Table of Contents
1.0 Executive Summary .............................................................................................................................3
1.1 Objectives ..............................................................................................................................................3
1.2 Mission ...................................................................................................................................................3
1.3 Keys to Success ..................................................................................................................................3-4
2.0 Company Summary ..........................................................................................................................5-6
2.1 Company Ownership .......................................................................................................................7-8
2.2 Company History .................................................................................................................................9
Table: Past Performance ............................................................................................................................9
3.0 Products and Services ...................................................................................................................10-11
4.0 Market Analysis Summary ..........................................................................................................12-19
4.2 Target Market Segment Strategy .....................................................................................................20
4.3 Service Business Analysis ............................................................................................................21-22
5.0 Competition …………………………................................................................................................23
5.1 Competitive Edge ..........................................................................................................................23-24
5.2 Options for New Franchisees………………...............................................................................24-26
5.25 Marketing Strategy for Salons…..……………………………………………………………..27-31
5.3 Trademarks..........................................................................................................................................32
5.4 Training.................................................................................................................................................33
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The salon just for kids where the haircuts are cool and fun rules!
7.0 Franchise Facts and Statistics.............................................................................................................34
9.0 Opening Costs......................................................................................................................................38
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The salon just for kids where the haircuts are cool and fun rules!
1.0 Executive Summary
Our principal business address is Westport, Connecticut, with additional offices and representation in
Canada, Ireland, and the UK. We are a franchising company that sells and develops franchises for
Sharkey’s Cuts for Kids hair which operate under the mark “Sharkey’s Cuts for Kids”.
All Salons are established and operated under a comprehensive and unique system (the “System”). The
System includes distinctive signage, interior and exterior design, décor, color scheme, furnishings and
fixtures; distinctive products and services; uniform standards, specifications and procedures for operations;
quality and uniformity of products and services offered; inventory, management and financial control
procedures; training and assistance; and advertising and promotional programs; all of which we may
change, improve and further develop, at our discretion. Certain aspects of the System are more fully
described in this document and our confidential operations manual.
1.1 Objectives
The objectives for Sharkey’s Cuts for Kids are:
1. To create a service-based kids salon which exceeds customers’ expectations.
2. To increase the number of customers by at least 10% per month through superior customer service and
word-of-mouth referrals.
3. Have a clientele return rate of 80%+ at the end of each month.
4. Become an established community destination by end of first year.
5. Educate the community on what the salon has to offer.
Company is currently sitting at #2 in the industry in the United States. Sharkey’s will become the industry
leader around the globe in the Kids Haircutting Industry within the next 12-36 months.
1.2 Mission
To provide excellent kids haircuts, birthday parties, & select retail items in a kid-friendly atmosphere while
ensuring our customers, both parent and child, receive excellent service in a vibrant, playful, and circus
like environment.
1.3 Keys to Success
The Keys to success in our business are:
- Recession Proof Business: kids are kids around the world. Kids always need haircuts, birthday parties,
hair accessories, and toys.
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The salon just for kids where the haircuts are cool and fun rules!
- Superior Customer Service: high-quality kids haircuts with child friendly employees.
- Environment: provide a clean, upscale, fun environment conducive to giving professional service to kids
and parents.
- Convenience: offer clients a wide range of services in one environment.
- Location: provide an easily accessible location (3-5 mile radius per location) for customer convenience.
- Reputation: reliability, consistency, integrity, and 100% dedication to pleasing the parents and kids.
- Salon open seven (7) days per week
- Facility designed to please the parents and keep the kids busy during their visit while the parents can
relax.
- Well trained management team.
- Testimonials: new customers love nothing more than great stories from current customers, franchisees,
and store owners.
- Achievements and Recognition: awards, both in-store and in the franchisee community.
The company believes that certain risk factors can be minimized by:
- Optimization of key locations for new franchisees.
- Strong franchisees with some experience in marketing or sales (but not required).
- Low overhead within the salon through the use of multi-skilled & child friendly employees.
- Strong customer base through aggressive marketing.
- Strong community ties and involvement with schools, kids associations, kid’s retailers, religious sectors,
parks, etc.
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The salon just for kids where the haircuts are cool and fun rules!
2.0 Company Summary
When Linda and Scott Sharkey took their kids to get haircuts in uninviting, unexciting salons, they felt
there should be something better. So they set out to create a unique salon that caters to children of all ages.
A place that is prompt for those on-the-go parents, fun and entertaining for their children, and reasonably
priced for their wallets. Hence – Sharkey’s Cuts for Kids was born October 1, 2002.
The first salon was a huge success and in 2004 they opened their second and third stores. The requests for
franchises started to accelerate within the first few months of 2006, and they then knew the business model
was successful. In 2006, the first Sharkey’s franchise was opened. In just two short years, 20 more salons
opened in the United States and Canada. As of Q2/2011 Sharkey’s Franchising Company has global
commitments for 245+ salons in the United States, Canada and Europe, making us the fastest growing
children’s hair salon franchise.
Sharkey’s is now the most innovative and entertaining kid’s salon for both boys and girls ages 0-14 around
the globe. Our proven business models, which feature lower than average royalties and multiple revenue
streams, give you the best opportunity for success. In summary, Sharkey’s is:
•
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•
•
•
•
•
•
A unique salon just for kids
A “proven” recession proof business (kids always need haircuts, birthday parties, and retail)
The fastest growing chain of children’s salons
Commitments in the US, Canada, and Europe for another 245+ new stores
Part of a $55 billion hair care industry
A service business in strong demand even in a downward economy
A fun and exciting place for children and parents
A business that delivers multiple revenue streams:
o Haircuts for boys and girls, and parents and dads
o Birthday parties in our “famous” Glamour Room
o Specialty merchandise and party favors
A recession-proof industry
Hair care is a $55 billion per year industry. It is estimated that hair care for children makes up $5 billion of
the market. According to the 2000 census, there are over 52 million children between the ages of 0 and 14 in
the US and they average 8 haircuts per year. This is the Sharkey’s Cuts for Kids target market. Children’s
hair salons and entertainment style hair cutting have recently begun to gain momentum and the growth
rate is phenomenal. Sharkey’s leads the industry in momentum and franchises sold per year, having
overtaken its closest competitor in 2008 with the ranking of “Fastest Growing Children’s Hair Salon” from
Franchise Times.
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The salon just for kids where the haircuts are cool and fun rules!
