In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Sharkey’s Cuts for Kids franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Sharkey’s Cuts for Kids franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Sharkey’s Cuts for Kids outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Sharkey’s Cuts for Kids franchise opportunity

Section V – Presentation and analysis of Sharkey’s Cuts for Kids’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2022 and 2023 total, average, median, highest, and lowest unit revenue, and average percentage growth, for the 114 Sharkey’s Cuts for Kids franchised outlets open and operating for at least a full 12 months as of December 31, 2023, for which Sharkey’s Cuts for Kids has data, grouped by quartile

• 2022 and 2023 system-wide gross revenue for the Sharkey’s Cuts for Kids corporate-owned outlet in Connecticut and all franchised outlets that were open at any point during the applicable calendar year and were able to provide reliable financial information

Section VI – Key ratios, comparables, computations, and analyses for the Sharkey’s Cuts for Kids franchise opportunity (exclusive content for Platinum subscribers)

Section I – Sharkey’s Cuts for Kids Franchise Costs

• Sharkey’s Cuts for Kids franchise costs (A Package), based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $40,000
• Initial Turn-Key Package:  $119,990
• Rental – 1 Month:  $1,750 to $5,500
• Leasehold Improvements (after tenant improvement reimbursement):  $0 to $53,620
• Professional Fees:  $0 to $2,500
• Blueprints and Plans:  $0 to $5,000
• Computer Systems and Software, Indoor and Outdoor Signage, Lighting, Tile, Paint, Washer/Dryer:  $14,500 to $24,000
• Insurance Premiums – Per Month:  $175 to $250
• Security Deposits:  $750 to $5,750
• Grand Opening Advertising:  $12,000
• Permits and Licenses:  $250 to $750
• Additional Funds – 3 Months:  $0 to $30,000
• Total Estimated Sharkey’s Cuts for Kids Franchise Costs:  $189,415 to $299,360

Section II – Sharkey’s Cuts for Kids’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Sharkey’s Cuts for Kids’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $40,000

• Initial Turn-Key Package Fee:  $119,990. The cost of the following equipment and supplies is included in the Initial Turn-Key Package Fee for a Sharkey’s Cuts for Kids franchise: desk, base cabinets, adult styling chairs, kids styling chairs, station vanities, Xbox 1 consoles, flat panel televisions, television wall brackets, shelves for display, shelves and racks for in-store display, stools, monogrammed fixtures for vanities, assorted mirrors, manicure station, waiting area stools, chalk buckets, slop sink, mobile cart, electronic hair removal machines (eye-vac), vacuum, donation chips and boxes, combs, brushes, flat iron, curling irons, blow dryers, clippers, buzzers, towels, capes, aprons, sanitizing jar and sanitizing liquid, hair washing stations, hair washing chairs, booster seats, monogrammed lampshades, Sharkey dollars, Sharkey bookmarks, Sharkey 1st haircut certificates and baggies, telephone, assorted wall hooks, Dippin’ Dots Freezer, retail, glamour dresses, nail polish and rings, balloons and stand, desk accessories, picture printer, princess clip containers, and lollipops. As part of your Initial Turn-Key Package Fee, Sharkey’s Cuts for Kids will also create a website for you and will supply you with a domain name.

• Royalty Fee:  $1,000 per month for months 4-12; $1,250 per month for months 13-24; $1,500 per month for months 25-36; $1,750 per month commencing month 37 and for the remainder of the term

• Local Advertising:  3% of Gross Sales

Section III – Number of Franchised and Company-Owned Sharkey’s Cuts for Kids Outlets

Franchised

2021

• Outlets at the Start of the Year:  69
• Outlets at the End of the Year:  93
• Net Change:  +24

2022

• Outlets at the Start of the Year:  93
• Outlets at the End of the Year:  121
• Net Change:  +28

2023

• Outlets at the Start of the Year:  121
• Outlets at the End of the Year:  142
• Net Change:  +21

Company-Owned

2021

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2022

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2023

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section IV – News Updates on the Sharkey’s Cuts for Kids Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Sharkey’s Cuts for Kids Franchise (Item 19, 2024 FDD)

• This item contains a historic financial performance representation based on Sharkey’s existing franchised outlets in 2022 and 2023.

