All barbershop franchise opportunities are different. Learn more about your options and what you should consider before you invest in this type of franchise.
The Franchise’s Track Record
Some barbershop brands have been around for decades, others for less than 10 years. That doesn’t make one better. However, to understand the brand, study the franchise’s history and what’s happened over the years. Look for trends. How many stores have opened and closed? What were the causes of the closures? How did they manage during the Great Recession and the COVID-19 pandemic?
Another way to study their track record is by talking with current franchisees. You can gain plenty of insight into how the franchise runs, what kind of support you receive, and if it’s worth the investment by talking to owners. Ask them tough questions like are the advertising dollars put to good use, how long did it take to reach profitability, and given what they know now, would they do it all over again?
If a franchise doesn’t give you any owners to talk to, that’s a red flag.
Before searching for your next business venture, take an inventory of your available money. Then when looking at barbershop franchise opportunities, compare franchise fees, total investment costs, and ongoing fees. The ongoing expenses can include royalty, advertising, and rent payments.
It’s critical to consider that while you may have enough funds to pay for the initial investment costs, you’ll want extra cash flow available for the following months. Financial experts say it’s best to have six or more months saved up.
As a potential franchise owner, you may think that you can quickly make your investment back because customers recognize the reputable brand. It’s important to consider that they’re not used to your location yet. They might not even know it’s there! Give yourself time and flexibility in those first couple of months until you run at full capacity.
Lastly, are you going to finance the cost? If so, some barbershop franchises offer in-house financing options, while others work with third-party vendors.
Franchise’s Terms and Conditions
Upon reviewing the franchise agreement, pay close attention to the terms and conditions. How long is the franchise agreement for? What are the terms under which the franchise agreement can be terminated or renewed? Ask the franchisor how often the deals are closed and why.
Also, you’ll want to understand the process if you want to sell your location at the end of the agreement.
You’re probably looking to open a barbershop in your town or nearby. When researching barbershop franchise opportunities, consider what territories are up for sale. If you’re set on a franchise company, but they don’t have the exact territory you want, talk to them. See what’s available and how they think it would work to own a location at a distance.
Be sure to research your desired territory. Does it fit your target market? Is there excessive competition? Hopefully, the franchise has performed most of this research for you. The research should show why this specific territory is perfect for a new barbershop.
Training and Support
One of the most significant reasons someone may decide to invest in a franchise is for the training and support that is offered. Find out how many hours of training are provided and if there is a headquarters and on-site component to it. In addition to your owner training, see what kind of training they provide for your staff or supplementary materials to help you train them.
Some franchises provide a business coach to guide you through the first year. Do they offer grand opening support? That includes more than just the event. It can include real estate help, lease negotiations, and furnishing assistance. Also, question the franchisor on how they use your advertising dollars to benefit you.
Barbershops are recession-resistant, but you should still ask how the franchise system provided support during tough economic times like the COVID-19 pandemic. If you feel uncomfortable with any of the answers regarding training and support, it might be time to walk away. Franchising is a massive investment; you do it for support and training.
Open A Barbershop with Scissors & Scotch
Stand out in the men’s grooming franchise industry with Scissors & Scotch. Our modern twist on the classic barbershop is the perfect place for our customers to receive the experience they deserve in every haircut. We’re a younger franchise backed by a leadership team with years of experience. Not only do we provide training for you, but we also deliver industry-leading employee training for your stylists and other staff. As a result, we have some of the best retention rates in the business.
Initially, we provide market analysis, site selection assistance, and project management. Then our ongoing services include a marketing playbook, business systems, and targeted advertising. We’re highly motivated to continue blazing our trail in the barbershop game with the help of entrepreneurs across the country.
Interested? Get started today on the path of ownership.