Q: How much does a V’s Barbershop franchise cost?
The total cost of a V’s Barbershop typically ranges from $194,450 to $352,875. This includes a $30,000 initial franchise fee ($27,000 for each subsequent unit or if you have been honorably discharged from the US Armed Forces), the cost to build, equip and stock your store and operating capital for the first 3 months. There are additional programs available with the purchase of multiple units, which allow for franchise fees starting at $22,500 and reduced royalty programs.
Q: How much revenue does a typical V’s Barbershop generate?
We provide historical sales numbers for our barbershops as well as average annual sales within our Franchise Disclosure Document (“FDD”) in the section called Item 19. Once you complete the V’s Barbershop franchise application, our FDD will be sent to you. In addition, we invite you to speak to our current franchisees who can share with you their financial results as well as their overall experience.
Q: What are your royalty fees?
Our royalty structure is very unique in the franchise industry. We reward you for growing your business by reducing the royalty fees from 5% for the first $500,000 of Gross Sales in a calendar year, to 2 1/2 % of Gross Sales thereafter for the same year. In addition, we offer reduced royalty fees for certain multi-unit franchise purchases.
Q: Can this business be run absentee?
Absolutely. However, you may meet great results faster by choosing to be involved in the initial start-up phase of your barbershop. Building the culture, expectations and example tends to engrain our franchise partners not only with their staff, but also their communities. We have designed our business model with the integration into communities as a vital component to success, and a franchisee acting as the owner and mayor of their barbershop is likely to bring positive results. Our point of sale system provides you with the opportunity to monitor real time daily revenues, revenues per barber, inventory, future bookings, etc. plus many other tools allowing you insight into your V’s barbershop from a remote computer or even your smart phone. You will need to be involved initially, perhaps not on a full time basis, if you decide this is the best option for you. We can discuss this in more detail.
Q: I’m not a barber myself. How do I find the best barbers?
At V’s we know that the hiring of competent and friendly barbers is critical to success. V’s will provide you with various ad templates and tools for recruitment of your initial staff. We will assist you in attracting, screening and hiring your initial barbers as part of our initial support. The V’s Director of Barbering will be at your initial opening and will assist you in evaluating barbers that have not only the skill, but also the temperament to make your V’s a success. Lastly, history has taught us that once you employ barbers that value the high quality and above-market earning potential at V’s, they tend to be a stable and dependable workforce.
Q: I’m not a marketing expert, how do I build sales?
V’s has developed a wide variety of high-quality ads for in-store use, print, TV, e-mail and social media campaigns that have proven to be very successful. These materials will be kept current and are available for your use on an as needed basis. In those areas with a concentration of V’s Barbershops, a portion of the advertising fee will go directly to the placement of a media campaign. In those areas with few stores, V’s corporate staff can assist you with your local store marketing campaigns. V’s strongest form of advertising is word-of-mouth, so we firmly believe in being part of the community–supporting youth sports teams, sponsoring father-son tournaments, giving to local schools and charities. We will share the multitude of advertising vehicles we employ to assist you in growing your V’s Barbershop when you visit us in Phoenix as part of our Discovery Day program.
Q: How do I find the right location for my barbershop?
The real estate team at V’s Barbershop works very hard at identifying the best locations in each city. Once you become a franchisee, you will also work with V’s team and a third party approved real estate broker to research and suggest potential outstanding V’s Barbershop locations. Once you have identified a potential market, the approved broker will complete customer profile analytics to identify where our potential clients live within this market. They then reach out to local commercial brokers to identify potential locations that meet our criteria. Together, we look at these potential locations and determine the ones that best suit our needs. We then start the negotiation process to craft the most favorable terms and conditions. Most franchisors do not go to this extent but we feel that since we have over 15 years experience in this, we are able to offer our guidance and support. This is a critical step in our mutual success thus we take this process very seriously.
Q: What if there is already a V’s Barbershop in my city? Are there other opportunities?
The market for men’s grooming services is large and growing, topping 21.4 billion globally in 2016. With the awareness of barber shops being back in fashion and considered “cool” (we always thought they were cool!), the financial impact of the men and boys in this grooming market is increasing across all age brackets, from teens to retirees. Additionally, we see mom’s bringing in infants and their young sons, making sure they are able to experience the authentic barbershop service themselves. V’s is ideally situated to cater to demographics across the board. Nonetheless, V’s will not saturate markets and firmly believes in giving our franchise community maximum chance of success. So even if a V’s Barbershop exists in your area, there may be demand to support more stores. Ask your Franchise Sales Representative to discuss opportunities. We have implemented a 5 mile/ 50,000 population radius to eliminate encroachment issues. This is explained in greater detail in our Franchise Disclosure Document (Item 12).
Q: I’ve never built a store before. How does this all work?
As a member of the V’s Barbershop family, you’ll be guided through all phases of the site selection, lease negotiation, construction, training, grand opening and on-going marketing and operations processes. We also have a “Store in a box” supplier so you will not be required to source the myriad of items needed to open a V’s. We have negotiated quantity discounts of all items from floor tiles to ceiling tiles and everything in between.
Q: I like what I see, what are the next steps?
Please complete our online initial inquiry form. Completing this information does not obligate you in any fashion. This sharing of information will allow us to make an informed business decision. We look forward to learning more about you, your goals and objectives.