COST CUTTERS
Cost Cutters provides value-priced, family-oriented hair care services including haircutting, hairstyling, shampooing, conditioning, and other related services for men, women, and children, along with sales of hair care products and merchandise. Some Cost Cutters salons operate inside Walmart stores and Supercenters, following a business model focused on affordable, high-quality hair care through franchised locations. The target market is the general public seeking convenient, budget-friendly salon services.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
4% royalty first 52 weeks then 5% (min $100/wk) + 2-2.5% ad fund + $170/mo POS software + $10/mo gift card + up to $42/mo electronic comm.
Franchise Stats
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
How COST CUTTERS Compares to Other Personal Care Services Franchises
Key Insights
- #1 largest franchise system in Personal Care Services
- One of the lowest SBA loan default rates in Personal Care Services
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
COST CUTTERS Current | $184K - $336K | $40K | 5.0% | 911 |
| COMFORT KEEPERS | $120K - $191K | $55K | 5.0% | 619 |
| PALM BEACH TAN | $639K - $1.0M | $30K | 6.0% | 398 |
| HOUSE OF COLOUR | $33K - $52K | $30K | 4.0% | 312 |
| DRYBAR | $410K - $1.0M | $50K | 7.0% | 176 |
| WAXING THE CITY | $311K - $646K | $43K | 6.0% | 166 |
Personal Care Services Average 20 franchises | $416K - $816K | $43K | 5.9% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 20 Personal Care Services franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2025)
Outlets by state across the United States
+34 more states
SBA Loan History
Historical SBA 7(a) loan data for COST CUTTERS franchisees (2015 - 2020)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
Primarily collections actions by franchisor (Supercuts, affiliates) against franchisees for unpaid royalties, advertising fees, and rent, with franchisee counterclaims alleging violations of state franchise acts (Virginia Franchising Act, Minnesota Franchise Act), fraud, negligent misrepresentation, and breach of contract/support obligations. Includes SmartStyle and Pro-Cuts franchisee claims of sales misrepresentations and illegal financial performance representations. Most settled with payments to franchisees; one resulted in arbitration award to franchisee.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a COST CUTTERS franchise?
The total initial investment to open a COST CUTTERS franchise ranges from $184,440 to $336,340. This includes a franchise fee of $39,500. Ongoing royalty fees are 5.0% of gross sales.
How many COST CUTTERS franchise locations are there?
As of the 2025 FDD, COST CUTTERS has 911 franchise locations. The company has been franchising since 1982.
Can you get an SBA loan for a COST CUTTERS franchise?
Yes, SBA loans are available for COST CUTTERS franchises. Historical data shows 10 SBA 7(a) loans have been approved for COST CUTTERS franchisees, with an average loan amount of $589,750. The historical default rate is 0.0%.
Is COST CUTTERS a good franchise to buy?
COST CUTTERS shows several positive indicators: established brand with 911+ locations, low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
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