V’s Barbershop Finds Franchise Success By Providing An Genuine Expertise
Reminiscing about his childhood, Jim Valenzuela retains spiraling again to the identical fond reminiscence. He’s along with his father at a nook barbershop in Tucson, Ariz.
It’s not solely a spot for a shave and a haircut. It’s the place recollections are made. Males collect right here to debate sports activities, enterprise and present occasions. Exterior, a barber’s pole with a helix of coloured stripes marks the spot.
After Valenzuela himself grew to become a father within the 1990s, he needed to make the identical sort of recollections along with his son. He went in the hunt for a barbershop, however occasions had modified. He couldn’t discover a barbershop just like the one from his childhood. “All of the barbershops I discovered had been soiled and dusty and devoid of fashion,” he says.
He got down to change that. At this time, Valenzuela sits on high of a franchise empire with 35 V’s Barbershops in additional than a dozen states. His plans embody opening 20 to 30 extra within the subsequent two years. He’s not a boy amongst males.
When he got down to open his first V’s Barbershop in 1999, Valenzuela had a really particular imaginative and prescient for his new enterprise. “I needed an genuine barbershop, one thing straight out of The Godfather,” he says. “I needed some place the place males would really feel comfy. Authenticity was the important thing and the DNA of my thought.”
He had by no means minimize anybody’s hair, however that didn’t matter. An astute businessman with a transparent imaginative and prescient, he opened an authentic-looking barbershop. Classic lights and vintage barber chairs helped create an surroundings the place males could possibly be males – away from the salon smells of peroxide and fragrance.
“I didn’t know if it might work,” he admits. “And the reality is, it didn’t at first. It took some time to catch on. However as soon as it did, we grew to become extraordinarily busy. So I opened a second store and it doubled the income of the primary store.”
The whole lot at a V’s Barbershop oozes classic authenticity. Other than classic chairs and fixtures, barbers are required to put on uniforms and their private biography hangs on the wall. There’s a shampooing bowl at each barber station. Even the studying materials and pictures on the partitions have been nicely thought out.
“Since I’m an enormous sports activities fan, I needed every barbershop to inform its personal story,” Valenzuela says. His franchisees have roughly 750 sports activities pictures to select from when adorning their partitions. Valenzuela rigorously chosen pictures from all kinds of sporting occasions, together with horse racing, from completely different areas that permits every barbershop to inform its personal story.
“Particulars are crucial,” he says. “If you combine all this stuff with the correct amount of allure, it really works. I knew folks would pay extra for haircut if they might discover worth within the expertise.”
V’S Barbershop doesn’t have a minimal web value requirement for opening a franchise. But when an entrepreneur’s web value falls under $400,000, the corporate recommends searching for out an funding associate or third-party financing.
The urged minimal capital funding ranges between $100,000 to $150,000. V’s Barbershop will contemplate prospects who don’t meet the urged capital funding standards on a case-by-case foundation.
The corporate costs an preliminary franchise charge of $30,000 per location. Nevertheless, it gives reductions for those who want to open a couple of location and to those that have been honorably discharged from the U.S. Armed Forces.
Its royalty charge is comparatively distinctive for the business. V’s Barbershop believes in rewarding franchisees that do nicely. It reduces the royalty charge from 5 p.c for the primary $500,000 of product sales in a calendar yr to 2.5 p.c of product sales thereafter for a similar yr. As well as, the corporate gives decreased royalty charges for sure multi-unit franchise purchases.
The preliminary funding, together with build-out value and franchising charge, ranges between $194,450 and $352,875 relying on location. This consists of gear, inventory supplies and working capital for the primary three months. A mean constructing is between 1,000 to 1,250 sq. toes.
As Valenzuela shouldn’t be a barber himself, V’s Barbershop doesn’t require its franchise homeowners to be licensed barbers. Its present franchisees come from a wide range of backgrounds together with engineers, gross sales executives, politicians, monetary advisors and pilots.
V’s gives its franchisees with numerous advert templates and instruments for recruitment of workers. It can help with attracting, screening and hiring barbers as a part of its preliminary help program. “Barbershops are lastly changing into extra accepted as a franchise alternative,” Valenzuela says. “The entire barbering business is changing into way more mainstream and readily accepted. The franchisee with ardour will likely be profitable.”