"What is the Franchise Fee?" This is perhaps one of the most common questions asked by a potential franchise buyer. And while this is certainly one of the considerations when researching a franchise system, it's definitely not the most important figure to look at. Why is this?

As the franchise fee is the initial fee charged by the franchisor, it allows a franchisee the rights to use the logo and systems, and start a business with those items. But, what you get for that fee with each franchisor does differ. The most important thing that you are paying for is the learning curve that the franchisor paid for with years of previous experience. This is what you need to find out about. For example, there are franchised companies out there with huge differences in the amount of experience they have in operating the concept that you are buying. There are also companies out there seeking out new businesses to franchise. These are usually companies that market franchises. They charge the franchisor the fees to do the legal and set up work to make them franchisable, and then also charge them to do the marketing. If the franchisor does not have many years of operating history, then they will still be learning as they are also franchising - this is can be a dangerous combination!

The learning curve is the MOST valuable asset that you aquire when investing in a small business franchise! At Shear Madness Haircuts for Kids, the operating history was 13 years before franchising. Most successful "new" franchises have suprisingly long operating histories. Five Guys Burgers and Fries may seem newer, however they have been in business since 1986, and began franchising in 2001! Starbucks began opening coffee shops in 1985, and Papa Murphy's Pizza opened in 1981 and started franchising in 1995!

As companies grow, they have successes and failures. This is normal. When you invest in a franchise most of the franchise fee is for the avoidance of those failures! Those failures may have cost the franchisor hundreds of thousands of dollars. This alone can make the franchise fee a real bargain!

• How much training is included with this fee? Every system has different training, some may be at the franchisor's office, some may be online, and some may be at your place. A detailed outline of the training you should receive is included in the Franchise Disclosure Document in Item 11.

• What items are provided? Do you get manuals? Most often you should get a Pre-Opening Manual and then also an Operations Manual. There may be other items that are neccesary to your business - which of those are provided and what must you pay for going forward?

• What kind of access will there be to other franchisees or management?

• What kind of ongoing support is offered with the system?

• Will the system be improved as it grows?

• What is the vision of the Franchisor?

Investing in a small business franchise system can be a great opportunity! Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salon franchise systems in the industry today! If you would like to learn more about small business marketing, great marketing strategies, resources for small businesses, how to grow a small business, or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD!

The past two years have been EXCITING years for our team! Owning and operating a kid's salon franchise has it's share of hurtles and challenges, but we maintain a positive attitude and outlook as we keep pressing forward! It has been fun to see all our hard work paying off as we now celebrate having 7 locations open! Our incredibly COOL salon concept for kids has franchise locations now in Lee's Summit MO, Albuquerque NM, San Antonio TX, McAllen TX, and West Des Moines IA thanks to our dedicated and enthusiastic franchisees and our team. Now we would like to take a moment and recognize each one of our fabulous franchise owners and their families. To our ever growing Shear Mad-tastic Family - Here's to you!

Shear Madness Franchise Owners

Brenda and Eduardo Morales: Our very first Shear Madness franchise owners, this couple opened their first salon in San Antonio TX at the Village in Stone Oak in San Antonio, TX in November 2012. Brenda and Eduardo have faithfully endured many of the early franchising growing pains with good humor and a willingness to learn. Their store has steadily seen growth despite the tough competition in their area. Their birthday parties have been a very successful addition to their haircutting business. We are so grateful for this caring, enthusiastic, and extremely hard working couple. Brenda currently manages the store while Eduardo assists however he can while also managing his business in Mexico. They live in San Antonio with their two children.

Michelle and Tom Vick: This couple came to us in 2012 looking for an opportunity to grow our concept in a brand new market in Albuquerque NM. To our delight, Shear Madness in Albuquerque, NM opened in October 2013 with much local anticipation and enthusiasm! Their salon is steadily growing, and with the help of their Fantastic Staff they are successfully building a great reputation with their local people. They also own a construction company. Shear Madness provides diversity to their income. They live in Albuquerque with their 3 sons.

