⏩ Supercuts Franchise Costs 2024
As the hair care industry continues to boom, owning a Supercuts franchise can be a lucrative opportunity for entrepreneurs. With over 2,400 locations across the globe, Supercuts has been providing affordable, high-quality haircuts to men, women, and children for over 40 years.
In this article, we’ll explore what sets the Supercuts franchise apart, and why it could be the perfect investment for your entrepreneurial ambitions.
⏩ Why Choose Supercuts Franchise?
As a Supercuts franchisee, you’ll have access to a time-tested business model, established branding, and a proven track record of success. But what else sets Supercuts apart from other hair care franchises?
- 👉Diverse Customer Base: Supercuts appeals to a wide range of customers, from busy professionals to families with children. With services that include haircuts, styling, coloring, and more, there’s something for everyone at Supercuts.
- 👉Affordable Pricing: Supercuts offers affordable pricing that makes it a top choice for customers who want a quality haircut without breaking the bank. This helps ensure repeat business and a loyal customer base.
- 👉Training and Support: Supercuts provides comprehensive training and ongoing support to franchisees, helping to ensure their success. From site selection to marketing and operations, Supercuts provides the tools and resources needed to thrive.
- 👉Marketing and Branding: Supercuts has a strong brand presence and a proven marketing strategy that drives customer traffic. With a recognizable logo and messaging that emphasizes quality and affordability, Supercuts stands out from the competition.
⏩ Supercuts Franchise Overview
✅ Franchise description:
The franchisor’s name is Supercuts, Inc. Franchisees are permitted to operate and own a hair salon retail store offering haircutting and similar services.
They can use the “Supercuts” mark and other distinct trademarks. Supercuts’ parent corporation Supercuts is Regis Corporation.
✅ The training overview:
The franchisor will furnish training via distance and virtual education and other methods of electronic communication,
and if it chooses a specified training site of its preference (which could be the headquarters of the franchisor’s corporate office or any operating Supercuts store or stores owned by franchisees) an initial program of training in the operation of the Supercuts store.
The franchisor will instruct the managing owner and the franchisee’s other managers; however, the manager must complete the training once only, regardless of how many Supercuts stores franchisees and affiliates manage and own.
All new employees who are hired to cut hair must take part in the current initial training program offered by the franchisor or its designated representative, or the franchisor’s certified technician (CTT)–at an approved training facility by the franchisor or CTT, or through online and distance learning, and other means of communication before offering haircutting services in the location.
The franchisor might have the managing owner and the other store managers complete and attend different training programs. Courses are offered regularly during the year by the franchisor or other third parties at times and locations the franchisor has designated.
In addition to attending and participating in various continuing or additional classes and programs at a minimum, one of the representatives of the franchisor (the managing owner or an appointed representative approved by the franchisor) is required to attend the annual gathering of all Supercuts store franchisees, which can last up to four days in a place that the franchisor has designated.
✅ Territories granted:
Franchisees will operate the store at a location that meets the franchisor’s site specifications for the selection. Franchisees won’t be granted exclusive use of the territory.
✅ Limitations, Obligations
Franchisees must choose one of their owners who hold at least 10% of their ownership interest to be”the “managing owner.”
The store must have at minimum one manager on the premises, regardless of whether the individual is the owner who manages the store or a different store manager.
store must offer the public all of the products and services that the franchisor regularly stipulates. a store cannot offer, sell or distribute any goods or services that the franchisor has not approved on the premises or any other place.
✅ Terms of the Contract and Renewal:
Provided the Franchise Agreement is not terminated earlier under the terms and conditions of the agreement,
The term will expire at the expiration or termination of the rent or lease of the franchised property (including renewal dates or renewal periods, if applicable) if the franchisee does not relocate within 180 calendar days after the end or expiration.
✅ Financing Assistance
Except in the manner described above, the franchisee cannot provide any financing either directly or indirectly or guarantee the note of a franchisee or lease.
If franchisees make a request and Supercuts accepts to ensure the lease in some manner (e.g. as a guarantor or tenant) and if they do, Supercuts is entitled to charge them an annual cost of the amount that 12 percent of their monthly sales exceed the amount they pay for their lease monthly the duration that the guarantee is in place.
Supercuts cannot take on the landlord’s obligations in the master lease, which means franchisees can’t claim that Supercuts is responsible for the landlord’s inability to fulfill. However, due to the franchisees’ sublease with Supercuts, Supercuts can apply the landlord’s rights in the master lease.