Why Sharkey’s
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•
•
•
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•
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Turnkey package
Playstation 3, X-box 360, Nintendo
Lower initial investment compared to other kids hair salons (average lower investment of
approximately $100,000)
Benefit of a brand with high consumer awareness
A complete and extensive training program that is unequaled
Outstanding PERSONAL assistance throughout every step of the start-up phase and beyond
Dedicated support team available at all times
Unique and “famous” Glamour Parties
Effective marketing programs
Simple business model with an easy to follow step by step guide to make you successful
Direct access to the ownership who are loyal and responsive to new ideas from their franchisees
We offer unsurpassed, dedicated franchisee support, including but not limited to the following:
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•
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4-day comprehensive training program
Site selection and negotiation
Salon design and layout
Grand opening and continuous marketing programs
On-site assistance during grand opening week
Owners’ meetings to discuss operations and marketing
What will set Sharkey’s Cuts for Kids apart from the competition is the commitment to provide all these
services in one convenient location.
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The salon just for kids where the haircuts are cool and fun rules!
2.1 Company Ownership
Sharkey's Franchising Co., LLC is a privately-held LLC co-owned by Linda and Scott Sharkey.
Co-Founder and CEO: Scott Sharkey
Scott Sharkey began his career graduating from the University of Hartford in 1985 with a degree in
Economics and Finance. In 1985, Scott went to work in Research & Development for Chemicraft
International, Inc., a New York based company, creating thermal transfer ink formulations for the soon to
be barcode and facsimile industry. As part owner of Chemicraft, Scott led the design team that created and
operated Chemicraft's first manufacturing equipment in 1988 in the United States. Scott's responsibilities
then evolved to include the hiring and training of the company's fast growing factory, marketing, and sales
personnel in the United States and then in the UK in 1995.
In 1990, Scott became the Director of Sales for Chemicraft, cultivating relationships with strategic original
equipment manufacturer's accounts; value added resellers, and resellers. Scott successfully transformed a
small $2,000,000 business into a large dominant player ($11,000,000 is sales) in the barcode and facsimile
market, both domestically and internationally. During his ten years as Director of Sales at Chemicraft, he
developed and managed over $125,000,000 in barcode and facsimile sales in the United States and
throughout Europe.
In March of 2001 Scott left Chemicraft and created a new company called Precision Ribbon Technology
("PRT"), a New York company. PRT was a sales and marketing company that distributed barcode and
facsimile products into smaller reseller channels of distribution. From April of 2001 to April of 2002, Scott
built a large book of business through hundreds of distributors and resellers and PRT was acquired by one
of its competitors, Iimak, of Amherst, New York. Scott was part of the acquisition and worked for Iimak
from January 2002 to February 2003.
Scott left Iimak to open the first Sharkey’s Cuts for Kids and currently serves as Sharkey's (and its affiliates’
Fintastics Cuts for Kids out of British Columbia) CEO. Scott's responsibilities with Sharkey’s involve all
aspects of public relations, marketing, domestic & international expansion, franchise sales and
development, ,and also serves on the Advisory Board for Sharkey’s Franchising Co., LLC.
Scott will represent Sharkey's in the offering and approving of shares sold for Sharkey’s.
Co-Founder: Linda Sharkey
Linda Sharkey holds a Bachelor of Science degree in advertising from the University of Texas at Austin.
She started her career in advertising working as an account supervisor with Saatchi & Saatchi Advertising,
Grey Advertising and Wells Rich Green Advertising from 1987 to 1995. Her campaign credits included the
award winning “I Love New York” campaign for New York State and the Procter and Gamble “Hair So
Healthy It Shines” campaign for Pantene shampoo. She also brings considerable experience in marketing
for children’s products. Linda worked on several General Mills brands, including Fruit by the Foot,
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The salon just for kids where the haircuts are cool and fun rules!
Gushers, and Fruit Roll-ups. This work allowed Linda to become heavily involved in new product
development for General Mills. Her work as an Account Supervisor involved every aspect of the
marketing process, from creative strategy through research and development to sustaining brands through
their life cycle. After a brief break in her career to start her family, Linda returned to the business world as
Chief Financial Officer of Precision Ribbon Technology. After working for PRT from April 2001 to January
2002, Linda went on to co-found the first Sharkey's Cuts for Kids.
Currently Linda is a silent partner within Sharkey’s Franchising Co, LLC, and its affiliate company
Fintastics Cuts for Kids out of British Columbia, Canada.
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The salon just for kids where the haircuts are cool and fun rules!
2.2 Company History
System wide Outlet Summary
2007, 2008, 2009, 2010, 2011
Outlet Type
Sharkey's Deluxe Franchise
Sharkey's Jr. Franchise
Corporate Stores
Total
Total Salons Scheduled to Open
Year
Outlets
Open at
the End
of the
Year
Outlets
Sold by
the End
of the
Year
but Not
Open
Outlets Purchased,
and Scheduled, by
Master or Area
Developer
20072009
2010
23
25
2
3
136
0
2011
18
3
0
2009
2
2
0
2010
3
13
91
2011
18
13
40
2009
0
0
0
2010
0
0
0
2011
0
0
0
2009
23
2
136
2010
27
16
91
2011
37
16
40
267
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The salon just for kids where the haircuts are cool and fun rules!
3.0 Product and Services
The company sets itself apart from other child hair care facilities that only offer one, or maybe two, types of
similar services. Parents desire these additional services that Sharkey’s offers. We have found and proven
that these parents are frustrated because they must go to several different salons, party establishments, toy
stores or travel long distances to find these types of services, activities, or retail products. Sharkey’s offers
all of the above under one roof. Sharkey’s revenue stream account for 75% haircuts (60% boys, 40% girls),
15% birthday parties (girls ages 4-12), & 10% retail (hair accessories, jewelry for the parents, party favors
and gifts). The business atmosphere is clean, friendly, circus-like looking, and upscale where customers
will be 110% comfortable bringing their children and “tweenagers” (new service as of Q1/2010 for older
girls and parents). We offer a personal touch, fun exciting styling chairs, and a memorable hassle-free
environment for the kids and parents!
Turn-key Purchase
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, glass
tops/shelves for vanities, Playstation3 or Xbox 360, Nintendo, assorted video games, DVD players,
assorted movies, DVD wall mount shelving, 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, 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 the franchise, we will
replace any item that is of equivalent value and serves the same or similar purpose.
