Scissors & Scotch Franchise Cost, Revenue & Review 2026
- Investment
- $581K – $798K
- Disclosed sales
- $975K
- gross sales, not profit
- SBA charge-off
- 0.0%
- on 19 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Scissors & Scotch is a men's grooming franchise pairing haircuts and grooming services with a members' whiskey lounge. Franchisees run the shops, managing stylists, the bar, and memberships.
FranchiseVerdict summary · 2026
A Scissors & Scotch franchise requires a total initial investment of $581K – $798K, including a $50K franchise fee and an ongoing 6.5% royalty[2]. Per the 2023 FDD, average unit revenue was $975K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 19 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $581K – $798K
- 52nd pct Personal Care…
- Avg gross sales
- $975K
- Incl. company outlets25th pct Personal Care…
- Royalty
- 6.5%
- 43rd pct Personal Care…
- Units
- 24
- 25th pct Personal Care…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = favorable by >10% vs Personal Care & Beauty median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $581K – $798K including a $50K franchise fee, 6.5% ongoing royalty.
- RETURNSAverage unit revenue of $975K/year (median $880K) (includes company-owned outlets).
- RISKVerdict A (Strongest tier), verdict score 78/100 (higher is better). SBA loan charge-off rate of 0.0% across 19 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +7 franchised outlets in the latest year (7 opened, 0 closed); 21 signed but not yet open (Item 20).
- GROWTHSystem growing at 133.3% CAGR over 3 years with 24 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Scissors & Scotch Franchising, LLC
- Parent company
- S & S Franchise Holdings, LLC
- FDD Item 1, page 8 of the 2023 FDD
- Predecessor
- We have no predecessors
- Prior franchisor entity
- CEO title
- Co-Founder and Managing Member
- Erik Anderson
- Incorporated in
- Kansas
- HQ
- 1908 Main Street, Kansas City, Missouri 64108
- Auditor
- Bland & Associates, P.A.
- Audited financials
- Franchisor revenue
- $1.2M
- vs $819K prior year
Affiliated brands
- Address State of Operating S
- Mission Moonshot
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Erik Anderson
- Headquarters
- MO
- Founded
- 2017
- FDD year
- 2023
- States available
- 8
Can you afford it, and what does the money buy?
Entry cost runs 72% above the typical personal care & beauty franchise.
Source: FDD 2023 · Items 5–7
Full Item 7 breakdown19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $20K | $50K | |
| Initial Training Expenses | $250 | $2K | |
| Initial Grooming Training Fee | $3K | $6K | |
| Architect & Permitting Fee | $15K | $17K | |
| Custom Package Items (FF&E) | $125K | $145K | |
| Leasehold Improvements (net tenant improvement allowance) | $300K | $390K | |
| Signage | $9K | $12K | |
| Other Furniture | $3K | $5K | |
| POS Hardware and Software | $5K | $6K | |
| Initial Inventory and Supplies | $21K | $31K | |
| Lease and Utility Deposits | $5K | $12K | |
| Business Permits and Licenses | $2K | $12K | |
| Low Voltage (Phones, Music, Cable, Security) | $5K | $9K | |
| Professional Fees | $4K | $8K | |
| Print Materials | $3K | $4K | |
| Insurance | $800 | $2K | |
| New Staff Expenses | $12K | $18K | |
| Pre-Opening Advertising | $10K | $20K | |
| Three Months Additional Funds | $40K | $50K | |
| Total initial investment | $581K | $798K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $581K – $798K
- Middle of category vs category
- Liquid capital req'd
- $40K – $50K
- Middle of category vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- 6.5%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.5% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $150 |
| Transfer fee | $13K |
| Renewal fee | $13K |
| Inventory (initial) | $21K – $31K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 85% above the personal care & beauty norm.
Includes company-owned outlets
Source: FDD 2023 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Scissors & Scotch until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$735K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Scissors & Scotch unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2023 FDD
Financial Performance
Includes company-owned outlets
- Avg gross sales
- $975K
- Per unit, per year
- Median gross sales
- $880K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 17 outlets
- vs category median 38 · small
- Range (low → high)
- $419K→$2.0MCited, not corroborated — printed on page 57 of the 2023 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2022
- Fiscal year the figures cover
- Source filing
- FDD 2023
- Disclosed in the 2023 filing, covering 2022
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 177 Personal Care & Beauty brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $975K/year in gross sales. Revenue-to-investment ratio: 1.4x. Includes company-owned outlets.
