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Supercuts Franchise ProfileHealth & Beauty Franchises > Hair Salons |
What Are the Initial Investment Costs for a Supercuts Franchise?
To open a Supercuts franchise, you should expect an initial investment ranging from $185,406 to $347,878. This includes a franchise fee of $39,500. Additionally, franchisees are responsible for ongoing costs, such as a royalty fee of 4% and a marketing fee of 5%. Having sufficient cash on hand is crucial, as you’ll need between $185,406 and $317,878 to cover startup expenses. Moreover, a net worth requirement of $100,000 to $500,000 is necessary to qualify for ownership.
What Is the Financial Performance of a Supercuts Franchise?
Supercuts franchises have demonstrated solid financial performance, with an average annual revenue per unit of $290,728. The median annual revenue is slightly lower at $270,988, while the revenue range spans from a low of $35,316 to a high of $1,050,071. With a breakeven time of just 12 months and an investment payback period of approximately 24 months, the potential for profitability appears promising for franchisees.
What Are the Typical Operating Expenses for a Supercuts Franchise?
Operating expenses for a Supercuts franchise average around $224,547 annually. Key expenses include general and administrative costs at $50,751, rent at $9,196, and advertising fund expenses totaling $31,747. Franchise rent expense is a significant portion at $111,441, with depreciation and amortization adding another $7,716. Understanding these costs is essential for managing profitability effectively.
How Many Supercuts Units Are in Operation?
As of 2023, there are a total of 2,077 Supercuts units, with 2,070 being franchised and only 7 corporate-owned. The number of franchised units has seen a gradual decline from 2,373 in 2021 to 2,070 in 2023. This trend may indicate market saturation or increased competition, making it important for potential franchisees to assess their local market conditions before investing.
Supercuts Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Supercuts Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 2407 | 2270 | 2077 |
| Net Change YoY | -137 | -193 | |
| Franchised Units | 2373 | 2252 | 2070 |
| Net Change YoY | -121 | -182 | |
| Corporate Units | 34 | 18 | 7 |
| Net Change YoY | -16 | -11 |
Franchise Overview
Supercuts is a well-known hair salon franchise that specializes in providing affordable haircuts and styling services without the need for appointments. Established in 1975, Supercuts has grown to become a leader in the hair care industry, with a focus on convenience and customer satisfaction. The franchise operates in various locations across the United States, catering to a diverse clientele seeking quality hair services at competitive prices.
Investment Details
To start a Supercuts franchise, the initial investment ranges from $185,406 to $347,878, which includes a franchise fee of $39,500. Franchisees are required to have a cash investment between $185,406 and $317,878, along with a net worth of $100,000 to $500,000. This investment structure provides aspiring franchisees with a clear financial framework to assess their potential entry into the business.
Financial Performance
Supercuts franchises generate an average annual revenue of $290,728, with a median revenue of $270,988. The revenue can vary significantly, with the lowest annual revenue recorded at $35,316 and the highest at $1,050,071. This range highlights the potential for profitability while also emphasizing the importance of location and management in achieving financial success.
Operational Costs
The average operating expenses for a Supercuts franchise total $224,547 annually. Key expenses include general and administrative costs of $50,751, rent at $9,196, and advertising fund expenses of $31,747. Understanding these costs is crucial for franchisees to effectively manage their financial performance and optimize profitability.
Royalty and Marketing Fees
Supercuts franchisees are required to pay a royalty fee of 4% of gross sales, along with a marketing fee of 5%. These fees contribute to the overall brand strength and marketing efforts that support franchisees in attracting and retaining customers, ensuring a steady flow of business.
Growth Trends
The Supercuts franchise has seen a decline in total units over the past few years, with franchised units decreasing from 2,373 in 2021 to 2,070 in 2023. Despite this trend, the brand remains a strong player in the hair care market, and franchisees can leverage the established reputation and operational support to navigate challenges and explore new growth opportunities.
Frequently Asked Questions
The initial investment for a Supercuts franchise ranges from $185,406 to $347,878, which includes the franchise fee and other startup costs.