How to Finance a Snip-its Franchise: Kids Haircut Studio Costs
By Chris Cornella
A Snip-its franchise loan finances a themed children’s hair salon, and most of the money goes into the space itself. Snip-its’ own franchise site, citing its 2024 Franchise Disclosure Document (FDD), puts the estimated initial investment at $200,470 to $360,825 for a single salon, with construction, millwork and the brand’s signature salon décor making up the largest share.
US Professional Funding is not affiliated with, sponsored by or endorsed by Snip-its; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current FDD and franchise agreement with a qualified franchise attorney and accountant.
Snip-its Franchise Loan at a Glance
- Initial franchise fee: $35,000 for a single salon.
- Multi-unit fees: $75,000 for up to three salons, $100,000 for up to five, and $10,000 for each salon beyond five.
- Estimated initial investment: $200,470 to $360,825 for one salon, according to the franchisor’s summary of its 2024 FDD.
- Royalty: 5% of gross sales in the first year and 6% for the rest of the franchise agreement.
- Franchisor financing: Snip-its says it does not provide direct financing.
- Founded: 1995.
- SBA Franchise Directory: listed under code S1595, with no additional notes.
What Is Snip-its?
Snip-its is a children’s hair salon franchise that says it pioneered the kids’ haircut category in 1995. Its salons are built to make haircuts comfortable for children, from a baby’s first haircut onward, with kid-sized chairs, gentle tools and products, kid-safe video content and prizes.
Services and revenue streams. Haircuts are the core, and first haircuts are a focus. Salons also offer shampoos, braiding and styling, kid-friendly spa services, ear piercing and birthday parties, and they sell toys, hair accessories and a proprietary children’s haircare line.
Ownership. Snip-its came under new ownership in 2025, alongside another children’s salon brand, with Snip-its keeping its own identity. Ask the franchisor which entity issues the current FDD and whether fees or terms have changed since 2024.
Why lenders view it the way they do. A kids’ salon has repeat customers and modest equipment needs, but most of the startup budget goes into leasehold improvements a lender cannot easily resell. Lenders focus on the lease, the build-out budget, stylist staffing and the owner’s reserves.
Snip-its Franchise Costs
Initial franchise fee. The fee is $35,000 for a single salon. Multi-unit packages cost $75,000 for up to three salons, $100,000 for up to five, and $100,000 plus $10,000 for each salon beyond five.
Build-out and décor. Base construction and leasehold improvements, millwork and the themed fit-out Snip-its calls “Snipification” are the biggest costs. A construction project management line also appears, which may not apply to every site.
Equipment and technology. Furniture, fixtures, equipment and décor, audio-visual equipment, computer hardware and the point-of-sale system round out the hard costs.
Opening costs and working capital. Recruiting and training stylists, opening inventory, shipping, a grand opening program and three months of additional funds complete the estimate.
Total investment. The franchisor’s 2024 FDD summary lists these Item 7 line items for one salon:
- Initial franchise fee: $35,000
- Security deposit and rent: $7,500 to $20,000
- Staff recruiting: $500 to $3,500
- Initial training: $1,000 to $3,000
- Staff wages during training: $2,500 to $3,000
- Construction project management: $0 to $27,500
- Base construction and leasehold improvements: $47,975 to $100,775
- Millwork: $35,200 to $52,000
- “Snipification” of salon: $20,700 to $23,100
- Computer hardware and point-of-sale system: $2,600 to $4,000
- Point-of-sale software fee: $165 to $250
- Exterior signage: $4,300 to $6,450
- Furniture, fixtures, equipment and décor: $8,300 to $10,000
- Audio-visual equipment: $2,000 to $2,900
- Proprietary products: $1,830 to $3,225
- Other initial inventory and salon supplies: $3,550 to $7,525
- Shipping: $4,900 to $14,000
- Insurance: $1,500 to $2,500
- Professional fees: $500 to $6,500
- Grand opening program: $15,000
- Additional funds (3 months): $5,450 to $20,600
The franchisor also estimates three salons at $571,410 to $1,052,475 and five salons at $927,350 to $1,729,125.
