Supercuts Franchise Owner Salary, Profit & Failure Rate 2024

Are you willing to invest in a salon franchise? If yes, then Supercuts must have entered your mind. So how much does a Supercuts franchise owner make?

In this article, you will find the answer to this many more questions related to the Supercuts franchise’s initial investment amount, revenue, payback period, and more.

Make sure to read till the end so that you do not miss on anything important.

How Much Does a  Supercuts Franchise Owner Make

About Supercuts

Supercuts is an American hair care and salon franchise that was founded by Geoffrey Rappaport and Frank Emmett in 1975 in Albany, California.

Supercuts was started to provide a great salon experience and services for an affordable price. The salon started flourishing when the founders came up with a hair-cutting technique that did not take more than 20 minutes, along with affordable pick-and-choose services.

Subsequently, in 1996, Supercuts was acquired by Regis, and since then, Supercuts has remained as number one haircare franchise in the U.S.

Today, there are over 2,600 Supercuts salons in the U.S., U.K., Canada, and Puerto Rico. And the company offers a franchise opportunity in the men’s haircut industry.

To own a Supercuts franchise, you do not need prior haircare industry experience, and the company offers training and support throughout.

To find out how much does it cost to start a Supercuts franchise, its profit-earning potential, and more, keep reading.

((https://www.regiscorp.com/franchise-opportunities))


How Much Does A Supercuts Franchise Owner Make?

The revenue or sales a Supercuts franchise owner makes may vary depending on various factors such as operating costs, location, staff, and advertisement expenses, among others.

However, on average, a Supercuts franchise owner makes a revenue of $263,000 annually. This data is based on the annual median sales of 1,938 Supercuts franchised salons operating between 2019-2020.


Supercuts Franchise Initial Investment Breakdown

Cost Or FeesAmount
Franchise fee$20,000
Marketing fee5.0%
Royalty fee6.0%
Investment (mid-point)$222,000
Revenue per unit$263,000
Minimum net worth$1,000,000
Minimum liquid capital$250,000

How Much Does Supercuts Employee Earn?

How Much Does Supercuts Employee Earn

According to Indeed, The average hourly pay for Supercuts employees ranges from $7.25 per hour to $25.00 per hour.

If we look at the annual pay of Supercuts employees, then someone with the job title of Manager gets paid as much as $14,500 per year on average, and someone with the job title of Supply Chain Manager gets paid as much as $120,418 per year on average.

Since this is an average number, you should note that a Supercuts employee’s salary may vary depending on their job title, location, department, skills, etc.


Pros And Cons Of Supercuts Franchise

Pros of Supercuts Franchise

  • Hands-on pre-opening training.
  • Site selection and construction assistance.
  • Ongoing support.
  • Offers third-party financing.
  • Profitable business.
  • Comparatively lower initial investment cost.

Cons of Supercuts Franchise

  • No absentee-ownership.
  • No exclusive territory protection.
  • External competition.

Supercuts Franchise Average Revenue & Profit

As per the performance of 1,938 franchised Supercuts salons operating in the year 2019-2020, Supercuts franchise owners make a revenue of $263,000 annually on average.

If we look at the revenue details closely, then it was found that the top third Supercuts franchised salons made as much as $409,000 annually while the lower third made $167,000 annually.

And if we take a 27% EBITDA margin, then on average, Supercuts franchise owners make $71,010 in profits annually.

Here’s the calculation for this conclusion:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%263000.00
Rent9.13%(23998.75)
Insurance4.56%(11999.38)
Salaries18.25%(47997.50)
Franchise Royalty Fees4.56%(11999.38)
Utilities1.82%(4799.75)
Cost of Goods Sold (COGS)22.81%(59996.88)
Labor (Variable)11.86%(31198.38)
Total (Expenses)73.00%(191990.00)
Net Profit27.00%71010.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis


Supercuts Franchise Failure Rate

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20181,7142,318+604
20192,3182,449+131
20202,4492,376-73

For the Franchised outlets:

  • In 2018, the growth rate was (604)/1,714×100≈35.23%
  • In 2019, the growth rate was (131)/2,318×100≈5.65%
  • In 2020, the failure rate was (73)/2,449×100≈2.98%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2018891374-517
2019374199-175
202019934-165

For the Company-Owned outlets:

  • In 2018, the failure rate was (517)/891×100≈58.02%
  • In 2019, the failure rate was (175)/374×100≈46.79%
  • In 2020, the failure rate was (165)/199×100≈82.91%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20182,6052,692+87
20192,6922,648-44
20202,6482,410-92

For Total outlets:

  • In 2018, the growth rate was (87)/2,605×100≈3.33%
  • In 2019, the failure rate was (44)/2,692×100≈1.63%
  • In 2020, the failure rate was (92)/2,648×100≈8.99%

According to the above-mentioned data, we can see that the franchised outlets for Supercuts grew only in 2018 and 2019, showing a growth rate between 35.23% and 5.65%. Then, the franchises started to decline, showing a failure rate of 2.98%.

