How would you describe your brand?

Modern, trendy, progressive and leading edge.
Is Chatters affiliated with any highly recognized associations?

Chatters is a member of the Canadian Franchise Association (CFA) and the International Salon and Spa Business Network (ISBN).

What type of awards or special recognition has Chatters received?

Chatters is a two time winner of the Canadian Retailer of the Year Award. Chatters is also proud to have received both the 2006 & 2008 Global Salon Business Award held in Barcelona, Spain and Hollywood, California respectively.

What type of locations are suitable for Chatters stores?

Chatters stores can operate successfully in two different types of locations: established major regional indoor shopping centres or newly established big box power or lifestyle centres.

Do I need to have experience in the Hair and Beauty industry?

No. Chatters provides a full training program and our franchise concept is based on fundamental business principles. You can succeed with hard work and common sense. We're looking for individuals who are fashion conscious, have related business experience, strong team building and customer service skills and a competitive nature.

Who determines the right location?

Chatters and a team of professional real estate advisors source our locations. In the process, extensive research is done including market demographics, success of other fashion retailers in the trade area and a close eye on the competition.

Who holds the lease for the premises?

Chatters holds all head leases and each Franchisee subleases directly from Chatters.

Who manages the development of my store?

Store development including design, construction, inventory, staffing and equipping the store is all handled by Chatters. The store is provided to a franchisee on a "turn-key" basis.

What ongoing support is provided?

When you invest in a Chatters franchise, you join a strongly supported family of business owners. We have an amazing support network and provide a wide array of support tools to our Franchisees. Our Head Office team offers support on marketing and advertising, human resources, operations, technical support, further education, distributor and manufacturer relations and all other facets of our business. We have an internal franchise website that provides access to a broad range of tools. As a minimum, Chatters performs semi-annual in-store franchise inspections to help our franchise partners improve their operations.

How do stores purchase inventory?

Most products are purchased directly from the Chatters Head Office distribution centre. Brands not supplied through Chatters Head Office are purchased through a variety of authorized distributors that Chatters has predetermined payment terms and discount structures with.

What are the hours of operation?

It depends on the location. Chatters franchises located inside major regional shopping centres must follow mall hours. Franchises that are located in big box power centres are, as a minimum, open Monday to Friday from 9 til 9, Saturday from 9 til 6 and Sunday from 11 til 6.

What is the franchise fee?

The franchise fee for a power centre location is $40,000 plus GST.

What are the costs involved in opening a Chatters franchise?

The costs to open a Chatters franchise can vary depending on the size of each location, the Franchisee's investment in inventory and local market conditions. We provide estimates to all prospective Franchisees only once we've finalized the lease terms and have inspected the location.

Chatters Salons in approximately 2000 sq. ft. turn-key from $400,000 to $500,000; Salon and Beauty Supply Outlets in approximately 3500 sq. ft. turn-key from $550,000 to $650,000 including leasehold improvements, fixtures, equipment and inventory.

In both cases, Chatters requires its Franchisees to invest a minimum of $250,000 plus $50,000 in working capital to fund the initial start-up costgs including but not limited to the first month's rent, utility deposits, training payroll, grand opening promotions, petty cash and other miscellaneous expenses.

What are the advertising fees?

2% of sales net of GST or PST paid to a separately accounted Advertising Fund.

What income can a Franchisee expect to earn?

The level of income that a Franchisee earns is dependent upon a number of factors, including the Franchisee's level of involvement in the operation, sales performance, cost controls and fixed overhead. We do not provide estimates of sales or profits to prospective Franchisees until we have concluded a set of interviews with them and have performed a complete site and market analysis. Experience has proven, however, that Chatters returns are far above industry standards.

Can a Franchisee own more than one location?

Many of our existing Franchisees are multiple store owners. The decision to allow subsequent locations will be based upon a number of factors including the Franchisee's operational record and financial strength.

Does Chatters Canada provide assistance in securing financing?

In Canada, most of our Franchisees have secured financing through the Canada Small Business Loan Program. This is a government guaranteed loan program that is available through any of the major chartered banks. For approved Chatters Franchisees, financing can typically be secured for approximately 80% of the costs of building the salon and fixtures. Loans are at a maximum interest rate of Prime +3% with a term/ammortization equal to the lease term (less two or three years).

Franchisees deal directly with their bank to secure financing. Chatters Canada provides a generic business plan, along with guidance and assistance throughout the loan process.