ForumsHome

Hi jcl610 and welcome to the SBOC!

Mike Handelsman of BizBuySell.com will be joining the Community for a live Q&A tomorrow (November 13) at 2PM EST. Pose a couple questions to him that you're currently on your mind. The two franchises you referenced are listed on their website so he'd be a great resource.

Ask your question now or during the event hour, http://smallbusinessonlinecommunity.bankofamerica.com/thread/10150

Check out http://www.bizbuysell.com/, http://www.bizbuysell.com/franchise-for-sale/Health-Beauty-and-Fitness-Franchise

Hope to see you at the event!

Vince

One of the items that concerns me about Too Hotties is the game room environment. This to me would lends itself to lots of loitering in a business where waiting room chairs need to be available for newly arriving clientele. Inviting customers to spend time playing pool, video games, etc. tends to speak toward a younger clientele for this business and not the type of establishment most men would want to frequent for quality haircuts. I would also not want the liability responsibility should anything happen as a result of the game room activity.

Also, the pushing of merchandise, such as tee shirts, caps, etc. was not very appealing as this would be additional inventory that needs to be purchased, stocked and tracked. The use of a sign that can either read Free Haircuts Now and then be turned off to reflect a different message was just a little to much to accept as something I would want to promote.

Knockouts, is also providing a theme reflecting a good sports atmosphere, but is paying attention to customer service and quality haircuts and services instead of games . The business model is also reflecting full services for men which has been a very large overlooked aspect for men in the salon industry. For diversity of what is offered, the focus on customer service and the concept, Knockouts has a much better business model.

I am a franchise owner of Knockouts Haircuts for Men in Colorado and did an evaluation of all haircuting franchises before picking Knockouts. There is a very new franchise of Too Hotties in Colorado and already has a less than acceptable article written about them on Merchant Circle which supports my decision to select Knockouts. Knockouts focus is on quality and not quantity or games to draw a clientele. So far so good so I encourage you to continue your investigation into Knockouts.

Both the Too Hotties and Knockouts businesses are niche market businesses. As a seller of 8 different hair franchises, you can purchase several other salons for less money and develop quality services within your salon. With that said, the Too Hotties concept like Knockouts is a different type of salon for men looking for something different.

The investment in the entertainment in a Too Hotties Salon creates a fun environment that many men and boys would enjoy. There is no additional liability to that. There are some salons that serve free beer, which does add a liability to that business.

Products sales such as shampoo, T Shirts, Caps, etc are revenue generators. Name branding of products is also advertising as well for any business. While the hair business is a service business, product sales of all types are a very important part of it as well. Since most retail is marked up over 100%, it is a very positive part of the business. A good salon owner would be looking for a minimum of 20% of their business to include retail sales for 2 reasons. One is making their business a one stop shop for their customers in the hair related industry and the other is advertising throught name brand items (apparel is one).

Royalities: If you are concerned about paying royalties in any fashion, then you should not purchase a franchise. To argue that I don't want to sell something or do something because I'll pay more in royalties makes NO business sense whatsoever. Sure, if your total sales increase then you will pay more royalty. You will also make more money!

These are just common sense business parameters. If you are looking for the least expensive, basic hair salon to operate, there are several out there with smaller investments. If you are looking for a niche market business, then both of these are good concepts. There are also others out there which are niche market and might be appealing as well.

BTW, I have been in both businesses mentioned in this thread and liked them both. The Too Hotties has a few neat deals like Tanning and Shoeshines plus the entertainment side. So if it floats your boat, then I'd say learn more about it!

Let me qualify that the Too Hotties in my area closed their doors after only opening in March 2008. Too Hotties as a franchise in other locations probably do much better.

Hi -

I am also considering the Knockout franchise as an absentee owner. I am in an area with a very high population of 20yo - 35yo men and women. There is a hair salon on every corner, but none catering specifically to men. How can I realistically calculate the profit potential for such a franchise?

Thanks.