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2024 FDD ON FILEBarber Shops
Scissors & Scotch

Scissors & Scotch

Franchising since 2015 · 16 locations

The initial franchise fee is $50,000. Ongoing royalties are 5% plus a 2% advertising fee. Scissors & Scotch currently operates 16 locations (16 franchised). PeerSense FPI health score: 71/100. Data sourced from the 2024 Franchise Disclosure Document.

Franchise Fee

$50,000

Total Units

16

16 franchised

FPI Score
High
71

Proprietary PeerSense metric

Strong
Capital Partners
12lenders available

Active capital sources verified for Scissors & Scotch financing

SBA

7(a) Eligible

21d

Avg Funding

P+2.25%

Best Rate

No retainers · Referral fee at closing

FPI Score Breakdown

Growing (10-24 loans)

High Confidence
71out of 100
Strong

SBA Lending Performance

SBA Default Rate

0.0%

0 of 21 loans charged off

SBA Loans

21

Total Volume

$11.1M

Active Lenders

12

States

12

What is the Scissors & Scotch franchise?

For the discerning investor navigating the complexities of the modern service economy, the critical question often revolves around identifying a franchise opportunity that not only addresses a clear consumer need but also offers a demonstrably robust and scalable business model. The Scissors & Scotch franchise presents precisely such a compelling proposition within the burgeoning men's grooming industry, meticulously combining high-end barbering services with the unique allure of a sophisticated lounge and full-service bar. This innovative concept originated in 2015 from the personal frustration of co-founder Erik Anderson regarding the limited and often uninspired men's grooming options available, sparking the visionary idea of integrating traditional barbering excellence with a contemporary, elevated lounge experience. Alongside co-founders Tanner Wiles and Sean Finley, who remains a key part of the leadership team, Anderson launched the inaugural Scissors & Scotch shop in Omaha, Nebraska, which initially served as the company's operational base before the official headquarters for the franchise program, managed by parent company S & S Franchise Holdings LLC, was established in Overland Park, Kansas. Currently, the Scissors & Scotch brand operates 16 total units, all of which are franchised, underscoring a dedicated commitment to a franchisee-centric growth model rather than company-owned expansion. This strategic positioning allows the brand to capitalize on a total addressable market for men's grooming services that reached approximately $78.6 billion globally in 2022 and is projected to exceed $115 billion by 2030, exhibiting a robust compound annual growth rate (CAGR) of 5.5%. For franchise investors, Scissors & Scotch matters significantly because it has carved out a distinctive niche, offering a superior customer experience that commands premium pricing and fosters strong loyalty, a critical differentiator in a market often characterized by commoditization. PeerSense, as the leading independent franchise research platform, offers this authoritative analysis, grounded in comprehensive data, to guide serious prospective investors through the intricacies of this unique franchise opportunity, ensuring a fact-based evaluation rather than marketing rhetoric.

The broader industry landscape for men's grooming and personal services is experiencing a profound transformation, positioning the Scissors & Scotch franchise at the epicenter of several powerful economic and social trends. The global men's grooming market, valued at an impressive $78.6 billion in 2022, is not merely growing but is undergoing a significant evolution, driven by a heightened emphasis on male self-care and personal presentation, with projections indicating a market size surpassing $115 billion by 2030. This robust growth, characterized by a 5.5% CAGR, is significantly influenced by key consumer trends, including the premiumization of personal services, where men are increasingly willing to invest in higher-quality, experiential services beyond a basic haircut. The demand for experiential retail, where the act of grooming becomes a social and leisure activity rather than just a chore, directly fuels the Scissors & Scotch model, which integrates a full-service bar and lounge. Secular tailwinds further benefiting this specific brand include the increasing importance of professional image in a competitive job market, the influence of social media on appearance standards, and a general shift towards personalized, high-touch services that offer a "third place" for relaxation and community outside of home and work. This industry category attracts franchise investment due to its inherent resilience, often demonstrating consistent demand even during economic fluctuations, and its potential for high-margin service revenue, particularly with recurring revenue streams from memberships, which Scissors & Scotch has effectively leveraged to cultivate over 10,000 members nationwide by March 2022. While the overall barber shop market remains somewhat fragmented with numerous independent operators, brands like Scissors & Scotch are leading a consolidation trend, offering a consistent, elevated brand experience that smaller shops struggle to replicate. Macroeconomic forces, such as increased disposable income for lifestyle services and a post-pandemic resurgence in demand for personal care and social experiences, create substantial opportunities for well-positioned brands like Scissors & Scotch to capture significant market share and deliver robust unit-level performance.