Elsy and Jorge Garcia : Owners of the Shear Madness at the Forum in San Antonio, TX, this couple just moved to the United States from Monterrey, Mexico. Opening their first Shear Madness location while moving their family and and enrolling 4 children in school was challenging - but worth the effort. They have a super location in a high traffic area with fantastic stylists! Their store has been converted completely from a previous children's hair salon into a fantastic Shear Madness Haircuts for Kids!

Erin Nanke: Erin was a full time marketing executive for a large television station and owner of our new location which just opened November 2013 in West Des Moines, IA! Her store sits across from Jordan Creek Mall in West Des Moines, and across from the popular local favorite Scratch Cupcakery. Partly due to her incredible location and partly to her mega marketing skills, this franchisee is building her salon into "the place to be" in Des Moines, Iowa! We are honored to have such knowledgable and determined franchisees on our team. Erin lives in Johnston IA with her husband and 3 children.

Our Newest Franchisees in McAllen TX: This young couple is excited to open their first Shear Madness in McAllen, TX! They have a brand new store in Citrus Grove Plaza. They live with their two young children in McAllen.

Janon and Jim Otto: This extremely hardworking husband and wife duo diligently work behind the scenes not only as Shear Madness franchisors, but as salon owners as well! They opened their first location in Lee's Summit, MO in May 2013, and have been successfully building their salon business since. This Madtastic couple sells, supports, oversees, and executes every aspect of Shear Madness Franchising, LLC. No detail is too big or too small for the Otto's. Jim and Janon strongly believe in the kid's hair salon concept and the future of Shear Madness. They live in Overland Park, KS and have three daughters.

Paula Thurman (far right): The mother and founder of Shear Madness Haircuts for Kids, Paula Thurman has built her kid's hair salon and boutique concept to be what it has become today. As owner and operator for over 17 years, she is an expert when it comes to customer service, managing employees, payroll, retail, and many other salon related issues. Paula personally oversees all training for new franchise locations and their employees. She is committed to the success and vision of becoming the very Best Kid's Hair Salon Franchise - "The Standard by Which All Others are Measured!" Paula lives with her family in Overland Park, KS and owns the original Shear Madness Haircut for Kids, Olathe, KS location.

Here at Shear Madness Haircuts for Kids Franchising, we work hard to share our many great resources and business experiences so that our franchisees will have the tools to succeed! If you're interested in learning how to become a successful owner of your own franchise business, please click below or call 1-888-98 GONE MAD!

Many people who are interested in opening their own business and becoming their own boss often wonder what the advantages might be of investing in a franchise opportunity. Following are ten reasons why buying a franchise may translate into the long-term success of your investment.

Robust Industry: Many franchise systems offer services that are in high demand. The children’s segment of the recession resistant Hair Salon Industry is one such example, It's currently worth around $19 billion. To date, there are around 45 million kids in the Shear Madness age group – and this is expected to grow by about 7 million by the year 2020! 

Marketing Support: Ask anyone who runs a business, and they’ll tell you that marketing not only takes a lot of time – but can cost a lot of money too. However, an effective marketing plan is critical in letting the community know about what your business does, where it’s located, and so much more. For example, Shear Madness Haircuts for Kids understands this, and offers great resources and strategies to help businesses attract new customers.  

A Record of Success: Franchisors will have a proven record of success. Through years of experience marketing to their customers, they usually understand what works - and what doesn't. Through becoming a franchisee, you automatically gain this valuable business advantage.

The Brand: A franchise brand is a powerful tool. As an example, the Shear Madness Brand is one that is instantly recognizable as being fun. Those who own a franchise with Shear Madness are automatically connected to the tens of thousands of parents and children who love who we are and what we do. This translates into many repeat customers who share with friends and family about their great Shear Madness experience! 

