Supercuts Franchise Costs, Fees & FDD

Year Business Began: 1976

Franchising Since: 1979

Headquarters: Minneapolis, Minnesota

Estimated Number of Units: 1,935

Franchise Description: The franchisor’s name is Supercuts, Inc. Franchisees will have the right to own and operate a retail hair care establishment providing haircutting and related services under the “Supercuts” mark and other distinctive marks. The parent company of Supercuts is Regis Corporation.
Training Overview: The franchisor will provide initial training for the managing owner and additional persons whom the franchisor employs in a managerial capacity. The franchisor will furnish through virtual and distance learning and other electronic means and, at its option, at a designated training location of its choice (which may be the franchisor’s corporate headquarters, an operating Supercuts salon, and/or the franchisee’s salon) an initial training program on operating a Supercuts salon. The franchisor will train the managing owner and the franchisee’s other managerial employees, although the managing owner must satisfactorily complete initial training only once, regardless of the number of Supercuts salons that franchisees or their affiliates own and operate. All new haircutting employees must complete the approved technical onboarding program. The franchisor may require the managing owner and the salon’s other managers to attend and complete satisfactorily various training courses and programs offered periodically during the term by the franchisor or third parties at the times and locations the franchisor designates.

Territory Granted: Franchisees will operate the salon at a specific location meeting the franchisor’s site selection requirements. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls.

Obligations and Restrictions: Franchisees must designate one of their individual owners holding at least 10% of their ownership interests to serve as the “managing owner.” The managing owner is responsible for the salon’s overall management (even if the managing owner is not the on-site day-to-day manager). The salon must have at least one on-site manager, whether that individual is the managing owner or another salon manager. The salon must offer for sale all products and services the franchisor periodically specifies. The salon may not offer, sell, or otherwise distribute at the salon premises or another location any products or services the franchisor has not authorized.

Term of Agreement and Renewal: Provided the Franchise Agreement is not sooner terminated according to its terms and conditions, the term expires only upon the termination or expiration of the right to lease or sublease the franchised location (including renewal periods, if any) unless the franchisee relocates within 180 days of such termination or expiration.

Financial Assistance: Except as described, the franchisor does not offer direct or indirect financing or guarantee a franchisee’s note, lease, or obligation. If franchisees request and Supercuts agrees to guarantee their lease obligations in any way (e.g., as tenant or guarantor), then Supercuts reserves the right to charge them a monthly fee of the amount by which 16% of their monthly gross sales exceeds their monthly lease payments for as long as such guaranty is in effect. The franchisor does not assume the landlord's obligations under the master lease, meaning that franchisees cannot hold Supercuts responsible for the landlord's non-performance. However, because of the sublease with franchisees, Supercuts may enforce the landlord's rights under the master lease.

Estimated Initial Investment

Name of Fee	Low	High
Development Fee / Franchise Fee	$39,500	$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	$400	$2,000
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
First and Last Month's Rent and Security Deposit	$6,000	$18,000
Grand Opening Advertising Expenses	$10,000	$10,000
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)	$185,930	$323,460

 
Other Fees

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	Actual cost of testing.
Hairstylists Academy (HSA)	4 training days at $55 per day per attendee plus Mannequin Recovery fee of $67 for the 2 mannequins that stylists use in HSA.
Managers’ Training Course/ Ongoing and Supplemental Training	The franchisor may charge its then-current fee, which will not exceed $1,000 per day.
Convention Fee	Up to $1,000 per person, plus expenses to attend.
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 months immediately preceding such anniversary date.
Transfer Fee	1 salon: $2,500 2 salons: $4,500 3 salons: $6,000 4 salons: $7,000 5 salons: $7,500 Each salon after is $500.
Lease Renewal Fee	$1,500
Lease Guaranty Fee	The amount by which 16% 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 / Processing Fee	ACH monthly settlement service fee of $10/month per bank account.
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.

The above information has been compiled from the FDD of Supercuts. Year of FDD: 2025.
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