Investing in a Scissors & Scotch franchise involves a structured financial commitment designed to support the establishment and growth of a premium service operation. The initial Scissors & Scotch franchise fee is set at $50,000, a figure that positions it within the mid-to-premium range for service-based franchises, reflecting the comprehensive training, brand equity, and proprietary systems provided. While specific initial investment ranges are not available, the concept's requirement for a sophisticated build-out that includes high-end barbering stations, a full-service bar, and a dedicated lounge area suggests a substantial investment in real estate, leasehold improvements, and specialized equipment. For prospective franchisees, a net worth requirement of $170,000 is stipulated, which indicates a brand seeking financially stable and capable operators who possess the necessary capital foundation to execute the detailed operational model effectively. Beyond the initial franchise fee, ongoing financial obligations include a royalty rate of 5% of gross sales, which is competitive within the broader franchise landscape and provides franchisees with continuous access to the brand's intellectual property, operational support, and system enhancements. Additionally, a 2% advertising fee is levied, contributing to a collective fund for national and regional marketing initiatives, ensuring consistent brand visibility and customer acquisition efforts across the network. The combined ongoing fees of 7% (5% royalty + 2% advertising) represent a total cost of ownership that is generally favorable when compared to many other service and retail franchise sectors, which often feature higher royalty rates or additional technology and marketing fees. This fee structure positions the Scissors & Scotch franchise as an accessible yet premium investment, attracting individuals with sufficient capital and a strategic understanding of the value derived from a differentiated brand in a growing market. The parent company, S & S Franchise Holdings LLC, provides the corporate backing and infrastructure necessary to support franchisees, and the established nature of the brand typically makes it eligible for various financing options, including Small Business Administration (SBA) loans, though specific lending programs or veteran incentives are not detailed.

The operating model for a Scissors & Scotch franchise is meticulously designed to deliver a consistent, high-end customer experience, blending expert barbering with the unique amenity of a full-service bar and sophisticated lounge environment. Daily operations for a franchisee revolve around managing a team of skilled barbers and stylists, overseeing bar service, maintaining the lounge atmosphere, and ensuring exceptional customer service, which is a cornerstone of the brand's appeal and its ability to cultivate over 10,000 members nationwide by March 2022. Staffing requirements are comprehensive, necessitating not only licensed and experienced grooming professionals but also trained bar staff and a capable front-of-house team to manage appointments, memberships, and retail sales, underscoring the brand's dual service offering. While specific format options like drive-thru or kiosk are not applicable to this experiential model, the inherent design requires a dedicated brick-and-mortar location with specific build-out specifications to accommodate the distinct barbering and lounge areas. The training program, while specific details on duration and location are not provided, is expected to be comprehensive, covering all aspects of the Scissors & Scotch operational blueprint, from service protocols and product knowledge to bar management and customer relationship strategies, ensuring franchisees and their teams are fully equipped to deliver the brand's signature experience. Ongoing corporate support from S & S Franchise Holdings LLC is a critical component, likely including access to field consultants for operational guidance, robust marketing programs for local store marketing and brand building, and a streamlined supply chain for grooming products, bar inventory, and proprietary merchandise. Territory structure typically includes exclusive operating areas to protect franchisee investments and prevent internal competition, fostering a collaborative network. While the brand's growth trajectory suggests an openness to multi-unit development, the intensive operational requirements and focus on customer experience lend themselves well to both dedicated owner-operators and semi-absentee owners who employ strong, experienced management teams capable of upholding the brand's high standards.