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The salon just for kids where the haircuts are cool and fun rules!
Services Offered at Sharkey's
*All haircuts include wash, cut, blow-dry, Tween Lounge, fun chairs, game stations with
Xbox/PS3/Nintendo, mini-cure & glamour rings, Sharkey dollars & bookmarks, balloons,
lollipops, and of course lots of fun, smiles & great haircuts.
Boy's Haircut
Wash, cut, blow-dry, fun chairs or X-box/Nintendo, Sharkey dollar, Sharkey bookmark, balloon, lollipop.
Girl's Haircut
Wash, cut, blow-dry, Tween Lounge, fun chairs or X-box/Nintendo, mini-cure & choice of rings,
Sharkey dollar, Sharkey bookmark, balloon, lollipop.
Bang Trim
Tween Lounge, fun chairs or Xbox/PS3/Nintendo, mini-cure & choice of rings,
Sharkey dollar, Sharkey bookmark, balloon, lollipop.
Child's 1st Haircut
Wash, cut, blow-dry, fun chairs, 1st haircut certificate, picture, lock of hair, minicure & choice of rings, Sharkey dollar, Sharkey bookmark, balloon, lollipop.
Updo
Wash, cut, blow-dry, Tween Lounge, fun chairs or X-box/Nintendo, mini-cure & choice of rings,
Sharkey dollar, Sharkey bookmark, balloon, lollipop.
Dad & Son
Wash, cut, blow-dry, fun chairs or X-box/Nintendo, Sharkey dollar, Sharkey bookmark, balloon, lollipop.
Mom & Daughter
Wash, cut, blow-dry, Tween Lounge, mini-cure & choice of rings, Sharkey dollar, Sharkey bookmark,
balloon, lollipop.
Mom's Haircut or Blowout
Wash, cut, blow-dry, Tween Lounge
Day of Beauty
A spa package available to girls 4-14 in our "Tween Lounge".
Membership Program
Pay one price and receive unlimited haircuts, hair treatments, mini-cures, and
discounts off retail items and birthday parties.
Glamour Girl Birthday Parties
* services may vary per location
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The salon just for kids where the haircuts are cool and fun rules!
4.0 Market Analysis Summary
United States
Research has shown us that the prime markets for a Sharkey's Cuts for Kids salon is near urban
neighborhoods comprised of middle-to upper-income families. These families search for ways to engage
their children in more than just haircuts that their children passively enjoy or do not enjoy. Demographics
for each salon require 10,000-15,000 kids within a 5-mile radius of each salon. Kids population figures are
approximately 23.5% +/- 1.5% (ages 0-17) of the total population, but these figures will vary in states like
Utah where the percentage of kids reach as high as 31.2% (US Census Bureau). Sharkey's analysis of the
United States market is listed below:
U.S. population density within each county, in persons per sq. mile (lower 48 states only): Light to
dark (yellow to blue): 1-4 (y), 5-9 (lt. green), 10-24 (teal), 25-49 (dk. teal), 50-99 (blue-green), 100-249
(blue), 250-66,995 (dark blue).
In 2008, the US Census Bureau projected future censuses as follows:
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2010: 310,232,863
2020: 341,386,665
2030: 373,503,674
*Sharkey's Cuts for Kids looks for a minimum of 10,000 kids within a 5 mile radius of each location. Kid’s
ages 0-14 represent 20.2% of the total US population, according to the US Census Bureau.
**Sharkey’s takes the total number of kids between ages 0-14, divides this number by 15,000 kids, and takes
28% of this number. This 28% takes into account certain regions that are not easy to get to where
customers need to drive 5+ miles where mountains exist, income levels, ethnicity, and small suburbs and
towns.
***It needs to be noted that customers will drive 10+ miles for our "famous" Glamour Girl birthday parties.
Customers typically will drive no more than 10 miles for a haircut, except on Saturday, Sunday, and
holidays if a major shopping center exists in that location.
Using the above formula, Sharkey's projects the following number of outlets within the United States to be
open by:
 2010: 310,232,3 - 119 Sharkey's Salons
 2020: 31,3, - 127 Sharkey's Salons
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The salon just for kids where the haircuts are cool and fun rules!
Canada
Research has shown us that the prime markets for a Sharkey's Cuts for Kids salon is near urban
neighborhoods comprised of middle-to upper-income families. These families search for ways to engage
their children that are more than just haircuts that their children passively enjoy or do not enjoy.
Demographics for each salon require 10,000-15,000 kids within a 5-mile radius of each salon. Kids
population figures are 22.1% (ages 0-17) of the total population. Sharkey's analysis of Canada is listed
below:
In 2010, the US Census Bureau projected future censuses as follows:
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2010: 34,019,000
2020: 36,387,000
2030: 38,565,000
*Sharkey's Cuts for Kids looks for a minimum of 10,000 kids within a 5 mile radius of each location. Kids
ages 0-14 represent approximately 17.9% of the total population in Canada.
**We will take the total number of kids between ages 0-14, divide this number by 15,000 kids, and take 28%
of this number. This 28% takes into account certain regions that are not easy to get to where customers
need to drive 5+ miles where mountains exist, income levels, ethnicity, and small suburbs and towns.
***It needs to be noted that customers will drive 10+ miles for our "famous" Glamour Girl birthday parties.
Customers, "typically" will drive no more than 10 miles for a haircut, except on Saturday, Sunday, and
holidays if a major shopping center exists in that location.
Using the above formula, Sharkey's projects the following number of outlets within Canada to be open bye:
 2010: 3,019,000 - 113 Sharkey's Salons
 2020: 3,37,000 - 122 Sharkey's Salons
 2030: 3,,000 - 129 Sharkey's Salons
*Sharkey's has an affiliate company called Fintastics Cuts for Kids which operates under Sharkey's Cuts for
Kids in the province of British Columbia.
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The salon just for kids where the haircuts are cool and fun rules!
Europe
Research has shown us that the prime markets for a Sharkey's Cuts for Kids salon is near urban
neighborhoods comprised of middle-to upper-income families. These families search for ways to engage
their children that are more than just haircuts that their children passively enjoy or do not enjoy.
Demographics for each salon require 15,000 - 20,000 kids within a 10-kilometer radius of each salon. Kids
population figures are 20.5% (ages 0-17) of the total population. Sharkey's analysis of the European market
is listed below:
In 2009 the population of Europe was estimated to be 852.4 million. The precise figure depends on the
exact definition of the geographic extent of Europe. The population of the EU was 499 million as of 2008.
