Snip-its Franchise Cost, Revenue & Review 2026
- Investment
- $200K – $361K
- Disclosed sales
- $271K
- gross sales, not profit
- SBA charge-off
- 26.3%
- on 20 loans
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]. Per the 2025 FDD, average unit revenue was $271K[2]. 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 →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
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 – $361K
- 23rd pct Personal Care…
- Avg gross sales
- $271K
- 1st pct Personal Care…
- Royalty
- 5.0%
- 4th pct Personal Care…
- Units
- 40
- 31st 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 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 – $361K including a $35K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $271K/year. Note: this is gross profit, not take-home income.
- 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).
- GROWTHNegative: net -2 franchised outlets in the latest year (1 opened, 3 closed); 13 signed but not yet open (Item 20).
- 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
- FDD Item 1, page 8 of the 2025 FDD
- 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
- $804K
- vs $768K prior year
Overview
About
- CEO
- Jason Bakker
- Headquarters
- Minnesota
- Founded
- 2003
- FDD year
- 2025
- States available
- 15
Can you afford it, and what does the money buy?
Entry cost runs 30% below the typical personal care & beauty franchise.
Source: FDD 2025 · 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 by sales volume · 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 |
| 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?
Average unit sales run 49% below the personal care & beauty norm.
Source: FDD 2025 · 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 Snip-its 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 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
$294K
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 Snip-its 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 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 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: 2025 FDD
Financial Performance
- Avg gross sales
- $271K
- 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
- 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%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 177 Personal Care & Beauty brands
Revenue is only 1.0x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
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 $271K/year in gross sales. Revenue-to-investment ratio: 1.0x.
Fee burden
Total ongoing fee load of 7.0% (near the Personal Care & Beauty median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
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 medians
How Snip-its 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 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 40
- Opened
- 1
- Last reporting year
- Closed
- 3
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.5%
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 1
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 13
- 0.33 per open outlet · Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
- 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.
Where the owners are · Item 20 owner list
18 current owners across 12 states.
- CA 3
- MA 2
- NY 2
- TX 2
- WA 2
- AZ 1
- CT 1
- NC 1
- NJ 1
- NV 1
- OK 1
- RI 1
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
- 20
- Loan volume
- $3.4M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 26.3%
- on 20 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)
- 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Snip-its from SBA 7(a) FOIA data.
- Principal loss rate
- 20.8%
- Avg SBA guarantee
- 78%
- Avg interest rate
- 6.12%
- Avg chargeoff amount
- $142K
- Lender concentration
- 20.0%
- Job velocity
- 4.6 per $100K
- NAICS benchmark
- 10.9%
- NAICS 812112
- Jobs supported
- 158
Top SBA lendersTop lender holds 20% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Stearns Bank National Association | 4 | $859K | 0.0% |
| 2 | The Huntington National Bank | 2 | $293K | 0.0% |
| 3 | Bank OZK | 1 | $254K | 0.0% |
| 4 | Cadence Bank | 1 | $150K | 0.0% |
| 5 | Western Commerce Bank | 1 | $72K | 100.0% |
| 6 | Horicon Bank | 1 | $215K | 100.0% |
| 7 | Wells Fargo Bank National Association | 1 | $145K | 100.0% |
| 8 | Zions Bank, A Division of | 1 | $221K | 0.0% |
| 9 | Popular Bank | 1 | $181K | 100.0% |
| 10 | Liberty Bank | 1 | $190K | 100.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 5 | 1 | 25.0% |
| OHOhio | 3 | 0 | 0.0% |
| CTConnecticut | 2 | 1 | 50.0% |
| FLFlorida | 1 | 1 | 100.0% |
| GAGeorgia | 1 | 0 | 0.0% |
| MIMichigan | 1 | 0 | 0.0% |
| MNMinnesota | 1 | 0 | 0.0% |
| NMNew Mexico | 1 | 1 | 100.0% |
| NVNevada | 1 | 0 | 0.0% |
| NYNew York | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
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
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation is required to be disclosed in Item 3.
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 2025 · 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 | 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 | 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
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?
According to Item 19 of the Snip-its FDD, the average gross sales per unit is $271K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Snip-its?
Snip-its is franchised by The Snip-its Franchise Company, LLC. Its parent company is FS Snip-its LLC. Source: FDD Item 1, 2025 filing.
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. 1 new units were opened in the latest reporting year.
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). 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.