V’s Barbershop Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)
1. Initial Franchise Fee: $22,500 to $30,000
- The Initial Franchise Fee for your first V’s Barbershop is $30,000 payable when you sign the Franchise Agreement.
- If this is your second or subsequent V’s Barbershops, or if you are currently in or have been honorably discharged from the U.S. armed forces, the Initial Franchise Fee will be $27,000, provided that the Initial Franchise Fee may be lower if you are acquiring multiple units.
- If you are an existing V’s Barbershop franchisee and you are purchasing no less than 2 additional Franchise Agreements from the franchisor, the Initial Franchise Fee for those 2 additional Franchise Agreements will be $22,500 each.
- If you sign the Multi-Unit Agreement and you pay the entire Initial Franchise Fee for at least 3 units upon execution of the Multi-Unit Agreement, the Initial Franchise Fee for the first Franchise Agreement will be $30,000 and the Initial Franchise Fee for the second and third Franchise Agreements (and any additional Franchise Agreements that you pay for upon execution of the Multi-Unit Agreement) will be $22,500 per additional Franchise Agreement.
2. Initial Training Fee: $0 to $5,000
- The training fee for up to 2 people is included with your Initial Franchise Fee.
- If you are executing a Franchise Agreement for your V’s Barbershop in conjunction with a transfer of any kind or a renewal and the franchisor requires you in its sole discretion to complete its training program, you will be obligated to pay the franchisor a Training Fee of $2,500 per person.
3. Travel and Living Expenses While Training: $0 to $2,000
- These expenses include travel related expenses that you may incur in getting to the franchisor’s offices in Phoenix, Arizona or staying there during the Training Program.
4. Your Attorneys’ Lease Review Fee: $5,000
5. Space Planner Fee: $950 to $1,550
- You are required to retain the franchisor’s approved space planner to assist you in the placement and allotment of space, equipment, and fixtures in your V’s Barbershop location. The approved space planner will charge you a fee of $950 for one layout, one revision, and a final preliminary plan set. For each additional layout revision, there will be a $150 fee per revision.
- The services apply to each space that is demised and laid out for lease consideration, typically after a letter of intent has been executed and prior to lease signing.
6. Architect Fees: $3,500 to $9,000
- You are required to retain an architect selected by you, and approved by the franchisor to design your leased location in a manner consistent with its standards and specifications. The cost of retaining an approved architect will vary depending upon your location, market conditions, and other business-related factors.
7. Initial Real Estate Expenses: $2,500 to $14,500
- You must lease the premises for your V’s Barbershop. Typical locations are upscale strip/lifestyle shopping centers with close proximity to parking lots. The typical V’s Barbershop has between 1,000 and 1,500 square feet.
- Your real estate costs will vary depending upon your geographic area and the location of your V’s Barbershop. Rental rates have typically ranged from $2,500 to $6,250 per month depending upon the geographic market, market conditions, and the location you select for your V’s Barbershop. When required, the security deposit has typically been equal to one month’s rent.
8. Leasehold Improvements: $30,000 to $150,000
- You will be required to use a licensed and bonded contractor selected by you and approved by the franchisor for the construction of the premises. Your millwork will be purchased from the franchisor’s approved vendor and the fabrication of your millwork will not be a part of your contractor’s work.
- To avoid excessive construction costs, V’s Barbershop recommends that you obtain a minimum of three competitive bids from contractors.
- These expenses may be higher if additional work is required, depending upon the size and configuration of your premises and other factors.
9. Furniture, Fixtures, Equipment, In-Store Artwork, and Signage: $105,000 to $145,000
- This figure represents an estimate of the expenses associated with purchasing the furniture, fixtures, equipment, and signage required before you can open your V’s Barbershop for business. The exact requirements are detailed in the Millwork Installation Guide and may also vary depending upon any customization, size, and specific configuration needs of your premises.
10. Computer Hardware and Software: $1,800 to $3,200
11. Initial Barber Supplies and Inventory: $12,000 to $16,000
- Includes the purchase of an initial supply of grooming supplies and other items (including, without limitation, hair, face, shave, and other retail and back bar products; gift cards and holders; and trademarked items (such as hats, t-shirts, and capes).
12. Employee Uniforms: $250 to $1,000
13. Grand Opening Advertising: $5,000
14. Initial Insurance Premiums: $200 to $1,000
- You will need to secure insurance in types and amounts that meet the franchisor’s requirements as it amends them from time to time. It may amend the required coverages at any time.
15. Permits and Licenses: $500 to $2,000
16. Utility Deposits and Installation: $500 to $1,500
17. Miscellaneous: $1,500 to $6,000
- Includes miscellaneous items such as legal fees and expenses in connection with incorporating, non-barber store supplies, initial store cash, and initial marketing kits.
18. Additional Funds/Working Capital for 3 Months: $1,500 to $25,000
- Includes additional barber supplies and inventory (not included in initial inventory), salaries for barbers and shoeshine personnel, additional rent, additional insurance premiums, utility expenses, and other working capital items. Does not include any amount for your compensation. This estimate assumes you personally manage your V’s Barbershop.
19. Total: $192,700 to $422,750
- All costs (other than the royalties and advertising payments) will be up to 200% higher in Alaska, Hawaii, and some urban/metropolitan areas. The franchisor relied on its Affiliate’s and franchisees’ experience operating V’s Barbershops to compile these figures.