Cost Cutters Family Hair Care

Founded: 1982 Franchising since: 1982
In 1963, Joe Francis opened the first The Barbers Hairstyling for Men salon in Minnesota. Five years later, the salons began styling women's hair.

In 1982, Francis diversified even more, founding family salon Cost Cutters. Twelve Cost Cutters centers opened that first year, and six years later, the 300th salon opened. Today, Cost Cutters is owned by Regis Corporation, a Minneapolis-based company that also franchises a host of other hair salons, including City Looks, Supercuts, Pro-Cuts, Magicuts and First Choice Haircutters.

7201 Metro Blvd. Minneapolis, Minnesota 55439

Phone: (888)888-7008/ (952)947-7777

Franchisor has 1000 employee(s); 150 employee(s) in franchise department.

Franchise Growth

Year	U.S. Franchises	Canadian Franchises	Foreign Franchises	Company Owned
2009	477	0	0	367
2008	489	0	0	368
2007	583	0	0	294
2006	606	0	0	260
2005	630	0	0	233

Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North carolina, North dakota, New hampshire, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Pennsylvania, Rhode island, South carolina, South dakota, Tennessee, Texas, Utah, Virginia, Vermont, Washington, Wisconsin, West virginia, Wyoming

Exclusive territories available.
Territory size: Market specific

Total investment: $94.5K-210.3K Franchise fee: $22.5K

Ongoing royalty fee: 6% Term of agreement: 15 years, renewable

Type of Financing Available

	In-House	Third Party
Franchise Fee	No	Yes
Startup Costs	No	Yes
Equipment	No	Yes
Inventory	No	No
Accounts Receivable	No	No
Payroll	No	No

Qualifications
Net worth requirement: $300K
Cash liquidity requirement: $100K
Business Experience:

• General business experience
• Marketing skills
• Retail/service industry experience useful

Operations

• 65% of all franchisees own more than one unit
• Number of employees needed to run franchised unit: 6 - 8
• Absentee ownership of franchise is allowed. (24% of current franchisees are owner/operators)

Training

• Available at headquarters: 4 days
• At franchisee's location: 5 days
• As needed

Ongoing Support

• Meetings
• Toll-free phone line
• Grand opening
• Internet
• Security/safety procedures
• Field operations/evaluations

Marketing Support

• Ad slicks
• Regional advertising

Franchise 500® rank:
#111 (2009); #89 (2008); #113 (2007); #71 (2006); #65 (2005);