Diesel Barbershop Franchise in 2024: Costs, Fee & FDD

Discover the unique appeal and potential of Diesel Barbershop, a franchise blending classic barbering with a rock-and-roll vibe. Learn about costs, earnings, and the robust support system that makes this brand a standout investment in the men’s grooming industry.

Last updated 8 Oct 2024 Time 12 min read
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Diesel Barbershop is a modern twist on the traditional barbershop, blending the old-school feel of classic barbering with a rock-and-roll vibe. Founded by Shayne Brown in 2011, Diesel Barbershop was born out of a desire to create a place where men could get a great haircut while enjoying a unique, masculine environment. The franchise has quickly gained recognition for its edgy, yet comfortable atmosphere, which sets it apart in the crowded men’s grooming market. Brown’s vision was to revive the community-focused barbershop experience while injecting it with a fresh, contemporary energy.

At Diesel Barbershop, the core services revolve around quality haircuts, beard trims, and hot towel shaves, catering primarily to men who value both style and convenience. But it doesn’t stop there—the franchise offers a range of products including premium hair care, beard care, and grooming accessories, making it a one-stop shop for men’s grooming needs. The core customer is typically men aged 18 to 45, although the shop welcomes anyone looking for a unique grooming experience. The Diesel Barbershop concept appeals to those who appreciate a laid-back environment with a bit of an edge, combining nostalgia with modern amenities.

As of now, Diesel Barbershop has grown to over 100 locations across the United States, with a strong presence in states like Texas, Florida, and California. The franchise is rapidly expanding, thanks to its distinct brand identity and a business model that resonates with today’s consumers. Each Diesel Barbershop serves an average of 150-200 customers per day, with consistent foot traffic driven by loyal customers and new clients attracted by its unique atmosphere. The brand’s growth trajectory is impressive, with plans to expand into new markets in the coming years.

Diesel Barbershop offers robust support to its franchisees, including an extensive training program that covers everything from technical skills in grooming to business management and marketing. Franchisees receive ongoing support in the form of marketing materials, operational guidance, and access to a network of other Diesel Barbershop owners. The franchise emphasizes community involvement and customer satisfaction, ensuring that each location upholds the brand’s high standards. This support system, coupled with the franchise’s distinctive branding and strong market position, makes Diesel Barbershop an attractive investment opportunity for those looking to enter the booming men’s grooming industry.

Diesel Barbershop Franchise Insights

  1. The franchise’s unique rock-and-roll aesthetic and emphasis on customer experience have led to a 4.8-star average rating across review platforms like Google and Yelp.
  2. Diesel Barbershop offers a flexible business model that works well in both urban and suburban settings, with locations thriving in diverse markets across the U.S.
  3. The franchise boasts a 0% three-year failure rate, highlighting the stability and success of its business model compared to the industry average of 6%.
  4. Diesel Barbershop has experienced a steady growth rate of 8% year-over-year, surpassing the industry average of 6%, reflecting its strong market position in the men’s grooming industry.

Diesel Barbershop Franchise Key indicators

Growth YOY (%)

8%

vs industry 6%


Total U.S. Franchised Units

27


3-Year Failure Rate

0%

vs industry 6%


Sales-to-Investment ratio

0.8:1

How much does it cost to open a Diesel Barbershop franchise?

Understanding the potential investment size and capital requirements is crucial when considering opening a Diesel Barbershop franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.

Min & Max Investment

Opening a Diesel Barbershop franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Diesel Barbershop below from the most recent Item 7 below:

Type of Expenditure   Minimum Investment   Maximum Investment  
Initial Franchise Fee  $35,000  $45,000 
Project Management Fee  $4,000  $4,000 
Site Selection Fee  $3,000  $6,000 
Technology Fees (First 11 months)  $4,200  $4,200 
Architectural Fees  $8,500  $10,000 
Leasehold Improvements  $119,000  $193,000 
Security, Utility Deposits, Insurance, First Month’s Rent  $8,000  $10,000 
Equipment, FF&E, and Signage  $74,000  $93,000 
Computer System and AV Package  $28,000  $35,000 
Initial Barber Supplies and Inventory  $18,000  $23,000 
Initial Marketing Spend  $5,000  $5,000 
Legal Fees  $3,000  $3,000 
Training Expenses, Travel, and Living  $2,000  $4,000 
Additional Funds (Three Months)  $25,000  $25,000 
Total  $336,700  $460,200 

Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.

