How to Finance a Pigtails & Crewcuts Franchise: Kids Salon Costs
By Chris Cornella
A Pigtails & Crewcuts franchise loan funds a children’s hair salon that has to feel like a destination: themed styling chairs, a play-friendly waiting area, a party room, retail shelves stocked with kid-friendly products and a team of stylists who are comfortable with nervous first-timers. The financing need is far smaller than a gym or restaurant, but it still has to cover a retail build-out, fixtures and the months it takes to build a loyal family clientele.
US Professional Funding is not affiliated with, sponsored by or endorsed by Pigtails & Crewcuts; the name is used only to describe the business. Figures in a franchisor’s disclosure document can change from year to year, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice; review the current disclosure document and franchise agreement with a franchise attorney and an accountant.
Pigtails & Crewcuts Franchise Loan at a Glance
- Concept: hair salons designed only for children, offering haircuts and styling for boys and girls along with themed birthday and dress-up parties.
- Background: founded in 2004 in Atlanta, Georgia, where the franchisor is based.
- Revenue streams: haircuts and styling, parties and events, and retail sales of children’s hair products, accessories, toys and gifts.
- Fees and total investment: set out in Items 5, 6 and 7 of the current Franchise Disclosure Document (FDD). We could not verify current figures from the franchisor’s own materials, so request the latest FDD before building a budget.
- SBA Franchise Directory: listed as Pigtails & Crewcuts under code S1304, with no additional directory note.
- Main financing drivers: the lease and build-out of a retail suite, themed salon fixtures and chairs, opening inventory and working capital while appointments build.
What Is Pigtails & Crewcuts?
Pigtails & Crewcuts is a children’s hair salon franchise founded in Atlanta in 2004. The idea is simple: make a haircut something kids look forward to and parents can manage without stress. Salons feature playful styling chairs shaped like airplanes and cars, seating for parents and siblings, activities and movies to keep children occupied, and an online booking app for busy families.
Beyond everyday cuts, salons host birthday, dress-up, tea and other themed parties in a dedicated party area, and they sell child-friendly hair products, accessories, toys and gifts. The brand has also added a training platform for owners, managers and stylists, and a certified service program that lets trained stylists fit children for custom wigs, a meaningful service for kids facing hair loss.
How lenders view a kids salon. Lenders like the repeat nature of children’s haircuts, the modest footprint compared with many franchises and the mix of service, party and retail income. They also note that the business depends on hiring and keeping good stylists and on a location that is convenient for families. A long-running brand helps, but lenders still underwrite the individual owner and site.
Pigtails & Crewcuts Franchise Costs
We could not confirm current cost figures from the franchisor’s own materials, so this section explains each category and where to find exact numbers in the FDD.
Initial franchise fee
Item 5 of the FDD lists the initial franchise fee and any fees for multi-salon agreements. Confirm when it is due, whether any portion is refundable and whether your lender can include it in the loan.
Lease and build-out
Most salons occupy a retail suite in a shopping center near schools, family neighborhoods and other kid-focused businesses. Build-out can include plumbing for shampoo stations, electrical work, flooring, lighting, a reception counter, a party room and the brand’s playful decor. A landlord improvement allowance can significantly reduce the amount you need to borrow.
Salon fixtures, equipment and technology
Themed styling chairs, shampoo bowls, stations and mirrors, sanitation equipment, screens for entertainment, point-of-sale and booking systems, and retail fixtures fall into this category. Some of these items can be financed separately from the main loan.
Opening inventory, training and working capital
Retail products, accessories, toys and party supplies need to be on the shelves on opening day. Stylist recruiting, training, grand opening marketing, insurance and deposits also come before revenue, and Item 7 includes an “additional funds” line for the initial operating period.
What to check in Item 7
- Initial franchise fee
- Rent, deposits and leasehold improvements
- Salon chairs, stations, furniture and decor
- Signage
- Computer, point-of-sale and booking systems
- Opening retail inventory and supplies
- Training, grand opening marketing, insurance and licenses
- Additional funds for the initial period
Compare each range with contractor quotes and a letter of intent for your actual site. Lenders want a Pigtails & Crewcuts franchise loan budget that ties out to real bids, not just FDD ranges.
