Scissors & Scotch Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$631,300 - $845,250
Franchise Fee
$15,000
Total US Locations
28
Business Summary
Scissors & Scotch operates high-end barbershops and lounges that cater to male customers. These barbershops offer men's grooming and spa services such as haircuts, facial hair trims, hair coloring, straight-razor shaves, waxes, and hand repairs. Additionally, Scissors & Scotch locations provide lounge and bar services and host various client events, including liquor and wine tastings, beer tap takeovers, wedding groups, trunk shows, sporting event watch parties, small business gatherings, and private rentals.
Corporate History
Scissors & Scotch Franchising, LLC was organized on July 7, 2017, as a limited liability company in Kansas. The company began offering franchises in July 2017, the same month it was formed. Its parent company, S & S Franchise Holdings, LLC, was also organized on July 7, 2017.
Financial Overview
Investment Range
$631,300 - $845,250
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$50,000
Royalty %
6.5%
Marketing %
2%
Equipment Costs (Low)
$442,000
Equipment Costs (High)
$558,000
Working Capital
$62,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Scissors & Scotch Franchising has suffered recurring losses from operations and has a members' deficit. This situation raises substantial doubt about the company's ability to continue as a going concern. Management is actively evaluating events and conditions and developing plans to mitigate these matters.
Financing Details
Scissors & Scotch Franchising does not offer any direct or indirect financing options to its franchisees. It also does not guarantee any loans, notes, leases, or obligations for franchisees.
Performance Metrics
Total US Locations
28
Franchised Units
16
Corporate Units
12
Avg Square Footage
2,000
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Scissors & Scotch Franchising has no litigation to disclose in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Scissors & Scotch Franchising has no bankruptcy history to disclose in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Scissors & Scotch Franchising franchisees must provide written notice to Scissors & Scotch at least 24 months before the current term expires. They must be in substantial compliance with all provisions of the agreement and any other agreements with Scissors & Scotch or its affiliates, and must have satisfied all monetary obligations. Franchisees need to demonstrate their right to maintain possession of the premises or secure a suitable new location. They may also be required to complete additional training, upgrade their premises and equipment to current specifications (unless already done within the last three years), and sign a general release. Additionally, franchisees will be required to sign Scissors & Scotch's then-current form of Franchise Agreement, which may contain materially different terms, although the protected area and royalty rate will remain the same.
Training & Support Program
Franchisor Assistance
Scissors & Scotch Franchising provides extensive support to its franchisees. Before opening, this includes site selection guidelines, lease/purchase agreement review and approval, providing the Operations Manual and lists of required assets and approved suppliers, coordinating procurement, and reviewing and approving premises layout, design, and equipment. Scissors & Scotch also provides an initial training program, exterior signage design assistance, pre-designed advertising materials, copy and messaging support for announcements, customized website pages, and guidance for optimizing online presence. They also assist with identifying targets for soft opening events and provide up to 6-8 days of on-site guidance before opening, plus 4 days immediately after, including training for stylists and lounge teams. Ongoing support includes continuous access to the electronic Operations Manual, optional additional and refresher training courses, administration of the Brand Building Fund for marketing, guidance for post-opening digital advertising, periodic operations reviews and inspections, market research and testing, and annual franchisee conferences.
Initial Training Hours
110
Training Location
A designated S&S training facility (currently in Portland, Oregon), an operating Scissors & Scotch Barbershop, and the franchisee's own Barbershop.
Ongoing Support
After opening, Scissors & Scotch Franchising franchisees receive ongoing support including continuous access to the electronic Operations Manual, which contains specifications and operating procedures. Scissors & Scotch may develop and require attendance at additional and refresher training courses. Franchisees contribute to and benefit from the Brand Building Fund, which supports system-wide marketing and public relations programs. They are also directed in a post-opening targeted digital advertising program. Scissors & Scotch conducts periodic inspections and operations reviews to advise on operating deficiencies and may conduct market research and testing, requiring franchisee participation. Additionally, franchisees are required to attend annual conferences held by Scissors & Scotch.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Absentee Allowed
Territory Type
Protected
Staff Count
8
Territory Size Requirements
Scissors & Scotch Franchising defines its protected territory for franchisees based on the lesser of a two-mile radius from the business location or an area containing a population of approximately 25,000 people. The franchisor reserves the right to adjust the territory size based on market demographics and development.
Staffing Notes
Scissors & Scotch Franchising provides general guidance on employee hiring, onboarding, and training, but franchisees are solely responsible for all aspects of their employees' employment, including hiring, terms of employment, supervision, management, compensation, working hours, and termination. The initial grooming training for a franchisee's first group of stylists and barbers typically accommodates up to eight individuals, with additional certified trainers available for larger groups. The system also utilizes Certified Trainers and Elite Educators for ongoing stylist training within the barbershops.