Required Capital

To open a Diesel Barbershop franchise, the required capital involves both the initial investment costs and a net worth requirement set by the franchise. Let’s take a closer look below:

  • Initial Investment The total estimated initial investment for a Diesel Barbershop franchise ranges from approximately $337,000 to $460,000. This includes all startup costs such as the franchise fee, build-out costs, equipment, initial inventory, and additional funds for initial operating expenses. Assuming you can obtain financing, you should plan to invest 20% of the total investment in the form of equity (cash).
  • Liquid Assets Requirement Diesel Barbershop typically requires franchisees to have a minimum of $ $337K-$460K in liquid assets. This ensures that the franchisee has sufficient funds to cover unforeseen expenses and maintain financial stability during the startup phase.
  • Net Worth Requirement Diesel Barbershop assesses the overall net worth of the franchisee, with a recommended net worth generally in the range of $500,000 to $1 million. This net worth includes the value of assets such as real estate, investments, and personal property, minus any liabilities.

How much does a Diesel Barbershop franchise owner make?

Calculating the salary of a Diesel Barbershop franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Diesel Barbershop franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.

Diesel Barbershop Revenue & Gross Sales

Based on the most recent analysis, Diesel Barbershop franchises have a median gross sales of $337,906, reflecting steady performance within the men’s grooming industry. This financial outcome highlights the brand’s consistent consumer demand and its potential for generating solid revenue for franchisees. robust consumer demand and potential for significant revenue generation.

Which key factors impact the average revenue performance of Diesel Barbershop franchisees?

The performance of Diesel Barbershop franchisee median gross sales likely reflects a combination of factors. First, the growing demand for specialized men’s grooming services has driven consistent customer traffic, as more men seek out quality haircuts and grooming experiences. Additionally, Diesel Barbershop’s strong brand identity, which merges classic barbershop elements with a modern, edgy vibe, continues to attract a loyal customer base. The franchise’s adaptability in various market settings, along with its comprehensive support and training programs, has also contributed to maintaining and possibly increasing sales performance. Lastly, the franchise’s expansion into new locations may have introduced more customers to the brand, further boosting overall sales.

Diesel Barbershop Franchise Operational Costs

When opening a Diesel Barbershop franchise, it’s crucial to understand the key ongoing operational costs to keep your business running efficiently and ensure long-term profitability. Here are the primary expenses you should consider:

  • Staffing Costs Salaries for barbers and support staff, as well as costs associated with recruitment, training, and benefits, are significant ongoing expenses.
  • Inventory and Supplies Regular replenishment of grooming products, tools, and other supplies necessary for daily operations will be a consistent cost.
  • Lease/Rent The cost of leasing or renting the space for your barbershop is a major ongoing expense, particularly if located in a prime area.
  • Utilities Regular expenses for electricity, water, and other utilities required to maintain a comfortable and functional environment for clients.
  • Maintenance and Repairs Routine maintenance of equipment and the shop itself, including any necessary repairs, can add up over time and should be budgeted for.
  • Marketing and Advertising Local marketing efforts to attract and retain customers, including digital and print advertising, will be an ongoing cost to ensure steady customer flow.

Careful planning and budgeting for these operational costs are crucial for the financial health and success of your Diesel Barbershop franchise.

Diesel Barbershop Franchise Fees

When opening a Diesel Barbershop franchise, it’s essential to understand the various fees associated with maintaining and operating your business. These fees are critical to the overall success and support of the franchise network. Below are some of the key ongoing fees you should be aware of:

  • Royalty Fee An amount equal to 7.5% of weekly Gross Sales of your Franchised Business. This fee is due every Tuesday based on the previous week’s Gross Sales and is required once your business opens.
  • Fund Contribution Currently set at 1% of the Gross Sales of your Franchised Business. This fee is collected at the same interval as your Royalty Fee and is used to support the Brand Development Fund, which promotes and markets the brand.
  • Additional Fees In addition to the standard royalty and fund contribution fees, Diesel Barbershop franchisees should be aware of potential additional fees that may arise depending on specific franchisor requirements or optional services, ensuring the business remains competitive and well-supported.

It’s important to note that there may be additional fees associated with your franchise, depending on specific requirements or additional services provided by the franchisor. These fees are designed to ensure your franchise remains competitive and well-supported within the market.

Diesel Barbershop Franchise Earnings

The earnings for a Diesel Barbershop franchise can provide a solid return on investment, particularly for owner-operators who are directly involved in the day-to-day operations. With a median gross sales figure of $337,906, franchisees can expect consistent revenue generation, which reflects the strong demand for quality men’s grooming services in the market.

