Pigtails & Crewcuts logo

Pigtails & Crewcuts Franchise

Audited Financials
Beauty & Personal CareEst. 2002Atlanta, GA
www.pigtailsandcrewcuts.com

Risk Score

Pending analysis

Investment Range

$130,000 - $283,000

Franchise Fee

$20,000

Min Cash Required

$150,000

Total US Locations

80

Business Summary

Pigtails & Crewcuts operates children's specialty hair salons that offer services like haircutting, nail and toe polishes, and up-dos. The salons also sell novelties, gifts, cosmetics, and private label hair care products specifically for children. Additionally, Pigtails & Crewcuts locations are designed to host children's birthday parties in a fun and wholesome setting.

Corporate History

Pigtails & Crewcuts Franchise, LLC was organized as a Georgia limited liability company on December 18, 2002. Pigtails & Crewcuts began offering unit franchises in December 2005. The company also offered Area Businesses franchises from December 2016 until April 2022, but is not currently offering them. Pigtails & Crewcuts' sole business activity is selling and supporting its franchises. Its majority owner also operates a company-owned salon in Atlanta, Georgia, which opened in November 2015.

Financial Overview

Investment Range

$130,000 - $283,000

Franchise Fee (Low)

$20,000

Franchise Fee (High)

$30,000

Minimum Cash Required

$150,000

Minimum Net Worth

$250,000

Royalty %

5%

Marketing %

2%

Equipment Costs (Low)

$70,500

Equipment Costs (High)

$186,000

Working Capital

$10,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Going concern qualification

Financial Health Notes

Pigtails & Crewcuts' financial condition, as noted in the special risks section of the FDD, raises questions about the franchisor's financial ability to provide services and support to franchisees. In 2024, Pigtails & Crewcuts reported $53,492 in members' equity and a net income of $123,566. In 2023, members' equity was $26,077 with a net income of $262,050. The company's total liabilities were over $1 million in 2024, compared to total assets just exceeding $1.15 million.

Financing Details

Pigtails & Crewcuts does not offer any direct or indirect financing to franchisees. Additionally, Pigtails & Crewcuts does not guarantee any franchisee notes, leases, or other financial obligations.

Performance Metrics

Total US Locations

80

Franchised Units

78

Corporate Units

2

Avg Square Footage

1,350

Franchising Since

2005

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew their Pigtails & Crewcuts franchise, franchisees must be in substantial compliance with all provisions of their agreement, maintain ownership or leasehold rights to the salon location for the new term, and provide advance notice. They will need to sign Pigtails & Crewcuts' then-current standard franchise agreement, pay a renewal fee of $2,500, sign a general release of claims, and refurbish or relocate the salon if required to meet current brand standards.

Training & Support Program

Franchisor Assistance

Pigtails & Crewcuts provides various forms of assistance. Before opening, the franchisor licenses trademarks, loans an Operations Manual, helps with site selection and approval, designates an exclusive territory, provides design plans and build-out specifications, and assists with initial opening inventory orders. Franchisees and their Operating Managers must complete a 5-day initial training program consisting of 3 days at Pigtails & Crewcuts' designated facility and 2 days of on-the-job training at the franchisee's salon. After opening, Pigtails & Crewcuts offers periodic guidance on operational methods, children's haircut and hair care product sales, hosting birthday parties, advertising and promotional programs, and administrative procedures. The franchisor also processes inventory orders, notifies franchisees of changes to standards and suppliers, reviews advertising materials, and may provide additional resources and assistance as needed. Pigtails & Crewcuts also completes and ships products, equipment, and supplies ordered by franchisees.

Initial Training Hours

32.5

Training Location

Corporate facility in Atlanta, GA, and at a designated Pigtails & Crewcuts Salon

Ongoing Support

After opening, Pigtails & Crewcuts provides ongoing guidance to franchisees as deemed necessary, covering operational methods, sales of child haircut and hair care products, conducting children's birthday parties, and implementing advertising and promotional programs, as well as administrative and accounting procedures. The franchisor also processes orders for inventory and notifies franchisees of changes to salon standards, specifications, and approved suppliers. Pigtails & Crewcuts may offer other resources and assistance as developed for franchisees. The franchisor may also conduct additional training if requested by the franchisee and if personnel are available. Periodically, Pigtails & Crewcuts may require franchisees or their Operating Managers to attend refresher and/or advanced training courses, as well as annual conferences or regional meetings.

Franchise Requirements

Ideal Candidate Profile

Pigtails & Crewcuts seeks prospective franchisees with a minimum net worth of $250,000 and at least $150,000 in liquid capital. Candidates are expected to have prior business management experience, which is considered vital for new franchisees. While prior salon management and business ownership experience are highly desirable, they are not explicitly required. Individuals may own a franchise for investment purposes if they successfully complete training and employ a full-time manager who also completes training.

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

retail

Owner Participation

Absentee Allowed

Territory Type

exclusive

Territory Size Requirements

Each Pigtails & Crewcuts franchise receives an exclusive territory consisting of a three-mile radius around the approved salon location.

Staffing Notes

Pigtails & Crewcuts requires the salon to be under direct, on-premises supervision at all times by either the franchisee (if they have at least a 25% ownership/voting interest) or a designated Operating Manager. The Operating Manager must be responsible for day-to-day operations, be present for significant periods, and complete the initial training program. Either the Operating Manager or another manager/assistant manager must be present during all operating hours. Franchisees are responsible for hiring, training, and supervising competent employees to meet operational standards. The franchisor's Operations Manual may provide guidelines on staffing levels, employee qualifications, training standards, and appearance.