MVP Modern Barbers is a casual, trendy place for men to relax and receive a great hair cut at a fair price.

Transcription

1 Franchise Information Quality Grooming......in a space built for Men!

2 The MVP Experience MVP Modern Barbers is a casual, trendy place for men to relax and receive a great hair cut at a fair price. The MVP experience is more than just a great hair cut for our clients. MVP offers a variety of services such as Grey camouflage, Highlights, Colour and of course features the famous Hall of Fame haircut. With this cut our clients can sit back, relax and be man pampered with a hot face towel, scalp massage, wash and condition, neck trim, consultation, cut and style. Our clients can also watch the game while they re here. Each MVP cutting station has its own flat screen television so that men can catch up on highlights from the previous night, watch the game or tune into their favorite Man show! Clients can also show up early for their appointment and take advantage of the televisions in leather club chairs in our waiting area, or enjoy free wireless internet! At MVP we're able to quickly meet the changing needs of our clients because we are a full service Men s Salon. We provide our Franchise Partners with the tools, experience and trends for all our services. We also provide our Franchise Partners with; Ongoing training on hair trends, tool trends, hair techniques, and technologies Stylist training and expertise Private Label / Proprietary products unique to MVP A relaxing urban environment with LCD TV s, Wireless Internet, club chairs, modern fixtures, décor, and hospitality

3 MVP Men s Salon History MVP Modern Barbers started in Calgary, AB in 2004 to accommodate Men who want the same style of service most women enjoy in a full service ladies salon, but without the feminine atmosphere and Cosmo Magazines. MVP Modern Barbers markets to Urban and Suburban males who appreciate the extra level of service and being pampered without losing their man status. We have often been described as A great cut, with great service in a Man's Environment; it s not your Father's barber shop!. This is the MVP experience! Our value added services for clients include; Free Wireless Internet, Leather Club Chairs and Flat Screen LCD TV s. This is what attracts our clients, however our great service and style keeps them coming back time and again. Our Franchise Partners are the reason for our success. We offer them proven systems that are constantly being updated and refined for changing market conditions. The franchisor has over 20 years of franchising experience and is established in the industry as a proven leader.

4 MVP Opportunities Let s look at some basic statistics: Average weekly salon customer counts have increased by 10% in the last four years Hair Care is a 59 Billion dollar a year industry that is consistently growing Men typically cut their hair twice as often as ladies 35% of men currently use a full service salon and this number continues to increase Total operating revenue for the personal services industry in Canada went up 3.8% in 2008 to reach $9.5 billion Male specific grooming products constitute one of those markets that now outpace the overall beauty/grooming retail markets in many countries of the world, despite economic recession. Valued at $19.7 billion worldwide in 2009, male-specific grooming products will mushroom to $28.0 billion by 2014, Global-Analysis.html Hair care is a booming business, in particular, Men s grooming is growing year after year. More men are paying more attention to their hair maintenance and personal grooming. Pop culture has changed the way men look at grooming and personal care in a very positive manner. Hair care businesses are a solid investment due to modest start up costs, low operating costs and strong growth potential. Hair care is typically an all cash business so there is easy access to your money. You also won t have to deal with perishables, waste, or manufacturing.

5 Your first Chair with MVP If owning a business that requires little time and effort to operate sounds good to you, then you ve come to the right place to get started. MVP Modern Barbers offers a Turn Key Franchise Program that allows you to keep your full time job or involved in your other business, all while providing a significant supplementary income. This information kit will outline everything you need to know about opening an MVP Modern Barbers as well as lay out the next steps in opening your own MVP Modern Barbers Franchise. We are looking forward to you becoming a Franchise Partner! There are two ways to become an MVP Modern Barbers Franchise Partner: 1 Single Store Operator: Be your own boss, or supplement your regular employment income by opening your own MVP Modern Barbers. It has a low up-front investment, and you work shoulder to shoulder with the Franchisor to ensure your success 2 Multiple Store Owner/Development : Utilize time spent on operations, local store marketing, financials, and human resources across an empire of locations to grow your market and exposure

