Floyd's 99 Barbershop

## Executive Summary

Floyds 99 Barbershop has carved out a distinctive position in the mens grooming market by combining the traditional barbershop experience with a contemporary, rock-and-roll inspired atmosphere. With approximately 137 locations across the United States (62 franchised, remainder corporate-owned) and a total investment ranging from $399,500 to $767,500, Floyds offers a premium positioning in the growing mens grooming sector.

The brand hybrid model - with significant corporate ownership alongside franchised units - distinguishes it from purely franchised competitors and indicates the franchisor ongoing investment in the concept. This corporate presence can benefit franchisees through continued concept development and brand building.

## The Numbers

**Initial Investment:** - Total Investment: $399,500 - $767,500 - Development Fee: $49,500 (first and second shops) - Additional Shop Fee: $34,500 (third shop and beyond under development agreement) - Amounts Paid to Franchisor: $49,500

**Ongoing Fees:** - Royalty Fee: 6% of gross sales - Marketing Fee: 2% of gross sales

**Development Options:** - Flexible development agreements (1-10 units) - No multi-unit requirement for new franchisees

**Network Size:** - Approximately 137 total locations - 62 franchised units - 75 corporate-owned units

## The Business Model

Floyds 99 Barbershop operates in the mens grooming segment with a differentiated positioning that bridges the gap between budget haircut chains and high-end salons. The brand aesthetic draws on rock-and-roll culture, creating an atmosphere that appeals to style-conscious men seeking quality haircuts in an engaging environment.

Services include haircuts, beard trims, shaves, and hair coloring, with pricing positioned above quick-service competitors but below premium salons. The experience-focused model encourages customer loyalty and repeat visits, with many customers becoming regulars who request specific barbers.

Revenue is driven by service volume, with additional opportunity for retail product sales. The barber chair model means revenue scales with the number of skilled barbers and chairs in operation, making staff recruitment and retention critical to success.

## System Health

The significant corporate ownership (approximately 55% of locations) is unusual in franchising and worth examining. This structure can indicate franchisor confidence in unit economics and commitment to brand standards, but prospective franchisees should understand how corporate locations might affect territory availability and brand decisions.

Floyds flexible approach to development agreements - allowing single-unit franchisees rather than requiring multi-unit commitments - makes the franchise accessible to smaller operators while still offering growth opportunities for those wanting to build multiple locations.

The combined royalty and marketing fee of 8% is reasonable for the personal services sector and provides resources for brand building and operational support.

## Franchisee Experience

Floyds 99 franchisees operate retail service businesses that depend heavily on talent recruitment and retention. The daily operations involve staff scheduling and management, quality control and customer experience, inventory and retail sales, local marketing and community engagement, and financial management and reporting.

The barbering industry faces ongoing labor market challenges, and successful franchisees must develop strong recruiting pipelines and create work environments that attract and retain talented barbers. Compensation structures, workplace culture, and professional development opportunities all impact staff retention.

The franchise does not require owners to be licensed barbers themselves, though understanding the craft and culture is important for effective management and team leadership.

## Key Considerations

**Strengths:** - Differentiated brand with strong aesthetic identity - Growing mens grooming market - Flexible development options (1-10 units) - Significant corporate investment in brand - Lower franchise fee for additional units - Premium positioning supports higher margins - Loyal customer base with repeat business model

**Challenges:** - Higher investment than budget haircut concepts ($400K-$767K) - Barber recruitment and retention is industry-wide challenge - Service business dependent on staff quality - Real estate costs and build-out requirements - Competition from both budget and premium competitors - Corporate ownership may affect territory decisions

**Ideal Candidate Profile:** - Service industry or retail management experience - Strong people management and leadership skills - Appreciation for the brand culture and aesthetic - Local market knowledge and networking abilities - Capital for premium build-out investment - Patience for staff development and culture building - Long-term orientation for building customer relationships

## Validation Questions

When evaluating Floyds 99 Barbershop, consider asking existing franchisees:

1. What are your actual gross revenues and profit margins compared to your projections? 2. How long did it take to reach profitability, and what was your cash flow during the ramp-up period? 3. What is your barber recruitment strategy, and what are your retention rates? 4. How do you compete for talent with other barbershops and salons in your market? 5. What is your average ticket price, and how many customers do you serve per day per chair? 6. How does having corporate-owned locations in the system affect your experience as a franchisee? 7. What marketing strategies have been most effective for building your customer base? 8. What is the relationship like between franchisees and the corporate team? 9. How has the brand evolved during your time as a franchisee? 10. Would you invest in this franchise again, and what would you do differently?