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.
Franchise Costs
5% continuing fee (4% first 52 weeks) + 2-2.5% advertising + $170/mo POS software + $10/mo gift card fee
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
Key Insights
- #1 largest franchise system in Personal Care Services
- One of the lowest SBA loan default rates in Personal Care Services
| Franchise | Investment | 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
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
392 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
392 Contacts Available
Unlock all COST CUTTERS franchisee contacts with verified contact information
Due Diligence
Litigation (Item 3)
Primarily collections actions by franchisor/affiliates against franchisees (Supercuts, Smartstyle, Pro-Cuts) for past-due royalties, advertising contributions, and rent, coupled with franchisee counterclaims alleging violations of state franchise acts (Virginia, Minnesota), fraud, negligent misrepresentation, and breach of contract related to franchise sales and support. Most cases settled with payments to franchisees; one resulted in arbitration award to franchisee.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
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.
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