Sharkey's Cuts For Kids Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$189,000

-

$299,000

LOCATIONS

115

Jennifer

Updated

May 2, 2024

Is

Sharkey's Cuts For Kids

a franchise?

Yes,
Sharkey's Cuts For Kids
currently
accepts
franchise
applications

Sharkey's Cuts for Kids, established in 2001 by Linda and Scott Sharkey, began its franchising journey in 2002. The franchise, headquartered in Westport, Connecticut, offers a unique and entertaining hair-cutting experience for children, setting it apart in the children's hair salon industry.

This business model has earned Sharkey's Cuts for Kids significant recognition, including being named the "Fastest Growing Children's Hair Salon" by Franchise Times and receiving accolades from Entrepreneur Magazine.

The brand's success is rooted in its ability to create a fun and engaging environment for kids, featuring entertainment at each cutting station. This approach, combined with the franchise's focus on providing exceptional service, has contributed to its reputation as a stable and recession-proof investment in the franchise industry.

How many

Sharkey's Cuts For Kids

franchises

are there?

In 2022, there were
115
outlets in
the United
States, of which
114
are franchises, and
1
are corporate-owned.

What are the

Sharkey's Cuts For Kids

franchise

fees?

Royalty fee

$1,000 to $1,750 per month

Advertising fee

3.00%

Initial Franchise Fee

This is a one-time fee of $144,990, fully earned and non-refundable, due upon the execution of the agreement.

Royalty Fee

A monthly fee that starts at $1,000 for the first 24 months, increases to $1,250 for the next 24 months, and then $1,500 for the remainder of the term. It is due on the first of each month.

Advertising Fee

Includes a mandatory $10,000 for Grand opening advertising and participation in other advertising programs as specified by the franchisor.

Transfer/Assignment Fee

A fee of $15,000 due upon request for the transfer of the franchise.Liquidated Damages for Breach of Restrictive Covenant. It amounts to $20,000 plus 10% of total sales for each site operated in breach.

Local Advertising

This fee is 3% of Gross Sales, payable to local advertising vendors with pre-approval from the franchisor.

Successor Agreement Fee

A fee of $2,500 due at least six months before entering into a Successor Agreement after the initial term.

Relocation Fee

 A fee of $2,500 due upon approval of relocation.

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

Sharkey's Cuts For Kids

franchise?

It costs between
$189,000
and
$299,000
to start a
Sharkey's Cuts For Kids
franchise.
Item Estimated Cost
Initial Franchise Fee $159,990
Rental – 1 month $1,750 to $5,500
Leasehold Improvements $0 to $53,620
Professional Fees $0 to $2,500
Blue Prints and Plans $0 to $5,000
Computer Systems & Software, Indoor & Outdoor Signage, Lighting, Tile, Paint, Washer/Dryer $14,500 to $24,000
Insurance Premiums – Per Month $175 to $250
Security Deposits $750 to $5,750
Grand Opening Advertising $12,000
Permits and Licenses $250 to $750
Additional Funds – Three Months $0 to $30,000
Total $188,665 to $299,360

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

Sharkey's Cuts For Kids

provide

training

to its

franchisees?

Yes,
Sharkey's Cuts For Kids
provides
training

The franchisor of Sharkey's Cuts for Kids provides comprehensive training to franchisees, covering various aspects necessary for operating the franchise.

  1. Initial Training Program: Conducted at the franchisor's training facility in Westport, Connecticut, or another designated location. It may also be offered virtually. The training is adjusted based on individual needs and/or experience. The franchisor covers travel and lodging expenses for the franchisee and one additional principal, up to $1,500 in total, for a maximum of two trainees. Franchisees are responsible for any other out-of-pocket costs and wages. This training must be completed to the franchisor's satisfaction at least thirty days prior to the salon opening.
  2. Manager & Employee Training Program: Delivered virtually, this program is conducted during the 0–3 week period before the salon opening. All employees must complete this training to the franchisor's satisfaction within 21 days of the franchise salon opening. The training includes various operational aspects and is held at the franchisor's headquarters or virtually.
  3. Additional Training: The franchisor may offer optional additional training programs, which franchisees are required to participate in, for up to five days per year. This could include attendance at a national business meeting or annual convention. Additional training might be conducted virtually, and franchisors reserve the right to impose a fee for all additional training programs.

Does

Sharkey's Cuts For Kids

provides

territory

protection?

Sharkey's Cuts for Kids does not offer exclusive territory protection to its franchisees. According to their Franchise Disclosure Document, franchisees will not receive exclusive territory and may face competition from other franchisees, company-owned outlets, other channels of distribution, or competitive brands controlled by the franchisor. The designated area for a franchisee will not exceed a radius of five miles around their salon, but this does not prevent competition within that area.

Can a

Sharkey's Cuts For Kids

franchise

be run as

a passive

investment?

The Sharkey's Cuts for Kids franchise agreement does not allow for passive investment. The agreement emphasizes the active involvement and management responsibilities of the franchisee. The franchise agreement indicates that franchisees are expected to be hands-on in managing their business.

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