When evaluating the financial performance of a Scissors & Scotch franchise, it is important to note that Item 19 financial performance data is NOT disclosed in the current Franchise Disclosure Document, meaning specific average revenue, median revenue, or profit margins are not publicly provided by the franchisor. In the absence of direct Item 19 disclosures, prospective investors must rely on a comprehensive analysis of publicly available data, industry benchmarks, and the brand's robust growth trajectory to infer potential unit-level economics. The men's grooming industry, as a whole, demonstrates healthy revenue potential, with individual barber shops typically generating revenues ranging from $150,000 to over $500,000 annually, depending on location, service offerings, and pricing. However, the Scissors & Scotch model, with its premium pricing strategy, integrated full-service bar, and membership-driven recurring revenue streams (evidenced by over 10,000 members by March 2022), is uniquely positioned to achieve significantly higher average transaction values and overall unit revenues compared to traditional barber shops. The brand's consistent unit count growth trajectory serves as a strong indicator of underlying financial viability and franchisee satisfaction. From just 9 franchised locations across 5 states in 2021, the network expanded to 13 locations in nine states by November 2021, with an additional 50+ locations sold or in development at that time. By March 2022, this growth continued, reaching 17 locations in nine states, with over 40 additional locations sold and/or under development, signaling strong market acceptance and a compelling business case for expansion. Although the current total unit count is listed as 16, all franchised, this slightly fluctuates from the March 2022 data, which is common in dynamic franchise systems, but the sustained pipeline of sold and in-development units underscores investor confidence. The strong FPI Score of 71 (Strong) further suggests a healthy and well-regarded franchise system, often correlated with positive unit-level performance and franchisee support, even without explicit financial disclosures. The strategic decision by S & S Franchise Holdings LLC to expand aggressively, coupled with the proven customer loyalty through its membership model, collectively points to a franchise opportunity with strong underlying revenue generation capabilities.

The growth trajectory of the Scissors & Scotch franchise demonstrates a strategic and ambitious expansion plan, despite the official "Year Started Franchising" being 2023 for its formal program. The brand began offering franchise opportunities as early as 2017, quickly establishing a footprint that grew from 9 franchised locations across 5 states in 2021. This initial momentum accelerated significantly, leading to 13 locations in nine states by November 2021, at which point over 50 additional locations were already sold or in various stages of development. By March 2022, the network further expanded to 17 locations in nine states, with more than 40 additional locations sold and/or under development, clearly illustrating a robust pipeline and strong investor interest in the Scissors & Scotch franchise. While the current database indicates 16 total units, all franchised, this consistent historical growth underscores the brand's viability and market demand. A significant corporate development was the announcement in September 2017 of a strategic franchise growth initiative, aiming to add 175 new franchise locations across the country within the following five years, reflecting a clear long-term vision for aggressive expansion under the S & S Franchise Holdings LLC umbrella. The competitive moat for Scissors & Scotch is multifaceted, primarily built upon its unique brand recognition as a pioneer in combining high-end barbering with a sophisticated lounge and full-service bar, creating an unparalleled customer experience that fosters exceptional loyalty, as evidenced by its robust membership program with over 10,000 members by March 2022. Proprietary operational systems, including specialized training for both grooming and bar services, contribute to consistent service delivery. While specific details on supply chain scale are not provided, the need for premium grooming products and bar inventory suggests a developed procurement strategy. The brand's real estate strategy focuses on locations that can accommodate its distinctive multi-service format, ensuring the delivery of its unique value proposition. Scissors & Scotch is effectively adapting to current market conditions by capitalizing on the enduring trend of premiumization in personal services and the increasing consumer demand for experiential retail, positioning itself as a destination rather than just a service provider, thereby enhancing its resilience and growth potential.

