Risk Score
Pending analysis
Investment Range
$200,470 - $360,825
Franchise Fee
$31,500
Total US Locations
40
Business Summary
Snip-its Salon businesses provide full-service hair care salons specifically for children, integrated with branded entertainment. These salons feature a specially-designed facility for hair care, spa services, and entertainment, including unique proprietary animated cartoon characters, specialized hair care products, computer games, and an interactive magic prize box to enhance the child's experience.
Corporate History
The Snip-its Salon concept originated in 1995, when the previous parent company, The Snip-its Corporation, began operating Snip-its Salons. The current franchisor entity, The Snip-its Franchise Company, LLC (SIF), was formed in Massachusetts on January 29, 2003, and started offering Snip-its Salon franchises in April 2003. In 2018, FS Snip-its LLC (FSS) was incorporated in Minnesota and acquired the previous parent company, continuing the ownership and operation of Snip-its Salons until 2022.
Financial Overview
Investment Range
$200,470 - $360,825
Franchise Fee (Low)
$31,500
Franchise Fee (High)
$100,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$121,075
Equipment Costs (High)
$199,225
Working Capital
$13,025
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD highlights that the franchisor's financial condition, as reflected in its financial statements, calls into question Snip-its Salon's financial ability to provide services and support to franchisees.
Financing Details
Snip-its Salon does not offer any direct or indirect financing to its franchisees, nor does it guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
40
Franchised Units
40
Corporate Units
0
Avg Square Footage
1,050
Franchising Since
2003
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Snip-its Salon has no litigation history that is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Snip-its Salon has no bankruptcy history to disclose in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Snip-its Salon franchise agreement, franchisees must provide written notice between 6 and 12 months before the current term expires. They must be in good standing, meaning they haven't had more than three written default notices in the past 12 months. Franchisees will need to sign a general release of claims and execute Snip-its Salon's then-current franchise agreement, which may have different terms, including potentially higher royalty and advertising contributions. A non-refundable renewal fee, equal to 15% of the then-current Initial Franchise Fee, is also required. Additionally, franchisees must have the right to occupy their current premises for the new term and complete any necessary renovations or modernizations to meet Snip-its Salon's current brand standards for newly opened locations.
Training & Support Program
Franchisor Assistance
Before opening, Snip-its Salon provides initial training for up to three people at no charge, a confidential operating manual, and advice on site selection (franchisor must approve the site). They also provide prototype plans and specifications for salon construction, materials and consultation for a grand opening program, and proprietary products. After opening, Snip-its Salon informs franchisees of mandatory standards and procedures and offers advice on salon operations based on reports or inspections. Additional training for new hires or refresher courses may be offered, potentially for additional fees. Snip-its Salon may also modify the System, conduct periodic visits (for a fee), maintain a Marketing Fund, and hold national or regional conferences.
Initial Training Hours
20
Training Location
Burnsville, Minnesota or via webinar
Ongoing Support
After opening, Snip-its Salon franchisees receive ongoing support through mandatory updates to operating standards, specifications, and procedures. Snip-its Salon provides advice on business operations upon reasonable request, based on reports or inspections, and this advice is offered during regular business hours via written materials, electronic media, or telephone. Additional training may be offered for newly-hired personnel on brand guidelines, refresher courses, or any other training deemed necessary or requested by the franchisee, though additional fees may apply. Franchisees also continue to use confidential materials, including the Confidential Operating Manual and the Snip-its Marks. Franchisees are required to attend any national or regional meetings or conferences held by Snip-its Salon, for which they must pay a conference fee regardless of attendance.
Franchise Requirements
Ideal Candidate Profile
Snip-its Salon requires that an owner-level individual, known as the Operating Partner, be responsible for the full-time, hands-on, on-site management and supervision of the franchised business. This Operating Partner must have at least a 25% equity interest in the franchise entity.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Staff Count
6
Territory Size Requirements
Snip-its Salon's territory is defined by geographic area and population demographics. Typically, it will be a two-mile radius for an urban location and a five-mile radius for a suburban location, though the exact size may vary.
Staffing Notes
Snip-its Salon franchisees are responsible for determining appropriate staffing levels for their business, typically employing five to six individuals. Franchisees are solely responsible for hiring, training, directing, scheduling, supervising, and compensating their employees and independent contractors. For a franchisee's first and second Snip-its Salons, the franchisor provides staff training, which can be conducted virtually, at the salon, or an approved designated location. For any third or subsequent Snip-its Salons, the franchisee is responsible for training their own staff.