Ongoing Fees and How They Affect Your Loan
Royalty. Snip-its charges 5% of gross sales in the first year and 6% for the remainder of the agreement. Projections should step the royalty up in year two rather than using one rate throughout.
Marketing and technology. Item 6 lists any brand fund or local advertising requirement and technology fees. The point-of-sale software fee is paid to the franchisor or an affiliate.
How lenders factor them in. Lenders deduct royalty, marketing and technology fees from projected sales, then measure what remains for stylist pay, rent and debt service. Payroll is a salon’s largest cost, so lenders look closely at stylist pay plans.
Franchisor Requirements for New Owners
Snip-its’ franchise pages describe owners from varied professional backgrounds and say success depends on recruiting and managing people, building culture and networking locally. They do not publish a minimum net worth or liquid capital figure, so ask the franchisor and review the FDD.
Support and training. The franchisor provides site selection help, lease review feedback, construction and grand opening support, stylist training and leadership development, marketing support and help building a stylist recruiting strategy. It does not recruit stylists directly.
Ways to Own a Snip-its
A new salon. Most buyers open a new location, financed as a startup on projections, a signed lease and the owner’s equity. See our page on franchise start-up financing.
A multi-salon package. Snip-its says most of its franchise owners operate more than one location, and some run up to eight. The three- and five-salon packages lower the fee per salon but require a development plan lenders can follow.
Buying an existing salon. An open salon brings customers, stylists and a sales history. The buyer finances goodwill, fixtures and inventory, with franchisor approval. Our article on buying a franchise resale explains the steps.
Financing Options for a Snip-its Franchise
SBA 7(a) loans. Because Snip-its is on the SBA Franchise Directory, an SBA 7(a) loan can fund the fee, build-out, equipment and working capital in one package, subject to lender approval.
SBA 504 loans. The SBA 504 program fits owner-occupied real estate and long-lived assets. Most Snip-its salons lease space in retail centers, so 504 rarely fits unless an owner buys the building.
Conventional term loans. Borrowers with strong credit and collateral, or multi-salon owners with history, may qualify for a conventional business loan.
Equipment financing. Styling chairs, audio-visual equipment, point-of-sale hardware and furniture can sometimes be financed separately. Learn more about franchise equipment financing and leasing.
Working capital and lines of credit. Back-to-school and holiday weeks can be busy while other stretches are quieter, and stylists must be paid either way. See our franchise working capital options.
Seller financing on resales. A seller may carry part of the price on a resale. Any seller note must be acceptable to the senior lender, is typically subordinate to it and may be limited by SBA program rules.
SBA Loans for Snip-its Franchisees
SBA lenders generally require a brand to appear on the SBA Franchise Directory before making an SBA-guaranteed loan to its franchisees. A listing clears the franchise relationship for SBA review; it does not approve any borrower.
Snip-its’ listing. Snip-its appears on the SBA Franchise Directory under code S1595 with no additional notes, so lenders apply the SBA’s normal rules without brand-specific conditions.
Loan size. The SBA 7(a) program maximum is currently $5 million, though program rules can change. A single salon is far smaller; even the five-salon estimate stays below that limit, though cash flow and equity remain the practical limits.
Application tips. Bring the FDD, a lease or letter of intent, contractor bids, a personal financial statement, tax returns and projections. Our guide to a franchise business plan for an SBA loan covers what to include, and our SBA loan calculator provides planning estimates only.
How Lenders Evaluate a Snip-its Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and owners typically sign a personal guarantee.
Net worth and liquidity. Lenders want an equity injection plus reserves after closing. The build-out-heavy budget leaves little collateral, so liquidity carries more weight.
Management experience. Salon, retail or people-management experience strengthens a Snip-its franchise loan request, especially a plan for hiring and keeping stylists.
Business plan and projections. Projections should reflect the number of families with young children near the site, nearby kids’ salons, chair count, stylist productivity, add-on services, parties and retail, plus the step from a 5% to a 6% royalty.
The FDD and franchise agreement. Lenders review Items 5, 6, 7, 10, 12, 17 and 19, including territory, term, renewal and transfer conditions and whether Item 19 includes financial performance representations. Review Items 3 and 4 as well. Our guide to how lenders read a Franchise Disclosure Document explains what matters most.
