Sharkey’s Cuts for Kids Franchise Cost, Revenue & Review 2026
- Investment
- $200K – $341K
- Disclosed sales
- $280K
- gross sales, not profit
- SBA charge-off
- 6.3%
- on 66 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Sharkey's Cuts for Kids is a children's hair-salon franchise offering kid-friendly haircuts in a playful, entertainment-themed setting with games and TVs. Franchisees run salons managing stylists, birthday parties, and retail.
FranchiseVerdict summary · 2026
A Sharkey’s Cuts for Kids franchise requires a total initial investment of $200K – $341K, including a $40K franchise fee. Per the 2026 FDD, average unit revenue was $280K[2]. SBA 7(a) loans show a 6.3% charge-off rate across 66 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
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 scored4 of 6 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $200K – $341K
- 23rd pct Personal Care…
- Avg gross sales
- $280K
- 2nd pct Personal Care…
- Royalty
- Tiered by sales volume
- Units
- 201
- 51st pct Personal Care…
- SBA charge-off
- 6.3%
- % 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 $200K – $341K including a $40K franchise fee.
- RETURNSAverage unit revenue of $280K/year.
- RISKVerdict B (Above average), verdict score 60/100 (higher is better). SBA loan charge-off rate of 6.3% across 66 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +30 franchised outlets in the latest year (37 opened, 7 closed) (Item 20).
- GROWTHSystem growing at 41.8% CAGR over 3 years with 201 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Sharkey's Cuts for Kids International Co., LLC
- Predecessor
- Sharkey's Franchising Co., LLC
- Prior franchisor entity
- CEO title
- Founder and Manager
- Scott Sharkey
- Incorporated in
- Connecticut
- HQ
- 37 Highland Road, Westport, Connecticut 06880
- Auditor
- REESE CPA LLC
- Audited financials
- Franchisor revenue
- $7.1M
- vs $5.4M prior year
Overview
About
- CEO
- Scott Sharkey
- Headquarters
- Connecticut
- FDD year
- 2026
- States available
- 14
Can you afford it, and what does the money buy?
Entry cost runs 33% below the typical personal care & beauty franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $0 | $50K |
| Equipment, build-out, other | $160K | $251K |
| Total initial investment | $200K | $341K |
Source: Sharkey’s Cuts for Kids 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $200K – $341K
- Top 40% of category vs category
- Liquid capital req'd
- $0 – $50K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- $1,000 to $1,750 per month
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 3.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Flat monthly royalty tiers: $1,000/month (months 4-12), $1,250/month (months 13-24), $1,500/month (months 25-36), $1,750/month (month 37 onward), plus 3% surcharge per Note 1. |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $165 |
| Transfer fee | $15K |
| Renewal fee | $3K |
| Inventory (initial) | $5K |
| Total fee load | 3.0% of rev |
A 3.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 47% below the personal care & beauty norm.
Source: FDD 2026 · 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 Sharkey’s Cuts for Kids 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 royalty rate, 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
$295K
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 Sharkey’s Cuts for Kids 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 royalty rate, 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 royalty rate, 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: 2026 FDD
Financial Performance
- Avg gross sales
- $280K
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical gross revenue, by schedule and quartile
- Sample size
- 155 outlets
- vs category median 38 · large
- Range (low → high)
- $62K→$677KNot cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
- Cohort dispersion (min → max)
- Quartile band
- $175K→$501K
- Bottom 25% → top 25%
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2023
- Transparency
- 3 / 10
- vs category median 4 / 10 · below
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 $280K/year in gross sales. Revenue-to-investment ratio: 1.0x.
Fee burden
Total ongoing fee load of 3.0% — below the Personal Care & Beauty median of 7.9%.
Disclosure
Transparency score 3/10 — moderate disclosure depth. Average and range data are available but detailed cohort breakdowns may be limited.
Operator retention
System expanding at 41.8% CAGR over 3 years across 201 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 Sharkey’s Cuts for Kids 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 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 201
- Opened
- 37
- Last reporting year
- Closed
- 7
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.5%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +41.8%
- Net unit change over 3 years
- 3-yr CAGR
- +41.8%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 10
- Reacquired
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 31 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
147 current owners across 30 states; 44 former (terminated, transferred or not renewed) listed separately.
