cost structure
Start Up Costs
The franchisee’s initial investment can vary due to many factors including lease terms, location size, salon fit-out, etc.
The figures detailed here are based on the franchisors own salons. They should be used as a guide only and all franchisees should seek their own professional advice.
|
Low |
High |
|
| Franchise Fee | $10,000 | $10,000 |
| * Fit-out | $60,000 | $85,000 |
| Salon Design | $5000 | $5000 |
| **Equipment | $40,000 | $50,000 |
| Inventory | $9,500 | $15,000 |
| Working Capital | $10,000 | $10,000 |
| Insurance | $2,000 | $3,000 |
| Deposits/Prepayments | $6,000 | $10,000 |
| Legal/Accounting | $5,000 | $8,000 |
| Bank Guarantees | $0 | $15,000 |
|
|
* In many cases, the franchisor and franchisee are able to negotiate a fit-out contribution from the landlord that can reduce his figure.
** bossy hair offers guidance and contacts on equipment leasing. Depending on the franchisee and the location, the franchisor may approve leasing to reduce the overall start up costs.
Initial Franchise Fee
The Initial Franchise Fee is $10,000.
For this fee the franchisee receives:
- * The right to open a salon and use the bossy hair name and image.
- * Operations Manual.
- * Technical Manual.
- 2 week training course at a bossy hair salon.
- Initial training at a company owned salon.
- Support during first month of trade.
- Advice and ongoing assistance on the following:
- Finding a location.
- Lease negotiations.
- Salon equipment selection.
- Financial guidance and contacts.
- Salon construction.
- Salon suppliers, products and pricing.
- Preparing to open.
- Recruitment of staff.
- Computer and software training.
- Paperwork and controls.
- Grand Opening advertising and promotions.
Franchise Service Fee
The ongoing franchise service fee is 5% of weekly sales. For this fee the franchisee receives:
- A continual licence to use bossy hair’s name and trademarks.
- A quarterly salon business evaluation by a company consultant. These visits ensure company standards and also the franchisee receives valuable ongoing business advice and performance analysis.
- Operation Manual updates.
- Quarterly newsletters.
- The opportunity to attend regular franchise meetings, seminars, workshops and conferences.
- Ongoing advice from the franchisor, in particular:
- Pricing of products and services
- Product development and research
- Stock control
- Personnel and Training
- Financial and bookkeeping advice
- Advertising and Marketing advice
- Equipment maintenance
- Salon expansion
- Plus a myriad of other business and hairdressing issues
Advertising Fee
The bossy hair advertising fee is 2% of weekly sales. For this the franchisee receives:
- The ability to use this funding in the local market area, as decided by franchisees in the bossy marketing fund.
- Special promotions
- Exposure of the bossy hair brand.