Buying Power:  Franchisors usually have experience in knowing what products sell well and what don’t. Additionally, they have the knowledge on how to negotiate for the best prices on everything needed for the successful operation of the business. Many times the sheer number of franchise locations allows the franchise to negotiate for better pricing.

Store Location: Where to locate is an important question any business owner should consider. Franchisors help study your community in order to help you find the best possible location for success.  They know the numbers and other criteria that allow for the possibility of a successful franchised business.

Networking: Franchising can be a little like a group of trusted friends, and should be a great environment of sharing and building each other up. Franchise owners who work with other franchisees and communicate what works and what doesn’t will have a competitive advantage over those who don’t! 

Training Support: Great franchise systems have worked hard to develop many training resources to help you achieve success. For example, with Shear Madness Haircuts for Kids, we provide our franchisees with in-store training with stylists, and encourage opportunities to network with other franchise owners. Because of this, you’ll have access to a wealth of business knowledge at your fingertips.

Building your Store: One of the benefits in buying a franchise is the franchisor's expertise  in designing the layout of a prospective business, working with the right contractors, and knowing how much furniture and equipment will be needed. Again, this helps a business owner save time, money, and keeps the headaches to a minimum! 

Minimizing Risk: Ultimately, as a potential owner of a franchise, the success of your store will be up to you. But through being a part of a franchise system like Shear Madness Haircuts for Kids, the risk of starting a new business is significantly reduced. Sure, there will still be challenges that come your way, but as a franchisee, you’ll have greater confidence and know-how in how to succeed. 

When an individual buys into a franchising opportunity with Shear Madness Haircuts for Kids, they won’t be going at it alone. Our team excels at being a partner who wants our franchise owners to succeed! Learn more tips on how to achieve success from our team of business experts by downloading our free resource below.

SO MANY!! In the franchise world there are a plethora of options.  Choosing between categories alone can be a challenge! However, one category that many times is worth evaluating is salon franchises. Why you ask?  Well, everyone needs a haircut now and then. Most sectors of the salon industry are recession resistant, and it does not appear that the internet is going to be able to replace haircuts anytime soon!

The choices for a Salon Franchise are bigger than you think!

The ones everyone thinks of are some of the Original Hair Salon Franchises - think Great Clips, Fantastic Sams, Snip n' Clip, etc.  These are low end walk in type salons.  Clientele does not make an appointment and they tend to exist on every major street corner in most metropolitan cities.  These typically have the stylists act as management as well and the owner is an absentee owner.

Mens' salons - this niche is relatively new to the franchise sector.  Probably the most well know mens salon franchise system is Sport Clips.  However, many others have opened in recent years.  Everything from very high end Men's Country Club type salons that offer a full array of services i.e. The Boardroom, down to lower end salons that do high volume yet still offer men a good haircut without all the frills.  There are those that appeal to pool players and those that just cater to "players".  Most wives don't really appreciate those and taking your kids to one is deemed "inappropriate"!

Kids Salons - again we have a type of salon that is relatively new to the scene.  There is no real dominant player in this arena.  Shear Madness Haircuts for Kids has been in operation since 1997 and that is one of the earlier children's salons.  None of the salon systems predate the 90's!  Each franchise has its own personality and philosophy on running a succesful salon.  Extras added to some are kids retail and birthday parties.  Some are run by a manager and others have the stylist/manager configuration. A close evaluation of what makes up te revenue portion of the salon is important to look at.  How easy is that portion to run?  Does it take an onsite owner or can it be run absentee?

Hair Removal Salons - these are also very new to the franchise arena.  Tropical Laser Hair Removal opened in 2007! They still fit under salons as the technicians need to have licenses just as hair stylists need to have licenses.  These can be combined with the above types of salons or can be a stand alone type. Many times these are partnered with businesses offering massages.

Nail Salons - there really is not a dominant player here at all.  It seems that most nail salons are individually owned, yet we are waiting for a franchise to pull it all together!

