The Supercuts Franchise, Inc. The parent company of supercut is Regis. The supercuts will have to operate for hair care and related services under “supercuts “.In 1975, Frank Emmett and Geoffrey Rappaport opened first supercuts organization in Albany, California.
In the haircutting technique, it’s developed in 20 minutes, so that they could offer quick service and inexpensive haircuts without appointments. The Supercuts also allowed their customers to pick and particular services they wanted, and to tailor their experience to their desire and budgets.
The standardized of supercuts business model in place, the men began franchising in 1979. And their stores soon spread throughout the United States. In 1996, Supercuts was gained by Regis Corp., which additionally establishments City Looks, Cost Cutters Family Hair Care and Pro-Cuts in the U.S., and Magicuts and First Choice Haircutters in Canada.
Contents
#1. Supercuts Franchise Cost
To get ownership of supercuts franchise cost is are as follows:
- Liquid Capital Required: $80,000
- Net Worth Required: $500,000
- Total Investment: $200,000
1. Investment Cost:
| Estimated Investment Cost | ||
| Name of Fee | Low | High |
| Supercuts Franchise Development Fee/Franchise Fee | $10,000 | $39,500 |
| Leasehold Improvements | $60,000 | $120,000 |
| Furniture, Equipment & Supplies | $25,000 | $50,000 |
| Construction Management Services Fee | $0 | $5,000 |
| Computer Software (Point of Sale System; $140-$300 per month) | $1,680 | $3,600 |
| Computer Hardware/Installation and Onsite Training | $3,700 | $5,000 |
| 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 |
| One Month’s Rent and Security Deposit | $4,000 | $12,000 |
| Supercuts Franchise Grand Opening Plan Assistance | $2,500 | $2,500 |
| Grand Opening Advertising Expenses | $10,000 | $15,000 |
| Signs | $5,000 | $10,000 |
| Additional Funds (3 months) | $15,000 | $30,000 |
| ESTIMATED TOTAL (including initial lease costs) | $151,370 | $321,020 |
Other Fee/Cost
| Type of Fee | Amount |
| Royalty Fees | For new stores, the combined help and product eminence charge is 4% of joined net assistance income and net product income from the open date until the first-year anniversary. From first-year anniversary until the Franchise Agreement lapses or is ended, the sovereignty charge is 6% of joined net assistance income and net product income. |
| Supercuts Franchise Advertising Cost | 5% of net monthly service revenues (i.e. except merchandise sales) with a potential rebate if 75% of Stores in specific DMA vote in favour of rebate. |
| Product and Service Purchases | Varies. |
| Hairstylists Academy (HSA) Additional Training | $240 (for 5 days) per each new stylist at Supercuts’ discretion; training fee will increase every 5 years, commencing January 1, 2007, by the Consumer Price Index (CPF) increase for the 5-year period plus 1%. |
| Managers’ Training Course | A bit of the expense of offices, materials and various media hardware for preparing identified with obligations. The cost ranged from $54 to $290 per attendee. |
| Anniversary Fee (essentially a “renewal” fee) | 1% of total net monthly revenues for 12 full months immediately preceding first 10 th anniversary. For second 10th anniversary and every 10 years thereafter, 2% of total net monthly revenues for 12 full months immediately preceding such anniversary date. |
| Transfer Fee | 1 store: $2,500 |
| 2 stores: $4,500 | |
| 3 stores: $6,000 | |
| 4 stores: $7,000 | |
| 5 stores: $7,500 | |
| Each store thereafter is $500. | |
| Lease Renewal Fee | $1,500 |
| Supercuts Franchise Sublease Payments | $2,000 – $6,000 per month. |
| Lease Defaults | Varies |
| Audits | Every single unpaid expense, cost of review in addition to enthusiasm at most noteworthy suitable rate not to surpass 18% per annum from date due. |
| Late Payments | 18% per annum minimum, not to exceed the highest applicable commercial contract rate under applicable state and/or federal law. |
| Modernization | $35,000 adjusted for inflation (not to exceed 2% per year), spent on capital improvements to modernize and update store location |
| Gift Card Transactions | $45 per download software download fee and $15 per terminal annual software maintenance fee per transaction fees from $.0225 to $.07; nonsufficient funds recovery fee of $.05 per card. |
| Indemnification | Shifts under conditions and relies upon nature of guarantee. |
| Maintenance Cost Reimbursement | Out-of-pocket cost reimbursement. |
| Supercuts Franchise Costs and Attorney’s Fees | Varies under circumstances and depends on nature of the franchisee’s non-compliance. |
#2. Is Supercuts A Franchise Profitable
Are thinking about is Supercuts a franchise profitable?, so yes!
Supercuts franchise is a great opportunity to become a good businessman with success. This franchise system was carefully designed to support your growth, no matter how far you decide to run it. With franchisees who claim more than 100 stores, our plan of action has demonstrated its quality for replication, which bears franchisees practically boundless potential for development.
Also, the supercuts franchise has excited profitable benefits:
- A demonstrated framework
- Scalable chance
- Award-winning brand
- In-request administration
- Manager-run areas
- Multiple incomes streams through Extended salon services and hair care items
#3. Supercut Franchise For Sale
Once you have decided to start supercuts franchise for sale you should follow the remaining steps.
1. Applying for supercuts franchise license:
- You need to first initial inquiry ( fee, franchisor inquiry, etc)
- Interview with existing franchise owner
- Interview with qualified franchise manager
- submit confidential questionnaire to qualified manager
- Meet franchise representative
- confirm the financial requirement
- Participating in training seminar program
- Travel to Minneapolis for training
- Sign final franchise agreement
2. Developing Bussiness plan:
- look for accounting and financial expertise
- Projecting and planning of capital cost for franchise
- If necessary you can work with franchise as personally
3. Franchising your Operation
- Confirm the investment cost
- identifying sources of equity financing
- Loan option you can get from private banks
- You also have the option of Small Bussiness Administration (SBA) financing
- Secure satisfactory financing
4. Selecting site for supercuts franchise
- Work with supercuts advisor
- You should have to locate potential sites
- structure the store’s appearance and civilities
And finally, you can operate your supercuts franchise
