Hammer & Nails Franchise Costs, Fees & Owner Salary (2023)

Hammer & Nails is a unique franchise that has redefined the traditional barbershop experience by specializing in grooming services specifically designed for men. Founded by Michael Elliot in Los Angeles, California, in 2013, Hammer & Nails has since gained recognition in the grooming and self-care industries.

The franchise began franchising, offering entrepreneurs the opportunity to be part of a brand known for its focus on providing premium grooming services tailored to men's needs.At Hammer & Nails, clients can indulge in a wide range of services, including manicures, pedicures, haircuts, shaves, and facial treatments.

What sets Hammer & Nails apart from its competitors is its commitment to creating a masculine and relaxing atmosphere, featuring custom leather chairs, individual TV screens, and complimentary beverages. The franchise aims to provide a haven where men can escape, unwind, and receive personalized grooming services in a comfortable setting.

Initial Franchise Fee

The initial franchise fee is $49,950, payable in one lump sum upon signing the Franchise Agreement. This fee is considered fully earned and non-refundable upon receipt.

Royalty Fee

The royalty fee is 6% of Gross Sales, collected twice a month, with a minimum of $1,500 per month. The franchisee is required to pay this fee via electronic funds transfer.

Advertising Fee

The continuing periodic advertising fee is equal to 2% of the franchise's Gross Sales for the preceding period. The payment of this fee is due on the 1st and the 16th day of each month.

Technology Fee

The monthly technology fee is currently $750, which may be increased to $1,000 per month upon 30 days’ prior written notice. This fee is due on the first day of each month.

Lease or Rent Fee

Lease expenses for 3 months range between $21,000 and $36,000. Other associated costs such as leasehold improvements and furniture/fixtures also apply.

Grand Opening Fee

The Grand Opening Contribution requires franchisees to spend between $15,000 to $20,000.

The franchisor provides comprehensive training for franchisees, which includes:

1. Initial Management Training: This is for the Principal Owner and General Manager, conducted at the franchisor's offices in Folsom, CA, or another designated location. The training is provided at no charge, although fees may apply for additional personnel or training programs.
2. Online Training Program: The initial training includes about 30 hours of training over several weeks via Zoom. It covers various aspects of franchise operations.
3. Pre-Opening Training: Conducted at the franchise location or a current operational shop, this training includes brand culture, hospitality etiquette, service menu knowledge, and various protocols and techniques. It typically lasts 12–14 days.
4. Ongoing Training: The franchisor provides ongoing training through memos, newsletters, and additional or refresher training programs, which may include telephone, webinars, video training, or annual conferences.
5. Additional Support: On-site remedial training may be offered if necessary, subject to personnel availability. Franchisees are responsible for all expenses related to any training.

The franchisor provides territory protection for franchisees. When you choose an acceptable location for your Hammer & Nails® Franchise, a "Protected Area" is assigned, which can be a 1.5-mile radius circle or an irregular area including your location. Within this area, only you are authorized to operate a Hammer & Nails® Franchise as long as you comply with the Franchise Agreement.

However, the franchisor holds rights to operate and license Hammer & Nails® Franchises, develop other business systems, and advertise their brand outside your Protected Area.

The franchisor advocates for active participation from the franchisees. The Franchise Agreement requires the designation of a Principal Owner who must meet certain qualifications and be approved by the franchisor. 

This individual is responsible for the business and must devote their full time and best efforts to the management and operation of the franchise.