In this FDD Talk 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 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a V’s Barbershop franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of V’s Barbershop’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016, 2015, 2014, and 2013 average gross revenue for the 2 company-owned and 18 franchised V’s Barbershop locations that have been open for at least 3 years as of December 31, 2016
Section I – Background Information
12 Things You Need to Know About the V’s Barbershop Franchise
Teams Up to Support The 100 Club of Arizona
1. In early November 2017, V’s Barbershop announced that it had partnered with Sports 620 KTAR and TiGi to raise funds for The 100 Club of Arizona, which is V’s home state. The brand said that the partnership was a result of its continued efforts to support police, fire, and military personnel.
2. In November and December, Sports 620 KTAR’s Burns & Gambo Show held four live broadcasts at V’s Barbershop locations around Phoenix. Anyone who made an in-person donation of $5 or more to The 100 Club of Arizona received a full size Bed Head For Men haircare product by TiGi.
3. V’s Barbershop also supports police, fire, and military personnel everyday with 20 percent off all services, including haircuts, shaves, beard trims, and more.
4. Jim Valenzuela, founder and CEO of V’s Barbershop, said, “At V’s, we’re huge supporters of our first responders, our military and the good work of The 100 Club. We’re excited to have Sports 620 out to four of our locations in the coming weeks and to offer this unique Bed Head For Men promotion for folks who stop-by and donate to The 100 Club.”
Opens First Florida Locations
5. V’s Barbershop continues to grow as it expands across the United States. There were several new openings throughout 2017, including two in Florida.
6. In February of 2017, the brand opened a Lakeside Village location in the Orlando area. Lawrence Johnson, the owner of the Lakeside Village location, was a customer of V’s Barbershop when he lived in Phoenix; and like the founder of V’s, Johnson wanted to find an authentic barbershop similar to the one he went to with his father when he was a kid. Johnson spent two years talking with Jim Valenzuela, the founder and CEO of V’s Barbershop, about bringing the brand to Florida. Johnson said that V’s Barbershop is about more than just cutting hair, “this is about being part of the community and tying into the community.” He added that he hopes his shop will fulfill a need in the growing area.
7. The brand opened a second Florida location in Fort Lauderdale at the end of July. It was V’s 35th shop and is owned and operated by husband and wife duo Keith and Jenna Keltner. Jenna has experience in the barbershop industry as her family previously owned Yankee Clipper for four generations. Every haircut at this Fort Lauderdale location includes a hot-lather neck shave, a shoulder massage, and the opportunity to drink locally-brewed beer.
Offering Services Beyond Haircuts
8. V’s Barbershop was founded on the idea of bringing back the nostalgia of a classic barbershop. This means that the brand’s locations offer a full line of services beyond hair cuts. Each hair cut includes a hot lather straight-razor neck shave and ends with a relaxing shoulder massage. The shops also offer facials as well as beard and moustache trims.
9. V’s even has special packages that include all of its services and complimentary cigars for special occasions like weddings. Most locations also offer shoe shining, which is not a service offered by many businesses today.
10. V’s Barbershop was founded in 1999 by Jim Valenzuela in Phoenix, Arizona. Valenzuela was inspired to open a classic-style barbershop by the memories he had of going with his dad to get a haircut while growing up in Tucson. After Valenzuela’s son was born, he began looking for a similar barbershop in Phoenix that he could share with his own son. He was unable to find what he was looking for and decided to start his own barbershop that captured the feel of the one his dad took him to in Tucson.
11. At the time, Valenzuela did not know anything about the barbershop industry, but he has grown V’s Barbershop into a successful business. He started franchising the concept in 2005 and today, there are over 40 locations across the United States.
Entrepreneur’s Franchise 500
12. V’s Barbershop has appeared on Entrepreneur’s annual Franchise 500 list twice in the past 10 years. The company ranked No. 426 in 2016 and No. 384 in 2013.
Section II – Estimated Costs
- Please click here for detailed estimates of V’s Barbershop 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 V’s Barbershop’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 chart below reflects historic Unaudited Average Gross Revenue for 2 company-owned and 18 franchised locations that have been open for at least 3 years as of December 31, 2016.
- One company-owned location was sold to an existing franchisee during 2016.
- On December 31, 2016, there were a total of 32 V’s Barbershops (1 company-owned and 31 franchised) open for business. The table below does not include 12 shops that were not open for at least 3 years as of December 31, 2016.
Unaudited Chart Reflecting Reported 2016, 2015, 2014, and 2013 Average Gross Revenue Per Unit for Units Opened at Least Three Calendar Years