SupercutsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Verdict grade: F. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $186K – $323K
- 17th pct Personal Care…
- Avg gross sales
- $322K
- 5th pct Personal Care…
- Royalty
- 6.0%
- 9th pct Personal Care…
- Units
- 1,801
- 49th pct Personal Care…
- SBA default
- 3.1%
- system-wide median varies by category
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = >15% above Personal Care & Beauty avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1988. Systems this mature have refined operations and brand recognition.
The system contracted 7% year-over-year. Investigate why units are closing.
11 legal cases disclosed in the FDD. Read Item 3 before signing.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $186K – $323K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $322K/year (median $297K).
- Verdict F (Bottom Quintile) with a risk score of 96/100. SBA loan charge-off rate of 3.1% across 283 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- Legal entity
- Supercuts, Inc.
- Parent company
- Regis Corporation
- Incorporated in
- DE
- HQ
- 3701 Wayzata Boulevard, Suite 600, Minneapolis, Minnesota 55416
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $210.1M
- vs $203.0M prior year
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.
- CEO
- Jim Lain
- Headquarters
- MN
- Founded
- 1987
- FDD year
- 2025
- States available
- 48
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$61K
19.0% margin
Unlevered ROIC
22%
EBITDA / total invested capital
Payback
4.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $186K – $323K
- Better than avg vs category
- Liquid capital req'd
- $15K – $30K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · 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% of gross sales |
| Technology fee | $2K |
| Transfer fee | $3K |
| Total fee load | 11.0% of rev |
Financial Performance
- Avg gross sales
- $322K
- Per unit, per year
- Median gross sales
- $297K
- Item 19 type
- gross_sales
- Sample size
- 1661 units
- vs category median 35 · large
- Range (low → high)
- $36K→$1.2M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 186 Personal Care & Beauty brands
vs Personal Care & Beauty averages
How Supercuts Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,801
- Opened
- 11
- Last reporting year
- Closed
- 137
- Turnover rate
- 7.6%
- Company-owned
- 100
- Corporate units in the system
- % franchised
- 94%
- vs corporate-owned
- Net growth (yr3)
- -7.0%
- Net unit change last year
- 3-yr CAGR
- +21.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 55
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
- 283
- Loan volume
- $79.7M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 3.1%
- 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
Vintage analysis
Supercuts charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Supercuts'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 15 states
- Startup risk premium and job creation velocity
- 25-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
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.
Audited financials (Item 21)
Yes · Grant Thornton LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 96 / 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
| Protected territory | No |
|---|---|
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 11 |
Items 10, 11
Training & Operations
- Classroom training
- 10 hrs
- On-the-job training
- 0 hrs
- 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
FDD download
Supercuts · FDD (2025) PDF
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.
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 1,801 total units in the United States, including 1,701 franchised units and 100 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 F-grade franchise with a risk score of 96 out of 100, 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.
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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.