2025 FDD Issued Oct 17, 2025, amended Feb 1, 2026 Minnesota Commerce (CARDS) Checked Oct 23, 2026
Supercuts Franchise Cost (2025)
A Supercuts franchise costs an estimated $185,930 – $323,460 to open, according to Item 7 of the 2025 Franchise Disclosure Document (FDD). That total includes the $39,500 initial franchise fee (Item 5) and covers this format: Single Salon. Item 6 lists royalty fees: 4% – 6% of combined net service and net merchandise revenue, subject to the conditions below.
- Total investment
- $186K – $323KItem 7 source and qualifications
- Franchise fee
- $39.5KItem 5 source and terms
- Royalty
- 4% – 6% of combined net service and net merchandise revenueItem 6 conditions and fee bases apply
- Brand fund
- 5% of net monthly service revenue, excluding merchandiseItem 6 conditions and fee bases apply
- Units (2025)
- 1,801Item 20 source and scope
- Franchise exit rate
- 9.5% / yrCalculated 3-year average; definition and source
What stands out about Supercuts
Advertising and royalty use different revenue definitions. The royalty includes net service and merchandise revenue, while the advertising assessment excludes merchandise. Item 6 also distinguishes new salons from acquired company-owned or affiliated conversions when applying the opening-year royalty. A combined percentage of all sales would ignore both distinctions.
The anniversary charge is tied to trailing revenue and the age of the salon rather than a flat renewal price. Separate lease-renewal and transfer charges apply under different events. The fee table retains these distinctions, including the advertising rebate mechanism, so readers can trace the terms without treating conditional amounts as uniform recurring expenses.
What are the initial franchise fees and financial requirements for Supercuts?
Item 5 lists an initial franchise fee of $39,500 for Supercuts. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Item 5 (PDF pages 22-24) requires a Development Agreement for every new franchise acquisition, even for one salon. The Development Fee is full payment for development and franchise rights: $39,500 for one salon, $69,500 for three, $99,500 for six and $10,000 for each additional salon beyond six; no separate initial franchise fee is charged. It is paid in a lump sum and is not refundable, except that it is refunded less training fees if the franchisee fails initial training or cannot obtain a required state license.
Source: Supercuts 2025 FDD, Item 5, PDF p. 22.
This record lists no minimum net worth or liquid-capital requirement for Supercuts, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a Supercuts franchise? (Item 7)
Source: Supercuts 2025 FDD, Item 7, PDF p. 31.
Item 7 of Supercuts’s 2025 Franchise Disclosure Document estimates the total cost to open one single salon at $185,930 – $323,460. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Development Fee / Franchise Fee | $39,500 | $39,500 |
| Leasehold Improvements | $60,000 | $120,000 |
| Furniture, Fixtures & Equipment | $25,000 | $50,000 |
| Construction Management Services Fee | $5,500 | $7,500 |
| Construction and Design Plan Review | $500 | $1,000 |
| Post Build Review | $1,500 | $3,000 |
| Computer Software (Point of Sale System) | $2,040 | $2,040 |
| Computer Hardware/Installation and Onsite Training | $400 | $2,000 |
| Opening Inventory | $5,000 | $10,000 |
| Hairstylists Academy (HSA) Training Fees | $1,440 | $1,920 |
| Travel and Living Expenses during Training | $2,050 | $4,500 |
| First and Last Month's Rent and Security Deposit | $6,000 | $18,000 |
| Grand Opening Advertising Expenses | $10,000 | $10,000 |
| Signs | $6,000 | $12,000 |
| Professional Fees | $6,000 | $12,000 |
| Additional Funds (3 months) | $15,000 | $30,000 |
| Total | $185,930 | $323,460 |
Item 7 (PDF pages 31-33) prints $185,930-$323,460 for a single salon, of which $53,340-$55,420 is paid to the franchisor or affiliates; a three-salon Development Agreement totals $215,930-$353,460. Leasehold improvements are $60,000-$120,000 and additional funds for three months are $15,000-$30,000.
What ongoing royalties and fees does Supercuts charge? (Item 6)
Source: Supercuts 2025 FDD, Item 6, PDF p. 25.
