Hollywood Star Cuts, a wholly owned subsidiary of All American Gold Corp. is growing rapidly!
On July 8th, 2022, All American Gold Corp. and Hollywood Star Cuts entered into an agreement with a group of development and franchise professionals with the objective of developing and operating a number of Hollywood Star Cuts locations in the Central Texas area. The franchise group has a strong track record in operating franchises in Fast Food, Pizza, and Convenient Store locations. The locations that they will be concentrating on include Dallas and its suburbs and the greater Austin area. The agreement stipulated that the development company will open and operate a minimum of three (3) locations in 2023 and a minimum of six (6) locations by the end of 2024 with the intention of developing and operating a minimum of ten (10) locations within five years. The typical Hollywood Star Cuts generates a minimum of $150,000.00 annually in gross revenue. Using this formula, this agreement will add roughly $450,000.00 in revenue in 2023, roughly $600,000.00 in revenue in 2024 and as much as $1,500,000.00 in gross revenues in central Texas upon full maturity.
Hollywood Star Cuts began negotiations with the Texas-based group four months ago. The negotiations were very friendly, with both parties going out of their way to address the concerns of all parties involved. The Texas group stated that they were impressed with Hollywood Star Cut’s concept including the addition of tanning stations in each location. Hollywood Star Cuts continues to be committed to the success of our Franchise partners as well as the Corporate locations.
Hollywood Star Cuts operates Corporate stores in the greater Boise area. Hollywood Star Cuts has entered into franchise agreements with groups in Western Florida, Las Vegas, Nevada and now Central Texas. Initially, Hollywood Star Cuts had a long tern plan of developing and operating one hundred (100) locations Nationwide. At the time of conception, that goal seemed incredibly ambitious. The management of Hollywood Star cuts dramatically underestimated the acceptance of the Hollywood and Southern California Beach Themed hair-care concept. It is with great pleasure that Hollywood Star Cuts now bolsters its expectations from 100 locations to five hundred (500) locations within 10 years. This will be achieved primarily through franchise agreements in strategic areas of the Country. Throughout 2023 and 2024 Hollywood Star Cuts will be concentrating on assisting its existing franchise partners to achieve their development and sales goals.
Hollywood Star Cuts has received inquiries from groups interested in developing new Hollywood Star Cuts locations in North Carolina, South Carolina and Georgia. The unsolicited inquiries confirm that growth of the concept is limited only by time.
As mentioned in a prior press release, the average Hollywood Star Cuts conducts 32 transactions a day at an average transaction of $27.00. This translates to a daily transaction average of roughly $865.00. Hollywood Star Cuts locations are typically open Monday through Saturday (closed Sunday) averaging $5,000.00 per week in total revenue. The typical Hollywood Star Cuts is expected to generate roughly $200,000.00 in revenue and a pre-tax profit margin of 28-30%. With a relatively low initial investment by the franchisee, a relatively recession proof business model, and a solid profit margin, it is no wonder that experience franchise operators identify Hollywood Star Cuts as a truly outstanding opportunity. Hollywood Star Cuts currently operates 3 Corporate location with a 4th opening soon in the rapidly expanding Greater Boise Idaho area.
Hollywood Star Cuts is dedicated to offering the very best in service and experience and is committed to becoming a leader in the multi-billion-dollar Hair-Care industry. Hollywood Star Cuts would like to thank all of their loyal customers, their loyal staff members and all who support the Company.
All American Gold Corp. invites the public to follow us on Twitter @HStarcuts as most updates and communication will be conducted there. The public is also invited to follow us on Facebook and on-line at www.hollywoodstarcuts.com.
Forward-Looking Statement Any statements made in this press release which are not historical facts contain certain forward-looking statements; as such term is defined in the Private Security Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company’s operations generally, may differ materially from what is projected in such forward-looking statements. The company disclaims any obligation to update information contained in any forward-looking statement. This press release shall not be deemed a general solicitation.