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Presentation by Sharkey’s Franchising Co. Franchise: Sharkey’s Cuts for Kids

Sharkey's Cuts For Kids 2015

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Page 1: Sharkey's Cuts For Kids 2015

Presentation by Sharkey’s Franchising Co.

Franchise: Sharkey’s Cuts for Kids

Page 2: Sharkey's Cuts For Kids 2015

VOTED #1 KIDS HAIR SALON FRANCHISE IN THE WORLD!

2Sharkey's Franchising Co.

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A successful franchise brand in an Emerging Niche. Competition is non-existent in most markets (ie.

Supercuts, Great Clips, etc, not our competition). Lowest Cost Model in this Niche with greatest

expansion possibilities. Voted #1 Kids Salon Franchise year after year. Ownership 100% committed to the brand. The kids hair industry will “never” be replaced.

Reasons for Investing in Sharkey’s: Low Cost Investment: approximately $125K-$150K

(turn-key) Open for business within 60-90 days once a location

is secured. Fun business you can pass along to your kids. Franchisor Service & Support is ongoing and available

24/7. Strongest brand in this rapidly emerging market.

Positives Brand Attributes

3Sharkey's Franchising Co.

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PICTORIAL OVERVIEW OF STORES & THE BRAND

4Sharkey's Franchising Co.

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Sharkey’s Cuts for Kids Multiple locations in 18 States

and 4 Countries

Sharkey’s Hair It Is Multiple locations in 4 States

Focuses on children’s haircuts Have distinctive products and

services including car seats, video games, and parties

Average haircut is around $22 (pricing based upon local markets)

Sharkey’s Cuts for Kids

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Car seats for children where they can watch their own movies

Xbox and Playstation for older children to play video games during haircut

Glamour room & Tween Lounge for birthday parties and haircuts for Tweens

Points of Difference

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Typical Unit Data Stores range from 850-1500 square

feet Average is around 1200 square

feet. Ideal size is 1100 square feet.

Generally five (5-7) people are needed to run a salon.

Employees paid approximately $9.75 an hour average plus tips (+/- 10%).

Product Sales are approximately 10% of the sales mix and growing for 2015.

Our “famous” Glamour Parties are approximately 10% of the sales mix. 7Sharkey's Franchising Co.

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Sharkey's Franchising Co.

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Sharkey's Franchising Co. 10

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New from Sharkey’s

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Customer base Boys constitute 60% of

client base (ages 0-12).

Girls constitute 40% of client base (ages 0-14).

Parties Approximately $350

for 12-16 girls (up to $695 in certain markets).

*percentage of the girls normally become clients.

12Sharkey's Franchising Co.

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Fun Haircare Products

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Organic Line “just for kids”!

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Franchise Awards

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Car Wrap Designs at No Cost

*Please provide us with your make, model, & year.

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Where we pull our customers: Full Service Discount Salons & Barber Shops

17Sharkey's Franchising Co.

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Fantastic Sam’s Franchise Units

2010: 1,262 2011: 1,199 2012: 1,162 2013: 1,164 2014: 1,146

Total Investment: $136,100 - $246,100

Multi-Purpose Discount salon

Term of Franchise Agreement: 10 years

Client Base mixed between male and female with a small percentage of kids.

*Above data compiled from various internet locations via 3rd party

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Great Clips Franchise Units

2010: 2,787 2011: 2,858 2012: 3,002 2013: 3,389 2014: 3,408

Total Investment: $109,150- $208,300

Multi-Purpose Discount salon

Term of Franchise Agreement: 10 years

Client Base mixed between male and female with a small percentage of kids.

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*Above data compiled from various internet locations via 3rd party

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Sport Clips Franchise Units

2010: 683 2011: 772 2012: 902 2013: 1103

Total Investment: $158,300- $316,500

Term of Franchise Agreement: 5 years

Client Base 95%-100% men and boys over the age of 10.

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*Above data compiled from various internet locations via 3rd party.

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Super Cuts Franchise Units

2010: 1,025 2011: 975 2012: 1,027 2013: 1,125 2014: 1,196

Total Investment: $113,750- $233,600

Multi-Purpose Discount salon

Term of Franchise Agreement: renewable, but conditional

Client Base mixed between male and female with a small percentage of kids.

*Above data compiled from various internet locations via 3rd party.

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22*Above data compiled from various internet locations via 3rd party.

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Competition: Kid-focused Salons

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Sharkey’s Cuts for Kids

Snip-its Cool Cuts 4 Kids

Pigtails & Crewcuts

Company Base

Westport, CT Eden Prairie, MN

Minneapolis, MN

Roswell, GA

Units in System

42 68 62 38

State Locations

Arizona, California, Colorado, Connecticut, Florida, Georgia, Michigan, Missouri Nevada, New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington

(plus international locations shown on map)

Arizona, California, Colorado, Connecticut, Florida, Georgia, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia

Arizona, California, Colorado, Florida, Illinois, Michigan, Nevada, Texas

Arkansas, California, Colorado, Florida, Georgia, Hawaii, Illinois, Louisiana, Maryland, Missouri, Nebraska, New Jersey, North Carolina, Oregon, Tennessee, Texas, Virginia

24*Above data compiled from various internet locations via 3rd party.

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Competition Total Franchise Investment

Franchising Since

Snip-Its $162.8K - $288.2K 2003

Pigtails & Crewcuts

$115K - $168.3K 2005

Sharkey’s Cuts for Kids

$96K - $128K 2006

Cool Cuts for Kids $108K - $189K 2009 (most stores corporate owned)

Sharkey’s Offers Lowest Cost Option

25Sharkey's Franchising Co.

*Above data compiled from various internet locations via 3rd party.

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Sharkey’s Domestic Locations

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Primary Kid-focused Competitors

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Sharkey’s International Locations

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Franchise Fee* Delivers Full Package on Turn Key Basis ($89,995 pays for:)

• Franchise Fee includes between 8-11 haircutting stations (based on size of salon).

• Prices may vary for international locations.

ConfidentialSharkey's Franchising Co.

The cost of the following equipment and supplies is included in the Initial Franchise Fee for a Sharkey’s Cuts for Kids franchise: desk, base cabinets, adult styling chairs, kids styling chairs, station vanities,, Xbox 360 or Playstation 3 or 4, assorted video games, flat panel televisions, flat panel television wall brackets, shelves for window display, shelves and racks for in-store display, stools, monogrammed coat hooks, monogrammed fixtures for vanities, signage for outside, assorted mirrors, Glamour Stools, decorative knobs for mirrors, decorative fabric/curtains for mirrors, decorative display hooks around mirrors, manicure station, chalk buckets, chalk railing, slop sink, storage shelves, combs, brushes, blow dryers, clippers, buzzers, towels, hair washing station, hair washing chair, booster seats, Sharkey dollars, Sharkey bookmarks, Sharkey 1st haircut certificates, telephone, monogrammed bags, assorted wall hangings, retail, software, scanner and computer.

If certain items included in the above list are not available at the time we supply your franchise, we will replace any item that is of equivalent value and serves the same or similar purpose.

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Costs to open a unit

(Franchise Fee goes up $5,000 -$7,500 in 2015)

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Prices may vary for international locations.

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Sharkey's Franchising Co. 31

Sharkey’s Family Salon!(Designed for smaller markets)

*Please provide us with your make, model, & year.