- TX 25
- CA 15
- VA 10
- OH 8
- AZ 7
- WA 7
- IN 6
- NC 6
- NY 6
- MD 5
- MI 5
- PA 5
- +18 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 66
- Loan volume
- $11.3M
- Median loan
- $170K
- 50th percentile
- Charge-off rate
- 6.3%
- on 66 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)
- 93.8%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 20
- Defaults
- 1
- Typical loan rate
- 8.5%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 8121
- Jobs supported
- 680
- 6.0 per loan
- Lender concentration
- 39%
- top lender's share
Borrower mix: 88% went to startups / new businesses, 12% to established operators
Top lenders financing Sharkey’s Cuts for Kids franchisees
Showing 3 of 20 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 Sharkey’s Cuts for Kids from SBA 7(a) FOIA data.
- Principal loss rate
- 0.9%
- Avg SBA guarantee
- 71%
- Avg interest rate
- 8.52%
- Avg chargeoff amount
- $105K
- Lender concentration
- 39.4%
- Job velocity
- 6.0 per $100K
- Jobs supported
- 680
Top SBA lendersTop lender holds 39% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | 26 | N/A | N/A | |
| 2 | 9 | N/A | N/A | |
| 3 | 6 | N/A | N/A | |
| 4 | 3 | N/A | N/A | |
| 5 | 3 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 21 | 1 | 10.0% |
| NCNorth Carolina | 6 | 0 | -- |
| FLFlorida | 5 | 0 | -- |
| VAVirginia | 5 | 0 | -- |
| GAGeorgia | 4 | 0 | 0.0% |
| OHOhio | 4 | 0 | -- |
| CACalifornia | 3 | 0 | -- |
| MDMaryland | 3 | 0 | 0.0% |
| MOMissouri | 2 | 0 | -- |
| NYNew York | 2 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 6.3% — 61% 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
Deeply negative franchisor net worth (-$6,985,578) despite positive net income ($1.35M on $5.4M revenue), plus two litigation/regulatory matters (a 2014 Virginia SCC consent order and a 2022 AAA arbitration). Negative equity stacked with the litigation makes this multiple concerns, though operations look profitable across 141 units.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
One arbitration matter: a former 3-unit franchisee (Marion Edward "Ed" Myrick) filed a claim in Nov 2022 seeking return of initial fees for alleged breach of pre-opening obligations; resolved via mutual settlement in Dec 2022 with no admission of liability, and the franchisee's units were terminated with initial fees refunded.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · REESE CPA LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 60 / 100 verdict
- 01MINORNegative net worth -$6,985,578
- 02MINOR2014 Virginia SCC consent order (unregistered sale, $4,500 penalties)
- 03MINOR2022 AAA arbitration matter
- 04MINORPositive net income $1.35M offsets
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 3.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 5 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 3 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Hartford, Connecticut |
| Jury trial waiver | Yes |
| Governing law | Connecticut |
| Litigation count | 1 |
View Item 3 litigation summary
One arbitration matter: a former 3-unit franchisee (Marion Edward "Ed" Myrick) filed a claim in Nov 2022 seeking return of initial fees for alleged breach of pre-opening obligations; resolved via mutual settlement in Dec 2022 with no admission of liability, and the franchisee's units were terminated with initial fees refunded.
Items 10, 11
Training & Operations
- Classroom training
- 27 hrs
- On-the-job training
- 0 hrs
- Training location
- Westport, Connecticut (franchisor headquarters) or virtually
- Ongoing training
- Required
- Site selection
- franchisor_approval
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
191 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 Sharkey’s Cuts for Kids franchise?
The total investment to open a Sharkey’s Cuts for Kids franchise ranges from $200K – $341K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Sharkey’s Cuts for Kids franchise owners earn?
According to Item 19 of the Sharkey’s Cuts for Kids FDD, the average gross sales per unit is $280K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Sharkey’s Cuts for Kids?
Sharkey’s Cuts for Kids is franchised by Sharkey's Cuts for Kids International Co., LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Sharkey’s Cuts for Kids 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 Sharkey’s Cuts for Kids FDD and qualifies whose outlets they describe.
What is Sharkey’s Cuts for Kids's franchise failure rate?
Based on SBA 7(a) loan data, Sharkey’s Cuts for Kids has a charge-off rate of 6.3% across 66 loans, meaning 6.3% 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 Sharkey’s Cuts for Kids franchise locations are there?
As of their most recent FDD filing, Sharkey’s Cuts for Kids has 201 total units in the United States, including 200 franchised units and 1 company-owned units. 37 new units were opened in the latest reporting year.
Is Sharkey’s Cuts for Kids a good franchise to buy?
FranchiseVerdict rates Sharkey’s Cuts for Kids as a B-grade franchise with a verdict score of 60 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.