At present the company comprises more than 100 store locations spread over eight of Canada’s ten provinces, and the Chatters webpage lists franchise opportunities at 14 more sites nationwide.
Business style
Hair salons are a proven franchise model. In the States, several rank high in comparison to other turnkey entrepreneurial options. Supercuts, Great Clips, and Fantastic Sams did well on Entrepreneur Magazine’s 2014 Franchise 500 list. These salons are more family-facing, cost-saving ventures than the Chatters salons in Canada, which cater to on-trend young and middle-aged adults.
Chatters full-service approach—offering high-quality cuts, color, and specialty treatments—makes sense in the current beauty market. Specialized hair care and grooming salon franchises are a growth business.
European Wax Center, which does a fair amount of business in brow shaping, has well over 100 locations in the US. And the company anticipates continued growth based on this notion: “We strongly believe that waxing should be a luxurious, yet affordable experience that leaves individuals feeling pampered confident and sexy,” says David Coba, CEO and co-founder of the center.
Financial backing
ONCAP invests in small and mid-sized companies that operate within industry niches and have strong existing management teams and, of course, the potential to become more profitable. “We’re delighted to be partnering with Jason Volk and the entire Chatters team,” Mark MacTavish, managing director of ONCAP, tells the press. “Chatters is well positioned to build upon its strong foundation and we’re excited to support its growth.”
Asset valuation
Chatters went looking for a partner and teamed up with Intrepid Investment Bankers to do so. “We selected Intrepid based on their extensive experience in the beauty care industry and their knowledge of the professional hair care sector—and they delivered,” says Jason Volk, CEO of Chatters.
Intrepid has dedicated staff attending to beauty industry clients. And, the arrangement seems to have gone well for all parties. “We were impressed from day one with the powerful Chatters store model, brand, and culture, but perhaps most impressed with the entire Chatters team. They have established a national beauty care platform in Canada and built a truly special business,” says Steve Davis, managing director and head of the beauty & personal care practice at the investment bank.
“I’m confident Chatters will continue to thrive with their new partner. We’re proud to have been a part of the Chatters team and look forward to seeing what Chatters and ONCAP can accomplish together,” he adds.