6 What is this going to cost me? In order to ensure your success and maintain our level of quality Franchise Partners, MVP Modern Barbers requires that our Franchise Partners meet certain criteria, both personally and financially. FRANCHISE PARTNER QUALIFICATIONS Minimum Liquid Assets - $55,000 Minimum Net Worth - $200,000 Individuals or groups with a strong business acumen Results based with strong analytical, problem solving and leadership skills A willingness to work and adhere to the franchisor s requirements An understanding of MVP s Franchisor / Franchise Partner relationship A passion for hospitality and marketing *Development Agreements will require higher Liquid Asset and Net Worth qualifications based on the amount of stores required to be open within the agreement. Qualifications may also vary based on region. SINGLE STORE DEVELOPMENT COSTS The following costs are the typical costs associated with opening a sqft MVP Modern Barbers. MVP cannot guarantee there will not be other expenses in regards to the opening of an MVP Modern Barbers. ITEM AVERAGE COSTS Franchise Fee $25,000 to $25,000 Leasehold Improvements $41,000 to $51,000 Furniture & Equipment $22,900 to $29,000 Location and Admin (Fran. Fee, Legal, etc.) $17,300 to $25,000 Opening Inventory $4,000 to $5,000 Advertising (pre-opening adverts, signs) $9,570 to $15,000 Misc. Expenses $3,300 to $5,000 Total Start Up $123,070 to $155,000 Note: This is merely an estimate of opening costs based on previous opening and markets conditions. MVP cannot guarantee the accuracy of these assumptions based on market conditions at the time of your possible opening. These assumptions do not include a typical Tenant Allowance of $15/sqft.

7 The Franchise Process Once you have decided that MVP Modern Barbers is right for you, contact an MVP Franchise Representative, visit our website at and complete an online confidential application or complete the attached Application and fax it to Once MVP has received your application a member of our Franchise Development Team will contact you and conduct a phone interview to discuss your financial qualifications and business acumen. In some circumstances it may be required to complete a face to face interview. MVP will then review the application and interview notes and approve your application in a reasonable timeframe. If your application is approved MVP will then provide you with a Franchise Disclosure Document for you to review. At the same time MVP will also provide you with a Budget Form to complete on your proposed business. After MVP has your receipt of the Disclosure Document, the required waiting period of 14 days will commence. At the end of the 14 days MVP will then furnish you with the Franchise Agreement for you to execute with your Lawyer. MVP always recommends seeking the advice of separate legal counsel when signing and reviewing the Franchise Agreement so one fully understand the material and obligations. With the Franchise Agreement completed we move on to finding and securing a commercial retail unit to place your Salon. MVP uses a combination of real estate brokers and in-house representatives to look for and secure the space. Once an appropriate location is agreed upon between the Franchisor and Franchise Partner, MVP presents the Offer to Lease on behalf of the Franchise Partner and conducts the negotiations of the lease.

8 During the negotiations of the lease the Franchisor will have Architectural Plans completed and have the construction project quoted on. The MVP franchise system is a Turnkey operation, therefore the Franchise Partner does not have to worry about the design, construction, planning or opening inventories of the store. When the Offer to Lease is completed, the Franchise Partner will commence their training at an approved MVP location. Once the training program is completed the Franchise Partner will be able to return to their marketplace and start hiring and training their personnel. The new store opening will occur as soon as staff is properly hired, trained and construction is complete. The Salon will open along with a marketing campaign directed at driving new clients into the Salon to introduce the marketplace to the MVP Experience. The Salon is now OPEN!

9 FAQ s on MVP What are the qualifications to become an MVP Modern Barbers Franchise Partner? You must meet the financial qualifications as well as have the personal and business skills necessary to deal with personnel and business operations How much time do I need to spend in the salon? The success of your Salon will be in direct relation to the amount of time you choose to spend managing and promoting your Salon. If you are a trained stylist, you may choose to work full time cutting and managing your business. If you are hiring stylists, you may choose to spend less time in the Salon daily. How much is the total investment to open a MVP Modern Barbers Franchise The total cost varies based on the size of location and from region to region, however, the typical cost to open a Salon ranges from approximately $123,000 to $155,000 How much of my own money do I need to invest in order to open a single hair salon business? You are required to have at least $55,000 in up front capital, and a Net Worth of at least $250,000 Does MVP Modern Barbers provide financing to help me open my full service salon? No, MVP does not provide third party financing. The best circumstance for securing financing for your Salon is through your personal financial institution How long does it take to open a hair salon franchise? How long does it take to open a hair salon franchise? Typically it takes approximately 2 months, dependant on the availability of locations

10 Will MVP Modern Barbers help me find a location for my hair salon business? Yes, between a combination of Brokers and In-house personnel MVP will help find a suitable location for your salon, as well as act on your behalf on the lease negotiations. What are the on-going royalties and advertising fees? Royalties are 5% of Gross Sales, advertising fee s are 2% of Gross Sales How do I qualify to become a MVP Modern Barbers franchise Partner? You must meet the financial criteria as well as the criteria for business acumen and skills. MVP will also conduct a personal interview to ensure that you are a compatible partner Why own a hair care franchise with MVP Modern Barbers? MVP targets a large and under-utilized market MVP focuses on service rather than price, there is no competing on low prices with excellent service High client retention based on an experience the client can t receive elsewhere Lower financial requirements create a more significant Return on Investment Men s salons are not cyclical, as with Women s Salons. Men cut their hair more frequently than women, helping make MVP recession proof as well Multiple revenue streams, with proprietary hair care products and sports memorabilia Ease of operations, when following the franchise system Low overhead on training costs, stylists are already professionally trained and come prepared with their own tools Opportunity and ease of operations of multiple locations Low unit overhead, due to small locations Franchisor / Franchisee partner relationship, 20+ years of franchisor experience The MVP Experience the atmosphere, and urban feel, and you get to watch TV all day!

