1982
600
$150,000
$39,500
$323,140
No
Cost Cutters Family Hair Care is a renowned franchise in the personal care industry, offering affordable and convenient hair salon services for the entire family. With over four decades of experience, Cost Cutters has established itself as a trusted brand, providing quality haircuts without the need for appointments. Operating under the Regis Corporation umbrella, Cost Cutters combines industry expertise with a customer-centric approach, making it an attractive investment opportunity for aspiring entrepreneurs.
Proven Business Model: Cost Cutters offers a streamlined salon experience with trained stylists providing quick services, catering to busy families and individuals seeking quality haircuts at affordable prices.
Strong Brand Recognition: As part of the Regis Corporation, Cost Cutters benefits from a well-established brand presence and marketing support, enhancing visibility and customer trust.
Scalability: With over 600 units across the United States, Cost Cutters presents opportunities for multi-unit ownership, allowing franchisees to expand their business portfolio.
Comprehensive Support: Franchisees receive extensive training and ongoing support in areas such as site selection, salon setup, operations, and marketing, ensuring a smooth business launch and sustained growth.
Established Year: 1982
Franchise Units: Over 600 locations across the United States
Founders: Founded by Francis in 1982, Cost Cutters began with twelve centers in its first year. By 1988, the 300th salon opened, marking significant growth.
Ownership: Cost Cutters is owned by Regis Corporation, a Minneapolis-based company that also franchises other hair salon brands, including Supercuts, Pro-Cuts, Magicuts, and First Choice Haircutters.
Market Presence: Cost Cutters has a strong presence in the U.S. market, catering to a diverse customer base seeking affordable and quality hair care services.
Industry Category: Personal-Care Businesses – Hair Care
Site Selection Assistance: The franchisor helps identify optimal locations based on demographics, foot traffic, and market demand to maximize the potential for success.
Lease Negotiation Guidance: Cost Cutters provides guidance on negotiating lease terms and costs to ensure favorable agreements.
Salon Design & Setup: Assistance in planning the layout, selecting equipment, and designing a welcoming salon environment that aligns with brand standards.
Grand Opening Planning: Support with opening day events, marketing materials, and promotions to attract initial customers.
Hands-On Salon Training: Franchisees and their key staff receive practical training in haircutting, styling, customer service, and day-to-day salon operations.
Management & Business Training: Instruction on managing finances, scheduling staff, inventory management, and maintaining operational efficiency.
Point-of-Sale & Software Training: Guidance on using POS systems and software to track sales, manage appointments, and run reports.
National Marketing Programs: Access to corporate advertising campaigns, promotions, and brand awareness initiatives.
Local Marketing Assistance: Guidance on local advertising, social media campaigns, and community outreach strategies.
Branding Materials: Franchisees receive templates for signage, print materials, and digital assets that maintain brand consistency.
Operational Support: Regular check-ins from franchisor representatives to ensure business runs smoothly and efficiently.
Performance Reviews: Periodic assessments of business performance with recommendations for improvements.
Industry Updates: Updates on trends, techniques, and services to stay competitive and enhance customer satisfaction.
Continuing Education: Optional workshops, webinars, and training sessions for franchisees and staff to improve skills and grow the business.
The ideal franchisee is someone who wants to own and operate their own business while benefiting from an established brand and proven business model.
Must be self-motivated, goal-oriented, and willing to follow a structured system provided by the franchisor.
Cost Cutters is a family-focused hair salon, so franchisees should have a genuine interest in delivering quality customer experiences.
Ability to create a welcoming environment for walk-in clients and families is essential.
Franchisees should ideally have some background in business, management, or operations.
Skills in team management, scheduling, and financial oversight help in running the salon efficiently.
Prior experience in the personal care or service industry is a plus but not mandatory because comprehensive training is provided.
Must have the financial resources to cover the initial investment, which includes franchise fees, salon setup costs, and working capital.
Comfortable managing budgets, cash flow, and operational costs for sustained growth.
Ability to hire, train, and manage a team of stylists and support staff.
Strong interpersonal skills to foster a positive workplace culture and handle customer interactions effectively.
Ideally, franchisees are located in communities with high foot traffic and family demographics.
Open to multi-unit ownership opportunities for expanding presence within the local market.
Franchisees must be willing to adhere to Cost Cutters’ operational guidelines, service protocols, and brand standards.
Committed to continuous improvement and leveraging franchisor support for growth.
| Category | Details / Range |
|---|---|
| Total Investment Required | $175,990 – $323,140 |
| Minimum Investment Required | $150,000 |
| Franchise Fee | $39,500 |
| Franchise Units (USA) | Over 600 |
| Infrastructure / Leasehold Improvements | $60,000 – $120,000 |
| Marketing / Grand Opening Budget | $5,000 – $10,000 |
| Working Capital (3–6 months) | $15,000 – $45,000 |
| Royalty Fee | 4% – 6% of gross revenue |
| Advertising Fund Fee | 4% of gross revenue |
| Expected ROI | High potential due to established brand and low investment |
| Break-Even Time | 1 – 2 years (location-dependent) |
| Potential Revenue Streams | Haircuts, coloring services, retail product sales, promotional packages |
