Cost Cutters Family Hair Salon
Regis Corporation
Company Information
3701 Wayzata Boulevard, Suite 600
The franchisor is The Barbers, Hairstyling for Men & Women, Inc., a Minnesota corporation, which began franchising the Cost Cutters® system in 1982, and is a wholly-owned subsidiary of Regis Corporation.
A standard Cost Cutters Business generally contains eight or more hairstyling stations and can be located in most market areas, offering value priced hair care products and services to men, women and children, with each hair care service offered at a separate price. If qualified, you may enter into a Development Agreement, which gives you the non-exclusive options to open multiple Cost Cutters Businesses within a Designated Market Area within a specified period oftime. If qualified, franchisees existing prior to September 30, 2011 may enter into a development agreement for the non-exclusive rights to open an agreed number of Cost Cutters Businesses in a designated geographical area called a “Designated Market Area.” Under this arrangement, you must develop an agreed number of Cost Cutters Businesses in the Designated Market Area within a mutually agreed upon period of time, depending upon the population of the area and its market potential. COST CUTTERS began offering Development Agreements in December 1984 and offered Multi-Unit Option Agreements from 2011 to 2013.
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Franchise Rating
Franchimp Summary Rating
8/10
Earning Transparency
7/10
Investment Accessibility
9/10
Summary of potential earnings
$212,216 / unit
Average Revenue During 2021Beauty related services
Franchise System Development
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Distribution of Cost Cutters Family Hair Salon Franchisee
Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $41,500 Maximum: $43,500
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $180,990 Maximum: $342,340
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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