A typical barber franchise investment will range from $180,000 to over $250,000. (exclusive of taxes). Experience as a barber is not listed as necessary for a typical barber franchise investment. Your most significant attributes will be your communication and management skills.
Why the variation? Great question. Every location is unique. Different locations will demand varying levels of construction to bring them to the franchisor’s standard. If you are the first occupant of a brand-new building, there will be costs you might not have if previous tenants did some of that work for you. These costs usually include flooring, plumbing, wiring, wall studs, drywall, ceiling, lights.
In addition, the total initial investment will include the Franchise Fee. This is due when you sign the Franchise Agreement. That may range from $32,500 to $60,000.
Upon signing the Franchise Agreement, you will be invoiced for the purchase of the furniture, fixtures and equipment (FFE), such as the barber chairs, and the stock you will need for the grand opening. Payment for those items will be due when you receive the invoice.
Further to this, you will also need to make sure that you have enough working capital (cash) to cover operating expenses such as payroll, phones, rent, inventory, and basic consumables until the business achieves “break even”.
Leading barber franchises include working capital as part of their typical barber franchise investment.
A competent CPA will help you prepare a pro-forma statement for a typical barber franchise investment that will help you define and understand the basic monthly expenses. Preparing a budget should be an annual activity. A monthly variance analysis will ensure you stay on top of your metrics and help you identify issues before they become critical.
We work with the most recognized brands in the $75 Billion hair care industry. Some franchisors have over 600 locations coast to coast.
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