Cost Cutters Family Hair Care Franchise FDD, Profits & Costs (2025)
Cost Cutters Family Hair Care has established itself as a trusted name in the haircare industry, building a strong reputation over the years. Since its inception in 1982, the brand has been headquartered in Minneapolis, Minnesota, and has expanded significantly through franchising.
Not long after its launch, Cost Cutters opened franchising opportunities, giving entrepreneurs a chance to be part of a well-recognized brand known for delivering quality haircare services. Customers can visit Cost Cutters salons for a range of services, including haircuts, styling, coloring, and more—each performed by experienced professionals.
What sets Cost Cutters apart from other salons is its commitment to providing expert haircare at prices that remain accessible to families. With a focus on affordability without compromising quality, the brand continues to be a go-to choice for cost-conscious consumers.
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Initial Investment
How much does it cost to start a Cost Cutters Family Hair Care franchise? It costs on average between $176,000 – $323,000 to start a Cost Cutters Family Hair Care franchised business.
This includes expenses for salon build-out, equipment, initial inventory, and early operational costs. The total investment varies based on multiple factors, such as the salon’s location, size, and whether the franchisee opts to lease or buy the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $39,500 – $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/month) |
| Computer Hardware/Installation and Onsite Training | $400 – $2,000 |
| Opening Inventory | $5,000 – $10,000 |
| Travel and Living Expenses during 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 |
Average Revenue (AUV)
How much revenue can you make with a Cost Cutters Family Hair Care franchise? A Cost Cutters Family Hair Care franchised studio makes on average $247,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $343,000 yearly revenue for similar hair salon franchises. Below are a few Cost Cutters Family Hair Care competitors as a comparison:
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Cost Cutters Family Hair Care Franchise Disclosure Document
Frequently Asked Questions
How many Cost Cutters Family Hair Care locations are there?
As of the latest data, Cost Cutters Family Hair Care operates a total of 463 locations, all of which are franchised. There are no company-owned units, making the brand entirely franchise-driven.
What is the total investment required to open a Cost Cutters Family Hair Care franchise?
The total investment required to open a Cost Cutters Family Hair Care franchise ranges from $176,000 to $323,000.
What are the ongoing fees for a Cost Cutters Family Hair Care franchise?
As a Cost Cutters Family Hair Care franchisee, you are required to pay an ongoing royalty fee of 6% of your gross revenues, which grants you continued access to the brand’s established systems and support.
Additionally, there is a 4% advertising royalty fee, contributing to national and regional marketing efforts designed to promote the brand and drive customer traffic to your salon. These fees are typically collected on a weekly basis.
What are the financial requirements to become a Cost Cutters Family Hair Care franchisee?
To qualify as a Cost Cutters Family Hair Care franchisee, you need a minimum net worth between $1,000,000 and $1,200,000, with liquid capital ranging from $250,000 to $350,000. These financial requirements ensure that franchisees have the necessary resources to support the initial investment and ongoing operations of the salon.
How much can a Cost Cutters Family Hair Care franchise owner expect to earn?
The average gross sales for a Cost Cutters Family Hair Care franchise are approximately $0.25 million per location. Assuming a 15% operating profit margin, $0.25 million yearly revenue can result in $38,000 EBITDA annually.
Who owns Cost Cutters Family Hair Care?
Cost Cutters Family Hair Care is owned by Regis Corporation, a Minneapolis-based company that also franchises other hair salon brands, including Supercuts, Pro-Cuts, and City Looks.
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