Scissors & Scotch
Formerly known as S&S Tire
Bottom line
- Total investment $581K – $798K including a $50K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $880K).
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 37 loans (below the industry average).
- System growing at 133.3% CAGR over 3 years with 24 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Scissors & Scotch unit return on the cash you put in?
Unlevered ROIC · per unit
35%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Scissors & Scotch units return on equity?
Equity IRR · 5-yr
30.8%
3.83× MOIC
Year-1 DSCR
2.61×
EBITDA ÷ debt service
Equity required
$7.7M
on $18.1M purchase
Total debt
$10.4M
SBA $5.0M + senior + seller note
Overview
About
Scissors & Scotch franchisees operate upscale grooming/barbershop retail locations paired with craft whiskey/spirits bars or lounges. Day-to-day operations include haircuts, shaves, and grooming services, plus curated alcohol retail sales and on-premise or off-premise beverage service in a premium lifestyle setting.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Scissors & Scotch presents moderate-to-cautionary risk: a rapidly scaling system with opaque profitability metrics, undisclosed net income, franchisor going concern language, and an unproven track record across a small unit base.
Score breakdown · what drove the 52 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — impossible to validate actual profitability claims against $1.07M average revenue
- 02HIGHGoing Concern footnote indicates potential franchisor financial instability or operational uncertainty
- 03MEDHigh initial investment ($581K-$798K) relative to disclosed revenue without transparent net income creates ROI opacity
- 04MINORExplosive 61.5% YoY unit growth (likely from small base of ~15 units) suggests immature system with unproven franchise model stability
- 05MINORRoyalty range spread (4-6.5%) indicates variable franchise agreements or tiered structures — clarify how this affects franchisee economics
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
1 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Scissors & Scotch · FDD (2024) PDF