Anyone considering opening a barber shop will need to decide whether to join a barber shop franchise or go it alone as an independent barber.
Franchising is an important part of the industry and can be a great way to jumpstart your barber business.
What You Will Learn
We'll learn about some of the top barbershop franchise opportunities, the good and bad aspects of the barber franchise model, and the overall cost of joining a franchise.
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- Advantages and Disadvantages of Barber Shop Franchising
- How Much Does it Cost to Franchise a Barber Shop?
- 10 Best Barbershop Franchises Opportunities
Advantages and Disadvantages of Barber Shop Franchising
Franchising a barber shop is a business model in which someone (the franchisor) establishes a trademark for their barber business and operating system and then charges others a royalty for the privilege of using the business name and system.
Advantages of Joining a Barber Shop Franchise
Brand Recognition. New barber shops often need to build their brand recognition and client base from the ground up, but franchising is a shortcut that can rely on the support of an existing, trusted name to help boost your marketing.
Existing Client Base. As part of a franchise chain, barber shops can rely on a name familiar to customers almost anywhere, which can reduce initial advertising expenses, get customers in the door for their first service appointment and help your location see higher profits and better growth than independent barber shops when they first open.
Business Support. Franchisees can often count on professional development opportunities for management and staff, as well as a business network willing to provide advice and free assistance to help them set up and run their barber shops, sometimes even including equipment, training materials, business plans and supplies as part of your fee.
Bulk Buying. One advantage franchise barbershop enjoy is that they don't individually replenish back-of-house bars or retail products, and they typically pay lower prices for products because the entire franchise network in their area or several locations will buy in bulk, reducing the total amount the supplier charges individual businesses when ordering items.
Less Experience Needed. If you've always dreamed of starting a barber shop business but aren't sure how to go about it, franchising can be a great way to get into the barber industry - franchisees can be part of a successful barber shop chain and get a lot of help with advertising, recruiting and the basic aspects of managing a barber shop.
Less Risky. Barbershop franchises have tested their business models in multiple locations and have perfected their approach to success in the industry, which can make them a safer investment.
Lower Failure Rate. Barbershop franchises have a lower risk of failure than independent hair care businesses, with one study showing a success rate at least 8% higher; partnering with a well-known full-service barber chain or barbershop franchise is a great marketing tool to help you get the most out of your initial investment.
Freedom. Franchising allows you to be your boss instead of being completely on your own; barber shops and their owners are part of a larger support network and have access to many different resources that independent locations do not.
Lucrative. One of the benefits of joining a barbershop franchise is that you already have a space in the barber industry, clients are familiar with your services and products, and the franchisee can benefit from that visibility and the clients you bring in.
Disadvantages of Barber Shop Franchising
Of course, even the best haircut franchise opportunities have some disadvantages compared to owning your barber shop. Let's look at some of the most common disadvantages that potential franchisees need to understand before making their initial investment.
Initial Cost. Popular barber chains, even smaller franchises, typically require an initial investment (or franchise fee) to join the company, and their costs can vary between franchise opportunities and locations.
Rules and Regulations. Even the best barber shop chains still require you to abide by their rules and professional standards, including things like hours of operation, advertising requirements, and even the holidays you work (depending on your franchise agreement).
Creative Restrictions. Barber shops that join franchises don't always have artistic control over their layout, website, décor, or even the music they allow to be played, which can be challenging to deal with.
Ongoing Costs. Depending on your franchise agreement, you may be required to pay ongoing fees such as royalties, company training fees, or other ongoing barber shop expenses.
Difference of Opinions. If you have to deal with a manager or co-worker you don't like, you may not have any choice but to deal with them.
No Brand Ownership. Franchises are great, but they don't give you the opportunity to build your business under your own brand, which can make it difficult to get out of doing so later.
Do not miss our post on barber shop license.
How Much Does it Cost to Franchise a Barber Shop?
So, what is the average price of a Barbershop franchise?
Barbershop franchises vary greatly in terms of the services they offer, the image they present in the industry, and the franchise fees they charge.
This is the initial investment a franchisee makes in order to join. Most barber shops have franchise fees ranging from $25,000 to $60,000.
In return, you are able to use the company's brand name, their business systems, training materials, barber uniforms and anything else they offer (such as a website) to build and market your barber shop.
If you buy your men’s grooming products in bulk or contracts with vendors, you may also be able to get discounts on hair care supplies and retail inventory.
The products you'll need to open a new barbershop. Typically, you will need to purchase male grooming products and, depending on your company, stock, sell and use a specific product line. These costs can vary widely, but spending $5,000 to $10,000 is normal.
A royalty fee is an annual fee you pay to a barber shop franchise company for the continued use of its services and company name. Royalties can be a fixed amount or a percentage of your gross revenue.
