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LAST UPDATED: March 2023FRANCHISE WEBSITE:&nbsp;<a href="https://www.regiscorp.com/franchise-opportunities?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">https://www.regiscorp.com/franchise-opportunities</a>NUMBER OF LOCATIONS:&nbsp;740-plusREPORTED COST TO GET IN:&nbsp;$150,466–$308,558REPORTED ROI (Item 19):&nbsp;$233,076<a href="https://www.regiscorp.com/franchise-opportunities?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">Cost Cutters</a>, one of four personal care concepts under the&nbsp;<a href="https://www.regiscorp.com/franchise-overview?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">Regis Corporation</a> umbrella, is a hair salon concept that is built on “a universal desire: to get more, pay less and save time.” Founded in 1982, Cost Cutters grew from Joe Francis’ The Barbers Hairstyling for Men salon, which was opened in Minnesota in 1963. As Francis expanded his offerings to include women’s hair services, and later family services, the concept grew to be the franchised brand Cost Cutters.Now, the concept is among a range of affordable hair salon franchise concepts, such as&nbsp;<a href="https://sportclipsfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">Sport Clips</a>,&nbsp;<a href="https://www.regiscorp.com/franchise-overview?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">Supercuts</a> and&nbsp;<a href="https://www.greatclipsfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">Great Clips</a>, that offer business owners a lucrative investment opportunity.&nbsp;How Many Cost Cutters Locations Are There?According to the Regis Corporation’s&nbsp;<a href="https://www.regiscorp.com/franchise-opportunities?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">website</a>, there are over 740 Cost Cutters locations. However,&nbsp;<a href="https://www.franchisechatter.com/2023/02/01/fdd-talk-cost-cutters-franchise-costs-fees-average-revenues-and-or-profits-2023-review/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">FranchiseChatter</a> claims to have reviewed the brand’s 2022 Franchise Disclosure Document (FDD) and reports 604 franchised locations and one company-owned location at the end of 2021.After a climb in unit count from 2019 to 2020,&nbsp;<a href="https://www.entrepreneur.com/franchises/costcuttersfamilyhaircare/282245?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">Entrepreneur</a> reflects a steady decline in the brand’s presence over the course of the past three years. Though the industry was seemingly hit quite hard by the pandemic, and some concepts have yet to make a turnaround, larger&nbsp;<a href="https://www.bls.gov/opub/btn/volume-11/recovering-from-the-pandemic-a-bright-outlook-for-the-personal-care-service-industry.htm?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">industry trends</a> are looking up. With its affordable initial investment and strong capability to secure a return for business owners, Cost Cutters seemingly has great potential to turn things around and begin to rebuild the system in the coming years.What Is the Cost Cutters Business Model?The Cost Cutters model hinges entirely on the premise that consumers are looking for a great experience at a low cost. The concept employs professional stylists who use elevated product lines to offer a great experience to customers, regardless of their budget or time crunch.By providing hair cut, color, styling and treatments for men, women and children, as well as waxing and a retail selection, each store packs a punch. Cost Cutters owners are prepared to secure business from a range of clientele instead of narrowing the offerings in a way that eliminates a broad scope of potential customers.How Much Can Cost Cutters Franchise Owners Make?The financial representations provided in Cost Cutters’ 2022 FDD were determined based on reports of the fiscal period from July 1, 2021 to June 30, 2022. The calculations account for franchised locations that conducted business in all 12 months.A total of 573 locations reported average sales of $233,076. However, over 42% — 244 — locations exceeded this amount. The highest reported sales number among the included locations was $1,107,117, and the lowest was $16,092.It is important to note that all Cost Cutters locations offer essentially the same services, so discrepancies in revenues cannot reasonably be attributed to a limited set of client offerings. Further, all of the reported sales, though accurate, represent gross income. Owners still need to account for costs of doing business to determine net profit.How Much Does It Cost to Open a Cost Cutters?The estimated initial investment to open a Cost Cutters business is $150,466–$308,558. This total includes the following costs:<ul><li>Initial Franchise Fee: $12,500–$39,500</li><li>Leasehold Improvements: $60,000–$120,000</li><li>Furniture, Equipment and Supplies: $25,000–$50,000</li><li>Construction Management Services Fee: $5,500–$7,500</li><li>Construction and Design Plan Review: $500–$1,000</li><li>Post Build Review: $1,500–$3,000</li><li>Computer Software (POS System): $2,040</li><li>Computer Hardware—Installation and On Site Training: $1,876–$2,418</li><li>Opening Inventory: $5,000–$10,000</li><li>Travel and Living Expenses for Orientation Training: $2,050–$4,500</li><li>Security Deposit and Rent: $2,500–$9,600</li><li>Grand Opening Advertising: $5,000</li><li>Signage: $6,000–$12,000</li><li>Professional Fees: $6,000–$12,000</li><li>Additional Funds: $15,000–$30,000</li></ul>Cost Cutters also assesses ongoing fees, including an advertising fee of 4% of gross revenues and a weekly fee. For weeks one through 52, franchise owners will pay 4% of gross revenues. For weeks 53 and on, franchise owners will pay either 6% of gross revenues or $100 per week, whichever is greater.What Is the Franchise Fee for Cost Cutters?FranchiseChatter lists Cost Cutters’ franchise fee as $12,500–$39,500, though it does not clarify which circumstances may reduce the initial fee. Across other franchise publications, a strict $39,500 fee is widely accepted.Who Is the Leadership of Cost Cutters?<ul><li><a href="https://www.linkedin.com/in/matthew-d-1a06ba13/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">Matthew Doctor—President and CEO</a></li><li><a href="https://www.linkedin.com/in/jim-lain-7947942/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">Jim Lain—Executive Vice President and Chief Operating Officer</a></li><li><a href="https://www.linkedin.com/in/kersten-zupfer-cpa-inactive-950b762/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">Kersten Zupfer—Executive Vice President and Chief Financial Officer</a></li><li><a href="https://www.linkedin.com/in/johndavi/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">John Davi—Executive Vice President and Chief Digital Officer</a></li><li><a href="https://www.linkedin.com/in/michael-ferranti/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">Michael Ferranti—Executive Vice President and Chief People Officer</a></li><li><a href="https://www.linkedin.com/in/andra-terrell-62376b6/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">Andra Terrell—Senior Vice President and General Counsel</a></li><li><a href="https://www.linkedin.com/in/jamie-suarez/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">Jamie SuarezSenior Vice President and Merchandising &amp; Education</a></li><li><a href="https://www.linkedin.com/in/michellestlawrence/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">Michelle DeVore—Senior Vice President and Head of Marketing</a></li></ul>What Helpful Articles Can I Read to Learn More About Cost Cutters?<ul><li><a href="https://www.entrepreneur.com/franchises/costcuttersfamilyhaircare/282245?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">Start a Cost Cutters Family Hair Care Franchise in 2023</a></li><li><a href="https://1851franchise.com/5-hair-care-franchises-we-love-2717982#stories">5 Hair Care Franchises We Love</a></li><li><a href="https://www.regiscorp.com/franchise-business-and-support?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">Franchise Business and Support — Regis</a></li><li><a href="https://educatedfranchisee.com/thinking-of-buying-a-cost-cutters-franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-cost-cutters-franchise-costs-fees-profit-and-data-2721786" target="_blank" rel="nofollow">Thinking of Buying a Cost Cutters Franchise?</a></li></ul>Disclaimer: This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.&nbsp;All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

Franchise Deep Dive: Cost Cutters Franchise Costs, Fees, Profit and Data

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Franchise Deep Dive: Cost Cutters Franchise Costs, Fees, Profit and Data

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