Cost Cutters franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.30 ↗

Franchise fees and ongoing costs

Franchise fee

$12,500 to $39,500 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

6% · % of weekly Gross Revenues: 4% for weeks 1-52 of operation, then 6% of Gross Revenues (or $100/week minimum, whichever is greater) from week 53 through end of term; 6% applies from the start if purchasing an existing company-owned/conversion salon

Marketing contribution

4% (basis not captured; see original filing)

Technology fee

$170/month for required point-of-sale/back-office software (Zenoti), per Item 7; approx. $2,040 first-year cost

Other fees

Modernization: ~$50,000 (inflation-adjusted) every 10 years for remodel; Gift Card ACH settlement fee $10/month per bank account; Electronic Communications Fee up to $500/year

Working capital (FDD Item 7)

$15,000-$45,000 estimated funds needed to cover first 3-6 months of operating expenses (supplies, training fees, payroll, security/utility deposits, prepaid insurance, legal/accounting fees, license fees, uniforms, rent, taxes); excludes any owner draw or salary.

Fees sourceFDD p.25 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.30 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

average, median, max and min annual gross sales (revenue) by performance tier

Reporting period

Fiscal Year 2025 (July 1, 2024 - June 30, 2025)

Sample

323 franchised Cost Cutters salons that reported sales in all 12 months of FY2025 (out of 329 franchised outlets in the system during the period)

Reported average

$279,898

Reported median

$260,529

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.64 ↗

Unit growth: Item 20

Reporting year

2025 (FY ended June 30, 2025)

Scope

franchised outlets

Starting outlets

463

Year-end outlets

329

Net change

-134

Derivation

ending minus starting outlets

Openings

0

Terminations

41

Non-renewals

12

Other closures

0

Reacquisitions

81

Transfers

18

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.65 ↗

SBA loan history

Loan activity

1 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$615,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

1 loans

Historical charge-off share

Suppressed: fewer than 10 seasoned loans

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

0 / 8

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does Cost Cutters franchise cost?

Single Salon Franchise Agreement (new build): $180,990 to $342,340; Development Agreement (3-Salon Fast Start): $210,990 to $372,340 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $12,500 to $39,500 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.30 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Cost Cutters owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: average, median, max and min annual gross sales (revenue) by performance tier. Sample: 323 franchised Cost Cutters salons that reported sales in all 12 months of FY2025 (out of 329 franchised outlets in the system during the period). Period: Fiscal Year 2025 (July 1, 2024 - June 30, 2025).

Item 19 performance sourceFDD p.64 ↗

What's the SBA charge-off rate for Cost Cutters?

Suppressed: fewer than 10 seasoned loans; numerator / denominator: 0 / 8. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $615,000; window: FY2023-FY2026 YTD through 2026-06-30; sample: 1 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