An Evaluation of the Franchise: Sharkey's Cuts for Kids
An Evaluation of the Franchise - Sharkey’s Cuts for Kids
The Franchise Concept
In the US the children’s haircut market is estimated to be worth $5 billion. In 2008, according to the Franchise Times, Sharkey’s was the fastest growing children’s salon franchise. Scott Sharkey, CEO, opened his first salon in 2002 and currently operates 25 premises throughout the US and Canada with a commitment to open another 235 stores worldwide. Their first UK franchise opened in the Isle of Man in 2010.
The organisation aims to provide children’s haircuts in an environment that is relaxed and fun. Children sit in Fighter Planes, Barbie Jeeps or on Harley Davidson Motorbikes, watch DVD’s or play X-Box games. In addition to haircutting, Sharkey’s has a number of other revenue streams. They host children’s birthday parties or “glamour parties”, sell gift merchandise such as a commemorative photos and operate a mini arcade with video games and pinball machines. Appointments can be made on-line and customers are encouraged to repeat visit through a punch-card loyalty scheme.
Sharkey’s is a business format or second-generation type of franchise. The franchisee pays an initial fee and ongoing royalties thereafter. The royalties are described as being “lower than average”. The organisation provides initial training and continuous support.
The minimum investment required to open a salon in the UK is £49,500. This is for a ‘Junior’ style package, with premises in the region of 600-800 square feet. The price includes furnishings, equipment and retail merchandise. The franchisee is only required to pay for the basic interior decoration. The ‘Deluxe’ model which is typically 1500-1700 square feet and costs around £70,000, includes the main salon plus 2 additional rooms which can be used for birthday parties, meetings etc. Financing is available on up to 75-80% of the cost. Franchisees with adequate business skills are encouraged to open multiple salons.
The Franchise Concept
In the US the children’s haircut market is estimated to be worth $5 billion. In 2008, according to the Franchise Times, Sharkey’s was the fastest growing children’s salon franchise. Scott Sharkey, CEO, opened his first salon in 2002 and currently operates 25 premises throughout the US and Canada with a commitment to open another 235 stores worldwide. Their first UK franchise opened in the Isle of Man in 2010.
The organisation aims to provide children’s haircuts in an environment that is relaxed and fun. Children sit in Fighter Planes, Barbie Jeeps or on Harley Davidson Motorbikes, watch DVD’s or play X-Box games. In addition to haircutting, Sharkey’s has a number of other revenue streams. They host children’s birthday parties or “glamour parties”, sell gift merchandise such as a commemorative photos and operate a mini arcade with video games and pinball machines. Appointments can be made on-line and customers are encouraged to repeat visit through a punch-card loyalty scheme.
Sharkey’s is a business format or second-generation type of franchise. The franchisee pays an initial fee and ongoing royalties thereafter. The royalties are described as being “lower than average”. The organisation provides initial training and continuous support.
The minimum investment required to open a salon in the UK is £49,500. This is for a ‘Junior’ style package, with premises in the region of 600-800 square feet. The price includes furnishings, equipment and retail merchandise. The franchisee is only required to pay for the basic interior decoration. The ‘Deluxe’ model which is typically 1500-1700 square feet and costs around £70,000, includes the main salon plus 2 additional rooms which can be used for birthday parties, meetings etc. Financing is available on up to 75-80% of the cost. Franchisees with adequate business skills are encouraged to open multiple salons.
References: The Franchise Magazine. 2008 [online]. Available at: [Accessed 10 March 2011]. Franchise Direct [online] Available at: [Accessed 8 March 2011] PR Product Reviews, ‘Tantrum: The UK’s first child-only hair salon’ [online] Available at: [Accessed 8 March 2011] Stanworth J., Purdy D. (2006). ‘Franchising and the Small Business’ in Carter S., Jones-Evans D. ‘Enterprise and Small Business: Principles, Practices and Policies’ Pearson Education Limited, Harlow, Essex. Eparenting.co.uk, 2005. Parent’s spending more on children’s parties [online] Available at: [Accessed 9 March 2011] Bennett D., Herrmann K., Wijbenga F., (2011) ‘Small Business Management’ Durham Business School, Durham..