6 hours ago
1
Daniel Kline
Sun, November 30, 2025 astatine 11:51 AM CST 6 min read
In galore ways, buying a big-name franchise represents surviving the American dream.
As the purchaser, you get entree to a big-name marque that everyone knows, and, successful theory, customers should travel in. With a bully franchised brand, you ideally get each the grooming you need, portion the corp handles advertizing and makes definite customers amusement up.
"Being a franchise proprietor means adopting a concern exemplary that has been tested and perfected implicit time. As portion of a larger network, franchisees person ongoing enactment and grooming from the franchisor, which covers aspects specified arsenic management, staffing, marketing, and day-to-day operations. The franchise strategy usually has well-established proviso chains, which tin pb to outgo savings and operational efficiencies," Entrepreneur shared.
That sounds great, but buying a franchise comes with risks.
"A downside to being successful a much extended franchise strategy is that if 1 franchisee creates antagonistic publicity, it tin impact your profits," FindLaw.com reported.
Franchise operators besides person non-negotiable costs implicit which non-franchised businesses mightiness person much control.
"Just due to the fact that you signed a franchise statement and paid the archetypal startup costs does not mean you stopped paying the franchise. You volition person to wage ongoing fees to the franchisor," the ineligible website shared. These include:
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Advertising funds
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Ongoing fees
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Ongoing costs specified arsenic mandatory purchases of caller inventory, furniture, oregon remodeling costs erstwhile firm requires it
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Royalty fees to usage the trademarks, licenses, and manuals
Franchises tin beryllium a way to fiscal success, but adjacent companies with a palmy franchise exemplary person idiosyncratic franchisees that fail.
That's thing Regis, the proprietor of Supercuts, Cost Cutters, and Roosters, has proven, arsenic it has closed astatine slightest 100 locations each twelvemonth since 2020, including 443 truthful acold successful 2025.
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In the fiscal twelvemonth 2020, Regis reported closing 102 Supercuts salons.
Source: Regis yearly report -
In 2021, the fig of closed Supercuts franchise salons spiked with 273 salons unopen down.
Source: CloudFront -
By 2022, closure enactment slowed, but was inactive important arsenic 156 franchised Supercuts salons closed.
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In 2023, Regis information amusement 196 franchised Supercuts salons closed.
Source: CloudFront -
As of September 30, 2023, full franchised Supercuts salons stood astatine 2,060, down from 2,264 astatine the opening of the period, reflecting the nett closures.
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There person besides been closures of company-owned Supercuts salons, not conscionable franchises (e.g., successful 2021, 54 company-owned salons were unopen down).
Source: CloudFront -
The diminution is portion of a broader structural displacement by Regis — consolidating and slimming down its brands, and focusing much connected an asset-light franchising model.
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Even arsenic immoderate locations close, the concatenation continues to exist, and successful 2024, it launched a loyalty programme crossed 1,900 salons, indicating a strategy to stabilize and clasp customers.
Source: Regis property release -
Regis has closed 443 franchises truthful acold successful 2025.
Source: Regis net telephone transcript
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