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists the royalty, any marketing fund contribution, technology fees, transfer and renewal fees and other recurring charges. Fees based on gross sales come off the top before rent, payroll and debt service.
Lenders deduct these fees when they calculate debt service coverage. Stylist payroll is usually a salon’s largest expense, so projections that understate wages or leave out royalty and marketing fees will overstate how much debt the salon can carry. Ask whether the franchise agreement requires periodic remodels or decor updates and plan for them.
Franchisor Requirements for New Owners
We could not verify the brand’s minimum net worth or liquid capital requirements from the franchisor’s own materials. Ask the franchise team for current requirements, available territories and whether owners are expected to work in the salon or may hire a manager.
The process generally moves from application and financial review to receipt of the FDD, territory selection, the franchise agreement, and then site selection, lease negotiation, build-out and training. Begin financing conversations before you sign a lease.
Ways to Own a Pigtails & Crewcuts
Opening a new salon. A new salon is underwritten on projections, so lenders focus on the site, the budget, your liquidity and your plan for hiring stylists. Our page on franchise start-up financing covers how new units are funded.
Buying an existing salon. A resale gives a lender real appointment, party and retail history. The franchisor must approve the transfer, and the landlord usually must consent to assigning the lease. Our article on buying a franchise resale explains the process.
Owning several salons. The brand has signed agreements for more than one salon with some owners. Financing typically happens salon by salon, supported by the results of earlier locations.
Financing Options for a Pigtails & Crewcuts Franchise
SBA 7(a) loans. An SBA 7(a) loan can combine leasehold improvements, salon equipment, the franchise fee, inventory and working capital in one loan. The 7(a) program maximum is currently $5 million, and program rules can change; a single salon will usually need far less.
SBA 504 loans. Most salons lease, but an owner who buys a small retail building and occupies it may consider an SBA 504 loan for the real estate.
Conventional term loans. Owners with strong credit, liquidity and business experience may qualify for conventional business loans, especially when adding salons.
Equipment financing. Themed styling chairs, shampoo stations, screens and point-of-sale systems can often be financed or leased through franchise equipment financing and leasing. Your primary lender will count those payments.
Working capital and lines of credit. Children’s haircut demand often rises before the school year and the holidays and can slow at other times. A working capital reserve or line of credit helps cover payroll and rent while the client base grows. See franchise working capital.
Seller financing on resales. A seller may agree to carry part of the price on an existing salon. Seller notes are typically subordinate to the primary loan, and SBA rules may limit how they are structured.
SBA Loans for Pigtails & Crewcuts Franchisees
SBA loans are made by participating lenders, with the SBA guaranteeing part of the loan. For a franchise, the lender also confirms that the franchise agreement leaves the owner in control of the business, and the SBA Franchise Directory simplifies that review.
The directory listing. Pigtails & Crewcuts appears on the SBA Franchise Directory under code S1304, with no additional note, so no special lease or real estate addendum is flagged. A listing simplifies the lender’s eligibility review; it does not approve any borrower or guarantee a loan.
SBA application tips. Have the franchise agreement, a lease letter of intent, contractor bids, a sources and uses statement, personal financial statements, tax returns and résumés ready. Our article on using the FDD in franchise financing explains which items lenders read most closely.
How Lenders Evaluate a Pigtails & Crewcuts Deal
Personal credit and financial history. Lenders review each significant owner’s credit, tax returns and debts, and significant owners usually sign personal guarantees.
Net worth and liquidity. Expect questions about the source of your equity and the cash left after opening.
Management experience. Experience managing staff, customer service or a retail or salon business helps. Owners who plan to hire a manager should show how they will oversee the salon. Our article on semi-absentee franchise financing explains how lenders view that model.
Business plan and projections. Lenders want realistic assumptions for haircut volume, party bookings and retail sales, along with stylist payroll, royalty, rent and marketing. Show how you will recruit stylists before opening.
The FDD and franchise agreement. Lenders review term, renewal, transfer and termination provisions, and want the franchise term to run at least as long as the loan. Review Items 3 and 4 of the FDD as part of your own due diligence.
Site and lease. Visibility, parking, nearby schools and family traffic, lease term and assignment rights all matter.