Item 6 of Supercuts’s 2025 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalty Fees | 4% – 6% of combined net service and net merchandise revenue | Every period | New salons: 4% until first anniversary, then 6%. Existing company-owned or affiliated conversion salons pay 6% throughout. Monthly by the tenth. (Item 6, PDF p. 25) |
| Advertising Fees | 5% of net monthly service revenue, excluding merchandise | Every period | Potential rebate if 75% of salons in the DMA vote in favor under Item 11. (Item 6, PDF p. 26) |
| Testing and Evaluation Cost | Varies | When it applies | Actual testing costs for proposed products, services or suppliers. (Item 6, PDF p. 26) |
| Hairstylists Academy (HSA) | Varies | When it applies | Four training days at $55 per day per attendee plus $67 recovery fee for two mannequins; see adjustment note on page 30. (Item 6, PDF p. 26) |
| Managers’ Training Course/Ongoing and Supplemental Training | Varies | When it applies | Then-current fee not exceeding $1,000 daily, plus training-related expenses for requested local delivery. (Item 6, PDF p. 26) |
| Convention Fee | Varies | When it applies | Up to $1,000 per person plus expenses; when required, fee applies even if not attending. (Item 6, PDF p. 26) |
| Anniversary Fee | Varies | When it applies | 1% of total net revenue over preceding 12 full months at first ten-year anniversary; 2% at later ten-year anniversaries. Note on page 30 provides five annual installments and closing exception. (Item 6, PDF p. 27) |
| Transfer Fee | Varies | When it applies | One salon $2,500; two $4,500; three $6,000; four $7,000; five $7,500; each additional salon $500. Required new-franchisee training additional. (Item 6, PDF p. 27) |
| Lease Renewal Fee | $1,500 | When it applies | On lease renewal execution. (Item 6, PDF p. 27) |
| Lease Guaranty Fee | Varies | When it applies | If franchisor guarantees lease, amount by which 16% of monthly gross sales exceeds monthly lease payments. (Item 6, PDF p. 27) |
| Audits | Varies | When it applies | Inspection/audit costs and listed related expenses if reports are missing or Gross Sales understated by at least 2%. (Item 6, PDF p. 27) |
| Late Payments/Interest/Administrative Fee | Varies | When it applies | Lesser of 1.5% monthly or maximum lawful commercial rate, plus $100 administrative fee. (Item 6, PDF p. 28) |
| Construction Management Services Fee | $5,500 – $7,500 | When it applies | $5,500-$7,500 to Build Point Solutions Group on agreement signing. (Item 6, PDF p. 28) |
| Construction and Design Plan Review Fee | $500 – $1,000 | When it applies | Before construction; $500-$1,000. (Item 6, PDF p. 28) |
| Post Build Review Fee | $1,500 – $3,000 | When it applies | On construction completion; $1,500-$3,000. (Item 6, PDF p. 28) |
| Gift Card Transactions/Processing Fee | Varies | Every period | ACH monthly settlement fee $10 per bank account; cards purchased from designated supplier. (Item 6, PDF p. 28) |
| Indemnification | Varies | When it applies | Covered claims, losses and expenses; conditions continue on page 29. (Item 6, PDF p. 28) |
| Maintenance Cost Reimbursement | Varies | When it applies | Out-of-pocket cost to correct failure to comply with Brand Standards. (Item 6, PDF p. 29) |
| Costs and Attorneys’ Fees | Varies | When it applies | Qualifying prevailing-party enforcement costs. (Item 6, PDF p. 29) |
| Management Fee | Varies | When it applies | Up to 10% of Gross Sales plus out-of-pocket expenses if franchisor assumes management in the stated circumstances. (Item 6, PDF p. 29) |
| Reimbursement for Third-Party Service Providers | Varies | When it applies | Out-of-pocket costs for required quality-assurance, audit, guest-satisfaction and mystery-shop programs. (Item 6, PDF p. 29) |
| Reimbursement for Customer Complaints | Varies | When it applies | Costs if franchisor resolves an unresolved customer complaint. (Item 6, PDF p. 29) |
| Tax Reimbursement | Varies | When it applies | Applicable taxes on operation or payments, excluding franchisor income tax. (Item 6, PDF p. 29) |
| Insurance Reimbursement | Varies | When it applies | Costs if franchisor obtains coverage after a failure to maintain it. (Item 6, PDF p. 29) |
| Deficiency Correction Fee | Varies | When it applies | Out-of-pocket correction costs if franchisee fails to correct a required deficiency; continues on page 30. (Item 6, PDF p. 29) |
| De-Identification Fee | Varies | When it applies | Costs if franchisee fails to de-identify. (Item 6, PDF p. 30) |
| Lost Future Royalties | Varies | When it applies | Contract damages based on time remaining when franchisor terminates with cause or franchisee terminates without cause; see Section 19.A. (Item 6, PDF p. 30) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
Supercuts startup investment and modeled fees over 10 years
Item 6 royalty uses combined net service and merchandise revenue and changes after the first year for new salons. Advertising uses only net service revenue, with a potential rebate. Without the sales mix and applicable contract stage, the combined fee cannot be calculated from one annual sales total. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: Supercuts franchised outlet history
Source: Supercuts 2025 FDD, Item 20, PDF p. 76.
