Snip-its Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Snip-its is a children's hair salon franchise offering kid-friendly haircuts in a playful, entertainment-filled setting. Franchisees run the salons, managing stylists, scheduling, and retail products.
FranchiseVerdict summary · 2026
A Snip-its franchise requires a total initial investment of $200K – $361K, including a $35K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 26.3% charge-off rate across 20 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $200K – $361K
- 24th pct Personal Care…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 2nd pct Personal Care…
- Units
- 40
- 30th pct Personal Care…
- SBA charge-off
- 26.3%
- % 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 avg · 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 – $361K including a $35K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 discloses two separate cohorts that should not be averaged together as a single blended figure: Table 1 - Systemwide Reporting Group Gross Sales quartiles (40 franchisees, FY2024): Q1 avg $397,258 (range $316,140-$451,725), Q2 avg $285,605 (range $257,541-$314,856), Q3 avg $231,305 (range $212,405-$244,064), Q4 avg $169,744 (range $86,751-$204,750). Table 2 - Primary Reporting Group EBITDA quartiles (29 franchisees that submitted complete financials, excludes 3 transferred, 1 opened in 2024, 7 incomplete): Q1 avg EBITDA $98,150 (range $61,914-$128,572), Q2 avg $51,455 (range $38,223-$58,198), Q3 avg $29,111 (range $15,120-$34,637), Q4 avg EBITDA ($1,748) i.e. a loss (range -$23,928 to $11,947). avg_gross_sales/avg_net_income left null because the FDD reports data as quartile bands across two different-sized cohorts (40 vs 29 units) rather than a single whole-system average/median figure comparable across both dimensions.
- RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 26.3% across 20 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DECLINESystem contracting at -7.0% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- The Snip-its Franchise Company, LLC
- Parent company
- FS Snip-its LLC
- Predecessor
- The Snip-its Corporation
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Jason Bakker
- 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
Overview
About
- CEO
- Jason Bakker
- Headquarters
- Minnesota
- Founded
- 2003
- FDD year
- 2024
- States available
- 15
Can you afford it, and what does the money buy?
Entry cost runs 46% below the typical personal care & beauty franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown21 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $35K | |
| Security Deposit and Rent | $8K | $20K | |
| Staff Recruitingnot refundable | $500 | $4K | |
| Initial Trainingnot refundable | $1K | $3K | |
| Staff Wages During Trainingnot refundable | $3K | $3K | |
| Optional Construction Project Managementnot refundable | $0 | $28K | |
| Base Construction and Leasehold Improvementsnot refundable | $48K | $101K | |
| Millworknot refundable | $35K | $49K | |
| Snipification of Salonnot refundable | $21K | $23K | |
| Computer Hardware/POS Systemnot refundable | $3K | $4K | |
| POS Software System Feenot refundable | $150 | $225 | |
| Exterior Signagenot refundable | $4K | $6K | |
| Furniture, Fixtures, Equipment and Decornot refundable | $8K | $10K | |
| Audio Visual Equipmentnot refundable | $2K | $2K | |
| Proprietary Productsnot refundable | $2K | $3K | |
| Other Initial Inventory and Salon Suppliesnot refundable | $4K | $8K | |
| Shippingnot refundable | $5K | $14K | |
| Insurancenot refundable | $2K | $3K | |
| Professional Feesnot refundable | $500 | $7K | |
| Grand Opening Programnot refundable | $15K | $15K | |
| Total initial investment | $200K | $357K |
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
- $200K – $361K
- Top 40% of category vs category
- Liquid capital req'd
- $5K – $21K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- 5.0%
- tiered · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $225 |
| Training fee | $500 |
| Transfer fee | $18K |
| Renewal fee | $5K |
| Inventory (initial) | $4K – $8K |
| Total fee load | 7.0% of rev |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Snip-its did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Snip-its unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
59%
Within the 30–60% "attractive franchise" band
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: 2024 FDD
Financial Performance
Item 19 discloses two separate cohorts that should not be averaged together as a single blended figure: Table 1 - Systemwide Reporting Group Gross Sales quartiles (40 franchisees, FY2024): Q1 avg $397,258 (range $316,140-$451,725), Q2 avg $285,605 (range $257,541-$314,856), Q3 avg $231,305 (range $212,405-$244,064), Q4 avg $169,744 (range $86,751-$204,750). Table 2 - Primary Reporting Group EBITDA quartiles (29 franchisees that submitted complete financials, excludes 3 transferred, 1 opened in 2024, 7 incomplete): Q1 avg EBITDA $98,150 (range $61,914-$128,572), Q2 avg $51,455 (range $38,223-$58,198), Q3 avg $29,111 (range $15,120-$34,637), Q4 avg EBITDA ($1,748) i.e. a loss (range -$23,928 to $11,947). avg_gross_sales/avg_net_income left null because the FDD reports data as quartile bands across two different-sized cohorts (40 vs 29 units) rather than a single whole-system average/median figure comparable across both dimensions.
