Cost Cutters Family Hair Care

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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.

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

Franchise Disclosure Document

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Competitors

Below are some of

Cost Cutters Family Hair Care

key competitors in the

Hair salon

sector.

Started franchising
Franchisees

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Franchise fee

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Royalty fee

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Investment

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Revenue (AUV)

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Gross Profit

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EBITDA

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Home-based

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Passive investment

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FDD
Cost Cutters Family Hair Care
1982
463
+
-23%
-23%
$39,500
4% - 6%

$176,000

-

$323,000

n.a.

$247,000

Upgrade

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
2004
51
+
11%
11%
$39,500
6.00%

$245,000

-

$388,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade
2017
16
+
23%
23%
$50,000
4% - 6%

$631,000

-

$845,000

Upgrade

n.a.

$968,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
1976
34
+
3%
3%
$35,000
6.00%

$179,000

-

$271,000

Upgrade

n.a.

$343,000

90.7%

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
Yes
Upgrade
Yes
2013
12
+
33%
33%
$45,000
6.00%

$353,000

-

$620,000

Upgrade

n.a.

$503,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade
2017
27
+
13%
13%
$45,000
7.50%

$337,000

-

$460,000

Upgrade

n.a.

$338,000

58.5%

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
2018
17
+
750%
750%
$45,000
6.00%

$125,000

-

$401,000

Upgrade

n.a.

$293,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade

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$49 / month
Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

?

Franchise Disclosure Documents
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Priority support

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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.

Number of units

2025
Franchised units

604

521

463

Company-owned units

1

0

0

Total units

605

521

463

Competitors

Knockouts

Franchisees

?

51
+
11%
11%
Investment

?

$245,000 - $388,000

Scissors & Scotch Barbershop

Franchisees

?

16
+
23%
23%
Investment

?

$631,000 - $845,000

Lemon Tree Hair Salons

Franchisees

?

34
+
3%
3%
Investment

?

$179,000 - $271,000

Primp and Blow

Franchisees

?

12
+
33%
33%
Investment

?

$353,000 - $620,000

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