Training And Setup
This includes everything from upgrading your signage and furniture, to decorating, staff and management training, and even in some cases, website templates and IT services. Including rent, this can cost $100,000 to $300,000.
So, what does it cost to franchise a barber shop? It probably depends a lot on the franchise company, whether your location is rented or owned, and the value of the services they provide.
Of course, you can save time and money by managing your franchise well and keeping an eye on your expenses. Investing in barber shop software for your franchise will help you stay organized, track and book appointments, and make the most of your staff's time.
10 Best Barbershop Franchises Opportunities
There are many different options (both mainstream and niche) available to franchisees. You may want to focus on children's haircuts, barber services or just open a general barbering business.
Here's a list of some of the best franchises we've found barber shop franchises.
#1. Floyd’s 99 Barbershop
Although this barbershop doesn’t serve men exclusively (they also welcome women and children), the bulk of their business comes from short cuts. Some things that make Floyd’s 99 unique are their “old school” aesthetic and charitable focus- they support the Juvenile Diabetes Research Foundation.
Anyone looking to join this franchise should have a minimum of $500,000 liquidity, 5 years of management experience, a minimum net worth of $1.5 million and be able to afford the startup costs of $364,000 to $700,000.
#2. RazzleDazzle Barbershop
This Florida-based barber franchise specializes in precision haircuts, men’s hair coloring and beard grooming. They even do wedding parties. In order to help new franchisees, they provide coaching and training throughout the process.
Their franchise fee is $30,000, and your setup costs will most likely range from $216,400 to $435,000.
#3. Roosters Men’s Grooming
Under the umbrella of the Regis corporation, this barbershop has been around since the late 90’s. This is a great option for first-time franchisees, since they have multiple locations across North America and provide you with training.
You’ll need to budget for a franchise fee of $39,500 and a total investment of at least $189,500. Also, make sure that you have at least $150,000 in liquid assets available.
#4. Tune Up
This barbershop franchise markets itself as “The Manly Salon.” A visit to Tune Up is more than just a haircut or shave: staff are trained to provide an experience, complete with a free beer or cocktail.
In order to set up a Tune Up franchise in your area, you’ll need to pay a franchise fee of $40,000 for a single location (this amount changes for multiple locations at once), and the initial expenses per shop will range from $198,500 - $355,000.
#5. Sport Clips
If you’re a sports fan, this barbershop franchise is for you. They feature sports-themed interior designs and tv-sets playing different sporting events. In fact, their main selling point is giving each client an “MVP experience.”
To join Sport Clips, you’ll need to purchase at least Sport Clips licenses. The franchise fee is $59,500 for the first three stores, but just $12,500 for each one after that. On top of this, be prepared to renovate the interior of each shop to match their aesthetic.
#6. Scissors & Scotch
To sum up this franchise, their website markets it as “a badass grooming experience for men.” Each shop also has a full-service bar and lounge, so this place is much more than just somewhere to get your weekly hot shave.
The fee they charge for setting up a franchise is $45,000 for a single location or $40,000 each for multiple ones. The total investment including fees ranges from $433,050 - $628,500.
Men’s Ultimate Grooming, or M.U.G. is a one-stop-shop for haircuts, shaves and men’s grooming needs. They operate with a quality-based approach, rather than focusing on gimmicks and try to give clients high-value services at reasonable prices.
Their franchise fee is $25,000, but they offer discounts for anyone setting up multiple units at once. Your initial investment is likely to be somewhere between $98,728 and $157,546.
#8. V’s Barbershop
In operation since 1999, V’s Barbershop aims to provide each client with an authentic, traditional barbershop experience. Along with the standard haircuts, they also offer hot lather shaves, straight-edge shaves and traditional neck massages.
Anyone joining this franchise can expect to receive professional training, and their franchise fee is set at $30,000 plus your own setup expenses.
This franchise offers men multiple services including haircuts, shaves, nail care and massages. They market themselves as a luxury barbershop experience and try to make each visit memorable.
That said, their franchise costs are relatively affordable- in order to set up your own ManCave barbershop, you’ll need $166,500, including $20,000 in working capital.
#10. The Barbershop
Marketing themselves as “A hair salon for men” this barber’s franchise was founded in 2005 and started expanding in 2008. They provide the standard haircut and shave services and specialize in older clients (they also dye or cover graying hair).
In order to join this franchise, you’ll need to pay the $35,000 initial fee- this can be discounted to $25,000-$15,000 if you’ve been honorably discharged from the US Armed Forces or you’re willing to open multiple locations at once.
Franchising is a great way to get into the barber industry because you will get a lot of know-how and training.
With that said, there are many responsibilities and some drawbacks, and it's not for everyone.
Before deciding whether to join a barber shop franchise, look at what opportunities are available and draw up a budget and a "wish list" of what barbershop franchise opportunities you would like to try.
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