Hammer & Nails Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$653,450 - $866,450
Franchise Fee
$44,955
Min Cash Required
$50,000
Total US Locations
43
Business Summary
Hammer & Nails operates a men's grooming business that specializes in providing haircuts, barbering services, straight razor shaves, and hand and foot grooming services. Hammer & Nails also offers other related products and services, including beverages that may contain alcohol. The business operates from retail locations.
Corporate History
The Hammer & Nails Salon Group, LLC, which is the franchisor for Hammer & Nails, was established as a California limited liability company on February 11, 2015. The company's primary business is to operate the Hammer & Nails Shop franchise system. Hammer & Nails began offering franchises in April 2015.
Financial Overview
Investment Range
$653,450 - $866,450
Franchise Fee (Low)
$44,955
Franchise Fee (High)
$59,950
Minimum Cash Required
$50,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$440,500
Equipment Costs (High)
$547,000
Working Capital
$62,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor has indicated a Special Risk regarding financial support, stating that Hammer & Nails's financial condition, as reflected in its financial statements, calls into question its financial ability to provide services and support to franchisees. The company's balance sheet shows a negative Members' Deficit of ($2,656,316) as of December 31, 2024, and ($2,526,752) as of December 31, 2023. While Hammer & Nails had a positive net income of $14,976 in 2024 and $67,778 in 2023, its cash flow from operating activities was negative in 2024, and its total liabilities significantly exceed its total assets.
Financing Details
Hammer & Nails does not offer any direct or indirect financing to its franchisees. Additionally, Hammer & Nails does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
43
Franchised Units
43
Corporate Units
0
Avg Square Footage
1,950
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Hammer & Nails has no litigation to report, as no litigation is required to be disclosed in Item 3 of its FDD.
Bankruptcy History
Hammer & Nails has no bankruptcy history to disclose, as no bankruptcy information is required in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Hammer & Nails franchise, franchisees must be in compliance with their franchise agreement and all related agreements, provide 180 days advance written notice of their intent to renew, and sign a new franchise agreement with the terms and conditions current at that time. They also need to sign a general release in favor of Hammer & Nails, remodel and upgrade their shop to meet current brand standards, and have the legal right to continue occupying their shop location. The franchisee's owners and their spouses must also guarantee the terms of the new renewal franchise agreement.
Training & Support Program
Franchisor Assistance
Hammer & Nails provides pre-opening assistance, including reviewing and approving proposed shop locations and providing access to confidential operations manuals. It offers initial training for the franchisee, one designated manager, and up to ten additional individuals, which includes online courses and on-site assistance at the franchisee's shop for up to 12 days. Post-opening, Hammer & Nails offers ongoing operating assistance such as communicating system standards, approved products and services, designated suppliers, and marketing guidelines. It may also require participation in supplemental training and annual system conferences. Additionally, Hammer & Nails identifies the franchisee's shop on its website and provides designated point-of-sale systems and other technology.
Initial Training Hours
86
Training Location
Online/virtual (Zoom courses) and at the franchisee's shop location, or other designated locations.
Ongoing Support
After opening, Hammer & Nails franchisees may be required to participate in supplemental on-site training and mandatory system-wide training programs, with fees charged for additional trainers or replacement managers. The franchisor establishes and communicates operating standards, procedures, and system requirements for the business, including approved products and services, system supplies, and marketing standards. Hammer & Nails designates approved vendors and suppliers, administers marketing funds, and may coordinate an annual conference. Franchisees are responsible for the hiring and training of their own employees, ensuring they comply with brand standards for uniforms and service, and must adhere to franchisor-designated pricing and operating hours.
Franchise Requirements
Ideal Candidate Profile
Hammer & Nails seeks individuals who, if they are the franchisee, or whose designated managing owner (if a corporate entity) will be personally responsible for the management and overall supervision of the shop. While hands-on daily participation is recommended, the franchisee may hire an approved operating manager to handle day-to-day on-site operations. In either case, the owner or operating manager must successfully complete the initial training program and be approved by Hammer & Nails. All managers and employees with access to confidential information must sign confidentiality agreements.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
Limited
Staff Count
12
Territory Size Requirements
Hammer & Nails designates an area around the approved shop location as the Designated Territory. While there is no minimum size, it is generally a 1.50-mile radius from the shop location in all travelable directions, but may be smaller due to population density, demographics, and geographical boundaries. If a Hammer & Nails shop is in a shopping mall or similar captive market, the territory might be limited to that facility's physical boundaries. The franchisor may also define territories using zip codes, boundary streets, highways, county lines, designated market areas, or other recognizable demarcations. The franchisor retains the right to operate and grant franchises for Hammer & Nails shops in captive market locations within the Designated Territory and to sell products through alternative channels of distribution, including the internet, within the territory.
Staffing Notes
Hammer & Nails does not provide assistance with hiring employees; franchisees are solely responsible for managing and supervising their staff. All employees must wear and maintain approved System branded uniforms. Franchisees must ensure that all nail technicians, hair stylists, and barbers comply with state and local licensing, certification, and credential requirements for providing services. Shop operations must always be managed and supervised on-site by either a Managing Owner or an approved Operating Manager. Employees with access to confidential information are required to sign confidentiality agreements.