes, travel/auto/meals, power/gas/water/cable, total expenses, and EBITDA for the franchised The Barbershop A Hair Salon For Men units that were open more than 12 months, but less than 25 months; more than 25 months, but less than 49 months; and more than 49 months
Section I – Background Information
9 Things You Need to Know About The Barbershop A Hair Salon For Men Franchise
Full Lineup of Services
1. The Barbershop A Hair Salon For Men includes six different services with each haircut:
- a haircut by an experienced and licensed stylist, who consults each client to deliver the precise look they want;
- a shampoo and conditioner treatment using American Crew products;
- during the shampoo and conditioner treatment, the stylist turns out the light and places a hot towel over the client’s face, allowing them to relax;
- if the client wants, the stylist will clean up their eyebrows and moustache;
- to finish off the session, the stylist provides a relaxing shoulder massage with an Oster massager; and
- as a bonus service, clients can stop by any time between haircuts for a free neck trim.
2. In addition to the services that come with each haircut, The Barbershop offers beard trims, waxing, and gray blending. For gray blending, stylists use American Crew Precision Blend color; highlights may be available at some shops.
Despite Barbershop Branding, The Barbershop Does Not Employ Licensed Barbers
3. Although The Barbershop does say that it is “A Hair Salon for Men,” its shops have a masculine barbershop feel and its clients are men and boys. However, the shops do not employ actual barbers, as its locations only have cosmetology salon licenses, which means only cosmetologists can work there. This is the reason why despite its barbershop branding, the majority of The Barbershop’s employees are female stylists.
4. While this isn’t necessarily a problem for customers as long as they are satisfied with the services they receive at The Barbershop, the company did draw some backlash in 2011 from real barbershops in Minnesota. A group of barbers led by Pat Link, who has been a barber for nearly 40 years, said that The Barbershop A Hair Salon for Men was breaking a Minnesota law meant to govern and protect barbers. According to the law, “…cosmetologists shall not hold themselves out as barbers…”
5. Link and Peggy Schmidt, the owner of the Minnesota School of Barbers, filed formal complaints with the state Board of Barber Examiners and the Board of Cosmetologist Examiners shortly after The Barbershop opened its fourth location in West St. Paul. Link and Schmidt added that the brand was “falsely advertising” because it did not have a barbershop license.
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6. At the time of the complaint, several customers said that the fact that The Barbershop employed stylists and not barbers didn’t bother them at all. Link and Schmidt were successful in getting a state law reworked so it better differentiates between shops with barbers and those with cosmetologists.
7. The Barbershop A Hair Salon For Men was founded in 2005 by Todd Degner in Appleton, Wisconsin. The brand’s goal is to provide high quality salon services for men and boys in a warm, friendly atmosphere. Its salons feature a spacious waiting room with a large HDTV, lots of magazines and local newspapers, free coffee, and free salted peanuts. Each customer sits at their own private barber chair with their own flat screen TV.
8. The Barbershop has been franchising since 2008 and today, there are over 47 locations across nine states.
Entrepreneur’s Franchise 500
9. The Barbershop A Hair Salon For Men has yet to appear on Entrepreneur’s annual Franchise
Section II – Estimated Costs
- Please click here for detailed estimates of The Barbershop A Hair Salon For Men franchise costs, based on Item 7 of the company’s 2017 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on The Barbershop A Hair Salon For Men’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.
Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis
- The Barbershop A Hair Salon For Men, LLC provides prospective franchisees with information regarding the average sales; expenses; and earnings before interest, income taxes, and depreciation of certain franchised The Barbershop A Hair Salon For Men units.
- The average sales; expenses; and earnings before interest, income taxes, and depreciation for The Barbershop A Hair Salon For Men units were obtained from operating statements submitted to The Barbershop A Hair Salon For Men by its franchisees.
- Most of the units use a cash versus accrual system for producing their financial statements, which may produce slight differences between the actual date of occurrence of expenses and the date such expenses are reported on the unit’s financial statements.
- Neither The Barbershop A Hair Salon For Men nor an independent certified public accountant has independently audited or verified these franchisee statements. The information received in these statements, to the best of The Barbershop A Hair Salon For Men’s knowledge, is accurate and complete.
A. Open More Than 12 Months, But Less Than 25 Months
Annual Sales of $100K to $300K
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