Sharkey’s Cuts for Kids
Bottom line
- Total investment $189K – $299K including a $40K franchise fee.
- Average unit revenue of $273K/year.
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 132 loans (below the industry average).
- System growing at 53.8% CAGR over 3 years with 141 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 Sharkey’s Cuts for Kids unit return on the cash you put in?
Unlevered ROIC · per unit
22%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Sharkey’s Cuts for Kids units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$765K
on $3.8M purchase
Total debt
$3.1M
SBA $1.9M + senior + seller note
Overview
About
Franchisees operate children's haircut salons offering kid-friendly styling, entertainment, and retail products in a fun, themed environment. Day-to-day operations include managing stylists, scheduling appointments, marketing locally, inventory control, and customer service for families seeking haircuts for children ages newborn to young teens.
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 20 · 21 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
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
Moderate-to-caution risk profile: lack of profitability disclosure, litigation history over pre-opening support, and high fee structure outweigh modest growth, requiring deep due diligence on actual franchisee economics.
Score breakdown · what drove the 44 / 100 rating
- 01MEDNo average net income disclosed (Item 19 missing) — impossible to validate ROI claims or profitability benchmarks
- 02HIGHTwo litigation cases including 2022 settlement over breach of pre-opening obligations — suggests franchisor may not deliver promised support
- 03MINORHigh initial investment ($189K-$299K) paired with substantial monthly royalties ($1K-$1.75K) creates significant fixed cost burden with unproven return
- 04MINOR17.6% YoY unit growth appears healthy but modest in children's services sector; no multi-year trend data provided
- 05MINOR2014 Virginia Consent Order for unregistered franchise sales indicates historical compliance issues with franchise regulations
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
80 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Sharkey’s Cuts for Kids · FDD (2024) PDF