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Below is an in-depth analysis and side-by-side comparison of Hair Cuttery vs Armstrong McCall including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $120,500 - $283,000 | $75,000 - $500,000 |
Franchise Fee | $15,000 - $25,000 | N/A |
Royalty Fee | 4.5-5% | - |
Advertising Fee | - | - |
Year Founded | 1974 | 1939 |
Year Franchised | 2004 | 1996 |
Term Of Agreement | 10 years | - |
Term Of Agreement | 10 years | - |
Renewal Fee | 25% of franchise fee | - |
Business Experience Requirements |
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Experience | - | - |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | -/- |
Start-up Costs | No/Yes | -/- |
Equipment | No/Yes | -/- |
Inventory | No/No | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | - | Initially franchise distributors receive a 2-day training at the Armstrong McCall Support Center. Additional Regional training in consultative selling |
Support | - | Assistance from the Support Center includes: Field sales managers & sales meetings Product knowledge DVDs Distributor-only secure website Innovative Promotions & Merchandising Through close management of franchise operations, Armstrong McCall benefits from a cohesive system where franchises focus on specific promotions. The Support Center provides innovative promotions and incentives such as: Commissioned show sales VIP sales Seasonal in-store sales Store merchandising Monthly print advertising Customer education coordination |
Marketing | - | - |
Operations | - | - |
Expansion Plans |
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US Expansion | - | - |
Canada Expansion | No | - |
International Expansion | No | - |
NO LONGER FRANCHISING
For franchisees that enter into a
Development Agreement for the establishment of multiple SALONS, the initial
franchise fee is as follows:
*
First SALON $25,000
*
Second to Fifth SALON $20,000
*
Sixth or more SALONS $15,000
The fee for the first SALON is paid
to us when you sign the Development Agreement. The fees for the additional
SALONS are paid when you sign the Franchise Agreement for each SALON.
In addition to the initial franchise
fee for each SALON, you must also pay us, when you sign the Development
Agreement, a multiple unit development fee of $5,000 multiplied by the number
of SALONS to be developed under the Development Schedule.
For illustrative purposes only, if
you enter into a Development Agreement for ten SALONS, the initial ''franchise
fee and development fee payable to us at the time you enter into the agreements
will be as follows:
Initial Franchise Fee $25,000
Units Two through Ten $45.000 (9 x $5,000)
Total Fees Due $70.000
Multiple unit franchisees can expect
to have additional capital and operating expenses which single unit franchisees
may or may not incur. For example, we may provide our multi-SALON franchisees a
continuing royalty credit of V2 of one percent. To qualify for this credit you
will likely require an office, training capabilities, multi-unit management and
other support personnel. We have not included these additional costs in the
above projections as they will likely not occur with the opening of your first
SALON, nor are they reasonably estimated due to the uniqueness of each
multi-SALON franchisee''s independent business determinations.
Unless otherwise noted above, all of
the above fees are uniform and none of the above fees are refundable to you.
Armstrong McCall seeks a limited number of highly qualified individuals to become multi-unit franchise owner/operators in select areas of the U.S. and Mexico. We are currently focusing our U.S. expansion in the Central Plains with plans for further territory development on the horizon. Armstrong McCall owners work on their business by direct involvement in this recession-resistant industry of professional salon distribution.
No Royalties! Unlike many franchises, Armstrong McCall collects no royalties from its franchisees.