11 Training & Support Overview MVP Modern Barbers has incredible franchise opportunities in the salon business due, in part, to extensive support and hands-on training. Franchise Partners have the best of two worlds. MVP Franchise Partners receive all of the benefits and satisfaction of owning a salon, and they have incredible support from the MVP Franchise Office at the same time. MVP is there to work with you Shoulder to Shoulder to ensure your success. Training is integral to the success of an MVP Modern Barbers. As a franchise partner you will learn the essentials of the Salon business during our Two(2) week training program. One week is at one of our Corporate Salons and one week is in your own salon during the opening of the salon. Your training will include instruction and hands-on training in areas such as; Salon Management: Focuses on the essential needs of a salon business including; Operations, Budgeting and Financial Analysis, Labour and scheduling, Customer Service, and Point of Sales Systems Local Store, Regional and National marketing: Including Local Store marketing techniques, processes on Regional and National Marketing campaigns Human Resources: Curriculum includes Stylist retention, stylist training, and staff recruitment. Proper training in these areas will ensure that your stylists help build your clientele by being trained, skilled, and certified in the latest products, styles and methods. Proprietary hair care products sold exclusively at MVP Modern Barbers ; Product sales techniques, product knowledge training, in-store Point of Purchase arrangement

12 MVP Marketing MVP provides marketing support for local, regional, and national levels. As an MVP Franchise Partner you will be able to take advantage of coordinated advertising, marketing, and incentive programs, and benefit from the franchisors public relation campaign. All franchised salons contribute to a national marketing fund. The fund is used to establish MVP Modern Barbers brand awareness on a national level. Currently, the contribution by each Salon is equal to 2% of gross sales and funds are used to create marketing programs conducted throughout the MVP system. The marketing department manages and coordinates the marketing fund with suggestions from the Operations department and Franchise Advisory Council. MVP marketing supplies each franchise partner with individual guidance and support materials in our local store advertising kit to assist each Franchise Partner in carrying out local salon marketing trends. MVP Marketing also provides print ad advice and approval, as well as special promotions advice. Each Salon may join/create a Marketing Area Association in which Franchise Partners exchange ideas and discuss marketing strategies for their specific region. MVP also has a complete Grand Opening program to get you started on the right footing, quickly. Hiring Stylists Recruiting the best hairstylists is crucial to the success of your Salon. MVP has developed programs and tools to assist our Franchise Partners hiring and retention.

13 Salon Operations Our partners are the reason we are in business and therefore the priority of our Operations department is to ensure the success of our Franchise Partners. Our Operations team has experienced business professionals in each region, our operational support is local shoulder to shoulder. Our operations personnel are very well versed in all areas of Salon operations; Business efficiencies Profitability and financial planning Competitive analysis Local marketing Product Knowledge and Sales Customer service Salon trends MVP Products MVP Modern Barbers has a complete proprietary line of high quality and affordable professional hair care products. Our proprietary products are used to train stylists, thereby offering a consistent service proposition to our guests. They are also available for retail sale. Offering a private label line extends our brand name into the daily lives of our guests.

14 Site Selection When you become an MVP Modern Barbers franchise partner, our Franchise Development and Real Estate Professionals immediately begin helping you find potential salon locations. We utilize our network of contacts and relationships with landlords, developers, and brokers to identify suitable sites that meet MVP's site criteria. We also visit the area to tour the market and find suitable sites. Once a location has been chosen we submit an Offer to Lease and help negotiate the Lease on your behalf. After you ve signed the Offer to Lease, our Development Team gets to work on opening your MVP. We offer a complete turn-key Salon from design and construction through to supplier, vendor ordering and coordination, utilities and license setup, and many other pre-opening tasks. All you need to do is hire your stylists and open the doors!

15 Locations CALGARY, AB Bridgeland Kensington 915 General Avenue NE 1163 Kensington Cr. NW Calgary, AB T2E 9E1 Calgary, AB T2N 1X7 Phone: (403) Phone: (403) KELOWNA, BC Vancouver, BC 1957 Harvey Ave 823 Davie Street Kelowna, BC V1Y 6G5 Vancouver, BC Phone: (250) (604) SOUTH SURREY, BC # HWY #10 Surrey, BC V3S 5K7 Phone: (604) COMING SOON! Calgary 3 and Calgary 4 Coquitlam, BC

16 MVP in the Media...