Loon-a-tik frinj. A group of people who share a set of radical principles and strive to create a like-minded atmosphere.

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1 FRANCHISE PROGRAM

2 Loon-a-tik frinj A group of people who share a set of radical principles and strive to create a like-minded atmosphere.

3 HEART AND SOUL We create growth and opportunity by providing artistic professionals with a viable career within a team culture.

4 THE REVOLUTION BEGINS Imagine a salon where culture is king and people contribute to their team s success. Imagine a business where passionate artists are striving, rather than starving. Imagine a talented hairdressing team that approaches guest service as a team sport, instead of an individual event. Imagine you, the salon owner, running a beautiful, busy, profitable salon with happy professionals. WELCOME TO THE LUNATIC FRINGE REVOLUTION! 4

5 We have built our business on strong relationships fostered by a supportive, growth-oriented culture. We are looking for likeminded people who intend to create a loving and supportive work culture within their own salon. OPPORTUNITIES The Lunatic Fringe Salon Program is an invitation for you to see the possibilities in profitability. We offer turnkey programs that guide new salon owners through the process of opening and managing their very own Lunatic Fringe Salon. This program brochure will help you to explore a new way of being in business, the Lunatic Fringe Salon business. Here are a few suggestions: 1. Take a moment and read about the tools and services we provide our franchisees. 2. Then, schedule a meeting with one of our Lunatic Fringe partners, who will guide you through the process. 3. Finally, we recommend that you refer to the Franchise Disclosure Document and Franchise Agreement, to learn about details and how our program works. Our goal is to assist you in making an informed decision. 5

6 THE LUNATIC FRINGE STORY How did this all begin? Two dedicated partners who shared a vision to integrate team culture, a solid business plan, and extraordinary service with a fashion-forward sensibility, founded the original Lunatic Fringe Salons in Salt Lake City, Utah in Over the years, the partners worked to develop a salon business and culture that put people first. The salons provided a path for creating a successful and prosperous career for hundreds of salon professionals. As employers and service providers, their approach has been unique, almost revolutionary, and the salon s name truly reflects their intention and has made a lasting impression. Today, Lunatic Fringe stays true to their original vision of creating a business model that focuses on team first. Heart and Soul We create growth and opportunity by providing artistic professionals with a viable career within a team culture. 6

7 Lunatic Fringe s focus on five core values team, opportunity, business, passion and education has created a strong culture with an undeniable sense of team. The salons invest in training and coaching systems that help nurture talent, and the career path outlines each team member s journey toward a prosperous and successful career. Lunatic Fringe is now one of the most sought after employers in our industry. In addition, the salon team has cultivated a loyal following of service guests who enjoy Lunatic Fringe Salon s high quality service experience and team-oriented environment. In 2008, a group of like-minded business owners decided to join the lunatic revolution, and the Lunatic Fringe Salon Program was born. Today, our systems, training, coaching, communication, service and marketing are utilized in salons across the nation. We look forward to the future, and you being a part of our story. 7

8 FRINGE BENEFITS We are committed to providing you with the assistance you need during your planning process. Here are some reasons why we think joining the Lunatic Fringe Salon revolution might be right for you: OUR TEAM One of the best benefits of being a part of the Lunatic Fringe Salon family is the relationships you will create with some of the most successful business minds in our industry. OUR BUSINESS What makes Lunatic Fringe Salons work is our viable and healthy business structure. Our business model focuses on building a team and nurturing talent through training, coaching and communication. Our compensation structure and business model is cost-effective and sustainable. Our sales and operations systems are driven by our culture-based compensation plan, where team members are rewarded on their overall contributions and their productivity. Franchisees receive a complete plan to implement Lunatic Fringe business systems, which is supported by leadership training and coaching. OUR CULTURE We believe when culture is king, prosperity will follow! So, we pay close attention to how we build team relationships, and how the team supports our values with consistent behaviors. We believe that when you build a strong culture, sustained by consistent training and coaching, you will grow financially. Franchisees receive The Lunatic Fringe Handbook, Welcome and Support Team Training Program; which will help you to build a strong team culture. TEAM CULTURE How I contribute and support our team and guests. MY PERFORMANCE I choose a positive attitude and fake it when necessary. I maintain a professional image. I arrive on time, 20 minutes early. I am informed and read all communications, memos and reports. I am a yes person. I am forward-focused. I deliver a consistently brilliant performance. I set, monitor and work toward my service and Take Home goals. I clean as I go and create a guest-ready service environment. I am passionate about my craft and create the Lunatic Fringe signature look for every guest. I act as a Lunatic Fringe Salon representative in our community. MY TEAM CONTRIBUTIONS I uphold our Heart and Soul Statement, and Values and Beliefs. I am a team member. I put others first and work on my relationships. I contribute to my teammates success in large and small ways, making everyone s job easier. I mentor and assist new team members. I am a great example of a successful salon professional. I avoid drama and gossip and go to the decision-maker with challenges. I F.A.C.E.* (find, acknowledge, celebrate and enjoy) every chance I get. I participate in salon activities, including classes, meetings and events. MY GUEST SERVICE EXPERIENCE I provide exceptional service and quality results in every guest experience. I am a product and service resource for my guests. I treat each salon guest as my own. I am friendly and smile. I am helpful and informative. I follow the Lunatic Fringe Guest Experience Checklist. I make professional recommendations to help my guests look and feel their best. I use the In List service words in my communication with my guests. I ask for referrals, reschedule future reservations, and invite new guests into the salon. *F.A.C.E. is a praising process adapted for Paul Mitchell Schools and John Paul Mitchell Systems. 8

