The Power of Memberships in Franchising

Kennedy’s All American Barber Club proves memberships work.

SPONSORED 2:14PM • 01/05/16

Kennedy’s All American Barber Club is certainly changing the way guys approach grooming by bringing back barbershop nostalgia with their unique take on quality, new-school haircuts in a traditional, old-fashioned setting. However, its approach to franchising is also changing the way franchisees operate by providing them security with a recurring revenue model.

Providing unique membership-level-based programs allow consumers to receive one-of-a-kind services tailored to their needs as frequently as they would like. Consumers can pamper themselves with a fresh shave or hair trim at their leisure, be it once a week or even every couple of days, to ensure they are always looking their best. This membership model provides a higher level of financial security, allowing the owner to have a steady, reliable stream of revenue each month from customers who pay a monthly fee for a membership, eliminating the worries about cash flow.

Company CEO, Jay Hummer said that they have been able to create a simple-to-operate brand that has been recognized as a sustainable model for the foreseeable future. The franchise has a start-up cost ranging from just $156,000 - $271,000.

For a reasonable investment cost, potential business owners are able to tap into a hot industry, full of demand, with men’s grooming products generating sales of $192 million in 2015 and a 9 percent current value increase over 2015.

Kennedy's has been able to find this niche market within a growing industry and take a business model that isn't typically seen as membership-based, and become a proven system. Other membership based franchises, such as gyms, like WORKOUT ANYTIME* and spas, such as Hand & Stone Massage and Facial Spa, have seen success in this model for many years.

With the success of Kennedy’s using membership-based growth in the haircare industry, it will be interesting to see which service-oriented segments look to this model next.

*This brand is a paid partner of 1851 Franchise. For more information on paid partnerships please click here.