OFFICIAL FILING · MN · 2020
Hammer & Nails FDD (Franchise Disclosure Document) — 2020
The FDD is the 23-item legal disclosure every U.S. franchisor must hand you at least 14 days before you sign or pay anything (FTC Franchise Rule, 16 CFR 436). Hammer & Nails's most recent FDD tracked here was filed in 2020 with the Minnesota Department of Commerce (public CARDS portal) — and because registration-state filings are public records, you can read it free, without giving a broker your phone number.
THE SAME DOCUMENT SITES SELL OR GATE BEHIND LEAD FORMS. FILED 2020 · SOURCE STATE MN
| ITEM 5 | Initial franchise fee | $50K |
| ITEM 6 | Ongoing royalty | 6.5% of gross sales |
| ITEM 7 | Total initial investment | $248K–$527K |
| ITEM 3 | Disclosed litigation matters | 0 |
| ITEM 19 | Earnings disclosure (FPR) | Yes — median unit volume $314K ("SHOP GROSS REVENUES" table, row "First Full Year (12 Months)": Low $193,380, High $453,052, Median $313,976, Average $311,839, # of Units 6. Note (1): "The first line item of the chart shows the historic financial performance reflecting the actual Gross Revenues for the first full year for six (6) Hammer & Nails® Shops. This includes the Gross Revenues of The West Hollywood Shop, which is partially owned by two of our officers. The West Hollwood Shop operate in the same manner as other Hammer & Nails Unit Franchises." Second row "At least 24 Months": Low $334,976, High $426,074, Median $380,525, Average $380,525, # of Units 2. Note (2): "The second line item in the charts shows the historic peformace of the only two (2) Shops in the Hammer & Nails® franchise system that have been operating for at least 24 full months. This includes the Gross Revenue of The Folsom Shop, which is owed by our CEO. The Folsom Shop operates in the same manner as other Hammer & Nails Unit Franchises. Note that we have no Shops that have been open for three (3) full years." Note (3): "Shops opened at least 24 months opened with four or fewer barber chairs. We now require a minimum of six barber chairs for all new Shops." Note (5): "The information in the chart was compiled based on actual reported revenues submitted to us by Hammer & Nails® franchisees. We do not know if the figures reported to us by the franchisees were audited. We have not independently audited or verified the accuracy of these numbers, and we do not know if these numbers have been verified or audited on behalf of the franchisees.") |
| ITEM 20 | Outlets (fiscal 2019) | 11 franchised at year end · 2 exits (22.2% annualized) |
| ITEM 21 | Franchisor financial statements | clean (unqualified) audit opinion — Hanna, CPA (Hanna Certified Public Accountant), Chino Hills, California |
Citation discipline: every figure above is extracted from the 2020 Hammer & Nails FDD as filed and links back to that document. Fields the filing did not state are omitted — nothing here is estimated, surveyed, or filled in from marketing material. FDDs are reissued annually; verify against the current issuance before relying on any number.
Hammer & Nails FDD questions, answered
Where can I download the Hammer & Nails FDD for free?
Hammer & Nails's 2020 Franchise Disclosure Document is a public record, filed with the Minnesota Department of Commerce (public CARDS portal). It can be downloaded free from the source link on this page — no broker form, no email signup required.
What year is Hammer & Nails's most recent FDD on file?
The most recent Hammer & Nails FDD tracked here was filed in 2020 with the Minnesota Department of Commerce (public CARDS portal). Franchisors must update their FDD annually, so confirm you are reading the current issuance before signing.
Does Hammer & Nails's FDD disclose earnings (Item 19)?
Yes — Hammer & Nails makes a financial performance representation in Item 19 of its 2020 FDD, reporting a median unit volume of $314K. Read the basis fine print: franchisors choose which units and metrics to include.
What does Hammer & Nails's FDD Item 20 show?
In fiscal 2019, Hammer & Nails ended with 11 franchised outlets; 2 of 9 open at the start of the year left the system — an annualized exit rate of 22.2% (terminations, non-renewals, and "ceased operations — other reasons").
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing Hammer & Nails's numbers, including talking you out of a bad deal.
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