Non-EU countries situated in Europe in their entirety account for another 94 million. Five transcontinental
countries have a total of 240 million people, of which about half reside in Europe proper.
*Sharkey's Cuts for Kids looks for a minimum of 15,000 - 20,000 kids within a 10-kilometer radius of each
location. Kid’s ages 0-14 represent approximately 15.5% of the total European population.
**Sharkey’s takes the total number of kids between ages 0-14, divides this number by 20,000 kids, and takes
5% of this number. This 5% takes into account certain regions that are not easy to get to where customers
need to drive 10+ kilometers where mountains exist, income levels, ethnicity(very important in Europe),
and small suburbs and towns. Plus it needs to be noted that Sharkey's is a new brand, and concept, in
Europe as kid’s hair cutting salons do not exist anywhere in Europe.
***It needs to be noted that customers will drive 25+ kilometers for our "famous" Glamour Girl birthday
parties. Customers, "typically" will drive no more than 16 kilometers for a haircut, except on Saturday,
Sunday, and holidays if a major shopping center exists in that location.
Using the above formula, Sharkey's projects the following number of outlets within Europe to be open by:
 2009: 2,00,000 - *0 Sharkey's Salons
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The salon just for kids where the haircuts are cool and fun rules!
India
Research has shown us that the prime markets for a Sharkey's Cuts for Kids salon is near major cities and
some urban neighborhoods comprised of middle-to upper-income families only. These families search for
ways to engage their children that are more than just haircuts that their children passively enjoy or do not
enjoy. Demographics for each salon require 10,000 - 15,000 kids within a 10-kilometer radius of each salon.
Kid’s population figures are 32.1% (ages 0-14) of the total population, Sharkey's analysis of the India
market is listed below:
*Sharkey's Cuts for Kids looks for a minimum of 15,000 - 20,000 kids within a 10-kilometer radius of each
location. Kid’s ages 0-14 represent approximately 31.2% of the total Indian population.
**For India we take the total number of kids between ages 0-14, take into account income levels across the
country, higher than average lease rates, divide this number by 15,000 kids, and take 14% of this number.
This 14% takes into account certain regions that are not easy to get to where customers need to drive 10+
kilometers where mountains may exist, income levels are below middle income numbers, and small suburbs and
towns. Plus it needs to be noted that Sharkey's will be a new brand to India, NOT concept, as a few mom
and pop kids hair salons exist in one or two of the major cities (Bangalore and Mumbai). It should also be
noted that the Indian population, in general, like franchise concepts and represent a nice percentage of
current franchise ownership for Sharkey's worldwide.
***Activity for the Master Franchise rights to India is very big right now. Sharkey's is estimating the
Master rights for India to be between $750,000 - $1,500,000 for the entire country. This sum is typically paid
upfront at time of signing, but in some instances terms can/would be discussed.
****It needs to be noted that customers will drive 25+ kilometers for our "famous" Glamour Girl birthday
parties. Customers, "typically" will drive no more than 16 kilometers for a haircut, except on Saturday,
Sunday, and holidays if a major shopping center exists in that location.
***** Birthday parties for children in India average approximately 35 kids. Parents in India will spend
upwards of $3000 US dollars for their daughter’s birthday party, according to locals on the ground in these
middle to upper middle class communities.
Using the above formula Sharkey's projects the following number of outlets within India to be open by:
 2011: Estimated Middle Class: 10,000,000 - 3 Sharkey's Salons
 201: Estimated Middle Class: 27,000,000 - 3 Sharkey's Salons
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The salon just for kids where the haircuts are cool and fun rules!
UAE & Middle East
*As of 11/2011 Sharkey's has a franchisee in contract discussions for Dubai.
Research has shown us that the prime markets for a Sharkey's Cuts for Kids salon is near major cities and
some urban neighborhoods comprised of lower middle income families and above. These families search
for ways to engage their children that are more than just haircuts that their children passively enjoy or do
not enjoy. Demographics for each salon require 10,000 - 15,000 kids within a 10-kilometer radius of each
salon. Kid’s population figures are 20.4% (ages 0-14) of the total population, Sharkey's analysis of the
UAE market is listed below:
Largest Cities of the UAE
Rank
City Name
Emirate
Population
Estimated # of Sharkey's Jr. Salons
1
Dubai
Dubai
1,770,533
4-7
2
Abu Dhabi
Abu Dhabi
896,751
2-3
3
Sharjah
Sharjah
845,617
2-3
4
Al Ain
Abu Dhabi
374,000
1-2
5
Ajman
Ajman
372,923
1-2
6
Ras Al Khaimah Ras Al Khaimah
171,903
1
7
Fujairah
Fujairah
107,940
0
8
UmAl Quwain
UmAl Quwain
69,936
0
9
Khor Fakkan
Sharjah
49,635
0
10
Dibba
Fujairah
30,000
0
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The salon just for kids where the haircuts are cool and fun rules!
Japan
Research has shown us that the prime markets for a Sharkey's Cuts for Kids salon is near urban
neighborhoods comprised of middle-to upper-income families. These families search for ways to engage
their children that are more than just haircuts that their children passively enjoy or do not enjoy.
Demographics for each salon require 10,000-15,000 kids within a 5-mile radius of each salon. Kids
population figures are 13.3% (ages 0-14) of the total population. As of 2010 Japan's population was
estimated at 126,804,183.
*Sharkey's Cuts for Kids looks for a minimum of 10,000 kids within a 5 mile radius of each location. Kid’s
ages 0-14 represent approximately 13.3% of the total Japan population, according to the US Census Bureau.
**Sharkey’s takes the total number of kids between ages 0-14, divides this number by 15,000 kids, and takes
28% of this number. In this case we will take slightly less than the typical US 28% and take only 21% for
this market. This takes into account certain regions that are not easy to get to where customers need to
drive 5+ miles where mountains exist, income levels, and small suburbs and towns.
***It needs to be noted that customers will drive 10+ miles for our "famous" Glamour Girl birthday parties.
Customers, "typically" will drive no more than 10 miles for a haircut, except on Saturday, Sunday, and
holidays if a major shopping center exists in that location.
*The Japanese parents and kids like very similar services to what is here in the United States. The middle
class, and upper middle class population, in Japan like to spend money, pamper their kids, and like US
franchises and services that pertain to children.
