At a Glance
Products & Services: Family hair salon
Number of Locations: 704
Total Investment: $88.5K - $182.1K
Began Franchising: 1982
About Cost Cutters Family Hair CareIn 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.
Startup Costs, Ongoing Fees and Financing
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 RequirementsNet Worth: $500,000
Liquid Cash Available: $150,000
Operations65% 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).
|Financing Type||In-House||Third Party|