Supercuts
Bottom line
- Total investment $186K – $323K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $322K/year (median $297K).
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 307 loans (below the industry average).
- 11 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
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 Supercuts 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 Supercuts units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$774K
on $3.9M purchase
Total debt
$3.1M
SBA $1.9M + senior + seller note
Overview
About
Franchisees operate hair-cutting salons typically located in strip malls or retail spaces, providing budget-friendly haircuts and basic hair services to walk-in customers. Day-to-day operations include managing 3-8 employees, scheduling appointments, inventory management for products/supplies, cash handling, and ensuring brand standards for service quality and store appearance.
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 · 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 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
Supercuts presents CAUTION-level risk: modest unit decline, material litigation including franchisee rights disputes, non-transparent profitability data, and territorial vulnerability create meaningful uncertainty around franchisee ROI and franchisor stability.
Score breakdown · what drove the 57 / 100 rating
- 01MINORDeclining unit growth (7.0% YoY) suggests market saturation or franchisee underperformance in mature hair-cutting segment
- 02MINORMultiple franchise law violation counterclaims indicate systemic disputes over franchisor obligations and franchisee rights
- 03MEDNo disclosed average net income despite $322k avg revenue creates inability to validate unit economics or profitability claims
- 04MINORUnprotected territory allows franchisor to cannibalize franchisee revenue through company-owned or competing franchise locations
- 05HIGHLitigation pattern (collections, trade secret misappropriation, consumer class action) suggests operational and compliance issues
- 06MEDHigh royalty burden (6% on gross sales, not net profit) combined with undisclosed net income obscures true franchise profitability
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
39 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Supercuts · FDD (2025) PDF