Introduction

Twelve27 Salon is a full-service salon owned and operated by sisters, Veronica Ballard and Hilary Johnston. Since opening its doors in Downtown Pittsburgh in November 2017, the salon has grown from eight chairs and four stylists to twelve chairs and twenty-three stylists today! Even so, the salon is still trying to keep up with demand for its salon services and is seeking funding to double its operations.

Twelve27 Salon is looking to borrow up to $58,700 at 9.75% over 60 months. Anyone who is over 18 years old can invest.



About Twelve27 Salon

Hilary and Veronica opened Twelve27 Salon in November 2017. They began with eight chairs, and two stylists in addition to Hilary. The salon is full-service, offering men and women's cuts, hair coloring and the Natural Beaded Row Extension method. The clientele is varied, but made up mostly of downtown business professionals and the residents who have recently moved into the downtown area. The exceptional service Twelve27 provides sets them apart from the many salons located nearby. Within the first year, they expanded to twelve chairs, and ten stylists.

As they approach the end of their second year in business, Twelve27 now has twenty-three employees and still hiring more. They are currently operating on a waitlist between 2-4 weeks for any given stylist. The projections for the first year doubled as of December 31, 2018 and it isn't showing any signs of slowing down! Twelve27 has made major renovations and expansions within the space in the Cultural District of downtown Pittsburgh to keep up with this massive demand. But, because of the incredible education program Hilary spearheads to train and coach stylists to their fullest potential, the salon has begun attracting talent from out of state. With clients on a waitlist, and a massively talented team, Twelve27 is seeking funding to double their amount of stations and equipment to accommodate the stylists ready to work, and the guests waiting to see them.



Twelve27 Salon has experienced incredible growth and earning potential in their first two years. Our projections have been surpassed month after month and now year to year. While the revenue is being generated, Twelve27 has hired a support and management team to ensure the experience is always elevated and professionally executed. Hilary has created an education program and built a team of educators to continue to create stylists who are capable of providing incredible work and exceptional service. With each new team member moving through this program, Twelve27 plans to continue to grow and provide a place for them to see guests and offer services. Within the next 1-3 years, Twelve27 plans to open 1-2 new locations in the north and south hills of Pittsburgh, as well as a day spa downtown. Twelve27 seeks to set the standard for a salon experience and continue to attract team members from all levels of experience and locations throughout the state and country.



Fast Facts

  • Women-owned, full-service salon located in the Cultural District of Downtown Pittsburgh
  • Profitable, growing business looking to expand to clear current wait-list
  • +40% year-over-year revenue growth
  • Yelp-reviewed 5-Stars on 67 reviews
  • 9.75% interest 

The Project

Twelve27 has built a reputation for the best salon to visit in Pittsburgh. Because of this word of mouth, our waitlist is long and far out into the fall. Currently, with the sinks and stations Twelve27 has, there are only so many services that can be performed at any given time. The salon is currently on a hiring freeze because there aren't enough chairs to accommodate the guests requesting appointments. The team is ready, but are limited in their ability to see clients because there isn't enough equipment and stations to see them.

With the addition of this equipment and renovations, new and existing guests will be able to get in to the salon quicker, and at their ideal date and time. With this buildout, the guests on their waitlist will be able to be accommodated immediately and thereby increasing the revenue just waiting to come through the doors.

Twelve27 is about to graduate three proteges (assistants) to be full-time stylists who will be needing their own chair to perform services, as well as entering the salon industry's busiest season. The expected volume of guests as well as the newest team members offering services, it will require the expansion and addition of styling stations to grow from 12 chairs to 20 chairs. The funds will be used for those stations as well as wiring to power those stations. The funds will also be used to install two more shampoo bowls and sinks to accommodate the number of clients they see every day.



Projections

Revenue and profitability have improved for Twelve27 Salon year-over-year. For the the period January - July 2019, Twelve27 increased revenue 75% over the prior year (2018). To further improve revenue, Twelve27 intends to increase its operating capacity by installing 8 additional salon chairs. Twelve27 currently experiences a waitlist for its clients to meet with its stylists, installing additional chairs is expected to directly lead to increased bookings and income for Twelve27 Salon and its stylists.

 

For additional information about the Company's revenue and profitability, please see the Form C throught the "Investor Info" tab.


About the Owners

Veronica and Hilary, Founders and Owners of Twelve27 Salon.  

It has been sisters Veronica and Hilary's lifelong dream to come together and create something beautiful, and in the summer of 2017, they saw their opportunity.  

Hilary has been in the beauty industry for over ten years, graduating from the Aveda Institute in 2007.  Her heart beats for continuing education and ensuring her guests feel as beautiful on the inside as they do on the outside. Opening her own salon has allowed her to fully embrace her passion for service and providing an experience unlike any in Pittsburgh and more often found in larger metropolitan cities.  Her vision is to change the culture of the hair and beauty industry by her personalized and genuine interactions with her guests as well as her staff.  

Veronica has worked in the service industry her entire career and has been in management nearly as long. Veronica provides the salon with the polished professionalism and elevated guest service that separates Twelve27 from its peers.

 


The Location

Located on Penn Avenue in the Cultural District of Downtown Pittsburgh, Twelve27 is perfectly located to service its growing clientele list. The current location currently includes twelve full-service salon stations but has room to expand while still maintaining an exceptional atmosphere and client experience.

 


Deal Summary

Issuer

  Twelve27 Salon, LLC

Security Type

  Secured Loan

Loan Purpose

  Purchase of salon equipment, furniture, and 

  construction costs for new haircutting stations 

Offering Amount    

  $15,000 - $55,000

Interest Rate

  9.75%

Payments

  Monthly, Disbursed to Investors Quarterly

Maturity

 60 months

 


Your Earnings Potential

If you choose to invest, you will make a one-time investment via ACH that will be transferred to a secure escrow account. If the campaign successfully reaches its target, the funds will be distributed to Twelve27 Salon, LLC.

For more information on the mechanics of Honeycomb’s crowd investing platform, please review our Education Materials.

Investment Amount One-Time Fee Potential Quarterly Returns* Potential Total Repayment*
$100 $2.85 $6.33 $126.74
$500 $14.25 $31.68 $633.72
$1,000 $28.50 $63.37 $1,267.45
$5,000 $37.25 $316.80 $6,337.27

*Individual payments may vary slightly based on rounding. Potential repayments include principal and interest, they do not include the one-time fee which is assessed when you make your investment. These amounts are calculated as a fully amortizing loan: principal and interest are paid down starting with the first payment. There are no prepayment penalties and Twelve27 Salon, LLC may pay down their loan early which may impact your earnings potential. Please note, returns are not guaranteed and investors could lose some or all of their investment.

Your ongoing responsibilities from investing are very limited. Each year over the life of the loan you will receive a 1099-INT, this is a simple tax document similar to what you receive for most savings accounts.

Twelve27 Salon pays as agreed, you will receive quarterly payments directly into your bank account. In the event of a default, you will be contacted by the Administrative Agent to manage the collections process on investors' behalf.

 


How Honeycomb is Compensated

Honeycomb charges Twelve27 Salon, LLC. a $250 posting fee and a 6.0% - 8.0% loan origination fee on the total amount funded.

Total Amount Raised Origination Fee
$15,000 - $19,999 8.0%
$20,000 - $49,999 7.0%
$50K + 6.0%

 

Additionally, to cover expenses associated with each investment, Honeycomb charges a 2.85% investment fee capped at $37.25 per investor.

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