Massage Salons - think Massage Envy.  These typically sell memberships as opposed to collecting revenue when the service is actually performed.  This type of franchise with membership fees is very popular especially in the health club arena.  Many buy memberships and then do not use them like they should making the franchise system more profitable.

There you have it!  Lots to choose from!  Which one is best will depend a lot on your specific situation.
    •    Are you located in an area that already has enough of any one of these types of salons?
    •    Do you want to work in your salon or run it absentee?
    •    How much income are you hoping to generate on your salon?
    •    How many salons can you afford to open?
    •    How much support does the franchisor offer vs. how much you need?
    •    How does your talent set match with that of the franchisor?  Meaning - are they going to provide what you lack?

If you are thinking I want to know more about franchising in general we invite you to download our Free Toolkit and find out what the Top 4 Condsiderations are when looking for a franchise! Once you know a bit more about investing in a franchise in general you will be more prepared to contact individual franchisors and ask great questions!

Decisions to make when opening a salon –

So you are thinking about opening a salon.  Before you run out and find that perfect space for your new salon there are several things that you might want to think about first.  These are important considerations and your local demographics and salon competition may help you answer many of them.  If you haven't considered those items, look there before answering the following!

1.  What Kind of Salon do you want to run?

•      Full Service                                                                
•      Women
•      Men’s
•      Children
•      Family

2. What services do you want to offer?

•      Hair Services
•      Just Hair Cuts
•      Nail Services
•      Facials
•      Massages
•      Hair removal

3. What Demographic do you want to serve?

•      High end
•      Moderate
•      Discount

What Structure will your salon use?

•      Booth Rental
•      Booth Employee Model
•      Hourly Employees
•      Commissioned Employees
•      A combination of the above

5. How many stations will you need for your salon?

•      How large an area will you need for the services chosen?
•      How will you be attracting customers to the salon?
•      What will be the salon floor plan for the type of salon you are opening?

6. Where should you open your salon?

•      Do you need walking traffic to be successful?
•      Do you need cars to see you from the street?
•      Are there enough potential customers in the area that you are     considering?
•      How much rent is too much to pay to be successful?
•      How do I get someone to find me a good location?
•      What are your demographic criteria for your location?

7. How are you planning to market your salon?

•      Word of mouth – how will you generate this?
•      Newspaper ads
•      A great website
•      Google Adwords
•      Couponing companies
•      Magazines – which ones are the best
•      Facebook
•      Guerilla Marketing

8. What will you do for a computer system in the salon for appoints, keeping track of customers, stylists, etc.?

These are the basic questions that must be answered before you can make a complete business plan and get started.  A wrong answer can cost you a lot of wasted time and money.  There is a way around making all these decisions alone!

 A Salon Franchise may be the Answer -

This is why joining a franchise system is such a great possibility.  Shear Madness Haircuts for Kids answers all the above questions for you – not only that but we walk along beside you every step of the way.  Some think that an initial franchise fee may be expensive, but for the aggravation, time and money it can save you it is really a great buy!

 I guess this blog is turning into a plug for us – but we have spent the time and money and years testing and developing the BEST answers to the questions above.   And those considerations only apply BEFORE you open your salon.  After it is open there are many other things to be decided on.  We have those answers to and are always on the lookout for improvements!  With a group you can accomplish so much more than on your own. 

 A website that is optimized and continually updated is only one thing that must be done in a business these days.  In our franchise system we have taken those items that are tedious, important, and time consuming and either do them for you or make them much easier!

 Look through this website to learn more and download our free toolkit that explains more about things to consider when opening a new business of any kind!

What is a Franchise Fee?

When investing in a franchise a buyer will most likely pay a franchise fee there is a LOT more to franchise ownership than this fee.

Our franchise development director says that "What is the Franchise Fee?" is the most common question asked by a potential investor.  While this is one of the considerations it is definitely one of the least important items to look at.