Using the above formula, the potential Sharkey's outlets to open within Japan are:
2010: 126,804,183- 236 Sharkey's Salons
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The salon just for kids where the haircuts are cool and fun rules!
Middle East, Russia, China, South Africa
We are currently fielding many leads on a weekly basis for the Middle East, but this region is not stable at
the moment and Sharkey's has elected not to pursue this market at this time. Our company is open to
doing regional salons in countries such as Egypt, Saudi Arabia, and Israel.
Russia is a market we are watching very closely as we are currently in discussions with a possible Master
Franchisee for this territory. Sharkey's will need to do much more legwork on the demographics and
income levels in this very large country before moving forward. But, Sharkey's feels very strongly that we
will have a presence in this country within the next 2-4 years.
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The salon just for kids where the haircuts are cool and fun rules!
The China market for Sharkey's has the same approach as Russia at this time. We have engaged a number
of people in this country as we are exploring future possibilities. China is the biggest unknown for
Sharkey's at this time, but the company is exploring possible opportunities.
South Africa may be a very nice niche for Sharkey's as we are currently discussing a possible salon or two
in this country.
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The salon just for kids where the haircuts are cool and fun rules!
.2 Target Market Segment Strategy for Salons
Our success will be based on our ability to become known in the community. We must focus on the
specific market segments whose needs match our offerings. Focusing on targeted segments is one of the
keys to meeting our expansion plans.
Stay at Home Parents and Dads
For a variety of reasons, stay-at-home Parents and Dads are an attractive segment. Parents are looking for
a place to take their children to get a haircut and play. They live in middle class suburbs surrounding the
metropolitan area. The market segment customers will lead a lifestyle in which their children play a large
part in their lives. The company also focuses on meeting the local community need for birthday party
services and select retail items within the salon. Flexibility and service within the salon allows the children
and “tweenagers” (new revenue source as of 2010) to be dropped off, or to be taken care of while the mom
or dad is sitting and reading/texting/checking emails.
Elementary Schools
The salon also likes to establish relationships with local elementary schools; there are typically 35+ schools
within the target area, for possible customers. The strategy for this market is to provide periodic
communications through the PTA channels, Friday folders, Mother/Daughter Nights at the schools, etc..
This strategic approach will provide credibility and frequency of communication to our target market. This
market is a primary focus for our salons.
Day Cares
Local Day Care centers are a great source of customers for our salons. Sharkey's is exploring the
possibilities of bringing a mobile type Sharkey's (Q4/2012) establishment to these Day Care locations
during the course of a business day.
Sporting Venues
Soccer, tennis, baseball, basketball, hockey, and other local sporting teams all comprise potential customers
for our salons. Both boys and girls participate in all these events.
Local Retail Establishments
Pizza shops, libraries, ice cream shops, supermarkets, deli's, bagel shops, delivery services, kids gym
franchises, other birthday party establishments, girl/boy scout troops, children’s dentists and doctors
offices, children’s hospitals, dance studios, karate classes, are all target markets for Sharkey’s' Cuts for Kids
customer!
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The salon just for kids where the haircuts are cool and fun rules!
.3 Service Business Analysis
When times are tough, consumers will spend on their kids!
Despite the gloomy economic forecast, many child and education related franchises claim the clouds are
parting for their businesses!
There is one market that never has to fear losing its client base, it’s the children’s products, education and
services industry. After all, there will always be children! Tutoring franchises, children’s consignment
franchises, and child related service franchises have been helped by a poor economy. Children and their
parents are spending more money every year. Children in this country influence $500 billion of retail and
service related spending each year. With so many children, and so many different needs as the face of the
family changes, there are many opportunities for the entrepreneur to enter into this booming market.
There are 4 million babies born every year in the U.S., and most families are moving toward being dualincome households. The result of this combination is $60 billion in annual revenues for the childcare
industry. Whether it is haircuts, toys, food for clothes, the market is rapidly growing. Children’s hair care
and personal care was estimated at $281 million in 2006 and has maintained steady growth since 2002. We
expect this to keep rising through 2020.
Sharkey's Cuts for Kids
At Sharkey's Cuts for Kids, we know that kids and parents want something different with their haircut
experience. So we provide it all: a superior haircut with warm, experienced stylists in a meticulously clean
place filled with fun! Children can sit in a Harley Davidson Motorcycle, Barbie Car, Big Red Jeep, and
Sparkling Silver Mercedes while watching their favorite DVD'S or cartoon channel. Older kids will love the
chance to play Playstation 3, X-box 360, and Nintendo games (all on 40”-42” TV’s) and watch their favorite
sporting events or music concerts through Satellite TV while getting their haircut!
If you should be waiting for your haircut or just want to have fun, feel free to shop for some of our great
toys, gifts, party favors, or have your kids play video games while they are waiting!
We offer unsurpassed, dedicated franchisee support, including but not limited to the following:
•
•
•
•
•
•
4-day comprehensive training program
Site selection and negotiation
Salon design and layout
Grand opening and continuous marketing programs
On-site assistance during grand opening week
Owners' meetings to discuss operations and marketing
Our brilliant formula for success is all about our multiple sources of revenue that flow through our shops
daily (haircuts, birthday parties, retail).
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The salon just for kids where the haircuts are cool and fun rules!
Common Questions?
What qualifications do you seek in a franchisee?
We seek positive, customer focused people who are highly motivated with a desire and commitment to
build a successful business while having fun.
Do I need hair care experience?
Not at all. We actually prefer previous management or business experience to hair care experience. Your
stylist will handle the hair while you focus on building your business.
Why choose Sharkey’s Cuts for Kids over another salon?
We are the most innovative and entertaining salon for both boys and girls ages 0-14 around the globe. Our
proven business models, which feature lower than average royalties and three revenue streams, give you
the best opportunity for success.
What is your “Turnkey package”?
All the store equipment and installation is included in the franchise fee - plus all the franchise information
and training you will need to open for business.
What does it cost to open a Sharkey’s Cuts for Kids?
You should expect to invest between $96,170 - $128,995 for a Sharkey’s Cuts for Kids. Typical financing will
cover 75-80% of this amount.
Can I open multiple salons?
Yes, if you qualify, we encourage our franchisees to own more than one salon. In fact, we offer substantial
discounts off the franchise fee for multiple salons.
Do I need to work in the salon(s)?
