Scissors & Scotch vs House of Colour
Compare FDD disclosures, investment range, royalty and ad fund burden, SBA lending outcomes, Item 20-style unit movement, Item 19 transparency, and data-confidence caveats with a permanent shareable URL.
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Scissors & Scotch
Beauty/Salon
Investment
$632K to $845K
Franchise fee
$50,000
Item 19 status
Revenue Only
Confidence
High Confidence
Units
20
House of Colour
Beauty/Salon
Investment
$33K to $52K
Franchise fee
$30,000
Item 19 status
Limited Data
Confidence
High Confidence
Units
212
Lower entry cost
Leans right
Based on disclosed minimum initial investment only; buyer cash needs may be higher after working capital, lease, and financing assumptions.
Better disclosed economics
Scissors & Scotch
Uses the same Item 19 transparency hierarchy shown on franchise pages and rankings.
Lower SBA default risk
Even
Treat low-loan brands carefully; sample size and SBA borrower mix matter.
| Metric | Scissors & Scotch | House of Colour |
|---|---|---|
Franchise Fee From disclosed FDD fee data when available; excludes buyer-specific legal, diligence, and financing costs. | $50,000 | $30,000 |
Min Investment Lower bound of disclosed initial investment range, not a recommended capital budget. | $632K | $33K |
Max Investment Upper end of FDD range; still reconcile to site, lease, buildout, and working-capital assumptions. | $845K | $52K |
Royalty Rate Ongoing royalty burden before local store economics and owner salary. | 6.5% | 4.0% |
Ad Fund Rate National/brand fund rate when disclosed; local marketing may be additive. | 2.0% | 2.0% |
Total Ongoing Burden Royalty plus ad fund when available. | 8.5% | 6.0% |
Median Revenue (Item 19) Only meaningful when the franchisor provides an Item 19 financial-performance representation. | $968K | N/A |
Cash-on-Cash Return Estimated when revenue and margin assumptions are available. | 17.7% | N/A |
Payback Period | 5.7 yrs | N/A |
Revenue per Dollar Invested | 1.31x | N/A |
Franchised Units Latest disclosed franchised-unit count in the corpus. | 20 | 212 |
1-Year Net Unit Change Item 20-style system movement signal; investigate transfers, closures, and refranchising before assuming organic growth. | N/A | N/A |
Net Unit Growth Rate | N/A | N/A |
Net Closure Rate Net closure proxy based on disclosed unit change. | N/A | N/A |
SBA Default Rate Historical SBA performance for matched loans, not a prediction for a new buyer or location. | 0.0% | 0.0% |
SBA Loan Count Use this to judge whether SBA default data is statistically meaningful. | 20 | 2 |
Average SBA Loan Size | $515K | $1.3M |
Item 19 Status Canonical transparency badge used across franchise, ranking, and compare surfaces. | Revenue Only | Limited Data |
Has Item 19 | ✓ Yes | ✓ Yes |
Data Confidence Derived from the same data-quality thresholds used on franchise pages. | High Confidence · 90/100 | High Confidence · 85/100 |
What stands out
- • Scissors & Scotch discloses an initial investment range of $632K to $845K, while House of Colour discloses $33K to $52K. Treat these as FDD ranges, not a full purchase budget.
- • Scissors & Scotch shows an Item 19 financial-performance disclosure; House of Colour shows an Item 19 financial-performance disclosure. Missing Item 19 data should narrow confidence, not automatically kill a brand.
- • Scissors & Scotch has 20 franchised units versus 212 for House of Colour; use one-year net unit movement and closure proxies as early diligence signals, not final underwriting.
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Last updated: May 2026