9 OUR CRAFT Our team members are among the most talented and happy professionals in the industry. Our extensive technical and service skill training inspire our professionals to passionately pursue their craft, while staying equally dedicated to the quality of service they provide. Franchisees receive step-by-step service and technical procedures to create the Lunatic Fringe look. OUR IMAGE The Lunatic Fringe look is distinctly beautiful, clean and refined. Our work captures the salon professional s imagination, while embracing our guests needs for practical and beautiful looks they can easily maintain. We create seasonal collections that are inspired by strong technical procedures and beautiful marketing tools. Franchisees receive the Lunatic Fringe Salon marketing program tools and seasonal updates. Complimentary Deep Treatment Card Guest Care Card Service Menu 9

10 SITE PLANNING AND BUILDOUT In keeping with our name, we have developed a revolutionary approach to opening the doors of your Lunatic Fringe Salon. Our turnkey concept provides step-by-step instructions for site selection and systemizes the buildout process. All you have to do is provide the vanilla shell and we will provide the rest. Our concept features the Central Core System, which facilitates the installation of all salon fixtures, furniture and equipment, thus eliminating the need for a general contractor at each location. We use green materials and shop fabrication, which aids in eliminating waste and keeps installation time to a minimum. Our plan helps you to have direct control of project costs by eliminating contractor overhead. We move you through the build out phase quickly, while maintaining consistent quality and getting you to your opening day faster. 10

11 1 Lunatic Fringe 1 Source Lunatic Fringe Handbook 1 OPERATIONAL READINESS To ensure you get started on the right foot, we have developed detailed guides and management training to prepare you for operational success. Lunatic Fringe Site Planner SITE PLANNER Site Planner a planner that will guide you through the preparation and planning process of your new Lunatic Fringe Salon. SOURCE Source a manual outlining all key franchise services, vendor contacts, materials and information on new Lunatic Fringe Salon Programs. We work with talented vendors who have experience in building beautiful, retail spaces. HANDBOOK Handbook a turnkey team handbook with employee guidelines, policies, job descriptions and guest service systems. 11

12 Lunatic Fringe Handbook 1 Lunatic Fringe Front Desk 1 OPERATIONAL READINESS CONTINUED TRAINING Training a team training guide for salon managers, which include training formats, handouts, visuals and ideas for calendaring salon events. HANDBOOK Leadership a guide for owners and managers, focused on management and coaching systems. FRONT DESK Front Desk service desk and reservations systems for the front desk. 12

13 TRAINING AND SUPPORT Here are a few ways we help you build a strong and talented team: We guide you through the application process. We assist you with site selection. We offer on-site shadow days for all pre-qualified franchisees. Managers Training All managers are invited to scheduled managers trainings held quarterly. Coach On Call We support new managers with regular coaching calls, as they learn the systems and work through the operational readiness checklist. On-site We ensure that your team is ready when the doors are open with an on-site training blend culture, technical and service skills for providing the Lunatic Fringe Guest Experience. Monthly Conference Calls and Webinars We feature monthly calls or webinars focusing on a variety of topics, such as service, marketing, salon management, front desk systems and much more. Marketing and Sales Support We provide fresh promotional planning ideas and programs that include holiday promotions, seasonal trend releases, and Take Home programs. 13

14 STEP 1 APPLY After you have reviewed this brochure, please complete a franchisee application and submit it online. We will review your application and schedule an informational meeting to answer your questions and review the enrollment process. GET STARTED STEP 2 LEARN To learn more about the Lunatic Fringe Salons, schedule and attend an informational webinar or live seminar. You are always welcome to do both! If you qualify, we will also provide you with our Franchise Disclosure Document (FDD) that contains important information about the Lunatic Fringe Franchise Program. STEP 3 PROPOSE After we have completed our initial phase of getting to know one another, you may be asked to complete a letter of intent and submit a business plan outlining projections and financing for your project. STEP 4 COMMIT Upon finalizing the agreement, you will sign the Franchise Agreement and submit your initial franchise fee. STEP 5 PROSPER You are now a Lunatic Fringe Salon owner. Your benefits begin and you are ready to build your prosperous Lunatic Fringe Salon business. 14

15 INVESTMENT To learn more about how to open your own Lunatic Fringe Salon, please contact Jenner Feroah at or FRANCHISE FEES Initial Store $19,900 ONGOING FEES There is a monthly maintenance royalty fee. $1 300,000 in sales no royalty fees $300,000+ in sales 4% monthly royalty fee This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise for a LUNATIC FRINGE SALON. It is for informational purposes only. Offers will only be made once we provide you with a Franchise Disclosure Document (FDD). Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington and Wisconsin. If you are a resident of one of these states, we will not offer you a franchise for a LUNATIC FRINGE SALON, unless and until we have complied with all applicable pre-sale registration and disclosure requirements in your jurisdiction Lunatic Fringe Franchising, LLC. All rights reserved. 15

16 LUNATIC FRINGE FRANCHISING, LLC 1790 S 1100 E Salt Lake City, UT

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