For single salon owners we do not require you to work full-time in the salon. Multi-store owners, we
suggest, should hire a district manager or promote a stylist from within. Sharkey’s Cuts for Kids should
only require approximately 1-5 hrs/week of management time, which will allow you to add additional
stores and manage them from an outside office!
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The salon just for kids where the haircuts are cool and fun rules!
.0 Competition
Children's Hair Care Franchises
January, 2012 - Entrepreneur Magazine
Competition
Total Franchise Investment
Franchising Since
Snip-Its
$152.8K - $298.7K
2003
Pigtails & Crewcuts
$118.8K - $193.3K
2004
Cool Cuts for Kids
$130.5K - $211K
2009
Sharkey's Cuts for Kids
$96.2K - $128.1K
2006
Franchises Open (not sold)
Company
2009
2010
2011
2012
Snip-its
65
63
61
n/a
-6 %
Pigtails & Crewcuts
27
30
31
n/a
+14.5%
Cool Cuts for Kids
0
0
1
n/a
+100%
n/a
25
39
*48
+92%
Sharkey's Cuts for Kids
% of Change
*As of 11/1/2011
The market for the hair care services offered by the Salons (adult salons, not kid’s salons) is highly
competitive. However, we believe our competitive position is enhanced by our operational format and by
the various services offered by the Salons. We plan to continue controlled expansion into areas that we
determine can support the Salons to improve name recognition and the reputation of the System. The
children’s segment of the hair care industry represents an opportunity to exploit a substantial market.
Competition consists of traditional independent hair care stores, including barber shops, independent hair
salons and stylists, day spas and regional and national chains. The principal bases of competition in the
hair care industry have been price, convenience, speed of delivery, quality and name recognition.
.1 Competitive Edge
Price, service, certification & validation, and reputation are critical in success factors in the kid’s service
business. The company will compete very well and aggressively in the defined targeted markets by
offering a franchise that is as much as $170,000 under its largest competitor, offering services up to the age
of 14 where competition stops at 7, and offering a turn-key package at a price where the franchisee DOES
NOT need to go to the bank for a loan. Sharkey's has taken the lending out of the equation for the
franchisee by keeping the price of the turn-key model at a price that is affordable to most people seeking to
purchase a kids salon. Ninety percent (90%) of the last twenty five (25) franchises sold by Sharkey's
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The salon just for kids where the haircuts are cool and fun rules!
Franchising CO., LLC have been sold and paid for by the franchisees without requiring an SBA loan or
home equity loan. With our competition offering their models at a significantly higher price, not offering
the full compliment of revenue sources as Sharkey's, lack of creativity and rapid responsiveness from
management, our company has been able to catapult to near the top of the small amount of competitors in
this industry. With salons all across the United States, Canada, and now the UK and Ireland, Sharkey's has
positioned itself as a global provider of kid’s hair salons and children's entertainment centers.
Additional Benefits of Sharkey’s Cuts for Kids:
1.
Validation through existing franchisees
2.
Recession proof franchise
3.
All cash business, no receivables
4.
Minimal inventory
5.
No selling, customer comes to you
6.
Absentee ownership model (Ability to add additional units)
7.
Scalable with multiple locations
8.
Initial entry could be under $100,000
9.
Mentor program available for all franchisees
10.
Monthly conference calls with all the Sharkey’s franchisees
11.
State of the art salon software
12.
Sharkey’s App for Android & I Phone (Q2/2012)
13.
Access to New Sharkey’s Kids Franchise (Q2/2012)
.2 Options for New Franchisees
Single Unit, Multiple, Area Development, and Master Development
SINGLE UNIT FRANCHISEES
A franchisee has the right to operate one franchise unit. Most franchisees enter the world of Sharkey’s by
owning one unit, and planning to open 2-9 more units. It is a great way to get in and understand the
system before taking on more units. Some new franchisees will initially purchase a 3-pack or 6-pack of
Sharkey’s Cuts for Kids in order to secure a territory before another franchisee takes it first.
Territory: The franchisee may have a small radius of exclusive territory to operate within. Sharkey’s will
give an area of exclusivity around the salon (3-5 mile radius). If Sharkey’s elects not to give exclusivity, the
franchisee will be offered the first right of refusal on a new location being sought after by a new franchisee.
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The salon just for kids where the haircuts are cool and fun rules!
Level of participation: The franchisee is very involved with almost all operations of this type. Even if it is a
semi-absentee owned business, the franchisee will want to be present at the business and be as hands-on as
possible.
Typical liquid capital required: Approximately $96,000 to $128,000 for a single unit, $245,000 for a 3-pack,
$490,000 for a 6-pack, and $780,000 for a 10-pack of Sharkey’s Cuts for Kids.
MULTI-UNIT FRANCHISEES (Most Common)
The franchisee acquires more than one unit from Sharkey’s at a reduced (must be 3 units or greater)
franchise fees. The risk is lower because the franchisee can take advantage of the economies-of-scale theory;
by spreading costs across multi-units, the locations may be more successful.
Territory: There is usually no exclusive territory where the franchises must be set up. The franchisee may
have one unit in one part of town with a surrounding radius of exclusivity, and another unit in another
part of town 15 miles away or even in another county with its exclusive radius of operation.
Level of participation: The franchisee is less involved with each of the units operations, but will be
managing multiple operations and will need to have some level of supervision in each unit. If many units
are opened, a general manager and additional administrative and training staff may be needed. The
franchisee is more of a general manager when many units are involved.
Typical liquid capital required: $245,000 for a 3-pack, $490,000 for a 6-pack, and $780,000 for a 10-pack of
Sharkey’s Cuts for Kids (limited financing is available for 10-pack purchases).
AREA DEVELOPMENT FRANCHISEES (Limited to specific territories within the US)
This license grants the Area Developer the right to open or sell a certain number of franchises in a given
area. There is a development schedule where the Area Developer must open or sell a certain number of
franchises during a certain period (10 years is the average).
Territory: The Area Developer maintains an exclusive geographic territory as long as the development
schedule is maintained. The territories range from a small city, to parts or all of a larger city, a state,
province, or country.
Level of participation: The Area Developer will be very involved in the beginning stages of the first
location to make sure it is successful. The Area Developer will also need to be looking for qualified real
estate to open the next few locations for himself or a new franchisee within the exclusive territory. Once
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The salon just for kids where the haircuts are cool and fun rules!
several locations are open, the Area Developer will be responsible for the success of the franchisees within
the exclusive territory, along with have the backend support from Sharkey’s.
