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 2018 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 2018 FDD
- Section IV – Number of franchised and company-owned V’s Barbershop outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD
- Section V – Presentation and analysis of V’s Barbershop’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:
- 2017, 2016, and 2015 average and median gross revenues for the 22 franchised V’s Barbershop locations that have been open for at least 3 years as of December 31, 2017
Section I – Background Information
12 Things You Need to Know About the V’s Barbershop Franchise
Offered Tour of the Business During International SalonSpa Business Network (ISBN) Conference
1. During the International SalonSpa Business Network (ISBN) Conference in early May in Scottsdale, Arizona, delegates were given a behind-the-scenes tour of two V’s Barbershop locations to analyze the brand and its procedures. The visit, sponsored by Shortcuts Salon Software, is the second excursion of the recently launched Tour de ISBN program, which seeks to give ISBN members a unique opportunity to examine each other’s locations and listen in to frank and honest presentations about a brand and its development.
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2. Last year, the tour ran its inaugural visit to Gene Juarez in Seattle, with around 20 ISBN members spending two days investigating the operations of this multi-million dollar business. This year, V’s Barbershop founder and CEO Jim Valenzuela and operations director Emily Brown gave a candid behind-the-scenes look at the business. With 36 locations across 15 states, and 60 more planned (at the time of the tour), V’s Barbershop has experienced planned and sustained growth since its launch nearly 20 years ago.
3. The view into V’s Barbershop kicked off with a presentation by Valenzuela and Brown on V’s journey, its concept, the challenges, and how they have been met. Afterwards, delegates were bussed to the first location, the first and original V’s Barbershop in Arcadia, AZ, which opened in November 1999. There they got a chance to see the everyday operations of the barbershop. Following that was a visit to the newest location to see how far V’s has come since it opened in Arcadia, including a look at V’s latest initiatives in action.
4. The tour concluded with a networking session on the last day of the conference, when delegates mingled to discuss elements of V’s operations and how these could be applied to their own business.
Implements New Showerheads
5. In late July 2018, V’s Barbershop announced that it had decided to use Ecoheads showerheads in all its future fit-outs, to guarantee the same experience clients have come to expect at every location. V’s Barbershop will now roll out Ecoheads across all new openings while encouraging, but not insisting, all existing shops consider fitting them retrospectively.
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6. Emily Brown, V’s director of operations, said, “Our patrons are guys, and most don’t take advantage of our shampoo experience. However, for those who do want a shampoo, we needed to make sure it was the same whether it was happening in California, Texas, or New Jersey.”
7. Consistent water pressure is an issue facing all salon businesses with multiple locations spread across states. But Brown found that with Ecoheads, the unique design of the showerhead ensures the pressure is the same in every shop. V’s can also be confident that the quality of water is the same – free of sediment and chlorine.
8. Brown added that Ecoheads also cut costs because less heated water is used even though the pressure is increased, saving energy and water. Brown said, “They cost the same as an old-fashioned showerhead, so why wouldn’t any salon or barbershop fit them. It was an easy decision. Why wouldn’t you take advantage of more consistent, cleaner water that helps the environment?”
9. Design was a crucial consideration as the look and feel of each barbershop is a fundamental part of the brand. V’s is famous for its barbershop authenticity, achieved through its décor and its enviable selection of beautiful refurbished antique chairs. Every location has a complete set of heavy, leather-bound chairs, oozing reassurance and quality. According to Brown, “Ecoheads also look cool, with the clear head and filter filled with tiny stones. V’s has always been an amalgam of classic and modern, so the showerheads fit right. Guys love tech and innovation, so they love Ecoheads.”
10. V’s Barbershop was founded in 1999 by Jim Valenzuela in Phoenix, Arizona. While growing up in Tucson, Arizona, Valenzuela often visited classic barbershops with his father. When Valenzuela had his son in 1994, he went looking for the same type of barbershop he visited with his father, but couldn’t find any in Phoenix.
11. Although Valenzuela had no experience as a barber and knew nothing about the industry, he decided to open his own barbershop inspired by the ones he frequented as a kid. Valenzuela started franchising the V’s Barbershop concept in 2005 and today, there are V’s Barbershop locations across the United States.
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12. V’s Barbershop did not rank on Entrepreneur’s 2018 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of V’s Barbershop franchise costs, based on Item 7 of the company’s 2018 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 2018 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 20
- Outlets at the End of the Year: 28
- Net Change: +8
- Outlets at the Start of the Year: 28
- Outlets at the End of the Year: 31
- Net Change: +3
- Outlets at the Start of the Year: 31
- Outlets at the End of the Year: 35
- Net Change: +4
- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 2
- Net Change: 0
- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 1
- Net Change: -1
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 0
- Net Change: -1
Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis
- The chart below reflects historic Unaudited Average and Median Gross Revenues for 22 franchise locations that have been open for at least 3 years as of December 31, 2017.
- One company-owned location was sold to an existing franchisee during 2016.
- On December 31, 2017, there were a total of 35 V’s Barbershops open for business. The table below does not include 13 shops that were not open for at least 3 years as of December 31, 2017.
Unaudited Chart Reflecting Reported 2017, 2016, and 2015 Average and Median Gross Revenues Per Unit for Units Opened at Least Three Calendar Years as of December 31, 2017