Roosters Men’s Grooming Center Franchise Costs $239K – $374K (+ 2024 Profits)

Roosters Men’s Grooming Centers, founded in 1999 by Joe Grondin in Lapeer, Michigan, sought to revive the traditional barbershop experience for men, moving away from the gimmicks typical of most men’s haircut establishments and the feminine environment of hair salons.

The franchise began its expansion in 2002, with its headquarters based in Minneapolis, Minnesota. Roosters differentiates itself in the men’s grooming industry by providing a unique blend of modern grooming techniques and classic barbershop elements. This combination includes the use of iconic red, white, and blue barber poles and plush, oversized leather barber chairs, creating an exclusively male environment.

The Roosters business model emphasizes quality services over high client turnover, targeting a well-defined clientele of men aged between 20-65 and their sons. This focus has allowed Roosters to carve a niche for specialized men’s grooming

Type of Expenditure	Amount
Initial Franchise Fee	$40,000
Travel and Living Expenses During Initial Training	$0 – $3,000
Grand Opening Advertising	$15,000 – $20,000
Insurance	$250 – $350
Rent	$10,800 – $15,800
Computer Software (Point of Sale System)	$2,000
Computer Hardware/Installation	$2,000 – $2,000
Professional Fees	$6,000 – $12,000
Exterior Signage	$6,000 – $12,000
Leasehold Improvements	$75,000 – $150,000
Furniture, Fixtures & Equipment	$55,000 – $70,000
Opening Inventory	$5,000 – $10,000
Construction Management Services Fee	$6,000 – $8,000
Construction and Design Plan Review	$500 – $1,000
Post Build Review	$2,000 – $3,000
Additional Funds first three months	$16,000 – $25,000
Total Estimated Initial Investment	$239,000 – $374,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

The initial investment for a Roosters Men’s Grooming Center franchise includes an Initial Franchise Fee of $39,500, which is due upon signing the franchise agreement.

Royalty Fee

Franchisees are required to pay a Royalty Fee of 4% of Gross Sales until the first anniversary of their Center’s opening. After the first year, the Royalty Fee increases to 6% of Gross Sales. This fee is payable monthly.

National Advertising Fund

A contribution to the National Advertising Fund is mandatory, with the current rate set at 1% of Gross Sales, although this can be increased up to 2%. Payments to the fund are due monthly.

Transfer Fee – Third Party

In the event of a transfer to a third party, a Transfer Fee of $5,000 per Center is applicable. This fee is due before the transfer process begins.

Franchise Renewal Fee

For the renewal of a franchise, a Franchise Renewal Fee of $2,500 per Center is charged. This fee is collected at the time of renewal.

Lease or Rent Fee

Franchisees can expect to pay a monthly Lease or Rent Fee ranging from $3,000 to $5,000, which is due at least 10 days before the monthly due date.

Lease Renewal Fee

Upon the execution of a lease renewal, a fee of $1,500 is charged. This fee is due immediately upon the agreement of the lease renewal terms.

Local Advertising Expenditures

A minimum monthly expenditure of $1,000 is required for local advertising efforts. This expenditure is due as incurred by the franchisee.

Additional Training Fee

Franchisees are responsible for any additional training fees, which include a tuition rate of $100 per day plus any associated costs for training materials and supplies. These fees are due prior to the commencement of the additional training.

Annual Convention

Attendance at the annual convention is encouraged, with a registration fee of up to $1,000 per person. This fee is payable upon registration, with additional costs for travel, lodging, and food due as incurred.

Franchise pros and cons

The Pros:

• Comprehensive training and education: The brand offers its franchisees with on- the- site and online training programs to equip them with the basics of its systems and how to carry out a successful grand opening and run a successful franchise. Also, the franchisor offers additional courses and seminars on an ongoing basis.
• Recruitment assistance: The franchisor helps its franchisees how to recruit and train qualified directors, managers and stylists for their centers.
• Marketing and sales: The brand provides its franchisees with robust marketing and advertising strategies to create awareness about its services. These include national media, social media, ad templates and personalized promotional tools.
• Third-party financing: The brand has established relationships with third-party lenders to fund its franchisees’ startup fees, equipment, inventory and development fees.
• Real estate and site selection: The brand provides its franchisees with site selection assistance to identify the right salon location, which includes designing and constructing. Also, it helps them with lease negotiations to minimize their development costs.
• Ongoing and extensive support: The brand offers its franchisees a proven business concept, solid management and growth insights, timely procedural updates, operational reviews and access to networking relationships with successful franchise partners.
• Relevance: Roosters model is relevant in any community and economy. It provides franchisees with a specific and unique clientele, setting them apart from the competition and allows them to franchise one or multiple Roosters Men’s Grooming Centers.

The cons:

• No exclusive territory protection: The franchisor does not grant its franchisees the right to operate in a protected area. Franchisees may face competition from franchises granted by the parent company or from competitive channels it controls.
• Not a part-time business: The franchise cannot be operated as a side business or part-time.
• Not a home-based business: A Roosters Men’s Grooming Centers franchise cannot be operated from home or a vehicle. The franchises must be operated from an office space, a warehouse or a retail facility.
• Not a passive investment: The franchise does not allow for absentee ownership. Franchisees must be actively involved in the day-to-day operations of their salons.
• Competition: direct competition from hair salon franchises, possibly The Den Salon and diPietro Todd Salons, or even more affordable salons like Sport Clips or Smart Style.

How to open a Roosters Men’s franchise

Opening a Roosters Men's Grooming Centers franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Roosters Men's Grooming Centers franchise.

1. Conduct Initial Research

• Explore the Roosters Men’s Grooming Centers franchise opportunity by visiting their official franchise website or contacting their franchise sales team for initial information.
• Understand the brand’s history, values, and the unique position it holds within the men’s grooming industry.

2. Review Financial Requirements

• Assess the financial requirements for opening a franchise, including the franchise fee, total investment range, minimum net worth, and liquid cash requirements​​.
• Ensure you have the financial capability to meet these requirements or have a plan to secure financing.

3. Submit an Inquiry or Application

• Submit a formal inquiry or application through the Roosters Men’s Grooming Centers franchise website or contact their franchise development team directly.
• This step typically involves providing basic personal and financial information to gauge your initial eligibility.

4. Participate in Discovery and Evaluation Process

• Engage in detailed discussions with the franchisor about the franchise opportunity, including operational requirements, support and training, site selection, and other key aspects of the business model​​.
• This may involve attending discovery days, webinars, or one-on-one meetings with the franchise team.

5. Review the Franchise Disclosure Document (FDD)

• Carefully review the Franchise Disclosure Document provided by Roosters. This document contains essential information about the franchise opportunity, including fees, obligations, support, training, and financial performance representations.
• Consider consulting with a franchise attorney or advisor to help understand the legal and financial aspects of the FDD.

6. Secure Financing (if necessary)

• If you don’t have the required capital on hand, explore financing options. This might involve loans, investors, or other financing mechanisms.
• Roosters Men’s Grooming Centers may offer guidance or referrals to preferred lenders familiar with the franchise model.

7. Finalize Agreements and Complete Training

• Once you and the franchisor have mutually agreed to move forward, you’ll sign the franchise agreement and pay the initial franchise fee.
• Attend the required training programs which may include on-site training for you and your staff, as well as training at the corporate headquarters or designated facility​.

Disclaimer

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