⏩ Supercuts Franchise Cost
Investment Tables:
| Name of Fee | Low | High |
|---|---|---|
| Development Fee/Franchise Fee |
$10,000 |
$39,500 |
| Leasehold Improvements |
$60,000 |
$120,000 |
| Furniture, Fixtures & Equipment |
$25,000 |
$50,000 |
| Construction Management Services Fee |
$5,500 |
$7,500 |
| Construction and Design Plan Review |
$500 |
$1,000 |
| Post Build Review |
$1,500 |
$3,000 |
| Computer Software (Point of Sale System; $170 per month) |
$2,040 |
$2,040 |
| Computer Hardware/Installation and Onsite Training |
$1,876 |
$2,418 |
| Opening Inventory |
$5,000 |
$10,000 |
| Hairstylists Academy (HSA) Training Fees (for 6 to 8 people) |
$1,440 |
$1,920 |
| Travel and Living during Franchisee Orientation Training |
$2,050 |
$4,500 |
| One Month’s Rent and Security Deposit |
$4,000 |
$12,000 |
| Grand Opening Advertising Expenses |
$5,000 |
$5,000 |
| Signs |
$6,000 |
$12,000 |
| Professional Fees |
$6,000 |
$12,000 |
| Additional Funds (3 months) |
$15,000 |
$30,000 |
| ESTIMATED TOTAL (including initial lease costs) |
$150,906 |
$312,878 |
Supercuts Franchise Other Fees & Cost
| Type of Fee | Amount |
|---|---|
| Royalty Fees | For new stores, combined service and merchandise royalty fee is 4% of combined net service revenue and net merchandise revenue from opening date until first year anniversary. From first year anniversary until the Franchise Agreement expires or is terminated, royalty fee is 6% of combined net service revenue and net merchandise revenue. |
| Advertising Fees | 5% of net monthly service revenue (i.e., excluding merchandise sales). |
| Product and Service Purchases | Varies. |
| Testing and Evaluation Costs | Projected testing/evaluation costs to be incurred (amount depends on circumstances, including supplier’s location, testing required, and item involved). |
| Hairstylists Academy (HSA) Additional Training | 4 training days at $55 per day per attendee plus Mann equin Recovery fee of $67 for the 2 mannequins that stylists use in HSA. |
| HSA Recertification | The cost of all training supplies and materials, including, without limitation, mannequins. |
| Opensalon Pro Point of Sale Fees | $170 per month SaaS subscription fees. |
| Technology Fee | Up to 2% of gross revenues. |
| Managers’ Training Course/Ongoing and Supplemental Training | The cost of training supplies and materials and a proportionate share of the training facilities (if any) and any audio visual equipment needed for such training courses. |
| Convention Fee | Will vary under circumstances (not to exceed $1,000 per person does not include the franchisee’s actual out-of-pocket attendance costs paid to third parties). |
| Anniversary (Renewal) Fee | 1% of total net monthly revenues for 12 full months immediately preceding first 10-year anniversary. For each 10-year anniversary thereafter, 2% of total net monthly revenues for 12 full month immediately preceding such anniversary date. |
| Transfer Fee | 1 store: $2,500 2 stores: $4,500 3 stores: $6,000 4 stores: $7,000 5 stores: $7,500 Each store after is $500. |
| Lease Renewal Fee | $1,500 |
| Lease Guaranty Fee | The amount by which 12% of the monthly gross sales exceeds the monthly lease payments for as long as such guaranty is in effect. |
| Audits | Cost of inspection or audit, including legal fees and independent accountants’ fees, plus travel expenses, room and board, and compensation of the franchisor’s employees (amount depends on nature and extent of the franchisee’s non-compliance). |
| Late Payments/Interest /Administrative Fee | 1.5% per month or the highest commercial contract interest rate the law allows, whichever is less. In addition, franchisees must pay the franchisor a $100 administrative fee. |
| Construction Management Services Fee | $5,500 – $7,500 |
| Construction and Design Plan Review Fee | $500-$1,000 |
| Post Build Review Fee | $1,500-$3,000 |
| Gift Card Transactions | $45 per download software download fee and $15 per terminal annual software maintenance fee (both if the franchisee supplies their own terminal device); per transaction fees range from $.0225 to $.07; nonsufficient funds recovery fee of $.05 per card. |
| Indemnification | Varies under circumstances and depends on nature of claim. |
| Maintenance Cost Reimbursement | Out-of-pocket cost reimbursement. |
| Costs and Attorneys’ Fees | Varies under circumstances and depends on nature of the franchisee’s non-compliance. |
| Management Fee | Up to 10% of gross sales, plus any out-of-pocket expenses incurred in connection with store’s management. |
| Reimbursement for Third-Party Service Providers | Out-of-pocket cost reimbursement. |
| Reimbursement for Customer Complaints | Cost reimbursement. |
| Tax Reimbursement | Out-of-pocket cost reimbursement. |
| Insurance Reimbursement | Out-of-pocket cost reimbursement. |
| Deficiency Correction Fee | Out-of-pocket cost reimbursement. |
| De-Identification Fee | Cost reimbursement. |
| Lost Future Royalties | Depends how much time remains in franchise term when the franchisor terminates with cause or the franchisee terminate without cause. |
⏩ Supercuts Franchise Process:
If you’re interested in owning a Supercuts franchise, the process is straightforward and transparent. Here’s an overview of the steps involved:
- 👉Application: The first step is to submit an application and provide information about your business experience and financial qualifications.
