Supercuts Franchise Costs, Fees & Owner Salary (2023)

Supercuts, a renowned hair salon franchise, was founded in 1975 and began its franchising journey in 1979.  The headquarters of Supercuts are located in Minneapolis, Minnesota.  The brand is part of the Regis Corporation and has grown to become a significant name in the haircare franchise arena in the U.S. Supercuts differentiates itself by offering a range of services, including haircuts, color treatments, highlights, perms, and styling, catering to a broad clientele.

The franchise model of Supercuts is designed to be accessible even to those without prior experience in hair care. As a franchisee, your focus will be on managing the business effectively, which includes recruiting a strong staff, building community ties, implementing marketing plans, and empowering employees.

Supercuts' model offers a robust opportunity for entrepreneurs looking to enter the stable and growing hair care industry. Its strong brand presence, comprehensive training, and support system make it an attractive option for those aspiring to own and operate a hair salon franchise.

Initial Franchise Fee

The initial franchise fee for a Supercuts franchise, particularly for existing franchisees who signed between July 1, 1999, and September 28, 2011, is typically $12,500 per store. This fee is payable upon the execution and delivery of the franchise agreement and is non-refundable except under specific conditions outlined in the agreement.

Monthly Royalty Fee

For the first year, the monthly royalty fee is 4% of combined net service revenues and net merchandise revenues. From the first anniversary of the Store open date until the Franchise Agreement expires or is terminated, the monthly royalty fee is 6% of combined net service revenues and net merchandise revenues.

Advertising Fee

The advertising fee is 5% of net monthly service revenue, with a potential rebate under certain conditions.

Transfer Fee

The fee for transferring a franchise varies based on the number of stores, starting from $2,500 for one store to $7,500 for five stores, with each additional store costing $500.

Lease Renewal Fee

If Supercuts agrees to negotiate the lease renewal for a store, a fee of $1,500 is charged upon execution of the lease renewal.

The franchisor provides its franchisees with a comprehensive training program that includes several key components:

1. Customary Initial Training Course: The franchisor offers an initial training course on operating a "Supercuts" location, which the Franchisee is required to attend and complete to the satisfaction of the franchisor. Additional managerial employees may also attend this course. 
2. Training for Haircutting Employees: All new haircutting employees must attend an initial 5-day training course conducted by the franchisor or franchisee’s Certified Technical Trainer (CTT) at a designated location. No haircutting employee is allowed to be employed without completing this training. 
3. Recertification Course: Before the expiration of an employee’s "Certificate of Competency," they must attend a recertification course offered by the franchisor. Upon completion, their certificate is renewed for an additional one-year period.
4. Management Employee Training: The franchisor has the right to require any management employee of the franchisee to attend management training courses related to their employment duties. The franchisee is responsible for all associated costs.
5. Ongoing Training: The franchisor may provide additional or special guidance, assistance, and training upon request, although they have no obligation to provide specific ongoing training.

The franchisees do not receive exclusive territorial rights. Franchisees are expected to operate their Supercuts Store at a specific location approved by the franchisor, but they are not granted exclusive rights to any geographic area or territory.

The franchisor does not generally support passive investment. The franchisor requires approval for any transfer of franchise rights and exercises control over methods of financing, such as the sale of securities. This implies active involvement from franchisees and limits opportunities for passive investment.