The Barbershop / The Guy’s Place
Bottom line
- Total investment $155K – $282K including a $35K franchise fee, 4.5% ongoing royalty.
- Average unit revenue of $461K/year (median $473K).
- Rated MODERATE with a risk score of 63/100.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one The Barbershop / The Guy’s Place unit return on the cash you put in?
Unlevered ROIC · per unit
45%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Barbershop / The Guy’s Place units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.5M
on $7.6M purchase
Total debt
$6.1M
SBA $3.8M + senior + seller note
Overview
About
Franchisees operate a barbershop providing haircuts, shaves, and grooming services. Day-to-day activities include managing staff, maintaining client relationships, scheduling appointments, inventory management, and ensuring brand compliance. Revenue depends on foot traffic, service pricing, and operational efficiency.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining unit count, missing profitability data, and high startup costs relative to average revenue create meaningful uncertainty about franchisee ROI and system health.
Score breakdown · what drove the 63 / 100 rating
- 01MINORUnit count declining 4.1% YoY (49 units) suggests franchisee satisfaction or system viability issues
- 02MEDNet income not disclosed in FDD Item 19 — cannot validate $460k revenue translates to meaningful profit
- 03MINORHigh initial investment ($154.6k–$282k) paired with 4.5% royalty creates significant break-even threshold
- 04MEDSmall franchise system (49 units) means limited economies of scale and supplier leverage
- 05MINOR10-year term is relatively short for barbershop industry; renewal risk unclear
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
50 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Barbershop / The Guy’s Place · FDD (2024) PDF