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Cost Cutters Family Hair Care

2014 Franchise 500
#125
At a Glance

Products & Services: Family hair salon

Number of Locations: 704

Total Investment: $88.5K - $182.1K

Founded: 1982

Began Franchising: 1982

About Cost Cutters Family Hair Care

In 1963, Joe Francis opened the first The Barbers Hairstyling for Men salon in Minnesota. Five years later, the salons began styling women's hair.

In 1982, Francis diversified even more, founding family salon Cost Cutters. Twelve Cost Cutters centers opened that first year, and six years later, the 300th salon opened. Today, Cost Cutters is owned by Regis Corporation, a Minneapolis-based company that also franchises a host of other hair salons, including City Looks, Supercuts, Pro-Cuts, Magicuts and First Choice Haircutters.

Franchise Units

Year U.S. Canadian International Company Owned
2014 413 0 0 291
2013 414 0 0 317
2012 424 0 0 343
2011 429 0 0 355
2010 447 0 0 364
Where Seeking Franchisees: Franchisor is seeking new franchise units throughout the U.S.
Direct Capital

Startup Costs, Ongoing Fees and Financing

Total Investment: $88,500 - $182,100
Franchise Fee: $29,500
Ongoing Royalty Fee: 6%
Term of Franchise Agreement: 15 years, renewable
Veteran Incentives: $2,500 franchise fee rebate on first store
Financial Requirements
Net Worth: $500,000
Liquid Cash Available: $150,000
Operations
65% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 6 - 8. Absentee ownership of franchise is allowed. (24% of current franchisees are owner/operators).
Direct Capital
Financing Type In-House Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

Training: Available at headquarters: 5 days. At franchisee's location: 5 days. As needed
Ongoing Support: Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Lease Negotiation
Marketing Support: Ad slicks, Regional advertising,

Franchise Ranking History

Franchise 500®: #125 (2014), #92 (2013), #104 (2012), #103 (2011), #198 (2010),

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