Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
  • Firehouse Subs
  • Jimmy John's
  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
  • Yogurt Land
  • And Hundreds More...

No, thanks. I'm not interested in uncovering the actual earnings of hundreds of franchises at this time.

Franchise Costs: Detailed Estimates of Supercuts Franchise Costs (2016 FDD)

by Franchise Chatter on November 17, 2015

in Franchise Costs, Salon Franchise

Franchise Chatter Membership Information

Don't Invest in a Franchise Until You Check Out This List

Supercuts Salon Photo by RetailbyRyan95

This post was updated on December 25, 2016 to reflect information from Supercuts’ 2016 FDD (Item 7).

Detailed Estimates of Supercuts Franchise Costs Based on Item 7 (Estimated Initial Investment) of Supercuts’ 2016 Franchise Disclosure Document

  • The table below assumes that you will develop a new Supercuts Store. If you are interested in purchasing a particular company-owned Store or affiliated branded salon, then Supercuts and its subsidiary (or the applicable affiliate) and you will negotiate the appropriate purchase price.
  • During the fiscal year ended June 30, 2016, the highest purchase price paid by a franchisee for an existing company-owned Supercuts Store (acquired to be operated as a franchise) was $60,000, and the highest purchase price paid by a franchisee for an affiliated branded salon for conversion to a Supercuts Store (acquired to be operated as a franchise) was $60,000. Purchase prices might include upgrading or conversion costs.

1.  Development Fee/Franchise Fee:  $10,000 to $29,500

2.  Leasehold Improvements:  $60,000 to $120,000

  • You must make certain modifications and leasehold improvements to your Store’s premises according to Supercuts’ Architectural Design Manual. Supercuts must approve all plans and specifications, which must be prepared by a firm Supercuts approves. You must strictly comply with the Architectural Design Manual and approved plans and specifications.
  • Supercuts estimates that leasehold improvement costs, including architectural fees, will be between $60,000 to $120,000 for a 900 to 1,200 square foot Store, depending upon the Store’s exact size; its geographic location; if your landlord assumes some of the build-out costs in the form of either cash or free rent; the cost of construction materials such as steel, drywall, and flooring; and structural components and overall condition of the premises.

3.  Furniture, Fixtures, and Equipment:  $25,000 to $50,000

  • You must pay for the Store FF&E that Regis (the franchisor) arranges for you to purchase, plus shipping and handling. Regis’s coordination of your purchase of the Store FF&E is included in its full construction management services.
  • You also must pay for the Store FF&E that Regis arranges for you to purchase, plus shipping and handling, if you use Regis’s FF&E coordination services but not its full construction management services.

4.  Construction Management Services Fee:  $0 to $5,000

  • If you want Regis to supervise and oversee your Store’s construction process, you must pay Regis a $5,000 fee when you sign its Construction Management Services Agreement.

5.  Computer Software (Point-of-Sale System):  $1,680 to $3,600 ($140 to $300 per month for first 12 months)

6.  Computer Hardware/Installation and On-Site Training:  $3,700 to $5,000

  • Your costs for the computerized point-of-sale system’s computer hardware and software include installation costs and will depend on the specific type of hardware acquired, geographic location, and other economic factors.

7.  Opening Inventory:  $5,000 to $10,000

8.  Hairstylists Academy (HSA) Training Fees (for 6 to 8 people):  $1,350 to $1,800

9.  Travel and Living Expenses During Franchisee Orientation:  $2,050 to $4,500

10.  One Month’s Rent and Security Deposit:  $4,000 to $12,000

  • You will typically sublease your Store’s premises from Supercuts. Typical franchise locations are 900 to 1,200 square feet, include 6 to 8 workstations, and are located in large retail developments and heavily populated business areas.
  • Rent is estimated to be between $2,000 and $6,000 per month.
  • Prepaid rent due when the lease is signed might be required and typically is the first month’s rent. A security deposit approximately equal to one month’s rent also might be required.

11.  Grand Opening Plan Assistance:  $2,500

  • New franchisees opening their first Supercuts Store must pay Supercuts the Grand Opening Plan Assistance fee. This fee is a one-time investment to develop the Grand Opening Plan for your first Supercuts Store.
  • You will work with a dedicated Grand Opening Plan Director to customize the plan for your specific location and market.

12.  Grand Opening Advertising Expenses:  $10,000 to $15,000

  • Grand opening advertising expenses are $10,000 per Store opening and are contractually required for both new and existing franchisees opening a first Store in a DMA.
  • You may decide, based on your market conditions, that spending more than $10,000 on grand opening advertising is necessary to produce an effective grand opening. Supercuts recommends that you spend between $12,000 and $15,000 on grand opening advertising expenses.

13.  Signs:  $4,000 to $8,000

14.  Additional Funds (3 months):  $15,000 to $30,000

  • This estimates the funds needed to cover your initial expenses for the first 3 months of operation (besides the items identified separately in the table). It includes payroll costs but not any owner’s draw or salary.
  • Supercuts relied on its approximately 29 years of experience developing, operating, and franchising Supercuts Stores to compile this Additional Funds estimate.

15.  Estimated Initial Investment (including initial lease costs):  $144,280 to $296,900

Franchise Matching Quiz

Franchise Matching Quiz

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: