LANCE FREEMAN SENIOR BRAND MANAGER St Gregory Development Group, LLC 7720 Montgomery Rd Cincinnati OH
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1 LANCE FREEMAN SENIOR BRAND MANAGER St Gregory Development Group, LLC 7720 Montgomery Rd Cincinnati OH
2 THE #1 FRANCHISE CONCEPT FOR THE DECADE Jack Keilt, past CEO of Franchise Ventures Associates and FantasticSams WHAT DIFFERENTIATES 18 8 FINE MEN S SALONS OVER OTHER CHOICES? It s not too hard to find a salon, if you are on a budget or not that demanding in terms of service and quality. A woman s salon will do, if you don t mind the smell of perm, a fish-bowl environment, or eavesdropping on the gossip from the women on your left and right. All of which reinforces the rationale behind 18 8 Fine Men s Salons. Discerning men need a place of their own with experienced, skilled stylists who can discuss their hair needs and allow them to vent their frustrations about their day at the office. WHAT MAKES 18 8 FINE MEN S SALONS A GREAT FRANCHISE TO OWN AND OPERATE? There s a giant void that s waiting to be filled the perfect salon for successful men! A salon that brings out the best in men. Great locations, a better class of stylists. Lots of happy, successful guys. We re doing something right, indeed.
3 DESCRIPTION BACKGROUND At 18 8, our stylists and staff provide the advice, solutions and consistency men deserve in a wide variety of services and treatments, including haircuts, hair coloring, MANicures, face treatments, scalp treatments and massage all provided at semi-private stations. At 18 8 men can have a unique experience designed to meet their specific needs, rather than being an afterthought at a woman s salon or settling for a clip-joint-quality haircut. Our mission is simple give men an alternative to women s salons give men a fine salon experience in a place designed to meet their needs. FOUNDED 2002 FRANCHISING SINCE 2011 FRANCHISEES 1 23 TOTAL UNITS 2 75 BRIEF OVERVIEW OF FINANCIAL INFORMATION Franchise Fee (for single unit) Total Initial Investment (including franchise fee for one unit) Multi-Unit Franchise Development Fee (3 Units) Minimum Cash Required: (For 1 Unit) Minimum Net Worth Required: (For 1 Unit) $45,000 3 $195,651 - $232,089 3 $100,000 3 $100,000 $300,000 Royalty: 7% 4 Financing Options: Financing may be available through third party lenders (recommended by franchisors) Territories are generally based upon population bases of 20,000+. Current available territiories include all US markets except HI, ND & SD Ideal locations: A strong proxy wherever there are high end brands, e.g. Nordstroms, Peet s Coffee, Starbucks, Apple Stores, Morgan Stanley, Charles Schwab, Trader Joes typically these are brands in upscale locations. 1 Franchisees consist of 2 franchisees opened and 6 franchisees signed but not yet opened for the period ended July 10, Please see Exhibit K and Item 20 of the July 12, 2013 Franchise Disclosure Document. 2 Total units consists of 3 affiliated owned units opened, 2 individual franchisee owned units opened, and 18 franchisee units owned by 6 individual franchisees who have signed but not yet opened 3 units each, for the period ended July 10, Please see Exhibit K and Item 20 of the July 12, 2013 Franchise Disclosure Document 3 These figures were taken from Item 7 of the July 12, 2013 Franchise Disclosure Document. Please read Item 7 in its entirety for more details. 4 This figure was taken from Item 6 of the July 12, 2013 Franchise Disclosure Document. For the first three months of operation of your salon the minimum royalty is 7% of your gross sales. Thereafter, the minimum royalty is $250/ week and is adjusted periodically for inflation in accordance with the consumer price index for all urban consumers (CPI-U). Please read Item 6 in its entirety for more details. COMMISSIONER THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING. / For NY: This advertisement if not an offering. An offering can only be made by a prospectus filed first with the Department of Law of
4 IDEAL FRANCHISEE / CANDIDATE We are looking for franchisees with basic business skills, who are considered people persons, that can manage and motivate a team, have sufficient financial resources, and will follow the blueprint of a proven business model. If you have these qualities then you may be a prime candidate to own and operate an 18 8 Fine Men s Salons. We ll coach you through the opening of your business and be there to assist you in nearly every facet of the business. We will assist in you in finding quality behind the chair managers and strong front desk managers. We will also assist with site location, provide you with some sample templates that we ve previously used in our lease negotiations, provide introductory and ongoing education and training to you and your staff, and assist with project management services through the construction phase. We also provide beautifully designed marketing tools and programs to help you drive awareness, trial and retention. OTHER FEATURES AND BENEFITS: This is solid business model that we ve been fine tuning over the last 10+ years. There is potential for multiple sources of revenue: memberships, products, haircuts, grooming services, referral fees We re sought out by highest quality stylists and have a three-tiered pricing structure to fit any budget Stunning store design contemporary with the right masculine touches There may be financing options available, including lease concessions, 401K rollover, landlord contributions, SBA There are hundreds of A-quality retail locations nationwide and most landlords are very amenable to our business model Proprietary lines of hair, skin and grooming products
5 WHAT ARE THE PRODUCTS AND SERVICES THAT YOU OFFER? To start, great haircuts Grooming services MANicures, Head/Neck/Shoulder Massages, skin treatments, facials, consultation on thinning hair High quality hair and skin products for men: BOS, Paul Mitchell, Nioxin, and American Crew are a few examples Gift Card programs to new and existing clients Executive Membership buy seven services in advance for a discounted price HOW WILL 18 8 FINE MEN S SALONS SUPPORT ME AS I OPEN FRANCHISE LOCATION(S)? You will be nurtured and supported. Your success is our success. Our team of experts from the salon industry consist of professionals with extensive franchising, marketing/new products, training and education capabilities Our team has held executive and managerial level responsibilities at Carlton International, Jose Eber, Fantastic Sams and Vidal Sassoon SUPPORT TRAINING Seventeen days of training will be conducted at our corporate offices and/or at a training Salon we designate that will include the following: Use of manuals and resources Services provide to Franchisee Responsibilities of Franchisee Pre-Opening Procedures Equipment, Inventory and Supplies Training new Employees Required Utilities and Services Required Licenses, Certifications, Permits *Annual Conventions are also a part of ongoing training
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