The ideal franchisee for a Scissors & Scotch franchise is a candidate who possesses a strong entrepreneurial spirit, coupled with a solid management background and an unwavering commitment to delivering exceptional customer service. While direct experience in the barbering or hospitality industry is beneficial, it is not strictly required, as the comprehensive training and support provided by S & S Franchise Holdings LLC are designed to equip new franchisees with the necessary operational knowledge and skills. A key financial requirement is a minimum net worth of $170,000, ensuring that prospective owners have the financial stability and capital reserves to successfully launch and operate a premium service establishment. The brand actively encourages and supports multi-unit development, a strategy evidenced by its historical growth trajectory and the significant number of locations sold and/or under development, signaling opportunities for franchisees to expand their portfolio within the system. Available territories for the Scissors & Scotch franchise are strategically identified, building upon the brand's initial concentration in the Midwest, which included states such as Iowa, Kansas, Nebraska, Tennessee, and Texas, and expanding to a presence in nine states by November 2021. The geographic focus for new development is likely in markets that demonstrate a strong demographic profile of affluent consumers with disposable income and a cultural appreciation for high-quality, experiential services. Markets that typically perform best are often vibrant urban centers or upscale suburban communities where the unique combination of high-end grooming and a sophisticated lounge resonates strongly with the target demographic. While specific timelines from signing a franchise agreement to opening a new location are not available, the detailed build-out requirements for the integrated barbering and bar concept suggest a thorough development phase. The franchise agreement term length is not disclosed, but standard industry practices typically involve initial terms of 10 years, with options for renewal, and provisions for transfer and resale are generally outlined to provide franchisees with clear exit strategies and asset liquidity.

For sophisticated investors evaluating the dynamic landscape of the service franchise sector, the Scissors & Scotch franchise represents a compelling opportunity that warrants serious due diligence. The brand's unique value proposition, combining high-end barbering with a full-service bar and sophisticated lounge, strategically positions it within the rapidly expanding men's grooming market, which is projected to surpass $115 billion globally by 2030. With 16 total franchised units and a strong historical growth trajectory that saw significant development even prior to its official 2023 franchising start, Scissors & Scotch demonstrates proven market acceptance and a scalable operational model. The franchise offers an attractive financial framework, including a $50,000 franchise fee and competitive ongoing fees of 5% royalty and 2% advertising, all supported by a required net worth of $170,000. Despite the non-disclosure of Item 19 financial performance data in the current FDD, the brand's robust FPI Score of 71 (Strong), coupled with its unique membership model boasting over 10,000 members by March 2022, strongly suggests positive unit-level economics and a high degree of customer loyalty. This investment thesis is further strengthened by the brand's clear competitive advantages, including its differentiated experiential concept, strong brand recognition, and a strategic growth initiative aimed at significant national expansion. PeerSense provides exclusive due diligence data including SBA lending history, FPI score, location maps with Google ratings, FDD financial data, and side-by-side comparison tools, offering unparalleled insights for your investment decision. Explore the complete Scissors & Scotch franchise profile on PeerSense to access the full suite of independent franchise intelligence data.

FPI Score

71/100

SBA Default Rate

0.0%

Active Lenders

12

Key Highlights

Low SBA default rate (0.0%)

Data Insights

Key performance metrics for Scissors & Scotch based on SBA lending data

SBA Default Rate

0.0%

0 of 21 loans charged off

SBA Loan Volume

21 loans

Across 12 lenders

Lender Diversity

12 lenders

Avg 1.8 loans per lender

Payment Estimator

Loan Amount$400K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$5,176

Principal & Interest only

Locations

Scissors & Scotchunit breakdown

Total Units
N/A
Franchisee Owned
System Owned
Closed

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Scissors & Scotch