There are several ways to finance a franchise, including using retirement savings instead of taking out a business loan. That's how Hillery Simmons decided to fund her Pigtails & Crewcuts kids’ hair salon in Chicago. Simmons, who has worked in technology and data analytics for years, signed a three-salon agreement in July 2025 with plans to eventually make franchise ownership her full-time career.
Simmons chose a financing arrangement known as rollovers as business startups (ROBS), which allows eligible entrepreneurs to use retirement funds to invest in a business without taking a traditional early withdrawal. "I went in thinking maybe it would be better to look into business loans, but at the end of the day, I had one conversation where I essentially determined ROBS funding is the best option," Simmons said.
With ROBS financing, business owners establish a C corporation and a retirement plan, which then purchases stock in the company. As long as they follow the program's rules, they can put eligible retirement savings toward their business without incurring early withdrawal taxes or penalties.
Simmons worked with Guidant Financial to set up her ROBS program and transfer the funds. The company also manages her business's 401(k) plan and handles the required paperwork to keep it compliant with federal regulations.
"They guided me through that process," she said. "They're making sure that I'm abiding by all the regulations."
Pigtails & Crewcuts lists a total estimated investment of $159,500 to $384,600 in its 2026 Franchise Disclosure Document (FDD). Like other prospective franchisees, Simmons reviewed the FDD to understand the anticipated costs of opening a salon.
She also spoke with existing franchise owners during the evaluation process to learn more about their experiences. One conversation was particularly helpful. A fellow franchisee encouraged Simmons to think beyond the initial startup investment and make sure she had additional funding available to support the business after opening.
"I spent time up front thinking about that specifically because of that conversation with her," Simmons said. "I opened a home equity line of credit for my primary residence just so that if I need cash flow, I have quick access to it so I don't have to panic."
Simmons signed a three-salon agreement with Pigtails & Crewcuts because she saw franchise ownership as an opportunity to build a business that could eventually provide an alternative to her career in technology. She evaluated how much retirement capital she could invest initially and how future business revenue might help support additional salons.
"I signed up for three salons because I was looking at the cash flow I would need because I am looking at this venture as something that will replace my day job," Simmons said.
She also appreciated the support available through Pigtails & Crewcuts, including opportunities to connect with existing franchise owners and learn from their experiences. Simmons has continued communicating with the corporate team as she prepares to open her first salon and work toward her multi-salon development goals.
Simmons recommends that prospective franchisees ask questions early, speak with experienced owners and understand which resources are available through the franchise system before purchasing outside services.
"At the very beginning, I didn't know what my resources were going to be," she said. “I was signing up for HR and bookkeeping services, but then I had to backtrack because Pigtails & Crewcuts gave me recommendations. I didn't know that was coming.”
Her biggest piece of advice is to prepare for expenses beyond the initial investment and know where additional capital could come from if needed.
Simmons believes using her retirement savings was the right choice for her business. She encourages prospective franchisees to understand their financing options, plan for ongoing expenses and make sure they have access to additional funds if needed.
To find out more information on costs to buy this franchise, please visit https://1851franchise.com/pigtails-and-crewcuts.
Pigtails & Crewcuts
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Hillery Simmons explains why she used retirement savings instead of a traditional business loan and what she learned about preparing for unexpected startup costs.
There are several ways to finance a franchise, including using retirement savings instead of taking out a business loan. That's how Hillery Simmons decided to fund her Pigtails & Crewcuts kids’ hair salon in Chicago. Simmons, who has worked in technology and data analytics for years, signed a three-salon agreement in July 2025 with plans to eventually make franchise ownership her full-time career.
Simmons chose a financing arrangement known as rollovers as business startups (ROBS), which allows eligible entrepreneurs to use retirement funds to invest in a business without taking a traditional early withdrawal. "I went in thinking maybe it would be better to look into business loans, but at the end of the day, I had one conversation where I essentially determined ROBS funding is the best option," Simmons said.
With ROBS financing, business owners establish a C corporation and a retirement plan, which then purchases stock in the company. As long as they follow the program's rules, they can put eligible retirement savings toward their business without incurring early withdrawal taxes or penalties.
Simmons worked with Guidant Financial to set up her ROBS program and transfer the funds. The company also manages her business's 401(k) plan and handles the required paperwork to keep it compliant with federal regulations.
"They guided me through that process," she said. "They're making sure that I'm abiding by all the regulations."
Pigtails & Crewcuts lists a total estimated investment of $159,500 to $384,600 in its 2026 Franchise Disclosure Document (FDD). Like other prospective franchisees, Simmons reviewed the FDD to understand the anticipated costs of opening a salon.
She also spoke with existing franchise owners during the evaluation process to learn more about their experiences. One conversation was particularly helpful. A fellow franchisee encouraged Simmons to think beyond the initial startup investment and make sure she had additional funding available to support the business after opening.
"I spent time up front thinking about that specifically because of that conversation with her," Simmons said. "I opened a home equity line of credit for my primary residence just so that if I need cash flow, I have quick access to it so I don't have to panic."
Simmons signed a three-salon agreement with Pigtails & Crewcuts because she saw franchise ownership as an opportunity to build a business that could eventually provide an alternative to her career in technology. She evaluated how much retirement capital she could invest initially and how future business revenue might help support additional salons.
"I signed up for three salons because I was looking at the cash flow I would need because I am looking at this venture as something that will replace my day job," Simmons said.
She also appreciated the support available through Pigtails & Crewcuts, including opportunities to connect with existing franchise owners and learn from their experiences. Simmons has continued communicating with the corporate team as she prepares to open her first salon and work toward her multi-salon development goals.
Simmons recommends that prospective franchisees ask questions early, speak with experienced owners and understand which resources are available through the franchise system before purchasing outside services.
"At the very beginning, I didn't know what my resources were going to be," she said. “I was signing up for HR and bookkeeping services, but then I had to backtrack because Pigtails & Crewcuts gave me recommendations. I didn't know that was coming.”
Her biggest piece of advice is to prepare for expenses beyond the initial investment and know where additional capital could come from if needed.
Simmons believes using her retirement savings was the right choice for her business. She encourages prospective franchisees to understand their financing options, plan for ongoing expenses and make sure they have access to additional funds if needed.
To find out more information on costs to buy this franchise, please visit https://1851franchise.com/pigtails-and-crewcuts.
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