Top 200 Franchise by Entrepreneur – Rank no.5 – Supercuts – US
Products & Services: Hair salon
Number of Locations: 2,327
Total Investment: $103.55K – 196.5K
Began Franchising: 1979
Supercuts is a hair salon franchise with over 2,000 locations across the United States. The company was founded in the San Francisco Bay Area in 1975, by Geoffrey M. Rappaport and Frank E. Emmett. The company’s first location, which is still in existence, is in Albany, California. Its headquarters are in Minneapolis, Minnesota. It is a wholly owned subsidiary of Regis, which also owns Regis Salons, Mia & Maxx, MasterCuts, Cost Cutters, SmartStyle, and First Choice Haircutters in the United States and Canada.
There are also Supercuts franchises in the United Kingdom that are owned by Regis.
In 1975, Frank Emmett and Geoffrey Rappaport opened the first Supercuts in Albany, California, as an alternative to both high-fashion salons and neighborhood barbershops. They developed a hair-cutting technique that took only 20 minutes so that they could offer quick and inexpensive haircuts without appointments. They also allowed their customers to pick and choose which particular services they wanted, in order to tailor their experience to their desires and budgets. With this standardized business model in place, the men began franchising in 1979, and their stores soon spread throughout the U.S.
In 1996, Supercuts was acquired by Regis Corp., which also franchises City Looks, Cost Cutters Family Hair Care and Pro-Cuts in the U.S., and Magicuts and First Choice Haircutters in Canada.
Startup Costs, Ongoing Fees and Financing
Franchise Fee: $27,500
Ongoing Royalty Fee: 6%
Term of Franchise Agreement: Conditional, renewable
Net Worth: $300,000
Liquid Cash Available: $100,000
82% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 6 – 8. Absentee ownership of franchise is allowed. (20% of current franchisees are owner/operators).
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