FranchiseVerdict
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FV-02369·STRONGExcellent81

Snip-its

Formerly known as Superior Insurance Franchise

Personal Services - Beauty & SalonFranchising since 2003Website
Investment
$200K – $357K
38th pct Beauty & Salon
Avg revenue
70th pct Beauty & Salon
Royalty
5.0%
7th pct Beauty & Salon
Units
42
49th pct Beauty & Salon
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $200K – $357K including a $35K franchise fee, 5.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 22 loans (below the industry average).
  • System contracting at -8.7% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).

Item 1 · who you're contracting with

The Franchisor

Legal entity
The Snip-its Franchise Company, LLC
Parent company
FS Snip-its LLC
Incorporated in
Massachusetts
HQ
211 S. River Ridge Circle, Suite 100, Burnsville, Minnesota 55337
Auditor
D. F. Breen, LLC
Audited financials
Franchisor revenue
$690K
vs $768K prior year

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 Snip-its unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: personal services
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $200K–$357K
Working capital
$
FDD reports $5K–$21K

Unlevered ROIC · per unit

59%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$173K
EBITDA margin
23.0%
Total invested
$292K
Payback
20 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Snip-its franchisees operate children's hair salons, managing daily operations including haircuts, styling, and customer service in a kid-friendly environment. Staff handle appointment scheduling, inventory management, and marketing to attract and retain families in their local markets. Franchisees are responsible for hiring, training, facility maintenance, and achieving sales targets while paying 5-6% royalties to the franchisor.

CEO
Jason Bakker
Founded
2003
FDD year
2024
States available
15

Item 7 · what it costs

The Vitals

Total investment
$200K – $357K
All-in to open one unit
Liquid capital
$5K – $21K
Cash you must have on hand
Franchise fee
$35K
Royalty
5.0%
Percentage of Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical
Payback period
8.3 yrs
From v3 / Item 19

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
42
Opened
0
Last reporting year
Closed
1
Turnover rate
2.4%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
-2.3%
Net unit change last year
3-yr CAGR
-8.7%
Compounded over last 3 years
2022
42-1
Franchised units
2023
43
Franchised units
2024
46
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 13 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 13 states
Not registered

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.

Total loans
22
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

54
Risk · 0-100
STRONG54 / 100

Snip-its presents meaningful investment risk due to declining unit count, extremely modest disclosed profitability, missing revenue data, unprotected territory, and franchisor going concern issues.

Score breakdown · what drove the 54 / 100 rating

  1. 01MINORUnit count declining 2.3% YoY (42 units) suggests system contraction and potential market saturation or franchisee struggles
  2. 02MINORAverage net income of $33,430 is extremely low relative to $200k-$357k investment — implies 6-10+ year payback period at best
  3. 03MEDRevenue figures not disclosed in FDD Item 19 — unable to validate profitability claims or benchmark performance expectations
  4. 04MINORNo protected territory — franchisees face direct competition from other Snip-its locations and cannot prevent cannibalization
  5. 05MINORRoyalty rate increases from 5% to 6% after year one — reduces already-thin margins during critical growth phase
  6. 06HIGHGoing Concern status is False — potential financial instability of franchisor raises questions about system support and longevity

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
No
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Minnesota

Item 11

Training & Operations

Classroom training
28 hrs
On-the-job training
24 hrs
POS system
Zenoti
Operating tech stack

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

20 numbers

Locked
(253) 426-••••
WA
(011) 716-••••
(310) 989-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

Snip-its · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above