- 👉Review and Approval: Supercuts will review your application and determine if you meet the qualifications for franchise ownership. If you’re approved, you’ll receive a franchise agreement to sign.
- 👉Site Selection: Supercuts will work with you to select a location for your franchise, taking into account factors such as population density, demographics, and competition.
- 👉Training: You’ll receive comprehensive training at Supercuts headquarters in Minneapolis, MN, covering all aspects of franchise ownership.
- 👉Grand Opening: Once your location is set up and staffed, you’ll have a grand opening celebration to kick off your new business.
⏩ FAQ About Supercuts Franchise
➡ How much does it cost to own a Supercuts franchise?
The initial investment can range from $144,000 to $273,000, depending on factors such as location, leasehold improvements, and equipment.
➡ What are the ongoing fees associated with a Supercuts franchise?
Franchisees pay an ongoing royalty fee of 5% of gross sales, as well as a national advertising fee of 3% of gross sales.
➡ How long does it take to open a Supercuts franchise?
The process typically takes between 6-9 months, from application to grand opening.
➡ What is Supercuts franchise?
Supercuts franchise is a hair salon franchise that offers affordable haircuts and styling services. The brand has a strong reputation for quality and convenience, and it has been in business for over 45 years.
➡ How much does it cost to open a Supercuts franchise?
The total cost of opening a Supercuts franchise ranges from $144,000 to $278,000, depending on the location and size of the salon. This includes the initial franchise fee, training costs, equipment, and inventory expenses.
➡ What kind of support does Supercuts offer to its franchisees?
Supercuts offers extensive training and ongoing support to its franchisees. The franchisor provides a comprehensive training program that covers all aspects of running a Supercuts franchise, including hiring and training staff, marketing, and finance management.
Franchisees also receive ongoing support from the corporate team, including marketing and advertising assistance, product and equipment updates, and operational guidance.
➡ Do I need previous business experience to open a Supercuts franchise?
While previous business experience can be helpful, it is not required to open a Supercuts franchise. The franchisor provides extensive training and support to help franchisees succeed in the hair care industry.
➡ What are the revenue streams for a Supercuts franchise?
Supercuts franchise offers multiple revenue streams, including haircuts, hair styling, beard trims, hair coloring, and waxing services. Franchisees can also sell proprietary hair care products and tools, which can increase their profit margins.
➡ Can I own multiple Supercuts franchises?
Yes, franchisees can own multiple Supercuts franchises, as long as they meet the franchisor’s requirements and qualifications. Many successful Supercuts franchisees own multiple franchises in different locations.
⏩ Conclusion
If you’re looking for a proven franchise opportunity in the hair care industry, the Supercuts franchise could be the perfect fit. With an established brand, loyal customer base, and comprehensive training and support, owning a Supercuts franchise can be a smart investment for entrepreneurs looking to start or expand their business. So why wait? Contact Supercuts today to learn more about this exciting opportunity.
I am a beauty and hair specialist. I have been a hairstylist for nearly 4 years now. And love to explore different salons and their features. As a result, I decided to create a blog that tells people about the various salons and their pricing, services etc.