Salons by JC Franchise Costs, Fees & Owner Salary (2023)

Salons by JC, founded in 1997 by Jack Griffey and Cecil Miller, emerged from a simple yet powerful idea. The concept was born when Jack's wife, Elke, a hairstylist, found her salon closed without notice. Seeking a better solution, Jack and Cecil developed a business model that revolutionized the traditional salon industry. Their vision was to create a community of salon professionals by offering them the opportunity to lease individual suites within a single building, thereby empowering them to start their own businesses.

The first Salons by JC location opened in Dallas, Texas, with a focus on providing premium services and a unique experience for both salon owners and their clients. This approach included the introduction of a full-time Concierge Manager, a role designed to enhance the service quality and overall experience at each location. This commitment to excellence and empowerment helped Salons by JC grow significantly, with the franchise expanding nationwide and in Canada since 2011.

Today, Salons by JC continues to thrive under the leadership of a new generation, with Jack’s son, Steve Griffey, serving as President, and Cecil’s son, Austin Miller, as VP of Corporate Operations. Salons by JC has been recognized for its innovative business model, receiving accolades from Entrepreneur Magazine over the past four years.

Initial Franchise Fee

Franchisees must pay an initial franchise fee of $60,000 upon execution of the agreement. This fee is deemed fully earned and non-refundable under any circumstances upon payment.

Royalty Fee

A monthly royalty fee is required, amounting to the greater of 5.5% of gross sales or a minimum royalty payment of $500 per month. The Minimum Royalty is waived for the first 90 days of operation Franchisees must contribute 1% of gross sales to the brand development fund. This contribution may increase by up to 3%.

Technology Fee

Franchisees pay a monthly technology fee, currently set at $250, for various technology-related services. 

Transfer Fees

A transfer fee of $10,000 is charged for both the Franchise Agreement and Development Agreement.

Renewal Fees

A renewal fee of $10,000 is required 90 days before the expiration of the current agreement term.

Advertising Fee

Franchisees are subject to a local advertising requirement of up to $1,000 per month, as deemed necessary.

Salons by JC provides comprehensive training programs to franchisees. Here are the key aspects of the training provided:

Initial Training Program

• The franchisor offers a tuition-free initial training program for up to three individuals designated by the franchisee, provided they attend simultaneously.
• This includes the franchisee (or one of the franchisee's principals) and, if applicable, the franchisee's designated manager responsible for day-to-day management.
• The training is conducted at the franchisor's headquarters or another designated facility. Additional owners or managers can also attend, subject to the availability of staff, for a fee.
  

Additional/Refresher Training

• The franchisor may develop additional and refresher training courses.
• Franchisees and their management may be required to attend these courses.
• Franchisees must pay the then-current training tuition fee for any additional or refresher training and cover all related expenses.
  

Remedial Training

• In the event of a default under the agreement, the franchisor can require franchisees to attend remedial training as part of the actions to cure the default.
• This training is also subject to fees and expenses.
  

The franchisor offerS territory protection. The franchise agreement specifies a designated geographical area for each franchisee, within which the franchisor will not open or locate, or license a third party to open or locate, another facility using the same system and proprietary marks, provided the franchisee is in compliance with the agreement.

The Salons by JC franchise agreement does not explicitly allow for passive investment. The franchise agreement requires franchisees to participate actively in the operation of the franchise business.