Supercuts Franchise Analysis 2026

Investment & Fee Data

Investment Overview

Franchise Fee$15K

Total Investment$120K – $380K

Royalty Rate6.0%

Ad/Marketing Fund2.0%

Total Fee Burden8.0%

System Size & Growth

US Locations2,200

Unit Growth Rate-4.5%

Founded1975

Franchising Since1975

FDD Item 19Yes ✓

🔒 Premium Data Available

Avg Unit Volume (AUV)$350K

Owner Earnings$20K

SBA Default Rate9.2%

5-Year Survival82%

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💡 What This Means For You

The combined fee burden of 8.0% is within the industry average of 8-10%. Beyond the listed investment, expect approximately $52K in hidden costs (working capital, legal, insurance, tech fees) — bringing your realistic total closer to $302K.

Financial Performance & Risk Analysis

Financial Performance

Avg Unit Volume (AUV)$350K

Net Profit Margin8%

Est. Owner Earnings$20K

Breakeven18-24 months

Payback Period5-7 years

Capital Requirements & Operations

Liquid Capital Required$50K

Net Worth Required$150K

Staff Required5-8

Training2 weeks

TerritoryNone (co-locations)

Multi-Unit RequiredNo

Term Length5 years

Risk & SBA Safety Data

SBA Default Rate9.2%

5-Year Survival82%

Renewal Fee$500/year

Transfer Fee$3,000

💡 Financial Analysis

The revenue-to-investment ratio of 1.4x is below the 2x benchmark — meaning the business needs strong margins to justify the capital deployed. At estimated owner earnings of $20K/year, the simple payback period is approximately 12.5 years. A net margin of 8% is thin — small changes in labor costs, rent, or food prices can significantly impact profitability.

Due Diligence Deep Dive

The data franchise brokers don't show you — real costs, owner lifestyle, franchisee satisfaction, exit options, and FDD transparency.

💰 True Cost of Ownership

Working Capital (6 mo)$20K

Legal & Accounting$8K

Insurance (Annual)$8K

Tech/Software (Monthly)$400/mo

Lease Deposit Est.$10K

Grand Opening$6K

Total Hidden Costs$52K

👤 Owner Reality Check

Hours Per Week40-50

Absentee Owner Friendly?Yes ✓

Manager-Run Possible?Yes ✓

Seasonal VariationLow

Labor Cost (% of Revenue)50%

Manager-run friendly. 40-50 hours/week for hands-on owner. Scheduler-dependent model. High staff turnover typical.

📊 Franchisee Health

Satisfaction Score48/100 (Concerning)

Annual Turnover Rate13.5%

Litigation Count (Item 3)6 cases

5-Year Closure Rate18%

Avg Franchisee Tenure2 years

Franchisee AssociationNo

🚪 Exit Strategy & Resale

Resale Value Multiple0.8-1.2xx earnings

Transfer RestrictionsFranchisor approval required

Non-Compete Period1 years

Non-Compete RadiusNone

Avg Time to Sell12-24 months

Exit DifficultyVery Difficult

📋 FDD Transparency Report

Item 19 QualityMinimal

Item 19 Includes:

✓ Revenue estimate

Territory ProtectionNone

No exclusive territory

Required Suppliers?No

Supplier Markup RiskLow

Renewal Terms5-year renewable

🚩 FDD Red Flags & Green Flags

⚠️ Watch Out For:

-4.5% unit growth9.2% SBA default8% marginsNo exclusivityHigh turnover

✅ Positive Signals:

2,200 unit baseLow capital entry

💡 Due Diligence Verdict

The satisfaction score of 48/100 is concerning. Low scores typically indicate poor franchisor support, unrealistic expectations set during the sales process, or conflicts over territory and fees. At 50% of revenue going to labor, staffing is your #1 cost driver. Minimum wage increases in your state could significantly impact margins. This franchise offers no exclusive territory — the franchisor can open additional locations or grant new franchises near you, potentially cannibalizing your revenue.

AI Disruption Risk Assessment

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AI Risk Analysis

See how AI will impact Supercuts over the next 5-10 years — threats, moats, and disruption timeline.

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Territory Saturation Analysis

0.66

Units per 100K pop.

0.21x

Saturation Index

vs. Beauty & Salon avg (3.11/100K)

States with Presence

Low Saturation

Supercuts has significant whitespace opportunity relative to its category.

Geographic Distribution

No units

High density

Most Saturated States

State	Units	Population	Per 100K
Wyoming	55	581,000	9.47
Vermont	42	645,000	6.51
Washington DC	40	671,000	5.96
North Dakota	43	781,000	5.51
Delaware	51	1,031,000	4.95

Least Saturated States

State	Units	Population	Per 100K
California	65	39,029,000	0.17
Texas	80	30,503,000	0.26
Florida	70	23,555,000	0.30
Pennsylvania	40	12,961,000	0.31
North Carolina	39	10,849,000	0.36

Growth Opportunity States

High-population states where Supercuts has minimal or no presence — potential expansion territories.

Virginia Kentucky Nevada

Investment Thesis

Supercuts carries a CAUTION signal with a FutureScore of 41/100. A declining budget haircut chain. -4.5% unit growth, 9.2% SBA default, and 8% margins on $350K AUV leave minimal profit after fees. Intense competition. Skip.

Ideal Investor Profile: Budget haircut operator seeking passive income

Strengths

2,200+ unit established baseLow capital entry ($120K-$380K)Simple haircut model

Risk Factors

-4.5% unit growth (declining)9.2% SBA default rate (very high)Only 8% profit margin (thin)Haircut commoditization (price pressure)No exclusive territory

Supercuts

What is Supercuts?