The franchise fee is the initial fee charged by the franchisor to give a franchisee the rights to use the logo, systems, and start a business with those items.  But, what you get for that fee with each franchisor does differ.  Things to compare for that fee are:

• How much training is included with this fee?  Every system has different training, some may be at the franchisor's office, some may be online, and some may be at your place.  A detailed outline of the training you should receive is included in the Franchise Disclosure Document in Item 11. 

• What items are provided?  Do you get manuals?  Most often you should get a Pre-Opening Manual and then also an Operations Manual.  There may be other items that are neccesary to your business - which of those are provided and what must you pay for going forward?

• Access to other franchisees or management?

• What kind of ongoing support is offered with the system?

The Real Value in a Franchise Fee

While these are the items to check the value of the franchise fee probably the most important thing that you are paying for is the learning curve that the franchisor paid for with years of previous experience.  This is what you need to find out about.  There are franchised companies out there with huge differences in the amount of experience they have in operating the concept that you are buying.

There are actually companies out there seek out new businesses to franchise. These are usually companies that market franchises. They charge the franchisor the fees to do the legal and set up work to make them franchisable and then also charge them to do the marketing.  If the franchisor does not have many years of operating history they will still be learning as they are also franchising - this is can be a dangerous combination!

The learning curve is the MOST valuable asset that you aquire when investing in a small business franchise!  At Shear Madness Haircuts for Kids the operating history was 13 years before franchising.  Most successful "new" franchises have suprisingly long operating histories.  Five Guys Burgers and Fries seems newer, however they have been in business since 1986, and began franchising in 2001!  Starbucks began opening coffee shops in 1985, and Papa Murphy's Pizza opened in 1981 and started franchising in 1995!

As companies grow they have successes and failures this is normal.  When you invest in a franchise most of the franchise fee is for the avoidance of those failures!  Those failures may have cost the franchisore hundreds of thousands of dollars. This alone can make the franchise fee a real bargain!

Investing in a small business franchise system can be a great opportunity. If you would like to receive a FREE whitepaper designed to help when evaluating ANY franchise click on the link below.

You are doing what!?  That is the question we heard most when we told our friends and family that we were franchising Shear Madness Haircuts for Kids.  What is franchising?  Are you MAD?  It was obvious that though there are franchises every where we do business, that most people have no idea what a franchise is.

A franchise is a business model.  When a business owner decides to expand his business he has options.  One of those options is to franchise.  Franchising allows others to own their own company yet use the name, logo, and systems of the franchise business owner (the franchisor).

A franchisee uses his own funds, has the full responsibility of the success or failure of his own company yet has the following advantages:

1. He doesn't not have to come up with his own YOU-nique business idea.

2. He can use the systems that have already been developed and used successfully by another shortening the learning curve.

3. He gets "Super Natural Support" & training with a business partner who knows and cares about the success of his new business.

4. If the franchise system is progressive, he does not have to worry about "the Ongoing Labwork" needed to develop the concept further and keeping up with trends as the franchisor will worry about that for him.

5. National advertising is done for him.

6. As the system grows the name brand recognition grows without the franchisee having to open more locations himself.

7. When a franchisee is ready to sell his business he has a partner in this process and a recognizable asset to sell.

What does the franchisor get?

1. The franchisee pays the franchisor an initial franchise fee for the training, systems, logos, etc. of the franchised business.

2. The franchisee pays an ongoing royalty - which is usually a percentage of sales for the continuing developments of the franchise and ongoing support of the franchisor.

3. Many times the franchisee contributes to a National Advertising Fund a percentage of sales for advertising that benefits all businesses within the franchise system, saving

Why would a Business choose franchising as a way to grow?

1. Many times a business can grow faster using the franchise method instead of the company owned store model.

2. The franchisor does not have the added responsibility of additional payroll as they do not pay the franchisee as they would an employee.

3. Training may be the forte of the franchisor and they enjoy watching others succeed using their concept.

4. A franchisor does not use his own capital to grow the brand.