Welcome to the Snip- its Franchise Opportunity Webinar
Agenda
• Is Now A Good Time To Go Into Business For Yourself?
• Why a Franchise?• Why The Hair Industry?• Why Snip-its?• Next Steps
Is Now a Good Time to go into Business for Yourself?
• Economic Uncertainty• Desire to Control Your Own Future• Job Security• Alternative to Retirement• Diversifying your Investments• Take advantage of record lows in commercial
real estate
Why Invest in a Franchise?• Nearly 50% of all retail business in the United States is
done through franchises• Franchise businesses employ more than 14 million
Americans• One out of every 12 businesses in the United States is a
franchised business• 80% of other businesses fail in the first two years (U.S.
Department of Labor and IFA)• Franchise business owners, on the average, live within 10
miles of their franchise• In 2000, the median gross annual income before taxes of
franchisees was in the $75,000 to $124,000 range, with over 30% of franchises earning over $150,000
Don’t Take My Word For It• A seven-year study found that 91% of franchised businesses were
still operating compared to a mere 20% of individual startups- source: entrepreneur.com
• Boston Globe (boston.com) ran article today “Buying into a franchise can take uncertainty out of getting started”
• “Trish Harrington brought her 6-year-old daughter to a birthday party at Snip-its in North Attleborough and fell in love with the children’s hair salon. A CPA and controller at a Rhode Island financing company, she went home, did her homework, and four months later signed an agreement with the Natick”-based franchise to develop three new locations.
Why Invest in Hair Salon Industry?• Big Business: $45 Billion Dollar Industry• Children’s Segment is $5 Billion– NBC News recently reported number
of children enrolled in Elementary school has exceeded the baby boomer years by over a million.
• Recession Resistant• Absentee Model• Simple Operations
Why Snip-its?• History of Snip-its from our founder, Joanna
Meiseles• How Much Does it Cost to Open a Snip-its?• How does Snipits assist in finding a good
location?• How do you learn to operate your Snip-its?• What type of marketing and ongoing support
does Snip-its corporation offer?
Sept, 1993
Sept,
1993
April,
1994
• Plenty of mom & pop, regional chains trying
Clear need
•Plenty of mom & pop, regional chains trying
• Clear need for this service
• No one “doing it right”
• for this service
• No one “doing it right”
April,
1994
Framingham, MA•Snip-its First Salon Opened in September, 1995•Opened four more corporate locations•Opened first franchise in 2003•Grown to largest Children’s Hair Franchise in US•63 Salons open across the United State
Snip-its Mission Statement
To become the biggest and best children’s hair care company in the world in number of salons,
single unit revenues, and customer experience.
The Secret Snip-its Sauce• Snip-its has created an Entertaining Concept– Entertainment has a purpose, not a gimmick– Offer distraction– Help children form positive associations– Major differentiator against competition– Grounded in the Snip-its Gang
Snip-its Hair Care Line• Proprietary Line formulated
just for kids• All natural, irritant-free,
alcohol free, botanical extracts
• Flavored shampoos are tear-free
• Spray Mouse is best seller!
Snip-its Parties• Service Extension• Not many options for girls• Big benefits– Very Profitable service– Great marketing vehicle
• Types:– Glamour– Trip-to-Hollywood– Style-A-Doll– Goal 20% of total revenue
How Much Does It Cost to Open a Snip-its?
• Express Unit– Turn-key cost ranges from $127,775 - $187,850– No party room, Average 700 sq ft– Includes franchise fee of $25,000
• Traditional Salon– Turn-key cost ranges from $141,189-$273,731– Party Room, Average 1200 sq ft
• Royalties– 1st year 5%, increases to 6%
Location! Location! Location!
• Lifestyle/Power Center • Regional Retail Centers• 15,ooo kids in 10 minute drive time– Ages 0 – 9– Open 7 days per week, apx 55 hours per week– Site selection available
Snip-its Team Members
• Staff of 7 – 10 Employees– Manager– Licensed Cosmetologists• Regulated by the state• Specialized Snip-its Training• Receptionist• Party Supervisor
Snip-its Franchise Support System• Be in business for yourself, but not by yourself– Training• Grand Opening and Ongoing Artistic Training
– Operational Support– Financial Operations
• To Provide all the tools and support necessary for Snip-its franchisees to open and operate a successful and rewarding Snip-its business
Training Support: How Do You Learn to Operate Your Snip-its?
•Franchise Training• Five days• At Corporate Office• Everything you need to know
•Grand Opening Training• On Site• 2 Corporate Employees• 3 Days
•Continuing Education•Custom training programs•Market and Store visits
Snip-its Support Team• CEO – Jim George • Operation Consultant: Chris Ochoa• Field Financial Analyst, Jason Bloom• Marketing Consultant, Larry LaFontaine• Marketing Fund Committee• Artistic Education, Marsha Cole
Marketing Support• Seasonal Promotional Calendar– Back to School– Holiday– Spring– Schools out for Summer
• Marketing Vehicles– In Store– Direct Mail– Print– PR
Marketing Samples
Marketing Samples
Next Steps• Fill out Franchise Application• Interview with Director of Sales• Receive and Review Federal Disclosure Document• Speak with Current Salon Owners• Interview with CEO, Jim George• Sign Franchise Agreement – Pay $25,000
Franchise Fee• Start Site Selection
Questions?