Established
1982
Franchise Units
600
Minimum Investment
$150,000
Franchise Fee
$39,500
Total Investment Range
$323,140
Home Based
No
Description
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.
Why Invest in this Franchise?
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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.
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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.
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Scalability: With over 600 units across the United States, Cost Cutters presents opportunities for multi-unit ownership, allowing franchisees to expand their business portfolio.
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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.
Background
Established Year: 1982
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Franchise Units: Over 600 locations across the United States
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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.
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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.
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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.
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Industry Category: Personal-Care Businesses – Hair Care
Support Training
1. Pre-Launch Support
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Site Selection Assistance: The franchisor helps identify optimal locations based on demographics, foot traffic, and market demand to maximize the potential for success.
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Lease Negotiation Guidance: Cost Cutters provides guidance on negotiating lease terms and costs to ensure favorable agreements.
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Salon Design & Setup: Assistance in planning the layout, selecting equipment, and designing a welcoming salon environment that aligns with brand standards.
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Grand Opening Planning: Support with opening day events, marketing materials, and promotions to attract initial customers.
2. Operational Training
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Hands-On Salon Training: Franchisees and their key staff receive practical training in haircutting, styling, customer service, and day-to-day salon operations.
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Management & Business Training: Instruction on managing finances, scheduling staff, inventory management, and maintaining operational efficiency.
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Point-of-Sale & Software Training: Guidance on using POS systems and software to track sales, manage appointments, and run reports.
3. Marketing Support
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National Marketing Programs: Access to corporate advertising campaigns, promotions, and brand awareness initiatives.
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Local Marketing Assistance: Guidance on local advertising, social media campaigns, and community outreach strategies.
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Branding Materials: Franchisees receive templates for signage, print materials, and digital assets that maintain brand consistency.
4. Ongoing Support
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Operational Support: Regular check-ins from franchisor representatives to ensure business runs smoothly and efficiently.
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Performance Reviews: Periodic assessments of business performance with recommendations for improvements.
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Industry Updates: Updates on trends, techniques, and services to stay competitive and enhance customer satisfaction.
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Continuing Education: Optional workshops, webinars, and training sessions for franchisees and staff to improve skills and grow the business.
Ideal Candidate
1. Entrepreneurial Spirit
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The ideal franchisee is someone who wants to own and operate their own business while benefiting from an established brand and proven business model.
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Must be self-motivated, goal-oriented, and willing to follow a structured system provided by the franchisor.
2. Passion for Customer Service
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Cost Cutters is a family-focused hair salon, so franchisees should have a genuine interest in delivering quality customer experiences.
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Ability to create a welcoming environment for walk-in clients and families is essential.
3. Business & Management Skills
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Franchisees should ideally have some background in business, management, or operations.
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Skills in team management, scheduling, and financial oversight help in running the salon efficiently.
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Prior experience in the personal care or service industry is a plus but not mandatory because comprehensive training is provided.
4. Investment Capability
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Must have the financial resources to cover the initial investment, which includes franchise fees, salon setup costs, and working capital.
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Comfortable managing budgets, cash flow, and operational costs for sustained growth.
5. Leadership & People Skills
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Ability to hire, train, and manage a team of stylists and support staff.
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Strong interpersonal skills to foster a positive workplace culture and handle customer interactions effectively.
6. Location Preference
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Ideally, franchisees are located in communities with high foot traffic and family demographics.
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Open to multi-unit ownership opportunities for expanding presence within the local market.
7. Commitment to Brand Standards
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Franchisees must be willing to adhere to Cost Cutters’ operational guidelines, service protocols, and brand standards.
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Committed to continuous improvement and leveraging franchisor support for growth.
Financial Detail
| 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 |