Supercuts

#14

At a Glance

Products & Services: Hair salon

Number of Locations: 2,147

Total Investment: $106.05K - 199K

Founded: 1975

Began Franchising: 1979

Public Owned rgs

About Supercuts

In 1975, Frank Emmett and Geoffrey Rappaport opened the first Supercuts in Albany, California, as an alternative to both high-fashion salons and neighborhood barbershops. They developed a hair-cutting technique that took only 20 minutes so that they could offer quick and inexpensive haircuts without appointments. They also allowed their customers to pick and choose which particular services they wanted, in order to tailor their experience to their desires and budgets. With this standardized business model in place, the men began franchising in 1979, and their stores soon spread throughout the U.S.

In 1996, Supercuts was acquired by Regis Corp., which also franchises City Looks, Cost Cutters Family Hair Care and Pro-Cuts in the U.S., and Magicuts and First Choice Haircutters in Canada.

Franchise Units

Year	U.S.	Canadian	International	Company Owned
2011	975	12	0	1,160
2010	1,025	10	0	1,098
2009	1,027	1	0	1,116
2008	995	1	0	1,137

Where Seeking Franchisees: Franchisor is seeking new franchise units throughout the U.S. and Canada.

Startup Costs, Ongoing Fees and Financing

Total Investment: $106,050 - $199,000
Franchise Fee: $27,500
Ongoing Royalty Fee: 6%
Term of Franchise Agreement: Conditional, renewable

Financial Requirements

Net Worth: $300,000
Liquid Cash Available: $100,000

Operations

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).