Supercuts Franchise Cost, Revenue & Review 2026
- Investment
- $186K – $323K
- Disclosed sales
- $322K
- gross sales, not profit
- SBA charge-off
- 3.1%
- on 283 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Supercuts is a value hair-salon franchise offering quick, walk-in haircuts and basic hair services in retail locations. Franchisees run salons staffing a handful of stylists on a fast-turnover, no-appointment model.
FranchiseVerdict summary · 2026
A Supercuts franchise requires a total initial investment of $186K – $323K, including a $40K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $322K[2]. SBA 7(a) loans show a 3.1% charge-off rate across 283 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist
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 scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $186K – $323K
- 20th pct Personal Care…
- Avg gross sales
- $322K
- 5th pct Personal Care…
- Royalty
- 6.0%
- 12th pct Personal Care…
- Units
- 1,798
- 62nd pct Personal Care…
- SBA charge-off
- 3.1%
- % 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 $186K – $323K including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $322K/year (median $297K).
- RISKVerdict B (Above average), verdict score 54/100 (higher is better). SBA loan charge-off rate of 3.1% across 283 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -234 franchised outlets in the latest year (11 opened, 245 closed); 1 signed but not yet open (Item 20).
- LEGAL16 litigation matters disclosed in Item 3, higher than typical. Of the 11 listed on this page, 8 name the franchisor itself, 3 its parent, affiliates or predecessor. Pending claims are allegations, not findings.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Supercuts, Inc.
- Parent company
- Regis Corporation
- FDD Item 1, page 9 of the 2025 FDD
- CEO title
- President and Chief Executive Officer and Director, Regis Corporation
- Matthew Doctor
- Incorporated in
- Delaware
- HQ
- 3701 Wayzata Boulevard, Suite 500, Minneapolis, Minnesota 55416
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $210.1M
- vs $203.0M prior year
Same owner · FDD Item 1, page 9
3 other brands on this site name Regis Corporation as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Matthew Doctor
- Headquarters
- MN
- Founded
- 1987
- FDD year
- 2025
- States available
- 48
Can you afford it, and what does the money buy?
Entry cost runs 37% below the typical personal care & beauty franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $15K | $30K |
| Equipment, build-out, other | $131K | $254K |
| Total initial investment | $186K | $323K |
Source: Supercuts 2025 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
- $186K – $323K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $30K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 5.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 5.0% |
| Technology fee | $2K |
| Transfer fee | $3K |
| Inventory (initial) | $5K – $10K |
| Total fee load | 11.0% of rev |
What do units actually make?
Average unit sales run 39% 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 Supercuts 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
$277K
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 Supercuts 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
- $322K
- Per unit, per year
- Median gross sales
- $297K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historic gross sales by tercile (Top/Mid/Bottom) plus system totals
- Sample size
- 1,661 outlets
- vs category median 38 · large
- Range (low → high)
- $36K→$1.2MCited, not corroborated — printed on page 67 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
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 $322K/year in gross sales. Revenue-to-investment ratio: 1.3x.
Fee burden
Total ongoing fee load of 11.0% — above the Personal Care & Beauty median of 7.9%.
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 -12.8% 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 Supercuts 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
- 1,798
- Opened
- 11
- Last reporting year
- Closed
- 245
- Turnover rate
- 13.6%
- Company-owned
- 97
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -12.8%
- Net unit change over 3 years
- 3-yr CAGR
- -12.8%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Reacquired
- 108
- Franchisor bought back
- Signed, not yet open
- 1
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
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
25 current owners across 12 states.
- NJ 5
- TX 5
- SC 3
- AL 2
- FL 2
- NM 2
- AZ 1
- CA 1
- GA 1
- KY 1
- MS 1
- PA 1
Counts only, from the list the franchisor prints in Item 20; 14 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 283
- Loan volume
- $79.7M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 3.1%
- on 283 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)
- 96.8%
- 5-yr charge-off
- 2.0%
- Loans approved 2021+
- Active lenders
- 63
- Defaults
- 7
- Typical loan rate
- 6.6%
- avg rate to borrowers
- Franchised industry avg
- 12.1%
- brand beats franchise avg ↓
- Jobs supported
- 3,998
- 5.5 per loan
- Lender concentration
- 44%
- top lender's share
Borrower mix: 39% went to startups / new businesses, 61% 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
Supercuts charge-off rate by loan vintage
Top lenders financing Supercuts franchisees
Showing 3 of 63 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 Supercuts from SBA 7(a) FOIA data.
