Pigtails & Crewcuts Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$100,000

-

$256,000

LOCATIONS

71

Jennifer

Updated

May 2, 2024

Is

Pigtails & Crewcuts

a franchise?

Yes,
Pigtails & Crewcuts
currently
accepts
franchise
applications

Pigtails & Crewcuts was established in 2003 and began its journey into franchising in 2005. Based in Atlanta, Georgia, this children's hair salon franchise has made a name for itself by creating a kid-friendly environment that makes haircuts fun and stress-free for children. Their services are tailored to meet the needs of their young clients, including haircuts, ear piercing, and special packages for first haircuts, which make these milestones memorable for both kids and parents.

The franchise stands out in the children's hair care market by focusing on a fun, welcoming atmosphere and services specifically designed for kids. This approach has enabled Pigtails & Crewcuts to carve a unique niche in the hair care industry, particularly in the children's segment. The growth of the franchise, as evidenced by the expansion of locations across the United States, speaks to the success of its business model and the appeal of its child-centric services.

How many

Pigtails & Crewcuts

franchises

are there?

In 2022, there were
71
outlets in
the United
States, of which
69
are franchises, and
2
are corporate-owned.

What are the

Pigtails & Crewcuts

franchise

fees?

Advertising fee

2.00%

Initial Franchise Fee

 A non-refundable fee of $30,000 is payable in one lump sum when the Franchise Agreement is signed.

Royalty Fee

A continuing fee equals 5% of gross sales. This fee is payable monthly.

Advertising Fund Fees

An amount equal to 2% of gross sales is contributed to the advertising fund.

Initial Training Fee

This is a non-refundable fee of $1,250 for attending the initial training program.

Transfer/Assignment Fee 

A fee of $5,000 is payable before the consummation of the transfer or sale of the franchise.

Renewal Fee

A fee of $2,500 is payable for renewing the franchise agreement.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Pigtails & Crewcuts

franchise?

It costs between
$100,000
and
$256,000
to start a
Pigtails & Crewcuts
franchise.
Type of Expenditure Estimated Cost
Initial Franchise Fee $30,000
Leasehold Improvements $15,000 to $103,000
Rent (3 months) $7,500 to $18,000
Initial Training Fee $1,250
Travel and Living Expenses While Training $1,250 to $2,500
Furnishings, Fixtures, Equipment and Decorating $18,000 to $38,000
Exterior Signage $1,500 to $11,000
Interior Graphics/Signage $2,000 to $3,000
Opening Inventory $5,000 to $10,000
Opening Supplies $3,000 to $5,000
Initial Supply of Marketing and Promotional Materials $500 to $750
Computer Hardware/Software $3,500 to $4,000
Grand Opening Advertising $3,000 to $4,000
Professional Fees $1,000 to $5,500
Miscellaneous Opening Costs $2,000 to $5,000
Additional Funds – 3 months $5,000 to $15,000
Total Estimated Initial Investment $99,500 to $256,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Pigtails & Crewcuts

provide

training

to its

franchisees?

Yes,
Pigtails & Crewcuts
provides
training

The training provided by the franchisor, Pigtails & Crewcuts, includes various components essential for operating a franchise salon:

  1. Initial Training Program: The franchisor offers an initial training program that franchisees are required to attend. This program is designed to cover the operation of a salon. The duration of this training is not less than three days at a designated facility in Atlanta, Georgia, or another location specified by the franchisor, plus two days of on-the-job training at the franchisee's salon.
  2. Comprehensive Coverage: The training program includes classroom and on-the-job training. It covers subjects like salon mission, obligations, pre-opening and equipment, bookkeeping, marketing, sales techniques, personnel training, inventory control, and more.
  3. Ongoing and Advanced Training: The franchisor may require previously trained salon owners, operating managers, and other managers to periodically attend refresher and/or advanced training courses or annual conferences. These are typically held at the franchisor's facility in Atlanta or another designated location.
  4. Attendance Requirements: The franchisee or, if a business entity, a principal owner, along with the operating manager, must attend and successfully complete the training program. Failing to complete this program satisfactorily can lead to the termination of the franchise agreement.
  5. Costs: The franchisee is responsible for the initial training fee and also for any travel and living expenses incurred during the training. Additionally, the franchisee covers any salary and other costs for the operating manager attending the training.
  6. Periodic Conferences and Meetings: The franchisor may also require attendance at periodic conferences and meetings, which are designed to provide ongoing support and updates.

Does

Pigtails & Crewcuts

provides

territory

protection?

Pigtails & Crewcuts does offer territory protection to its franchisees. The franchise agreement specifies that franchisees are granted exclusive territory, typically consisting of a three-mile radius around their salon location.

During the term of the agreement, the franchisor agrees not to operate or authorize anyone else to operate a Pigtails & Crewcuts Salon within this exclusive territory, as long as the franchisee complies with the terms of the agreement.

Can a

Pigtails & Crewcuts

franchise

be run as

a passive

investment?

Based on the Pigtails & Crewcuts franchise agreement, the franchise system does not favor passive investment. The agreement requires significant hands-on management and involvement in the day-to-day operations of the franchise, which includes:The Operating Manager, who must be approved by the franchisor and complete their training program, is required to be present at the salon for significant periods, particularly during operating hours.

The franchise agreement stipulates that the salon must always be under the direct supervision of either the franchisee, an individual with significant ownership interest, or a designated manager. This clause emphasizes the need for active and substantial involvement in the franchised business. If the franchisee is not actively involved in the salon's operations, the operating manager must attend periodic conferences and meetings set by the franchisor.

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