• In the fiscal year ending on December 31, 2023, there were 143 opened outlets; however, only 114 were open for 12 months or more. Parts 1 to 4 below present information about the Gross Revenue of 114 of 114 Sharkey’s Cuts for Kids franchised outlets open and operating for at least a full 12 months as of December 31, 2023, for which Sharkey’s has data.

• Data from locations in operation for less than 12 months as of December 31, 2023 has been excluded, as well as locations that closed or terminated or vacated during the 2023 fiscal year, and locations for which Sharkey’s does not have reliable data.

• For data to be considered not reliable for this financial performance representation, these excluded outlets presented data in format and/or via a system that is not uniform with most Sharkey’s Cuts for Kids outlets.

• At the time of this financial performance representation, the total outlets excluded due to having unreliable data is 0.

• As of December 31, 2023, there were 29 locations that had not been open for 12 months.

• Except where noted, these figures are taken directly from each location’s POS system.

Part 1 – First Tier of Sharkey’s Locations Based on Gross Revenue (29 Locations)

2022

• Total Unit Revenue:  $10,625,894
• Average Unit Revenue:  $366,410
• Highest Unit Revenue:  $634,000
• Lowest Unit Revenue:  $173,967
• Median Unit Revenue:  $352,000

2023

• Total Unit Revenue:  $12,223,268
• Average Unit Revenue:  $421,492
• Highest Unit Revenue:  $656,688
• Lowest Unit Revenue:  $339,673
• Median Unit Revenue:  $396,226

2023 vs. 2022

• Average Percentage of Growth:  13.1%

Part 2 – Second Tier of Sharkey’s Locations Based on Gross Revenue (28 Locations)

2022

• Total Unit Revenue:  $6,441,016
• Average Unit Revenue:  $230,036
• Highest Unit Revenue:  $332,000
• Lowest Unit Revenue:  $35,593
• Median Unit Revenue:  $245,239

2023

• Total Unit Revenue:  $8,387,034
• Average Unit Revenue:  $299,537
• Highest Unit Revenue:  $337,239
• Lowest Unit Revenue:  $259,160
• Median Unit Revenue:  $296,444

2023 vs. 2022

• Average Percentage of Growth:  23.2%

Part 3 – Third Tier of Sharkey’s Locations Based on Gross Revenue (29 Locations)

2022

• Total Unit Revenue:  $5,014,392
• Average Unit Revenue:  $172,910
• Highest Unit Revenue:  $292,941
• Lowest Unit Revenue:  $17,324
• Median Unit Revenue:  $175,700

2023

• Total Unit Revenue:  $6,485,317
• Average Unit Revenue:  $223,632
• Highest Unit Revenue:  $258,304
• Lowest Unit Revenue:  $179,975
• Median Unit Revenue:  $213,419

2023 vs. 2022

• Average Percentage of Growth:  22.7%

Part 4 – Fourth Tier of Sharkey’s Locations Based on Gross Revenue (28 Locations)

2022

• Total Unit Revenue:  $2,770,386
• Average Unit Revenue:  $98,942
• Highest Unit Revenue:  $221,821
• Lowest Unit Revenue:  $2,362
• Median Unit Revenue:  $112,162

2023

• Total Unit Revenue:  $4,058,283
• Average Unit Revenue:  $144,939
• Highest Unit Revenue:  $177,110
• Lowest Unit Revenue:  $77,388
• Median Unit Revenue:  $151,234

2023 vs. 2022

• Average Percentage of Growth:  31.7%

Part 5 – System-Wide Gross Revenue

• Total Revenue 2022:  $27,423,335
• Total Revenue 2023:  $33,290,427
• Percentage of Growth:  18%

• Gross Revenues means all revenue from sales at or from outlet operations, less (i) properly documented refunds to customers; (ii) properly documented promotional discounts (i.e., coupons); and (iii) properly documented employee discounts (limited to 3% of Gross Revenue).

• The figures in the above tables have not been audited.

• System-wide means all stores within the Sharkey’s Cuts for Kids Franchise System. This includes the Corporate outlet in Connecticut and all franchised outlets that were able to provide reliable financial information.

• Some outlets have earned this much. Your individual results may differ. There is no assurance that you’ll earn as much.

Section VI – Sharkey’s Cuts for Kids Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️