he mission of Men’s Ultimate Grooming is to be the ultimate haircut place for men and boys by combining convenience, comfort, style, and expertise to exceed client expectations. Over the next 5 years, MUG Franchising will look to expand across the United States with the addition of 50 locations by selling individual and multi-unit franchises to qualified franchisees in focused markets.

Introduction

MUG is a salon for men and boys with a unique and effective approach. The salon is the creation of Lee Wood, a business minded entrepreneur who saw a gap in the hair care market segment. The company now operates three locations in the greater Phoenix market and there has been an enormous amount of interest, potential franchise growth and overall acceptance of MUG as a business, brand and franchise opportunity.

With the appropriate structure, planning, and business model, MUG has the potential to redefine the industry segment for men’s hair care and grooming. The market seems primed for a branded, high-quality provider to deliver these services to men at a price point that an individual with average income can afford.

Concept and Facilities Review

When it comes to men’s grooming services, MUG has redefined convenience, style, expertise and value by combining the best of a classic barbershop and a modern men’s salon. And when it comes to franchise opportunities, MUG has have developed a cost-effective and scalable business model with effective hiring, training, and marketing techniques.

Whereas most chain salons operate as a “haircut factory,” requiring strict time limits and the same technique to be use on every client, MUG takes a more custom approach to servicing clients. MUG stylists are encouraged to give each client the exact haircut he wants, not to just get him in and out as fast as possible. MUG also allows time for the “little things” that make a big difference such as trimming the eyebrows and shaving the back of the neck with hot lather followed by a steamed towel. This level of service combined with a focus on convenience appeals to a large segment of the market.

Although MUG focuses on a higher level of customer service, they have developed a system and pricing structure that doesn’t come across as too high-end. This enables MUG to have an extremely large potential client base consisting of a wide range of demographics. It allows those customers that go to discount shops to experience MUG for a slightly higher but by no means exorbitant price point while attracting those customers that are used to paying a much higher price for the level of service they get at MUG. In essence, MUG has developed a system that is the perfect intersection of high end customer service and value.

Although the primary service at MUG is the haircut, MUG has also developed other ultimate services. For example, MUG has reinvented the facial shave, creating an experience that is truly remarkable and allows the client to be pampered. Featuring add-on services and developing effective retail selling techniques allows for additional revenue streams that aren’t available with many salon franchises.

There are currently three MUG units in operation in the greater Phoenix market. The financials of the stores are strong and the concept of MUG has proven effective via its consistent and impressive numbers. The MUG concept will feature locations that follow a similar layout and color scheme. It is consistency and professionalism that will keep the MUG brand ahead of any of the competition. The location, layout, signage, and feel all attract and patrons and keep them coming back.

The Business model is simple which allows for quick and efficient duplication of the business system. A typical location is about 1,000 square feet, but can range from 850 – 1,250 square feet, depending on the location. The business model will typically fit into a strip center location; the foot traffic and “anchors” that are close to the location will have an impact on the success of the operation. It is critical to the success of the MUG franchise that new franchise partners abide by the strict processes and policies in place for finding and approving locations for new operators. Lee Wood will oversee new franchisee location acquisition and in managing the negotiations of leases and business terms for the real estate.

The recommended process will be as follows:

1. Store Layout, Design and Business Plan will be provided to Franchisee.
2. If possible, MUG will develop and utilize relationships with commercial real estate brokers to assist franchisees in finding a location.
3. Franchisee will find locations and send photos and specs for location along with address and basic information on market area to Lee Wood.
4. Mr. Wood will approve or disapprove locations.
5. Upon approval of locations, Mr. Wood will visit the location and make a final approval.
6. Franchisee will then sign the lease – this will be required to be approved by Mr. Wood prior to signing.

The business is heavily dependent on strong and massive marketing in a market where shops are being opened. For this reason, there are cooperative marketing groups, a national marketing program and a localized marketing program for MUG. These groups of marketing initiatives are each equally important and will be managed closely the MUG management team.