Compensation: An Area Developer for Sharkey’s receives a $20,000 commission check for every Sharkey’s
Cuts for Kids that is sold within the exclusive territory, along with 50% of the monthly royalties paid by all
franchisees within the exclusive territory. The Area Developer will also receive a $15,000 commission for
any leads outside the exclusive territory that are converted into franchises. No royalty fees are awarded for
sales outside the exclusive territory.
Typical liquid capital required: $50,000 to $450,000 initially to secure the area. The Area Developer will
then be responsible for the rest of the start-up costs. One single unit is required for this person to open.
MASTER DEVELOPMENT FRANCHISEES (Available Only for International)
A Master Franchisee, sometimes called a Regional Developer, has the rights to a larger area than that of an
Area Developer. The Master Franchisee, in addition to opening franchises at a much reduced franchise fee
and royalty, can also sell unit franchises, multi-unit franchises and area development franchises and make
a nice return on the sale. The master receives 75% of the royalty and franchise fee paid by each franchisee,
and the remaining 25% is paid to the Franchisor (Sharkey’s). There may be additional income available
from distribution of products through the franchisees in the area and possibly even some real estate
interest. The master becomes somewhat of a sub-franchisor for the area, without having experienced all the
trial and error the original franchisor did.
The master franchisee will open and operate at least one unit (pilot location), for income and use as a
training center. Master franchises are offered by Sharkey’s to International prospects only. However, when
they are available they usually sell quickly. The income available from a master franchise is extremely
lucrative. The initial investment is low compared to the type of value you can build in the master franchise
area. The flexibility is also the greatest at this level.
Territory: Usually is a large metropolitan area, provinces, countries, and regions (not available for states
within the US). It is an exclusive area and will remain exclusive as long as the master franchisee meets the
development schedule of franchises in the exclusive territory.
Level or participation: The master franchisee will set up and operate at least one unit and use a manager to
manage it while working on selling other "sub-franchises" and assisting them in operating properly. Very
rarely is a master franchisee "hands on" in a unit franchise. They tend to spend more of their time operating
like a business consultant or coach to their franchisees to help them become successful. The master is
responsible for franchisee contracts, construction, administrative costs, marketing, advertising, collection of
franchise and royalty fees, and all legal matters.
Typical liquid capital required: $150,000 to $1,500,000 is needed to acquire the territory and for initial liquid
capital to start the area. Typically this is paid in one lump sum at signing.
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The salon just for kids where the haircuts are cool and fun rules!
.2 Marketing Strategy for Salons
Partnership Programs. The salon will develop community partnerships to offer discounts to the clients of
other businesses that cater to our target market, such as:
· Local fitness centers without child care
· Local elementary schools (there are 34+ within a 5-mile radius)
· Pediatrics offices, pediatric dentistry and pediatric orthodontist offices
Brochures. Brochures to be designed to communicate our presence, the services we offer, and the clients
we serve in the community.
Flyers. Flyers will be designed for posting at community locations that attract high traffic volumes of
consumers within our target market, such as:
· Local grocery stores, pizza shops, ice cream shops, and dry cleaners
· Local child care centers & OB/Gyn offices
· Local children's clothing stores (i.e., Kid to Kid and Babies R Us)
· Local stores that carry children's items (i.e., Target, Wal-Mart, and Kohl's)
· Local children's programs (Gymnastics, Dance centers, Karate, My Gym, etc.)
· Libraries ~ children's books section and entrance bulletin board
· Local bookstores ~ children's book section (i.e., Barnes and Noble, etc.)
· Fitness Centers ~ child care area (if they have one)
Advertising. Ads will be placed in publications that cater to the demographics of our target market,
including:
· Parent Magazine
· What's Happening Around Town
· Positively Parenting
· Kids Directory
Public Relations. As the franchisor, we will promote our company and it's benefits to the community
through efforts to have articles published in new media and efforts to gain coverage on local radio and
television programming. Potential media outlets include:
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The salon just for kids where the haircuts are cool and fun rules!
· A magazine serving families of Our County
· Small Business Times
· Women’s Directory
· Local schools PTA newsletters
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The salon just for kids where the haircuts are cool and fun rules!
What’s New for 2012
No more helium for our franchisees. With our new balloon process our franchisees will be cutting their
cost of balloon by 50%. This process has been implemented across the network of franchisees as of
12/1/2011.
Membership Cards were made available to our franchisees as of November 18, 2011. B o y s a n d g i r l s
membership cards can now be ordered through Sharkey’s secure website.
Software is being written by Leprechaun come January 2012 for our franchisees to have the option of
purchasing Windows based tablets for customers to use instead of the conventional sign-in forms. We
are being told there will be a monthly fee attached to this option ($10-$40), but the advantages far
supersede the small fee. We are being told that programming will take 30 days, and the project will start
mid-January. Based upon the feedback we have received from all our franchisees, we are expecting all
our franchisees, in the US, to jump on this once it becomes available.
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The salon just for kids where the haircuts are cool and fun rules!
Sharkey's is working on a mobile App for I-phone and Android Technology. As of today, we are hoping
to launch this App towards the end of Q1/2012. Very cool stuff..
A New Operations Manual is currently being worked on and will be made available to our franchisees
sometime during Q2/2012. The manual appears to be approximately 150 pages in length, and will replace
the one currently being used.
?
Sharkey's will be launching a New Kids Franchise during the second quarter of 2012. Our thoughts are
to offer this franchise to a select number of current franchisees, in certain select markets around the
world, at cost or no cost (not yet determined). This franchise will not require a store front, and will be
worked from a home office or behind the desk at Sharkey's Cuts for Kids.
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Advisory Board Meetings
An Advisory Board within Sharkey’s has been formalized and is scheduled to meet quarterly, one
meeting per year to be in person and the others via Skype. Items to be discussed on a quarterly basis
will include, but not limited to, new concepts, additional revenue sources, streamlining current
operations, expansion of current concepts, software upgrades, marketing tools, etc.
Area & Master Developer Conference
All Area and Master Developers are required to meet for an annual conference, to be held at Sharkey’s
corporate headquarters, to discuss expansion of current territories held by these individual
developers. Items that are discussed, but not limited to, are real estate options, market conditions,
barriers of entry, expansion in lower-income markets, build-out costs, co-op advertising,
demographics, etc.
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The salon just for kids where the haircuts are cool and fun rules!
