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Cost Cutters Family Hair Care

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Beauty
Hair salon

Cost Cutters Family Hair Care

Cost Cutters Family Hair Care Franchise FDD, Costs & Fees (2025)

Cost Cutters Family Hair Care provides affordable and convenient haircuts for the whole family, offering a range of salon services in a friendly atmosphere.

KEY FRANCHISE STATS

Franchisees

?

463
+
-23%
-23%
Franchise fee

?

$39,500
Investment

?

$176,000 - $323,000
Revenue (AUV)

?

Undisclosed

$247,000

+
11.9%
11.9%

Cost Cutters Family Hair Care has long been a preferred destination for haircare services, renowned for its decades-long presence in the industry. Established in 1982 with its headquarters in Minneapolis, Minnesota, the franchise has grown to become a respected name in the haircare sector. 

Shortly after its founding, Cost Cutters began franchising, allowing entrepreneurs to join a brand celebrated for its high-quality services. Customers visiting Cost Cutters Family Hair Care can enjoy a variety of hair services, including haircuts, styling, coloring, and more, all performed by skilled and seasoned hairstylists. 

What differentiates Cost Cutters from other haircare providers is its dedication to making professional haircare both affordable and accessible to families. They focus on delivering top-notch services at budget-friendly prices, making it a popular choice for consumers mindful of their spending.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $39,500
Leasehold Improvements $60,000 - $120,000
Furniture, Equipment and Supplies $25,000 - $50,000
Construction Management Services Fee $5,500 - $7,500
Construction and Design Plan Review $500 - $1,000
Post Build Review $1,500 - $3,000
Computer Software (Point of Sale System) $2,040 ($170 per month)
Computer Hardware/Installation and Onsite Training $400 - $2,000
Opening Inventory $5,000 - $10,000
Travel and Living Expenses during Orientation Training $2,050 - $4,500
Rent and Security Deposit $2,500 - $9,600
Grand Opening Advertising $5,000
Signs $6,000 - $12,000
Professional Fees $6,000 - $12,000
Additional Funds – 3-6 Months $15,000 - $45,000
Total $175,990 - $323,140

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Type of Expenditure Amount
Initial Franchise Fee $39,500
Leasehold Improvements $60,000 - $120,000
Furniture, Equipment and Supplies $25,000 - $50,000
Construction Management Services Fee $5,500 - $7,500
Construction and Design Plan Review $500 - $1,000
Post Build Review $1,500 - $3,000
Computer Software (Point of Sale System) $2,040 ($170 per month)
Computer Hardware/Installation and Onsite Training $400 - $2,000
Opening Inventory $5,000 - $10,000
Travel and Living Expenses during Orientation Training $2,050 - $4,500
Rent and Security Deposit $2,500 - $9,600
Grand Opening Advertising $5,000
Signs $6,000 - $12,000
Professional Fees $6,000 - $12,000
Additional Funds – 3-6 Months $15,000 - $45,000
Total $175,990 - $323,140

Franchise Disclosure Document

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Number of units

Training 

Cost Cutters Family Hair Care offers an extensive training program for its franchisees, encompassing all essential aspects of running a Cost Cutters franchise. The training includes:

Training Program

  • Franchisees, along with their District Managers (if applicable), are required to complete a training program provided by Cost Cutters.
  • The program includes instruction on orientation to the Business System, with topics chosen by Cost Cutters.
  • Training sessions are held in Minneapolis, Minnesota, or at other designated locations, including online platforms.

Ongoing Training

  • Franchisees can request additional training for their employees at any point during the franchise agreement.
  • The cost of additional training may vary depending on the type, location, and duration.
  • Currently available optional training includes Franchise Orientation, Situational Management Training, and Customized Workshops, offered at various regional locations or online.

Territory Protection

The Cost Cutters Family Hair Care franchise agreement implies that while some territorial rights may be offered, these are not explicitly defined as exclusive protections. The agreement places operating restrictions on franchisees, including controls over their business location and operations.

The franchisor reserves the right to compete within the franchisee's territory, and the agreement does not guarantee automatic renewal rights. Post-term non-compete clauses are enforced to protect the interests of the franchisor and existing franchisees. 

Additionally, the franchisor retains authority over lease amendments and property-related decisions. This arrangement suggests some territorial rights but does not provide absolute territory protection as seen in other franchise models.

Competitors

Below are some of

Cost Cutters Family Hair Care

key competitors in the

Hair salon

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
Upgrade
Gross Profit
Upgrade
EBITDA
Upgrade

463

New
+
-23%
-23%

$39,500

$176,000

$323,000

n.a.

$247,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Competitors

Xtension Envy

Xtension Envy is a beauty franchise offering premium hair extension installation, coloring, and styling in salon settings, serving clients seeking fuller, longer hair, and known for membership-driven pricing, high-quality hair, and a focused, extensions-only model that simplifies operations and marketing.

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$323,000 - $584,000
Beauty
Hair salon

Moxie Salon & Beauty Bar

Moxie Salon & Beauty Bar is a salon franchise offering hair and beauty services in a modern, boutique setting, serving fashion-forward adults seeking affordable luxury, and known for bold decor, strong brand identity and full franchisee support.

Franchisees

?

20
+
43%
43%
Investment

?

$226,000 - $464,000
Beauty
Hair salon

Dessange

Dessange is a beauty-service franchise offering upscale hair, beauty and spa treatments, serving style-conscious clients, and known for premium ambiance, brand heritage and standardized franchise operations.

Franchisees

?

2
+
0%
0%
Investment

?

$444,000 - $1,068,000
Beauty
Hair salon

Knockouts

Knockouts offers a unique sports-themed grooming experience for men, combining haircuts, shaves, and relaxation in a comfortable environment.

Franchisees

?

51
+
11%
11%
Investment

?

$245,000 - $388,000
Beauty
Hair salon

Scissors & Scotch Barbershop

Scissors & Scotch Barbershop offers grooming services for men, combining classic barbering with modern amenities and providing a full-service bar for relaxation.

Franchisees

?

16
+
23%
23%
Investment

?

$631,000 - $845,000

Lemon Tree Hair Salons

Lemon Tree Hair Salons is a family-focused hair salon franchise. Franchisees receive comprehensive training, marketing assistance, and ongoing support to run a successful salon business.

Franchisees

?

34
+
3%
3%
Investment

?

$179,000 - $271,000
Beauty
Hair salon

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