Leading the U.S. beauty segment in market share, it’s no surprise entrepreneurs have been clamoring to take their cut of the $64 billion hair care industry by opening a kid’s salon franchise. And, with parents spending record-level sums on their children, there’s never been a better time to break into the fast-growing segment.
However, starting a kid’s salon business from scratch and building it from the ground up can be an arduous endeavor. From creating a business plan to finding the right real estate and generating awareness about an emerging brand, building a startup business requires a significant investment of time and capital. Not only that, unpredictable costs and unforeseen roadblocks can quickly throw even the most thorough plans off course. That’s why so many aspiring business owners turn to the franchise model when starting their kid’s hair salon franchise.
Kid’s salon franchise brands like Pigtails & Crewcuts provide you with a full framework for success in every facet of your business. Plus, our pre-set, transparent initial investment estimates help ensure you won’t be caught by surprise with additional costs that put you in a precarious financial position later on. Here’s a quick breakdown of the top three upfront costs to open a hair salon, and why our kid’s salon franchise model is the right investment:
1. Real Estate for a Kid’s Salon Franchise
Entrepreneurs that buy an existing hair salon generally expect to set aside $40,000 to $250,000 for the purchase of the physical location. That investment range doubles if they’re planning to build a salon from the ground up. At Pigtails & Crewcuts, we work hard to keep real estate and construction costs as affordable as possible – typically ranging from $15,000 to $90,000. This investment will inevitably vary by site, based on its size, condition, location, the local market, and other factors. However, our corporate support team performs extensive comparative research into local real estate options in order to help secure the most competitive pricing in the local market.
And, because our typical layout features a small footprint – usually between 1,200 and 1,500 square feet – we’re able to cut down on the initial purchase price for the space. This also helps minimize ongoing expenses, like utilities and maintenance, as well as insurance and any rent or lease payments. Beyond pricing negotiations, we also guide franchisees through every step of the site selection process, helping them find the most visible, accessible and high-traffic locations. Leveraging real estate software, we also help ensure strong demand for each location by vetting markets with the most desirable area demographics for our concept. This includes everything from median household income to population density and number of families in the area.
2. Furnishings, Equipment and Decorating
Independent salon owners can expect to spend roughly $47,000 on salon equipment and supplies alone. Styling stations with chairs can easily reach costs upward of $1,000 each, and other equipment and supplies like hair dryers, shampoo, scissors, clippers, and other specialty products account for the remaining expenses. Pigtails & Crewcuts franchisees generally spend $18,000 to $27,000 for their entire interior design, furnishings, and decor, in addition to the heavy equipment and styling stations. Costs for hairdryers, washing stations, and other opening supplies are typically only $3,000 to $5,000.
Not only will our corporate team provide you with several site layout and design plans, we also deliver all the supplies and equipment you need to get up and running – for a complete turnkey solution. With pre-established, system-wide brand guidelines, you don’t have to worry about decorating the space yourself or spending thousands of dollars buying your own furnishings and décor.
3. Opening Inventory and Supplies for a Children’s Hair Salon
Many salon owners choose to include a retail portion in their business, which creates an additional revenue stream. However, without the right guidance, expertise or wholesale buying power, it’s easy to overpay for these products or invest in the wrong categories or brands.
The actual cost of initial inventory and supplies will vary widely, but a fully-stocked salon will often spend $12,000 or more. For Pigtails & Crewcuts franchisees, initial inventory typically costs $5,000 to $10,000. Driving additional sales per transaction, our retail sections typically account for 10 percent of unit revenue.
Backed by our guidance and support in every area of business, Pigtails & Crewcuts franchisees are able to get up and running quickly, efficiently and cost-effectively – and start reaping the rewards of their investment as soon as possible.