Quick Verdict · who it fits
Cost Cutters fits first-time franchise buyers looking for a mid-scale wellness concept.
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$181K - $342K
Franchise fee (Item 5)
$40K
Royalty (Item 6)
4–6% + 4% ad
Item 19 median rev
$261k all franchised units
System size (Item 20)
329
Years in business
58+ yrs
Company-owned units
76
Item 3 litigation
2 suits
Model Cost Cutters's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
•No exclusive territory✓Semi-absentee eligible✓No bankruptcy disclosed•2 Item 3 cases
Data extracted from the 2025 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
Drag to your projected annual sales. Royalty 4–6% + ad fund 4% on gross sales.
PROJECTED ANNUAL SALES$260,000
$100k$2M
Royalty (4–6%)
—
Ad fund (4%)
—
Total / year
—
▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
Free AI summary — the first read on the filing.
405
Total units open
329 franchised + 76 company-owned as of June 30, 2025
0 franchised units opened
Units opened last year
41 franchised terminations, 12 non-renewals, 81 reacquired by franchisor
Units closed last year
-134 franchised units (from 463 to
Net unit growth
What our analysis flagged across the 2025 filing.
5
Risks to review
3
Strengths identified
4
Questions to ask
How Cost Cutters ranks against 89 Health & Beauty peers we've analyzed.
Initial investment
21st pct · of 89 peers
Franchise fee
17th pct · of 89 peers
System size
82nd pct · of 89 peers
Health & Beauty industry averages
Avg investment
$374K - $727K
Avg franchise fee
$48K
Avg system size
268
Franchises analyzed
89
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| Cost Cutters | Disclosed | $40K | $181K - $342K | 4–6% | 329 |
| The Barbers, Hairstyling for Men Women, Inc.(smartstyle)Similar price | None | $40K | $184K - $336K | — | 911 |
| Great ClipsBiggest system | Disclosed | $20K | $188K - $420K | 6% | 4,441 |
| MiniluxeTop-rated in category | Disclosed | $50K | $558K - $990K | 6% | 2 |
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Free explainers to go deeper before you sign.
Cost Cutters requires a $39,500 initial franchise fee and a total initial investment range of $180,990–$342,340, per the most recent FDD on file.
Cost Cutters is franchised by THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC., the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the franchisor's corporate history, parents, and predecessors.
Yes. Cost Cutters discloses Item 19 financial performance representations with reported revenue around $260,529. See the financials sub-page for the full distribution.
Franchisees pay a royalty of 4.0% to 6.0% and an advertising fund contribution of 4% of Gross Revenues on gross sales as defined in Item 6 of the FDD.
As of their 2025 FDD, Cost Cutters has 329 total locations. This information comes from Item 20 of the FDD.
No. Cost Cutters does not grant exclusive territory rights under Item 12. The franchisor retains the right to operate or grant additional units inside or adjacent to your trade area.
This page is part of VetMyFranchise. View all pages: llms.txt · llms-full.txt