Item 20 Table 3 reports 1,701 franchised outlets at the end of 2025. The company-owned table reports a further 100 outlets. Our calculated average annual franchised exit rate is 9.5% across the 3 reported years, using the definition below.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 2,252 | 14 | 196 | 2,070 | 8.7% |
| 2024 | 2,070 | 10 | 145 | 1,935 | 7% |
| 2025 | 1,935 | 11 | 245 | 1,701 | 12.7% |
Franchised units went from 2,252 to 1,701 over 3 years (-551).
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables. Compare Supercuts’s exit rate with other brands.
55 units changed owners in 2025.
Item 20 Table 3 (PDF pages 71-76) prints national totals on PDF page 76, including 108 franchised salons reacquired by the franchisor in fiscal 2025. Table 4 (PDF pages 76-78) shows company-owned salons rising from 3 to 100 that year; transfers come from Table 2 (PDF pages 68-71).
How much do Supercuts franchise owners make? (Item 19)
Source: Supercuts 2025 FDD, Item 19, PDF p. 67.
Item 19 of the 2025 FDD reports average Annual Gross Sales for All Reporting Franchised Salons of $322,306 (July 1, 2024-June 30, 2025, 1,661 franchised salons operating full fiscal year). Supercuts’s Item 19 reports sales but no profit, costs or owner pay. Rent, payroll, supplies, loan payments and Item 6 fees such as the royalty (4% – 6% of combined net service and net merchandise revenue) come out of sales before an owner is paid, so these figures cannot show what an owner earns.
See every Supercuts Item 19 figure, with its period and sample.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How to interpret Supercuts’s Item 19 figures and sample limits.
How long is the Supercuts franchise agreement term?
Source: Supercuts 2025 FDD, Item 17, PDF p. 57.
Lease-linked; extends indefinitely while lease rights and required standing continue
Item 17 (PDF page 57) ties the term to the right to lease or sublease the franchised location, including lease renewal periods. If those rights end, relocation within 180 days is required to continue. The term extends indefinitely while the lease or sublease remains valid, the franchisee is in good standing and relevant agreements are not in default. Earlier termination provisions still apply. The first agreement signed with a Development Agreement also expires if the first Development Period ends without a salon opening.
How long does it take to open a Supercuts franchise? (Item 11)
Source: Supercuts 2025 FDD, Item 11, PDF p. 44.
Item 11 of the 2025 FDD states the time from signing the franchise agreement or paying the franchisor to opening: generally 5 to 12 months. The agreement requires you to open within 12 months after the franchise agreement's effective date.
Compare Supercuts with other franchises
Head-to-head FDD cost, fee, and earnings comparisons:
Franchises with a similar investment range
These published records are selected by proximity to Supercuts’s $185,930 low-end Item 7 investment, starting with Beauty & Personal Care. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
- Great Clips $188K – $420K Beauty & Personal Care
- GNC $188K – $530K Retail
- 1-800-GOT-JUNK? $182K – $304K Source review pending Provisional publication Home Services
- Woof Gang Bakery $191K – $560K Source review pending Provisional publication Pet Services
- Huntington Learning Center $192K – $341K Education & Tutoring
- Menchie's Frozen Yogurt $180K – $515K Source review pending Provisional publication Restaurants & Food
Compare other beauty & personal care franchises
Frequently Asked Questions about Supercuts
- Can the ongoing fees for Supercuts be modeled as one flat percentage?
- Item 6 royalty uses combined net service and merchandise revenue and changes after the first year for new salons. Advertising uses only net service revenue, with a potential rebate. Without the sales mix and applicable contract stage, the combined fee cannot be calculated from one annual sales total.
Sources
Supercuts, Inc. Franchise Disclosure Document, issued October 17, 2025, as amended February 1, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 22
- Item 6: cited PDF p. 25
- Item 7: cited PDF p. 31
- Item 19: cited PDF p. 66
- Item 20: cited PDF p. 76
- Agreement term (Item 17): cited PDF p. 57
Page references for Supercuts use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- October 29, 2026: Record updated.
- October 23, 2026: Source check completed against the recorded FDD.
- October 23, 2026: Complete source recheck against the October 17, 2025 FDD as amended February 1, 2026, the newest clean Minnesota filing: cover, Item 1, Item 5, the Item 6 schedule corrected on October 19 (PDF pages 25-30), every Item 7 row and total, Item 17, Item 19 and Item 20 Tables 1-4. Corrected the franchising start year (1988) and removed an unstated founding year; added Item 5, Item 7, Item 19 and Item 20 detail and page citations. The source hold is cleared.
- October 19, 2026: Source review hold recorded: The October 19 audit found and corrected material Item 6 transcription errors against PDF pages 25-30. This targeted fee review does not clear the earlier whole-record verification: the other FDD sections and their narrative still require a complete source recheck. The simplified fee model is withheld for the contractual reasons stated above. The prior source-check date is historical.
- October 16, 2026: Initial cost profile published from the 2025 Franchise Disclosure Document (issued October 17, 2025).
- February 1, 2026: Amendment date recorded for the source FDD.