V's Barbershop Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$316,000

-

$592,000

LOCATIONS

54

Jennifer

Updated

April 11, 2024

Is

V's Barbershop

a franchise?

Yes,
V's Barbershop
currently
accepts
franchise
applications

V's Barbershop is a distinctive franchise that successfully blends traditional barbershop elements with a modern approach. Founded in November 1999, the first V's Barbershop & Shoeshine® opened in Phoenix, Arizona. The franchise began expanding through franchising shortly after its establishment, providing a unique business model in the barbershop industry.

Headquartered in Phoenix, V's Barbershop offers an array of grooming services primarily for men and boys. This includes traditional and short haircuts, straight razor shaves, and head and neck massages. Their services are delivered in an authentic barbershop environment, featuring real barber chairs and a décor that harks back to the classic American barbershop.

What sets V's Barbershop apart from its competitors is its commitment to recreating the nostalgic barbershop experience. Their shops are designed to be upscale, catering to clients who value quality grooming in a sophisticated yet traditional setting. Unlike many modern salons or quick-cut shops, V's focuses on providing a more personalized and luxurious grooming experience. This approach has allowed them to establish a distinct identity in the grooming industry, appealing to a clientele that appreciates the blend of tradition and quality.

How many

V's Barbershop

franchises

are there?

In 2022, there were
54
outlets in
the United
States, of which
54
are franchises, and
0
are corporate-owned.

What are the

V's Barbershop

franchise

fees?

Royalty fee

3.5% to 5%

Advertising fee

1% to 3%

Initial Franchise Fee

Franchisees must pay an initial franchise fee of $30,000 upon signing the agreement. For second or subsequent franchises, or for franchisees who are current or honorably discharged members of the U.S. armed forces, the fee is reduced to $27,000.

Royalties

Franchisees are required to pay 5% of Gross Sales up to $500,000 and 3.5% of Gross Sales above $500,000. In cases of breach, Royalties may increase up to 15% of Gross Sales.

Advertising Payment

The advertising payment ranges between 1% and 3% of Gross Sales, as determined by the franchisor. Franchisees must spend the difference between their Advertising Payment and 3% of Gross Sales on local store marketing if their Advertising Payment is less than 3%.

Technology Fee

A monthly technology fee of $125 per location is charged for the use of technology services provided by the franchisor. This fee may be increased with 30 days' notice.

Late Fees and Interest

For late payments, an 18% per annum interest is charged on unpaid amounts, along with a late fee of 5% of the unpaid amount or $100, whichever is greater.

Renewal Fee

For renewing the franchise agreement, a fee equal to one-third of the then-current initial franchise fee is charged, not exceeding $30,000.

Transfer Fee

In case of a franchise transfer, a fee is charged, which is the lesser of one-third of the then-current initial franchise fee or $30,000.

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

V's Barbershop

franchise?

It costs between
$316,000
and
$592,000
to start a
V's Barbershop
franchise.
Type of Expenditure Amount
Initial Franchise Fee $30,000
Initial Training Fee $0 to $5,000
Initial Real Estate Expenses $2,500 to $14,500
Travel & Living Expenses While Training $0 to $2,000
Your Attorneys’ Lease Review Fee $5,000 to $5,000
Space Planner Fee $950 to $1,550
Architect Fees $5,000 to $12,000
Project Management Fees $0 to $30,000
Leasehold Improvements $125,000 to $222,000
Furniture, Fixtures, Equipment, in-store artwork and signage $119,800 to $201,900
Computer Hardware and Software $3,500 to $6,500
Initial Barber Supplies and Inventory $15,000 to $20,000
Employee Uniforms $250 to $1,000
Grand Opening Advertising $5,000 to $5,000
Initial Insurance Premiums $200 to $1,000
Permits and Licenses $500 to $2,000
Utility Deposits & Installation $500 to $1,500
Miscellaneous $1,500 to $6,000
Additional Funds/Working Capital-3 months $1,500 to $25,000
Total $316,200 to $591,950

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

V's Barbershop

provide

training

to its

franchisees?

Yes,
V's Barbershop
provides
training

The V's Barbershop franchise provides a comprehensive training program for franchisees, encompassing several key components:

Mandatory Training Program

  • Participants: Franchisees, or a designated member of the franchisee's management team, are required to attend and complete the entire instruction provided by the franchisor.
  • Included in Franchise Fee: The cost of attendance and participation in the Training Program for the franchisee and one additional person is included in the Franchise Fee, except in cases of renewals or relocations.
  • Contents: The Training Program includes both classroom training and on-the-job training, details of which are stated in the Disclosure Document.

Additional Training and Support

  • Additional Attendees: Training for more than two people will be provided upon request, with a cost of $2,500 per additional Training Program per person.
  • On-Site Assistance: For first-time franchisees, a member of the franchisor's management team will assist in opening preparations and operations for a minimum of two days around the opening of the Franchised Business.
  • Ongoing Consultation: Franchisor offers consultation by telephone, with potential on-site consultation available at an additional cost.

Refresher and Additional Training

  • Obligatory Updates: Franchisees may be required to complete the Training Program again or undergo a different Training Program for various reasons, including renewals, relocations, transfers, or additional training needs.
  • Additional Costs: Franchisees bear their own travel, lodging, and meal expenses associated with attending the Training Program.

Does

V's Barbershop

provides

territory

protection?

The V's Barbershop franchise system does not offer exclusive territory protection to its franchisees. They may face competition from other franchisees or outlets owned by the franchisor, even within their designated operational area. The franchisor also retains the right to market and operate V's Barbershops through various channels, including online and in non-traditional locations, within the franchisee's territory.

Can a

V's Barbershop

franchise

be run as

a passive

investment?

The V's Barbershop franchise system does not allow for passive investment or absentee ownership. Franchisees are required to be actively involved in the management and operation of their franchise, either personally or through a designated on-site manager who has completed the franchisor's Training Program. This structure emphasizes hands-on management and direct supervision of the franchise's daily operations.

Related Posts