Sharkey's Cuts for Kids Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$197,415 - $336,240
Franchise Fee
$45,000
Total US Locations
172
Business Summary
Sharkey's Cuts for Kids operates hair salons designed to appeal to children and families. These full-service family salons offer haircuts for all ages in a family-friendly environment, featuring decorative chairs, video games, televisions, and movies. Each Sharkey's Cuts for Kids salon typically has a minimum of eight cutting stations and employs four to six stylists. Some locations also host "Glamour Girl" birthday parties where children receive hair services and dress up in gowns with friends.
Corporate History
Sharkey's Cuts for Kids International Co., LLC, the current franchisor, was formed in Connecticut on April 30, 2013. Its predecessor, Sharkey's Franchising Co., LLC, was formed in Connecticut on July 8, 2003, and began offering Sharkey's Cuts for Kids salons franchises in July 2003. An affiliate, Sharkey's Franchise Offering Co., LLC, was formed on April 2, 2013, and has been offering franchises for 'Sharkey's Hair It Is' since May 2013 under a separate disclosure document. The company's initial business, of the type being franchised, has been in operation since 2013.
Financial Overview
Investment Range
$197,415 - $336,240
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$45,000
Marketing %
1%
Equipment Costs (Low)
$14,500
Equipment Costs (High)
$86,500
Working Capital
$25,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Sharkey's Cuts for Kids International Co., LLC's financial statements show a significant negative member's equity (deficit), indicating that its liabilities exceed its assets. The franchisor itself highlights this in the 'Special Risks' section, stating that its financial condition raises questions about its ability to provide services and support to franchisees.
Financing Details
Sharkey's Cuts for Kids does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations on behalf of its franchisees.
Performance Metrics
Total US Locations
172
Franchised Units
170
Corporate Units
2
Avg Square Footage
1,175
Franchising Since
2003
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Sharkey's Cuts for Kids has been involved in two litigation cases. The first case, from April 2014, involved the Commonwealth of Virginia alleging that Sharkey's Cuts for Kids sold one franchise prior to registering its Disclosure Document and did not provide prospective franchisees with the required documents. Sharkey's Cuts for Kids was ordered to offer rescission to the franchisee (which the franchisee refused) and pay monetary penalties of $3,000 and $1,500 for investigation costs. This case concluded in June 2014. The second case, filed in November 2022 by a former franchisee, alleged a breach of pre-opening obligations by Sharkey's Cuts for Kids. This arbitration was mutually settled in December 2022, with Sharkey's Cuts for Kids terminating the franchisee and refunding the initial franchise fees.
Bankruptcy History
Sharkey's Cuts for Kids has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Sharkey's Cuts for Kids franchisees must provide written notice to the franchisor between 90 and 180 days before their current term expires. They must ensure their salon premises are repaired and updated to meet current system standards, and they cannot be in breach of any agreement with Sharkey's Cuts for Kids or its affiliates. Franchisees must also have the right to remain in possession of their salon premises, sign the then-current franchise agreement and a general release, comply with current qualification and training requirements, and pay a renewal fee of $2,500.
Training & Support Program
Franchisor Assistance
Before a Sharkey's Cuts for Kids salon opens, the franchisor provides initial equipment and supplies, a domain name, and creates a webpage for the franchisee's location. They assist with site selection and provide written specifications for salon construction or remodeling. Franchisees and their managers receive an initial virtual training program covering operations, retail, and management. After opening, Sharkey's Cuts for Kids develops new service and product offerings, offers telephone consultations for general questions and operational problems, and may hold mandatory annual or semi-annual conferences for franchisees and managers. The franchisor also provides system-wide advertising, reviews local advertising materials developed by franchisees, and conducts inspections and evaluations of the franchised businesses.
Initial Training Hours
27
Training Location
Corporate headquarters in Westport, Connecticut, or virtually
Ongoing Support
After opening, Sharkey's Cuts for Kids franchisees receive ongoing support including information on new service and product developments, and telephone consultations (by appointment) for operational questions. Franchisees and their managers are required to attend annual or semi-annual conferences, as well as monthly conference calls, which discuss sales, advertising, and staff training. The franchisor also manages system-wide advertising campaigns, reviews local advertising materials, and conducts periodic inspections and evaluations of the franch franchised businesses.
Franchise Requirements
Ideal Candidate Profile
Sharkey's Cuts for Kids seeks franchisees who are either individuals or legal entities willing to personally supervise and manage the day-to-day operations of their salon. If the franchisee appoints a manager, that manager must be dedicated full-time and have no conflicting business interests. Ideal candidates are expected to be hands-on, potentially working evenings, weekends, and holidays, and should enjoy interacting with both adults and children. A background in sales is preferred, along with a strong willingness to follow the Sharkey's Cuts for Kids system and share experiences with other franchisees. All owners of the franchisee entity and their spouses (if married) must be prepared to sign personal guarantees and adhere to confidentiality and non-competition covenants. The franchisor also recommends that candidates consult with professional advisors for business and financial matters.
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
protected
Staff Count
6
Territory Size Requirements
Sharkey's Cuts for Kids designates territories that will contain a minimum of 10,000 children within a five-mile radius of the franchised salon. The maximum size of any territory will not exceed a five-mile radius around the salon. The specific size is determined by factors such as the type of area and the population residing within driving distance of the chosen location.
Staffing Notes
Each Sharkey's Cuts for Kids salon is designed to accommodate a minimum of eight cutting stations and typically employs between four and six stylists. While the franchisee is responsible for the salon's overall operation, they have the option to hire a full-time, non-owner manager to handle daily management. This manager must successfully complete the franchisor's initial training program, dedicate full-time hours to the role, and not have any conflicting business interests.