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 2019 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 2019 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 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD
- Section V – Presentation and analysis of V’s Barbershop’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:
- 2018, 2017, and 2016 average and median gross revenues for the 29 franchised V’s Barbershop locations that have been open for at least 3 years as of December 31, 2018
Section I – Background Information
15 Things You Need to Know About the V’s Barbershop Franchise
Opens First Locations in Michigan and Chicago
1. V’s Barbershop continues to grow across the U.S. and two of its newest locations – in Michigan and Chicago – were announced in mid-October 2019. These are the first V’s Barbershops for each of these regions. The Michigan V’s Barbershop is set to open in December in Woodward Corners, while the Chicago shop is already open in the Wicker Park neighborhood.
2. The Woodward Corners V’s Barbershop is owned and operated by Joe Valenti and Mike and James Nihem. It features six antique Koken barber chairs from the 1960s, multiple flat-screen televisions, and iconic sports imagery on the walls. According to Rob Myers, spokesperson for V’s Barbershop, “It will be kid-friendly as all V’s are meant to be a place where families foster great memories together.”
3. V’s Barbershop in Wicker Park is owned and operated by Scott Sandler, who wanted the shop to capture the spirit of Chicago. Each of the six identical leather barbershop chairs dates as far back as the 1960s. They were originally produced by Koch, a Chicago leather company. The theme of the location also places a large emphasis on sports – the 1985 Chicago Bears team and a portrait of Michael Jordan are featured. Also inside the shop are two portraits that can be found in all 50 V’s across America: a portrait of Mohammad Ali and an Olympic flag. Sandler said, “It just represents people who have worked their lives to get to the top of what they do.”
4. Sandler, who has lived in Chicago for 25 years, felt burned out after two decades of working in corporate finance. He wanted to transition into a job that would allow him to connect more with the community, and in particular, his favorite neighborhood: Wicker Park. Hair care is something he already felt passionately about, and V’s is the type of business that will allow Sandler to interact with people daily.
5. Inside the shop, Sandler has a wall set aside for pictures of Little League teams he hopes to sponsor in the coming years. He plans to volunteer his services for charity events as well. Sandler added, “I’m sincere and serious about wanting to contribute. If a charity has an auction and they want a gift basket with a gift card and some products…If a neighborhood sports team needs a sponsor…I would love to do that.”
Makes Franchise Gator’s 2019 Top Emerging Franchises List
6. Near the end of August 2019, V’s Barbershop announced that it had been selected as part of Franchise Gator’s Top Emerging Franchises list. The list, along with the Fastest Growing Franchises list, highlights reasonably priced franchise opportunities that represent exciting opportunities for future franchise owners to explore. V’s Barbershop ranked in the Top 10 of the Top Emerging Franchises list at No. 7.
7. Franchise Gator’s online directory spotlights the best up-and-coming franchise opportunities in conjunction with its annual Top 100 ranking. For 2019, Franchise Gator selected 50 Top Emerging concepts and 54 Fastest Growing concepts. Top Emerging Franchises are identified as rising concepts with 50 or fewer units. Fastest Growing Franchises are those experiencing rapid expansion heading into 2020.
8. Eric Bell, general manager of Franchise Gator, said, “Prospective franchisees have a lot to consider when searching for the perfect franchise to invest in. The Fastest Growing list and Top Emerging list are meant to help them search from different angles. Whereas our Top 100 list takes many factors into account, these lists are more specific in scope. We’re excited to be able to offer these tools to those seeking to own a franchise.”
Chief Operating Officer Joins International SalonSpa Beauty Network (ISBN) Board
9. At the end of February 2019, the International SalonSpa Beauty Network (ISBN) announced that it had added three new members to its board, including Emily Brown, chief operating officer of V’s Barbershop. The other two new members are Larry Silvestri, senior vice president and COO of Mario Tricoci Hair Salons & Day Spas in Chicago; and Frank Zona, co-owner of Zona Professional in Massachusetts and experienced beauty legislative campaigner.
10. “Membership of ISBN has been a valuable community and connection for V’s since we joined,” said Brown, who along with V’s owner, Jim Valenzuela, invited members for a behind-the-scenes tour of two locations in Phoenix, Arizona, at last year’s ISBN conference. “I’ve personally formulated relationships which would have been much harder to maintain had it not been for the platform ISBN offers. The networking, especially at the annual ISBN conference, has been key for not only my personal growth, but also our organization as a whole. It was eye-opening to us as well when we discovered we were not the only ones with questions,” she continued.
11. Brown added, “With the explosion in popularity of barbering and barbershops, we found that our insight, gained over nearly 20 years of authentic barbering experience, offered something that many members of ISBN were looking for. We quickly became value-partners within the organization, and for that we will continue to participate and offer the best that we have.”
12. Brown, Zona, and Silvestri fill vacancies left by the departure of two long-serving board members: Henry Pelusi, vice president at Philip Pelusi, and Pat Neville, owner of Beauty First, both industry leaders who have served their maximum terms on the board.
13. V’s Barbershop was founded in 1999 by Jim Valenzuela in Phoenix, Arizona. Valenzuela decided to open his own barbershop after his son was born in 1994. According to Valenzuela, he could not find old school local barbershops in Phoenix like those he frequented with his own father while growing up in Tucson. Valenzuela wanted his barbershop to be a community gathering place focused on men while bringing the old-time barbershop genre into modern times.
14. The first V’s Barbershop was a success and Valenzuela opened additional locations. Valenzuela began franchising the V’s Barbershop concept in 2005 and there are now locations across 15 states.
Entrepreneur’s Franchise 500
15. V’s Barbershop did not rank on Entrepreneur’s 2019 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 2019 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 2019 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- 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: 35
- Outlets at the End of the Year: 41
- Net Change: +6
- 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
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis
- The chart below reflects historic Unaudited Average and Median Gross Revenues for 29 franchise locations that have been open for at least 3 years as of December 31, 2018.
- One company-owned location was sold to an existing franchisee during 2016.
- On December 31, 2018, there were a total of 41 V’s Barbershops open for business. The table below does not include 12 shops that were not open for at least 3 years as of December 31, 2018.
Unaudited Chart Reflecting Reported 2018, 2017, and 2016 Average and Median Gross Revenues Per Unit for Units Opened at Least Three Calendar Years as of December 31, 2018