On the other hand, for company-owned outlets, the failure rate of Supercuts was quite high, lying in the range between 58.02% and 82.91% for the same period of time.

And when we combine the data of franchise and company-owned outlets, we can see that the Supercuts franchise has expanded only in 2018, showing a total growth rate of 3.33%. Later from 2019-2020, the company experienced decline in its number of outlets, showing a failure rate between 1.63% and 8.99%

So, overall despite the fact that Supercuts offer high revenue and lower investment, its high failure rate is something that you should consider.


Supercuts Franchise Payback Period

To find out the Supercuts franchise payback period, let us do some calculations:

AVERAGE INVESTMENT$222,000
AVERAGE REVENUE PER OWNER$263,000 
AVERAGE PROFIT PERCENTAGE27%
AVERAGE PROFIT PER YEAR$71,010
AVERAGE PAYBACK PERIOD3 Years

PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR

= 222000/71010 = 3.1 = 3 Years based on median

The average investment for a Supercuts Franchise is $222,000 and the average revenue per owner is $263,000.

With an average profit percentage of 27%, the average profit per year is $71,010.

This means that the average payback period for a Supercuts franchise is 3 years, as the total average investment of $222,000 would be recovered within this period.


What is Supercuts Best known for?

Supercuts offer no-appointment service and is known for its “consistent, quality haircuts” that last for only 20 minutes. Their stylists take pride in their skills and the attention-to-detail factor that customers look for.

Supercuts offer a range of hair care services, including haircuts for men, women, and children, waxing and color services, etc. And after each haircut, they also give Hot Towel Refresher service so that their customers are ready on the go.

Another factor that sets them apart from their fellow competitors is their affordable pricing which can fit almost anyone’s preference and budget.


Is Supercuts Franchise Profitable?

Is Supercuts Franchise Profitable

Supercuts franchise is definitely a profitable investment, and you can make $71,010 per year on average with this franchise.

The best part about this franchise is that it is a low-cost investment franchise, and by putting in anywhere between $156,000 and $289,000, you can easily make average yearly revenue of $263,000 or even more.

Another great thing is since the ratio between investment and revenue is less, you can recover the initial investment you put in as less as 3 years and then get to enjoy profit entirely. 


Supercuts Franchise Earning Potential

The earning potential of any franchise may be different and might vary from outlet to outlet based on their marketing skills, service, location, etc.

Although Supercuts franchises make $263,000 in revenue per year on average, the top third of all Supercuts franchises have made as much as $409,000 in revenue.

This shows that Supercuts has high earning potential in spite of heavy competition, and so as a Supercuts franchise owner, you can also make this kind of amount.


Wrap Up

Supercuts is America’s number one hair salon, and with a very low investment of $156,000 and $289,000 and zero salon industry experience, you can get started with them.

In spite of heavy competition, Supercuts makes a good amount of profit, and it even has a low pay-back period of three-four years.

Having said that, the 18% failure rate of Supercuts is concerning, so make sure you review all points carefully before deciding if you would like to open a Supercuts franchise.

We hope this article on how much does a Supercuts franchise owner make was useful to you.


FAQ

What is the eligibility for owning a Supercuts franchise?

In order to be eligible for owning a Supercuts franchise, you must have the following:

  • Minimum net worth of $1,000,000.
  • Minimum liquid capital of $250,000.
  • Successful multi-unit business owner.

How much royalty and marketing fees do Supercuts charge?

Supercuts charge a royalty fee of 6% and a marketing fee of 5%.

What is the initial investment for Supercuts franchise?

The initial investment for the Supercuts franchise is between $156,000 and $289,000, which is less than the industry average of $400,000. 

Who Founded Little Supercuts?

Hairstylist duo Frank Emmett and Geoffrey Rappaport founded Supercuts in 1975.

Where is Supercuts headquarters?

Supercuts headquarters is located in Minneapolis, Minnesota.

who owns Supercuts?

Supercuts is a wholly owned subsidiary of Regis Corporation, which also owns Regis Salon, Mia & Maxx and MasterCuts.

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