Signing out of account, Standby...
- 2022 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$178K - $304K
- Units as of 2022
327 15% over 3 years
Here’s what you need to know if you’re interested in opening a First Choice Haircutters franchise.
First Choice Haircutters is a hair salon franchise founded by A. Bud Cowan in 1980. The company specializes in haircuts and hairstyles for both women and men. They also offer deep conditioning treatments, color, and highlights, and other products at affordable prices.
First Choice Haircutters started franchising in 1980 and was later bought by brand management company Regis Corporation. Nowadays, First Choice Haircutters has over 300 franchises in Canada. It is actively seeking to add more franchisees in Canada.
Why You May Want To Start a First Choice Haircutters Franchise
Though you may not need any prior experience as a hairstylist, an ideal franchisee has interest in the industry. Potential franchisees should also be good at dealing with people and their needs. They should have business sense and be customer-service oriented. These qualities may help a franchisee run their business smoothly. First Choice Haircutters understands that, when a franchisee has a better time running their location, it's good for everyone involved.
Another thing to consider is First Choice Haircutters' business model. The company runs its business model on "replenishment." Replenishment refers to the idea that people will always need a particular service. In this case, it's hairstyling services. Believing in the simplicity of this classic approach may help a franchisee better grasp the company's goals while achieving their own.
What Might Make a First Choice Haircutters Franchise a Good Choice?
First Choice Haircutters generally allows franchisees to choose their level of involvement with daily salon operations. So, depending on this involvement, a franchisee could be cutting hair themselves or simply overseeing the back end of the business.
Either way, a franchisee should expect to maintain hair services and product sales, proper hiring procedures, and ensure that employees maintain the brand's high standards.
To be part of the First Choice Haircutters team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
How To Open a First Choice Haircutters Franchise
Before you sign an agreement or begin the franchise process, you should research First Choice Haircutters and compile a list of questions for the corporate franchise team and existing franchisees.
For instance, to start a First Choice Haircutters franchise, the company typically recommends having a minimum of several employees. Are you in an area that would attract these qualified employees? You'll also want to consider how heavily saturated your area is with hair salons. Though some competition is healthy, too much could inhibit the growth of your First Choice Haircutters franchise.
Ultimately, the franchising process begins with you and your due diligence. Corporate support is typically a given, but you must show that you are genuinely interested and ready to work with a prescribed formula.
If awarded a franchise, First Choice Haircutters franchisees may receive support through brand awareness, marketing, research, and construction. Franchisees may also receive hands-on training and continued support after opening their franchise location.
About First Choice Haircutters
- Franchising Since
- 1980 (42 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees in the following international regions: Canada
- # of Units
- 327 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a First Choice Haircutters franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $178,280 - $303,700
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
- $1,000,000 - $1,200,000
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
- $250,000 - $350,000
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- First Choice Haircutters has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- Classroom Training
- 24 hours
- Ongoing Support
NewsletterToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresField Operations
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in franchise ownership like First Choice Haircutters? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where First Choice Haircutters landed on this year’s Franchise 500 Ranking versus previous years.
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