For resales, historical financials. Lenders review appointment trends, party revenue, retail sales, stylist turnover and tax returns.
Stylists, Parties and Retail
The salon’s three revenue streams affect financing differently. Haircuts bring steady repeat visits, but they depend on a stable stylist team, so hiring and training costs belong in the opening budget. Parties use the dedicated party room and can lift weekend revenue, but they require staffing and supplies. Retail products, accessories and toys tie up cash in inventory, so order carefully and track what sells.
Multi-Unit Growth and Development Agreements
Owners who sign for several salons usually finance them one at a time. Lenders review the first salon’s results, global cash flow and remaining liquidity before funding the next. Shared management and stylist training across locations can help, but lenders want to see that each salon stands on its own. Our article on multi-unit franchise financing covers the details.
Real-World Scenarios
A parent opening a first salon. A former retail manager signs a lease in a busy family shopping center with a landlord improvement allowance. An SBA 7(a) loan covers the remaining build-out, chairs, inventory and working capital.
A buyer taking over a resale. A buyer purchases an existing salon after reviewing its appointment and party history. The seller carries a subordinate note, and the lender confirms franchisor approval and lease assignment.
An owner adding a second salon. An owner with a steady first salon opens a second in a nearby suburb, using the first location’s results to support a conventional loan.
Common Mistakes to Avoid
- Signing a lease before confirming family traffic and parking
- Underestimating stylist recruiting and training costs
- Overbuying retail inventory before learning what sells
- Leaving royalty and marketing fees out of projections
- Opening without a working capital reserve for slower months
- Relying on secondhand cost estimates instead of the current FDD
For more, read the franchise loan mistakes that cost owners the most.
Next Steps to Finance Your Pigtails & Crewcuts Franchise
Step 1: Get the current FDD. Review Items 5, 6, 7, 10, 17, 19 and 20 with a franchise attorney.
Step 2: Confirm requirements. Ask for current net worth, liquidity and territory details in writing.
Step 3: Choose a site. Look for family traffic, visibility and parking, and get contractor quotes.
Step 4: Build a full budget. Combine quotes, FDD estimates and a working capital reserve. Our SBA loan calculator can help with planning estimates.
Step 5: Plan your staffing. Show lenders how you will recruit and train stylists.
Step 6: Apply and coordinate closing. Submit a complete package and align closing, lease signing and build-out.
Pigtails & Crewcuts Franchise Loan FAQs
How much does it cost to open a Pigtails & Crewcuts salon?
The estimated initial investment is in Item 7 of the current FDD. We could not verify current figures from the franchisor’s own materials. Site, size and build-out drive most of the variation.
What is the franchise fee?
Item 5 of the FDD lists the initial franchise fee. Request the current FDD for confirmed figures.
What ongoing fees apply?
Item 6 lists the royalty, marketing contributions and other recurring fees, which lenders include in projections.
Can I get an SBA-backed Pigtails & Crewcuts franchise loan?
The brand is listed on the SBA Franchise Directory under code S1304, with no additional note. Eligibility still depends on the borrower, the project and lender approval.
How much liquid capital do I need?
We could not verify the franchisor’s current requirements. Lenders also expect equity plus reserves after opening.
Do I need to be a stylist?
Not necessarily. Management and customer service skills matter, and you will hire licensed stylists. Confirm the franchisor’s expectations for owner involvement.
Can I finance the salon chairs and equipment separately?
Often, yes, through equipment loans or leases, though your primary lender counts those payments.
Can I buy an existing salon?
Possibly, if an owner is selling. The franchisor must approve the transfer, and the landlord usually must consent.
Does the franchisor offer financing?
Item 10 of the FDD describes any financing the franchisor offers.
How long is the franchise term?
Item 17 of the FDD covers the term, renewal and transfer rules. Lenders want the term to run at least as long as the loan.
Final Thoughts
A Pigtails & Crewcuts franchise loan finances a smaller footprint than many franchises, but success still depends on the right site, a strong stylist team and enough working capital to build a loyal family clientele. Verify every figure in the current FDD and plan your staffing before you borrow.
US Professional Funding helps franchise buyers and owners finance new locations, acquisitions, equipment and working capital. Learn more about our franchise financing.