.3 TRADEMARKS
The Franchise Agreement and Area Representative Agreement permits you to use the Proprietary Marks
only for the purposes and upon the terms and conditions set forth in the Franchise Agreement or Area
Representative Agreement. We have registered the following Proprietary Marks with the U.S. Patent and
Trademark Office (“USPTO”):
Mark
Registration No.
Date of Registration
Sharkey’s Cuts for Kids
2,842,656
May 18, 2004
Sharkey’s Cuts for Kids (and design)
2,894,629
October 19, 2004
005513056, 005512983
November 12, 2007
TMA718138, TMA718185
July 9, 2008
Sharkey’s Cuts for Kids (EU)
Sharkey’s Cuts for Kids (Canada)
These Marks may be used only in the manner we authorize and only for the operation of the business
franchised to you under the Franchise Agreement or Area Representative Agreement. You may not use the
Marks as a part of your corporate or other legal name, and you must comply with our instructions in filing
and maintaining trade name or fictitious name registrations. You must sign any documents we require to
protect the Marks or to maintain their continued validity and enforceability. In addition, you may not
directly or indirectly contest the validity of our ownership of the Marks.
There are currently no effective agreements that significantly limit our rights to use or license the use of
trademarks listed in this section in a manner material to the franchise.
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The salon just for kids where the haircuts are cool and fun rules!
. TRAINING
TRAINING PROGRAM – SHARKEY’S CUTS FOR KIDS FRANCHISE
Hours of
Classroom
Training
Hours of
On-the-Job Training
Location
Glamour Party
0
3
Off-site
Computer
0
6
On-site
Hair Stylists & General Store
Practice
0
2
On-site
Retail
0
2
On-site
Desk/reception
0
2 to 4
On-site
Audio/Video
0
1 to 2
On-site
Subject
Our initial training program is overseen by Sharkey’s representative or Area/Master Developer, at
a store location chosen by the Franchisor or Area/Master Developer.
TRAINING PROGRAM – SHARKEY’S CUTS FOR KIDS AREA/MASTER DEVELOPER
Hours of
Classroom
Training
Hours of
On-the-Job Training
Location
Lead Generation
0
2
Norwalk, CT
Computer
0
1
Norwalk, CT
Validation Process
0
2
Norwalk, CT
Qualifying
0
2
Norwalk, CT
Home Office Requirements
0
30 min
Norwalk, CT
Follow-up Requirements
0
2
Norwalk, CT
Subject
As an Area/Master Developer, they will experience one full day of training at our corporate headquarters
in Norwalk, Connecticut or at a training site designated by us. This training will consist of teaching the
AD/MD and their personnel how to solicit, validate and qualify franchise sales, how to provide on-going
operational assistance to the franchisees located within their Development Area, and other aspects of
conducting their business beyond that of how to operate a Salon. They must successfully complete the
training to our (Sharkey’s Franchising Co., LLC) satisfaction.
The initial training programs will be offered at various times during the year depending on the number of
new Area/Master Developers entering the System. The instructional material we use in our initial training
program includes our Manual, the computer system, and any other materials that we believe will be
beneficial to our new developers in the training process.
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7.0 FRANCHISE FACTS and STATISTICS
Important Franchise Statistics for Potential Franchisees
Franchised businesses account for nearly 0% of all service & retail sales in the United States.
•
The International Franchise Association has reported that franchising is responsible for 760,000 businesses, 18
million jobs, 14 percent of the private sector employment, and over $500 billion in payroll!
•
From January, 2000 to December, 2008 the index that tracks the performance of the top 50 franchisors
increased 34.5% compared to a drop of 20.1% in the S&P 500 over the same period.
•
A study by The United States Chamber of Commerce found that % of franchises opened within the last
five years were still under the same ownership and 97% of the were still open for business.
•
A U.S. Department of Commerce study showed that during that time less than % of franchise businesses
were closed each year.
•
A U.S. Small Business Administration study conducted found that 2% of non-franchised businesses
closed within the first  years of their existence due to failure, bankruptcy, etc..
•
A Franchise Times survey indicates that 90% of their respondents recommend franchise ownership. In
addition, 87% are satisfied with their franchise experience & only 4% expressed they were not at all satisfied.
Franchise Pros and Cons
The advantages of owning a Sharkey’s franchise are many and frequently overlooked by the purchaser,
Some of the advantages that it is important to point
out:
•
•
•
•
•
•
•
•
•
•
•
Established Name Recognition
Co-op Marketing
Bulk Purchasing Power
Training and Training Time
Management Experience
Accounting Systems
Strategic Planning
Research and Development
Quality Control Systems
Real Estate Criteria
Construction and Design
Some perceived disadvantages:
•
•
•
•
•
Franchise Fee
On-going Royalties
Operating Conformity
Duration of Agreement
Reliant on Franchisor Success
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The salon just for kids where the haircuts are cool and fun rules!
9.0 ESTIMATED INITIAL COSTS FOR OPENING
Item
Initial Franchise Fee
Travel and Living Expenses
While Training
Estimated Cost
Method of
Payment
$89,995
When Due
To Whom Paid
Installments
$65,000 on
signing Deposit
Agreement;
Balance due upon
signing Franchise
Agreement
Sharkey’s
Franchising Co.,
LLC
$0
(included in Initial
Franchise Fee)
Rental – 1 months
$750 to $3,000
Per lease
Per lease
Landlord
Leasehold Improvements
$0 to $22,000
As arranged
As arranged
Contractor
*( 50-100% being
covered by
landlords)
Blue Prints and Plans
$0 to $3,500
As arranged
As arranged
Architect;
Government
Agencies
$175 to $250
Lump sum
Before opening
Insurance
Companies
$750 to $3,000
Lump sum
Before opening
Landlord; Utility
Companies
$3,500
As arranged
As arranged
Suppliers
Permits and Licenses
$250 to $750
As incurred
Before opening
Governmental
Agencies
Additional Funds – Three
Months
$0 to $5000
As incurred
As incurred
Suppliers,
Employees, etc.
Equipment
$0
(included in Initial
Franchise Fee)
Signs
$0
(included in Initial
Franchise Fee)
Opening Inventory
$0
(included in Initial
Franchise Fee)
Insurance Premiums – Per
Month
Security Deposits
Grand Opening Advertising
TOTAL
$96,170 to $128,995
*years 2009-2011(based upon Sharkey’s history)
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