Cost Cutters Franchise
Cost Cutters strives to offer people a way to get quality haircuts in a fraction of the time and for a fraction of the cost of a standard haircut.
$250,000
$39,500
463
1982
Minneapolis,MN
Hugh E. Sawyer, III
About Cost Cutters
Cost Cutters is a hair salon that was born from the desire to give people what they want most: a quality salon service for a fraction of the time and at a fraction of the cost of traditional salon services. When individuals choose Cost Cutters, they know they will be in and out within a half-hour and looking good when they leave. The company has achieved its goal, which is why it is now a household name. Cost Cutters operates in only the most convenient locations, thereby making the brand even more appealing to busy families and single individuals alike.
Cost Cutters employs expertly trained stylists who can provide current hairstyles at an affordable price. One of the selling points of Cost Cutters is that the stores do not require appointments.
Franchise Unit Trends & Revenue
463
2
$263,638
* in 2024
Franchise Fees
$39,500
4.0% - 6.0%
Gross Revenue
4.0%
Gross Revenue
Why Choose Cost Cutters?
Though the hair care industry is one that individuals rarely consider when they think about franchising, data proves that this niche of the retail industry performs better than any other. This is due to several factors. For one, the industry is and always will be relevant no matter the community and no matter the economic climate in an area. Two, haircare is a service that is best performed by a professional and is therefore not something most people attempt to do themselves. Three, the industry is not affected by technological advancements, as so many industries are. Finally, the industry utilizes non-perishable tools, the service cannot be outsourced and, at the end of the day, it strives to help people look and feel better about themselves.
That said, franchising a salon is a good idea. An even better idea is to franchise under a brand with proven systems and a long track record of success, such as Cost Cutters.
Starting Costs & Investment Requirements
$146,430 - $314,200
$1,000,000
$250,000
Training & Support
The franchisee, and if one exists, the designated District Manager, must attend the Franchise Orientation Training Program at Cost Cutters' offices in Minneapolis, Minnesota. The program entails four days of classroom instruction. Once complete, another three days of on-site training is required. The training must be complete 30 days before opening the Cost Cutters location.
History
Joe Francis's story is one that epitomizes the American Dream. In 1957, Joe Francis and his wife Flo opened a one-chair shop in West St. Paul, Minnesota. Despite his salon having only one chair, Joe attracted success, which many attribute to his is self-confidence, positive outlook and, of course, his skill. Joe was truly a master at his craft, winning several hair competitions worldwide. He was particularly proficient at the Razor Cut. However, not content with doing things as they've always been done, Joe developed a new technique and salon concept of his own. In 1963, he introduced The Barbers Hairstyling for Men – the first full service salon for men that offered manicures, facials and his new razor technique.
Joe and Flo put everything on the line when they developed The Barbers Hairstyling for Men, the first hair franchise the world had seen. In fact, they didn't even have the capital to open their first shop, so they gathered up their savings, used their credit cards, and pulled out bank loans to bring their new salon concept to life. Fortunately for them, their gamble paid off big time. In 1968, The Barbers, Inc. became a publicly-traded corporation. By 1980, the brand had over 1,000 franchise stores that employed more than 24,000 stylists and workers worldwide.
In the early 1980s, Joe and Flo had the idea to create a salon in which individuals could get a no-frills haircut in a clean and family friendly environment for just $6. It was then that Cost Cutters was born.
After Joe died in 1994, Flo took over the company. In 1999, The Barbers franchise system joined forces with Regis Corporation. Today, the corporation is the largest owner, operator and franchisor of hair salons in the world.
Ideal Candidate
The ideal Cost Cutters franchisee is someone who enjoys working with people, has the capital necessary to become a franchisee, is financially stable, has a drive for success and who is willing to follow proven systems. The ideal candidate does NOT need experience in the salon business. Rather, the company appreciates individuals who have business management experience and people skills.
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