- Principal loss rate
- 0.9%
- Avg SBA guarantee
- 78%
- Avg interest rate
- 6.56%
- Avg chargeoff amount
- $97K
- Lender concentration
- 43.8%
- Job velocity
- 5.5 per $100K
- Startup risk premium
- +6.9pp
- NAICS benchmark
- 10.9%
- NAICS 812112
- Jobs supported
- 3,998
Top SBA lendersTop lender holds 44% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Stearns Bank National Association | 113 | $16.2M | 3.8% |
| 2 | Wells Fargo Bank National Association | 14 | $3.4M | 0.0% |
| 3 | Bank of America, National Association | 13 | $10.6M | 0.0% |
| 4 | The Huntington National Bank | 8 | $1.4M | 0.0% |
| 5 | Simmons Bank | 6 | $738K | 0.0% |
| 6 | Live Oak Banking Company | 6 | $9.1M | 0.0% |
| 7 | BankUnited, National Association | 5 | $6.5M | 0.0% |
| 8 | BMO Bank National Association | 4 | $723K | 0.0% |
| 9 | National Bank of Middlebury | 4 | $322K | 0.0% |
| 10 | Cadence Bank | 4 | $884K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 40 | 2 | 5.9% |
| CACalifornia | 28 | 0 | 0.0% |
| FLFlorida | 21 | 0 | 0.0% |
| ILIllinois | 12 | 0 | 0.0% |
| NCNorth Carolina | 12 | 0 | 0.0% |
| UTUtah | 12 | 0 | 0.0% |
| GAGeorgia | 10 | 1 | 12.5% |
| MOMissouri | 10 | 0 | 0.0% |
| NVNevada | 10 | 0 | 0.0% |
| VAVirginia | 10 | 0 | 0.0% |
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 3.1% — 81% 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
Large 2,077-unit salon system but with negative franchisor net worth of -$36.7M and a net loss of -$7.4M (parent-level, Regis). Net unit growth is a steep -12.8% and there are 11 litigation matters including a putative class action (Delamarter, receipt truncation) plus multiple six-figure concluded suits. Multiple concerns stack: negative equity, losses, unit decline, and active litigation.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
2 current matters (Aboukoura collections/counterclaims settlement in process $95,000; Delamarter putative class action re: receipt truncation, now individual case pending mediation) and multiple concluded arbitrations/lawsuits (Furber $110,000; Negussie $150,000; Sims $210,000; Shaffer $280,000; Curneen $29,500; Sea Fever Ventures arbitration award $1,015,104.83 against franchisor for FTC Rule/VRFA/VCPA violations; ProPoint Solutions trade-secret suit settled with $2-5M in services payments; six Pro-Cuts Sports franchisee arbitrations settled 2017 for combined ~$1.3M; North Star Solutions arbitration settled with $25,000 refund).
Largest disclosed settlement: $285,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Grant Thornton LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Regis Corp consolidated total revenue includes royalties, fees, product sales to franchisees, ad fund contributions, franchise rental income, and company-owned salon revenue.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 54 / 100 verdict
- 01MINORfranchisor_net_worth -$36.73M (parent-level)
- 02MINORfranchisor_net_income -$7.385M loss
- 03MEDnet_growth_pct -12.8% unit decline
- 04HIGH11 litigation matters incl. putative class action + six-figure settlements
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail16 matters · Item 3
Litigation cases
The franchisor
Pending (1)
Supercuts, Inc. v. Mohamed Aboukoura and iEndeavor, LLC
pendingBrought against a franchisee · filed 2021-01-26 · American Arbitration Association · AAA Case No. 01-21-0000-3502
“Supercuts, Inc. v. Mohamed Aboukoura and iEndeavor, LLC (AAA Case No. 01-21-0000-3502, filed January 26, 2021). This case was a collections matter against a franchisee; the franchisee asserted counterclaims for violation of the Virginia Franchising and Consumer Protection Acts, the Minnesota Franchise Act, and common law fraud claims.”Page 18 of the 2025 FDD, Item 3
Outcome:“The parties have agreed to a resolution and documentation of settlement agreement are in process, with Aboukoura agreeing to pay Supercuts and Regis $95,000.00.”