- Item 19 type
- Systemwide Gross Sales quartiles (40 franchisees) and Primary Reporting Group EBITDA quartiles (29 franchisees)
- Sample size
- 40 outlets
- vs category median 38
- Quartile band
- $170K→$397K
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2024
- The FDD edition these figures were read from
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 179 Personal Care & Beauty brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% (near the Personal Care & Beauty average).
Disclosure
Item 19 reports Systemwide Gross Sales quartiles (40 franchisees) and Primary Reporting Group EBITDA quartiles (29 franchisees) rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -7.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 averages
How Snip-its Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 40
- Opened
- 0
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -7.0%
- Net unit change over 3 years
- 3-yr CAGR
- -7.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 3
- Reacquired (3yr)
- 0
- Franchisor bought back
- Continuity rate
- 97.7%
- Units that stayed open
- Ceased ops
- 8.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 12 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 20
- Loan volume
- $3.4M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 26.3%
- 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)
- 73.7%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 16
- Defaults
- 5
- Typical loan rate
- 6.1%
- avg rate to borrowers
- Franchised industry avg
- 12.1%
- brand above franchise avg ↑
- Jobs supported
- 158
- 4.6 per loan
- Lender concentration
- 20%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Franchise vs independent — in beauty salons, franchised businesses charge off at 12.1% vs 18.6% for independents — franchising is associated with 35% lower SBA default risk in this category.
Vintage analysis
Snip-its charge-off rate by loan vintage
Top lenders financing Snip-its franchisees
Showing 3 of 16 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.
Premium insight
SBA Lending Report
Deep-dive into Snip-its's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 13 states
- Startup risk premium and job creation velocity
- 11-year lending trend
Instant access. No subscription.
A 26.3% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 26.3% — 64% above the 16.0% national norm, i.e. higher 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
No litigation, bankruptcy, or going-concern; audited financials with Item 19 disclosed. Net worth not disclosed and system contracted -8.7% (net growth), the main concern. 42 units, low 2.4% turnover, avg gross sales $397,560.
Litigation (Item 3)
No litigation is required to be disclosed in Item 3.
Largest disclosed settlement: $100,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · D. F. Breen, 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 40 / 100 verdict
- 01MINORNet growth -8.7% (contraction)
- 02MEDfranchisor_net_worth not disclosed
- 03MEDNo litigation, no bankruptcy, audited, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | none |
| 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 | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Principal city closest to franchisor's principal place of business (currently Burnsville, Minnesota) |
| Jury trial waiver | Yes |
| Governing law | State where the Snip-its Salon Business is located, subject to applicable state law |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 0 hrs
- Training location
- Burnsville, Minnesota or via webinar
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- franchisor approval of franchisee-submitted sites; franchisor reserves right to require approved site selection vendor
- Franchisor financing
- Not offered
- Item 10
- POS system
- Zenoti POS software system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Zenoti POS software system
Item 20 · call current owners
Franchisee Contacts
18 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Snip-its · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Snip-its franchise?
The total investment to open a Snip-its franchise ranges from $200K – $361K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Snip-its franchise owners earn?
Snip-its does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Snip-its 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 Snip-its FDD and qualifies whose outlets they describe.
What is Snip-its's franchise failure rate?
Based on SBA 7(a) loan data, Snip-its has a charge-off rate of 26.3% across 20 loans, meaning 26.3% 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 Snip-its franchise locations are there?
As of their most recent FDD filing, Snip-its has 40 total units in the United States, including 40 franchised units and 0 company-owned units.
Is Snip-its a good franchise to buy?
FranchiseVerdict rates Snip-its as a C-grade franchise with a verdict score of 40 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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
Are you the franchisor?
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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.