Fee burden
Total ongoing fee load of 6.0% — below the Personal Care & Beauty median of 7.9%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 133.3% CAGR over 3 years across 24 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Personal Care & Beauty medians
How Scissors & Scotch Compares
Category median of published Personal Care & Beauty brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 24
- Opened
- 7
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 88%
- vs corporate-owned
- Net growth (3-yr)
- +133.3%
- Net unit change over 3 years
- 3-yr CAGR
- +133.3%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 21
- 0.88 per open outlet · Item 20 Table 5
- Projected new
- 15
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 8 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
8
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 19
- Loan volume
- $10.2M
- Median loan
- $565K
- 50th percentile
- Charge-off rate
- 0.0%
- on 19 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 11
- Defaults
- 0
- Typical loan rate
- 7.3%
- avg rate to borrowers
- Franchised industry avg
- 6.0%
- brand beats franchise avg ↓
- Jobs supported
- 378
- 3.7 per loan
- Lender concentration
- 26%
- top lender's share
Borrower mix: 79% went to startups / new businesses, 21% to established operators
Franchise vs independent — in barber shops, franchised businesses charge off at 6.0% vs 18.7% for independents — franchising is associated with 68% lower SBA default risk in this category.
Top lenders financing Scissors & Scotch franchisees
Showing 3 of 11 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Scissors & Scotch from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 72%
- Avg interest rate
- 7.30%
- Lender concentration
- 26.3%
- Job velocity
- 3.7 per $100K
- NAICS benchmark
- 6.3%
- NAICS 812111
- Jobs supported
- 378
Top SBA lendersTop lender holds 26% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Union Bank and Trust Company | 5 | $2.3M | 0.0% |
| 2 | MISSINGMAINBANKID | 2 | $1.2M | N/A |
| 3 | The Callaway Bank | 2 | $850K | N/A |
| 4 | Old National Bank | 2 | $1.3M | N/A |
| 5 | First National Bank of Omaha | 2 | $303K | 0.0% |
| 6 | Peoples Bank | 1 | $450K | N/A |
| 7 | Security National Bank of Omaha | 1 | $736K | N/A |
| 8 | Nebraska Bank of Commerce | 1 | $685K | N/A |
| 9 | Byline Bank | 1 | $992K | N/A |
| 10 | Wells Fargo Bank National Association | 1 | $500K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| NENebraska | 5 | 0 | -- |
| KSKansas | 3 | 0 | -- |
| COColorado | 2 | 0 | 0.0% |
| GAGeorgia | 1 | 0 | -- |
| IAIowa | 1 | 0 | 0.0% |
| ILIllinois | 1 | 0 | -- |
| MOMissouri | 1 | 0 | -- |
| NCNorth Carolina | 1 | 0 | -- |
| NVNevada | 1 | 0 | -- |
| TNTennessee | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
With a 0.0% charge-off rate across 19 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
24-unit barbershop system with positive net income $163,466 on $1.03M revenue, audited, Item 19 disclosed, growing 133%. No litigation or bankruptcy. Sole concern is negative franchisor equity of -$470,634.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Bland & Associates, P.A.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 78 / 100 verdict
- 01MINORNegative franchisor net worth -$470,634
- 02MINORNo litigation or bankruptcy
- 03MEDPositive net income $163,466, strong growth, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Territory population | 25,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Kansas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 80 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Site selection
- joint
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Scissors & Scotch franchise?
The total investment to open a Scissors & Scotch franchise ranges from $581K – $798K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Scissors & Scotch franchise owners earn?
According to Item 19 of the Scissors & Scotch FDD, the average gross sales per unit is $975K. The median is $880K. Important context: Includes company-owned outlets. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Scissors & Scotch?
Scissors & Scotch is franchised by Scissors & Scotch Franchising, LLC. Its parent company is S & S Franchise Holdings, LLC. Source: FDD Item 1, 2023 filing.
What is Item 19 in the Scissors & Scotch FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Scissors & Scotch FDD and qualifies whose outlets they describe.
What is Scissors & Scotch's franchise failure rate?
Based on SBA 7(a) loan data, Scissors & Scotch has a charge-off rate of 0.0% across 19 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Scissors & Scotch franchise locations are there?
As of their most recent FDD filing, Scissors & Scotch has 24 total units in the United States, including 20 franchised units and 4 company-owned units. 7 new units were opened in the latest reporting year.
Is Scissors & Scotch a good franchise to buy?
FranchiseVerdict rates Scissors & Scotch as a A-grade franchise with a verdict score of 78 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.