Concluded (7)
Supercuts, Inc. v. Court Curneen and Quartz, LLC
settledBrought against a franchisee · filed 2021-01-26 · American Arbitration Association · AAA Case No. 01-21-0000-3506
“Supercuts, Inc. v. Court Curneen and Quartz, LLC (AAA Case No. 01-21-0000-3506, filed January 26, 2021). This case was a collections matter against a franchisee. The franchisee asserted counterclaims for violation of the Virginia Franchising and Consumer Protection Acts, the Minnesota Franchise Act, and common law fraud claims.”Page 19 of the 2025 FDD, Item 3
Outcome:“This matter was settled on March 3, 2022, with Supercuts, Inc. and Regis Corporation agreeing to pay the franchisee $29,500.00.”
Supercuts, Inc. v. Daniel C. Negussie, Grimt Habtermariam, and DnG, LLC
settledBrought against a franchisee · filed 2021-01-26 · American Arbitration Association · AAA Case No. 01-21-0000-3507
“Supercuts, Inc. v. Daniel C. Negussie, Grimt Habtermariam, and DnG, LLC, AAA Case No. 01- 21-0000-3507 (Filed January 26, 2021). Supercuts filed an arbitration with the AAA against Daniel C. Negussie, Grimt Habtermariam, and DnG, LLC (collectively, “Negussie”), for past due royalties, advertising fund contributions and rent in the amount of $105,721.13.”Page 18 of the 2025 FDD, Item 3
Outcome:“This matter was settled on April 12, 2022, for $150,000.00 to be paid by Supercuts to Negussie.”
Supercuts, Inc. v. Keith and Marie Shaffer, KeiMar LLC, KieMar II LLC, and KeiMar III LLC
settledBrought against a franchisee · filed 2021-01-26 · American Arbitration Association · AAA Case No. 01-21-0000-3504
“Supercuts, Inc. v. Keith and Marie Shaffer, KeiMar LLC, KieMar II LLC, and KeiMar III LLC (AAA Case No. 01-21-0000-3504, filed January 26, 2021). This case involved a collections matter against”Page 18 of the 2025 FDD, Item 3
Outcome:“This matter was settled on June 16, 2022, with Supercuts Inc. and Regis Corporation agreeing to pay the franchisee and its principals $280,000.00.” (page 19)
Supercuts, Inc. v. Scott and Vicki Furber and Dawg Concepts, Inc.
settledBrought against a franchisee · filed 2021-01-26 · American Arbitration Association · AAA Case No. 01-21-0000-3512
“Supercuts, Inc. v. Scott and Vicki Furber and Dawg Concepts, Inc., AAA Case No. 01-21-0000- 3512 (Filed January 26, 2021). Supercuts filed an arbitration with the American Arbitration Association (“AAA”) against Scott and Vicki Furber and Dawg Concepts, Inc. (collectively, “Furber”), for past due royalties, advertising fund contributions and rent in the amount of $656,725.96.”Page 18 of the 2025 FDD, Item 3
Outcome:“This matter was settled on April 12, 2022, for $110,000.00 to be paid by Supercuts to Furber.”