For owner-operators, the earnings potential is further highlighted by an average income of $60,823. This figure represents the financial reward of hands-on management, allowing franchisees to maximize profitability through direct oversight of operations, customer service, and staff management. While individual earnings can vary based on factors like location and operational efficiency, these numbers provide a useful benchmark for potential franchisees considering the Diesel Barbershop opportunity.

If the franchisee is semi-absentee, then earnings will be significantly lower based off of the costs of having a hired manager.

How to Open a Diesel Barbershop Franchise

Becoming a Diesel Barbershop franchisee involves several key steps to ensure you are well-prepared for a successful business venture. Here’s an outline of the process:

  1. Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
  2. Application If your initial inquiry is accepted, you’ll be invited to complete a more detailed application. This application will ask for comprehensive information about your personal and professional background, financial status, and reasons for wanting to become a Diesel Barbershop franchisee.
  3. Interview Process Successful applications lead to a series of interviews with Diesel Barbershop representatives. These interviews, which may be conducted over the phone or in person, will assess your business acumen, leadership skills, and alignment with the franchise’s values and culture.
  4. Background and Financial Check A thorough background check and financial review are conducted to ensure you meet Diesel Barbershop’s standards for franchisees. This step is crucial to verify your ability to manage and sustain the business financially.
  5. Evaluation The evaluation process is competitive, with the franchise team carefully reviewing all aspects of your application and interview performance. This stage may involve additional assessments to ensure you are a good fit for the franchise.
  6. Approval If you pass all evaluations, you’ll receive approval to become a Diesel Barbershop franchisee. At this point, discussions about potential locations for your barbershop will begin.
  7. Training Program Before you open your barbershop, you’ll participate in an extensive training program. This training covers all aspects of operating a Diesel Barbershop, including customer service, technical grooming skills, and business management.
  8. Site Selection and Build-Out Diesel Barbershop’s corporate team will assist you in selecting a suitable location and managing the build-out of your barbershop. They will provide guidance on the layout, design, and equipment needed to meet brand standards.
  9. Pre-Opening Preparation While your barbershop is being built, you’ll continue training and prepare for the opening. This includes hiring and training staff, setting up supply chains, and planning your marketing strategies.
  10. Grand Opening Once construction is complete and your barbershop is fully staffed and equipped, you’ll host a grand opening. Diesel Barbershop provides support to ensure a successful launch, helping you attract customers from day one.
  11. Ongoing Support After your barbershop is open, you’ll receive ongoing support from Diesel Barbershop’s corporate team, including marketing assistance, operational guidance, and regular evaluations to ensure your continued success in the business.

Pros & Cons

Pros

Unique Brand Identity: Diesel Barbershop offers a distinctive brand that blends classic barbershop elements with a modern, edgy vibe, attracting a loyal and growing customer base.

Growing Industry: The men’s grooming industry is expanding, with increasing demand for specialized services, positioning Diesel Barbershop in a market with strong growth potential.

Flexible Business Model: Diesel Barbershop’s adaptable business model works well in various market settings, from urban centers to suburban neighborhoods, allowing for broad market appeal.

Community-Oriented Atmosphere: The franchise promotes a community-focused environment, which can lead to strong local customer loyalty and repeat business.

Cons

Competitive Market: The men’s grooming industry is competitive, with numerous barbershops and salons vying for market share, which could impact customer acquisition and retention.

Operational Demands: Running a barbershop requires hands-on management, particularly in maintaining service quality and customer satisfaction, which could be challenging for those looking for a more passive investment.

Niche Market Appeal: While the brand’s edgy, rock-and-roll vibe attracts a specific customer base, it may not appeal to a broader audience, potentially limiting market reach.

 

FAQs

Who owns Diesel Barbershop?

  • Diesel Barbershop was founded by Shayne Brown in 2011. The franchise is owned and operated by Diesel Barbershop Franchise LLC, which oversees the expansion and support of the franchise network.
  • Yes, Diesel Barbershop is a franchise. It offers franchising opportunities to entrepreneurs interested in opening and operating their own Diesel Barbershop location.
  • What are alternatives to Diesel Barbershop ? Diesel Barbershop’s biggest competitors are other men’s grooming franchises like Sport Clips and Floyd’s 99 Barbershop , which also cater to the growing demand for specialized men’s grooming services. Alternatives to Diesel Barbershop include The Gents Place, V’s Barbershop , and local independent barbershops that offer similar services.
  • Based on recent data, Diesel Barbershop has 31 locations in the U.S., of which 27 are franchised locations.
  • The most recent calculated 3-year failure rate of Diesel Barbershop was 0% in the U.S.
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