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Below is an in-depth analysis and side-by-side comparison of Supercuts vs Hair Cuttery including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $151,370 - $321,020 | $120,500 - $283,000 |
Franchise Fee | $39,500 | $15,000 - $25,000 |
Royalty Fee | 6% | 4.5-5% |
Advertising Fee | 5% | - |
Year Founded | 1975 | 1974 |
Year Franchised | 1979 | 2004 |
Term Of Agreement | Conditional | 10 years |
Term Of Agreement | Conditional | 10 years |
Renewal Fee | Remodeling costs | 25% of franchise fee |
Business Experience Requirements |
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Experience | - | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | No/Yes |
Start-up Costs | No/Yes | No/Yes |
Equipment | No/Yes | No/Yes |
Inventory | No/Yes | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | Training center utilized | - |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | - |
Marketing | Ad slicks, National media | - |
Operations |
Franchisees required to buy multiple units/master licenses; 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) | - |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | No |
International Expansion | No | No |
Supercuts' originator, EMRA Corp. was established in 1975 by Geoffrey M. Rappaport and Frank E. Emmett. The general population organization has been diversifying since 1979. Supercuts Inc. procured EMRA in 1987. It's situated in Minneapolis, Minnesota, and has areas all through the United States.
Owning, working, or diversifying more than 10,000 salons around the world, Regis Corporation has an unmatched profundity of mastery for building salons that flourish. A Fortune 1000 organization, we are headquartered in Minneapolis, Minn. also, publically exchanged on the NYSE (RGS).
Our relentless duty to a positive visitor encounter has made Regis the worldwide pioneer in hair mind administrations and instruction, which you can put to utilize quickly as a franchisee. You won't locate a more grounded partner in the quest for your expert objectives.
Claim a Business Everyone Needs. With a Brand Everyone Loves.
NO LONGER FRANCHISING
For franchisees that enter into a
Development Agreement for the establishment of multiple SALONS, the initial
franchise fee is as follows:
*
First SALON $25,000
*
Second to Fifth SALON $20,000
*
Sixth or more SALONS $15,000
The fee for the first SALON is paid
to us when you sign the Development Agreement. The fees for the additional
SALONS are paid when you sign the Franchise Agreement for each SALON.
In addition to the initial franchise
fee for each SALON, you must also pay us, when you sign the Development
Agreement, a multiple unit development fee of $5,000 multiplied by the number
of SALONS to be developed under the Development Schedule.
For illustrative purposes only, if
you enter into a Development Agreement for ten SALONS, the initial ''franchise
fee and development fee payable to us at the time you enter into the agreements
will be as follows:
Initial Franchise Fee $25,000
Units Two through Ten $45.000 (9 x $5,000)
Total Fees Due $70.000
Multiple unit franchisees can expect
to have additional capital and operating expenses which single unit franchisees
may or may not incur. For example, we may provide our multi-SALON franchisees a
continuing royalty credit of V2 of one percent. To qualify for this credit you
will likely require an office, training capabilities, multi-unit management and
other support personnel. We have not included these additional costs in the
above projections as they will likely not occur with the opening of your first
SALON, nor are they reasonably estimated due to the uniqueness of each
multi-SALON franchisee''s independent business determinations.
Unless otherwise noted above, all of
the above fees are uniform and none of the above fees are refundable to you.