Sea Fever Ventures, Inc., John Lovegrove, and Judith Lafleur-Lovegrove v. Regis Corporation and Supercuts, Inc.
judgmentBrought by a franchisee · filed 2020-11-18 · American Arbitration Association · AAA Case No. 01-20-0015-7648
“Sea Fever Ventures, Inc., John Lovegrove, and Judith Lafleur-Lovegrove v. Regis Corporation and Supercuts, Inc. (AAA Case No. 01-20-0015-7648, filed November 18, 2020). A Supercuts franchisee and its owners filed an arbitration with the American Arbitration Association”Page 19 of the 2025 FDD, Item 3
Outcome:“On November 23, 2021, the Arbitrator issued his final award and found that Supercuts’ sale of the franchise to the franchisee violated the FTC Rule, the VRFA, and the VCPA and awarded a total amount to the franchisee of $1,015,104.83,”
Delamarter v. Supercuts, Inc. (Christopher Delamarter v. Supercuts, Inc.)
settledThird-party plaintiff · filed 2019-11-19 · Hennepin County District Court, Minnesota (removed to federal court and remanded; interlocutory review sought from the Minnesota Court of Appeals, No. A22-0448, and Minnesota Supreme Court) · Case No. 27-cv-19-19280
“Delamarter v. Supercuts, Inc. (Case No. 27-cv-19-19280, Hennepin County District Court, Minnesota). This case was filed as a class action against Supercuts on November 19, 2019, on behalf of Plaintiff and a putative class of consumers”Page 21 of the 2025 FDD, Item 3
Outcome:“During a mediation on January 6, 2023, the Parties reached a settlement that requires third-party ProPoint’s insurance carrier, CNA, to pay $285,000 total, which includes $5,000 each for Plaintiffs Delamarter and Cone, with the balance being payable to Plaintiff’s counsel. The case has now been dismissed pursuant to the settlement agreement.”
North Star Solutions, Inc. v. Supercuts, Inc. a Division of Regis, Inc.
settledBrought by a franchisee · filed 2018-05-04 · American Arbitration Association · AAA Case No. 01-18-0001-6461
“North Star Solutions, Inc. v. Supercuts, Inc. a Division of Regis, Inc. (AAA Case No. 01-18-0001- 6461, filed May 4, 2018). A Supercuts franchisee filed an arbitration against Supercuts, Inc., the franchisor, and its affiliate, Regis, Inc. (n/k/a Regis LLC), alleging violation of the Minnesota Franchise Act,”Page 21 of the 2025 FDD, Item 3
Outcome:“Supercuts and Regis denied the allegations and settled the matter in October 2018 without admitting liability by refunding $25,000 to the franchisee and rescinding franchisee’s development agreement and franchise agreement in return for a release”
Parent, affiliates and predecessor
Concluded (3)
Joseph and Elizabeth Sims, Big Hair Salons, LLC v. The Barbers, Hairstyling for Men & Women, Inc.
settledBrought by a franchisee · The Barbers, Hairstyling for Men & Women, Inc., with parent Regis Corporation and Regis Corp. (the 'Regis Entities') · filed 2021-02-16 · American Arbitration Association · AAA Case No. 01-21-0001-9146
“A Smartstyle franchisee (“Franchisee”) and its owners (collectively with the Franchisee, the “Sims”) filed an arbitration with the AAA against The Barbers, Hairstyling for Men & Women, Inc. , Regis Corporation, and Regis Corp. (collectively, the “Regis Entities”) alleging the Regis Entities made material misrepresentations and omissions to induce Franchisee”Page 18 of the 2025 FDD, Item 3
Outcome:“This matter was settled on August 9, 2022, for $210,000.00 to be paid by The Regis Entities to the Sims.”
Propoint Solutions, LLC v. Regis Corporation, Chad Kapadia, et al.
settledThird-party plaintiff · Regis Corporation and its Chief Technology Officer Chad Kapadia · filed 2020-03-31 · N.D. Cal. · Case No. 3:20-cv-2181-MMC
“Propoint Solutions, LLC v. Regis Corporation, Chad Kapadia, et al. Case No. 3:20-cv-2181-MMC (N.D. Cal. Filed March 31, 2020). The Franchisor’s parent, Regis Corporation (“Regis”) and Regis’s Chief Technology Officer were sued by Regis’s point of sale and back office system supplier, ProPoint Solutions, LLC (“ProPoint”),”Page 19 of the 2025 FDD, Item 3
Outcome:“Regis and Propoint entered into a settlement agreement, effective June 25, 2021, that provided for the dismissal of the lawsuit and set forth a commercial services agreement pursuant to which Propoint would assist in the transfer of Regis’s franchised salons, including Supercuts salons, from its point-of-sale system to Regis’s salon management system,” (page 20)
David Williams, Shelly Williams, and Look Sharp, LLC v. RPC Acquisition Corp. and Regis Corporation; Scott Carlson, Jacquelyn Carlson, and SKC Concepts, Inc. v. RPC Acquisition Corp. and Regis Corporation; Jason Link and Link JAS, Inc. v. RPC Acquisition Corp and Regis Corporation; Chad Schwinghamme
settledBrought by a franchisee · RPC Acquisition Corp. (franchisor of Pro-Cuts Sports, an affiliate), parent Regis Corporation, and affiliate Pro-Cuts Corporate Shops, Inc. · filed 2015 · American Arbitration Association · AAA 01-15-0004-2079 (Williams); 01-15-0004-2072 (Carlson); 01-15-0005-2403 (Link); 01-15-0006-0307 (Schwinghammer); 01-1
“Six Pro-Cuts Sports franchisees and their owners filed separate arbitrations with the American Arbitration Association against RPC Acquisition Corp. (“RPC”), the franchisor of their Pro-Cuts Sports franchises and an affiliate of Supercuts, Inc., each alleging violation of the Minnesota Franchise Act (or Wisconsin Fair Dealership Law),”Page 20 of the 2025 FDD, Item 3
Outcome:“All six of the disputes described previously were settled in March 2017 and April 2017. All the arbitrations were dismissed on April 27, 2017.” (page 21)
This list shows 11 of the 16 matters Item 3 discloses; the rest are in the filing.
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 11.0% 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
| Protected territory | No |
|---|---|
| Exclusive territoryℹ | No |
| 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 | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Minneapolis, Minnesota |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 16 |
View Item 3 litigation summary
2 current matters (Aboukoura collections/counterclaims settlement in process $95,000; Delamarter putative class action re: receipt truncation, now individual case pending mediation) and multiple concluded arbitrations/lawsuits (Furber $110,000; Negussie $150,000; Sims $210,000; Shaffer $280,000; Curneen $29,500; Sea Fever Ventures arbitration award $1,015,104.83 against franchisor for FTC Rule/VRFA/VCPA violations; ProPoint Solutions trade-secret suit settled with $2-5M in services payments; six Pro-Cuts Sports franchisee arbitrations settled 2017 for combined ~$1.3M; North Star Solutions arbitration settled with $25,000 refund).
Items 10, 11
Training & Operations
- Classroom training
- 10 hrs
- On-the-job training
- 0 hrs
- Ongoing training
- Required
- Site selection
- franchisor approval required; franchisee finds site within non-exclusive Site Selection Area
- Franchisor financing
- Not offered
- Item 10
- POS system
- Zenoti
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Zenoti
Item 20 · call current owners
Franchisee Contacts
39 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 Supercuts franchise?
The total investment to open a Supercuts franchise ranges from $186K – $323K, 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 Supercuts franchise owners earn?
According to Item 19 of the Supercuts FDD, the average gross sales per unit is $322K. The median is $297K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Supercuts?
Supercuts is franchised by Supercuts, Inc.. Its parent company is Regis Corporation. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Supercuts 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 Supercuts FDD and qualifies whose outlets they describe.
What is Supercuts's franchise failure rate?
Based on SBA 7(a) loan data, Supercuts has a charge-off rate of 3.1% across 283 loans, meaning 3.1% 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 Supercuts franchise locations are there?
As of their most recent FDD filing, Supercuts has 1,798 total units in the United States, including 1,701 franchised units and 97 company-owned units. 11 new units were opened in the latest reporting year.
Is Supercuts a good franchise to buy?
FranchiseVerdict rates Supercuts as a B-grade franchise with a verdict score of 54 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.