Franchise Deep Dive: Supercuts Franchise Costs, Fees, Profit and Data

LAST UPDATED: 01/2023

FRANCHISE WEBSITE: https://www.regiscorp.com/franchise-opportunities

NUMBER OF LOCATIONS: 2,700+

REPORTED COST TO GET IN: $150,906–$312,878

REPORTED ROI (Item 19): $199,275 

Supercuts is one of the most well-known salon franchises in the United States. The first Supercuts opened in 1975 in Albany, California, by a pair of hairstylists named Geoffrey Rappaport and Frank Emmett. The brand began as a modern, unisex alternative to the barbershop and the beauty salon business models, ultimately pioneering a new kind of hair salon. It is now owned by the Regis Corporation, which is also the parent company of salon brands such as Cost Cutters, Roosters and First Choice Haircutters. 

The brand has more than  2,600 no-appointment-required salons across the country that claim to offer “consistent, quality haircuts at a moment’s notice.” Trained stylists provide a range of hair services, including men’s haircuts, women’s haircuts, kids’ haircuts, color services and waxing. Supercuts also offers professional haircare products at affordable prices from brands such as Paul Mitchell, Biolage, Redken, American Crew, Nioxin and more.

How Many Locations Are There?

Supercuts has over 2,600 locations across the United States, with under 40 being corporate-owned. There are also stores internationally in Canada, Puerto Rico and the United Kingdom. 

What Is the Business Model?

According to Regis Corporation’s development page, the Supercuts franchisee profile is a multi-unit operator, and the brand prefers franchisees to have ??a multi-unit franchising experience.  

It is reported that franchisees will operate the store at a specific location that meets the franchisor’s site selection requirements. Franchisees will not receive an exclusive territory. Franchisees must also designate one of their individual owners holding at least 10% of their ownership interests to serve as the “managing owner, and the store must have at least one on-site manager, whether that be the managing owner or another store manager. 

Supercuts stores must also offer all products and services the franchisor periodically specifies. The store may not offer, sell, or otherwise distribute any products or services the franchisor has not authorized.

How Much Can Supercuts Franchise Owners Make?

According to Supercuts’ Item 19, the following data discloses the historical average, median, and high/low store gross sales during the 12-month period ending June 30, 2021, for 2,229 franchised Supercuts Stores operating throughout the United States. 

Top 1/3 (742 Stores)

• Average Gross Sales: $297,415 
• Number and Percentage Exceeding Average: 275/37.06% 
• Median Gross Sales: $277,141 
• Highest Gross Sales: $675,988 
• Lowest Gross Sales: $225,044  

Middle 1/3 (744 Stores) 

• Average Gross Sales: $186,961 
• Number and Percentage Exceeding Average: 378/50.81% 
• Median Gross Sales: $187,720 
• Highest Gross Sales: $224,706 
• Lowest Gross Sales: $151,876

Bottom 1/3 (743 Stores) 

• Average Gross Sales: $113,598 
• Number and Percentage Exceeding Average: 442/59.49% 
• Median Gross Sales: $120,593 
• Highest Gross Sales: $151,856 
• Lowest Gross Sales:  $1,923 

All (2,229 Stores) 

• Average Gross Sales: $199,275 
• Number and Percentage Exceeding Average: 982/44.06% 
• Median Gross Sales: $187,715 
• Highest Gross Sales: $675,988 
• Lowest Gross Sales: $1,923

How Much Does it Cost to Open a Supercuts?

To buy a Supercuts franchise, owners need to have liquid capital of at least $80,000 and a minimum net worth of $500,000. 

The total investment range to open a Supercuts franchise is anywhere from $150,906–$312,878. Costs to expect include: 

• Development Fee/Franchise Fee: $10,000–$39,500
• Leasehold Improvements: $60,000–$120,000
• Furniture, Fixtures and Equipment: $25,000–$50,000
• Construction Management Services: $5,500–$7,500
• Construction and Design Plan Review: $500–$1,000
• Post Build Review: $1,500–$3,000
• Computer Software: $2,040
• Computer Hardware/Installation and Onsite Training: $1,876–$2,418
• Opening Inventory: $5,000–$10,000
• Hairstylists Academy Training Fees (6-8 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
• Signs: $6,000–$12,000
• Professional Fees: $6,000–$12,000
• Additional Funds (3 months): $15,000–$30,000

For new stores, there is a combined service and merchandise royalty fee of 4% of the combined net service revenue and net merchandise revenue from the opening date until the first year anniversary. From the first year anniversary until the Franchise Agreement expires or is terminated, the royalty fee is 6% of combined net service revenue and net merchandise revenue.

What Is the Franchise Fee for Supercuts?

The franchise fee for Supercuts is $10,000–$39,500.

Who Are the Leaders of Supercuts (Regis Corp.)?

• Matthew Doctor, President and CEO
• Jim Lain, EVP and COO
• Kersten Zupfer, EVP and CFO 
• John Davi, EVP and Chief Digital Officer 
• Michael Ferranti, EVP and Chief People Officer 
• Andra Terrell, SVP and General Counsel 
• Jamie Suarez, SVP, Merchandising and Education
• Michelle DeVore, SVP & Head of Marketing

 What Helpful Articles Can I Read to Learn More? 

• Supercuts Pioneered a New Kind of Hair Salon
• Supercuts Franchise Costs & Fees
• FDD Talk: How Much Does a Supercuts Franchise Make
• 5 Hair Care Franchises We Love

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