Site and lease. Visibility and nearby families drive kids’ salon traffic. Lenders want a lease term that covers the loan and a build-out budget tied to bids.
Historical financials for resales. For an existing salon, expect to provide several years of profit and loss statements and point-of-sale reports.
Build-Out, Millwork and the Snip-its Look
The themed interior is what sets a Snip-its salon apart, and it is also the least portable part of the investment. Millwork and the “Snipification” package are separate line items on top of base construction. Lenders treat these as leasehold improvements, so a strong lease, tenant improvement allowances from the landlord and accurate contractor bids matter more than equipment collateral.
Multi-Unit Growth and Development Agreements
Snip-its’ multi-unit packages make growth a financing question from day one. A buyer signing for three or five salons should expect lenders to finance the first salon and then later salons as each opens, based on results. Our articles on multi-unit franchise financing and financing an area development agreement explain how lenders approach development schedules.
Real-World Scenarios
A parent opening a first salon. A former retail manager signs a lease near schools and family neighborhoods, uses an SBA 7(a) loan for build-out and working capital and hires stylists before opening.
An owner signing a three-salon package. A buyer pays the multi-unit fee, opens the first salon and returns to the lender with operating results before financing the second.
A buyer acquiring an open salon. A buyer purchases an operating Snip-its with franchisor approval, and the lender underwrites actual sales and payroll history.
Common Mistakes to Avoid
- Budgeting from the low end of the build-out ranges without bids
- Using a 5% royalty for every year of the projections
- Underestimating stylist recruiting and wages before opening
- Signing a lease shorter than the loan term
- Committing to multiple salons without financing for each
- Relying on a 2024 cost summary without checking the current FDD
For more pitfalls, read the franchise loan mistakes that cost owners the most.
Next Steps to Finance Your Snip-its Franchise
Step 1: Request the current FDD. Confirm the franchisor entity, fees and Item 7 after the 2025 ownership change.
Step 2: Review it with advisors. Focus on Items 5, 6, 7, 12, 17 and 19.
Step 3: Validate with owners. Ask about stylist hiring, ramp-up and build-out costs.
Step 4: Talk with a financing specialist. Learn how lenders will size a Snip-its franchise loan before you sign a lease.
Step 5: Secure a site and bids. Get a lease proposal and contractor bids for the build-out.
Step 6: Apply, build and open. Coordinate loan closing with lease signing, construction and stylist training.
Snip-its Franchise Loan FAQs
How much does a Snip-its franchise cost?
The franchisor’s summary of its 2024 FDD estimates $200,470 to $360,825 for one salon.
What is the Snip-its franchise fee?
$35,000 for a single salon, $75,000 for up to three and $100,000 for up to five.
What royalty does Snip-its charge?
5% of gross sales in the first year and 6% for the rest of the agreement.
How much liquid capital or net worth do I need?
Snip-its does not publish a figure on its franchise pages, so ask the franchisor. Lenders will expect equity plus reserves.
Is Snip-its eligible for SBA loans?
Yes. It is listed on the SBA Franchise Directory under code S1595 with no additional notes.
Does Snip-its offer financing?
Snip-its says it does not provide direct financing. Review Item 10 of the FDD.
Can I buy an existing Snip-its salon?
Yes, if one is for sale and the franchisor approves the buyer.
Can I open more than one salon?
Yes. The franchisor offers three- and five-salon packages and says most owners run more than one location.
Do I need salon experience?
Snip-its says owners come from varied backgrounds; managing people and hiring stylists matter most.
What documents do I need for a loan?
The FDD, a lease or letter of intent, contractor bids, a personal financial statement, tax returns and projections.
Final Thoughts
A Snip-its franchise loan is mostly a build-out loan, backed by a lease and the owner’s ability to staff a salon with stylists who are good with kids. Buyers who confirm the current FDD, budget from real bids and plan for the royalty step-up give lenders a clear picture.
US Professional Funding helps franchise owners and buyers finance startups, acquisitions, equipment and working capital. Learn more about our franchise financing solutions.
