Cost Cutters franchise
2025 filing · October 17, 2025Fewer locationsShares sales figures
Cost Cutters at a glance
A value hair salon offering haircuts, color and styling for the whole family. At the end of its 2025 fiscal year there were 405 Cost Cutters locations in the US, 329 franchised and 76 company-owned.
The business
- Industry
- Salon
- Franchisor
- THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC
- The company that sells the franchises
- Franchising since
- 1982
- 43 years of selling franchises
- Typical size
- 800–1,200 sq ft
What you pay
- Cost to open
- $181K–$342K
- Fee, build-out and opening working capital
- Franchise fee
- $39,500
- Single-salon development fee, which covers the franchise rights.
- Royalty
- 4–6%
- 4% of gross revenues for the first 52 weeks, then 6%, paid weekly
- Brand fund
- 1%
- 1% of gross revenue, paid weekly; it can rise to 4%
- Agreement length
- 15 years
- Franchisor financing
- Leases the premises
Where it is
- US locations, 2025
- 405
- Franchised and company-owned
- Franchised
- 329
- Company-owned
- 76
- Change in 3 years
- −275
- Franchised locations, 2023–2025
- States
- 33
- Most in Wisconsin, Ohio and Iowa
From THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC’s 2025 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Cost Cutters among all franchises with the same figure.
| Figure | Cost Cutters | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $261,665 | Costs less than 61% of franchises |
| Franchise feePaid once, when you sign | $39,500 | Lower than 57% of franchises |
| US locationsFranchised and company-owned | 405 | More than 92% of franchises |
| Sales per locationYearly, as the brand reports it | $279,898 | Lower than 90% of brands that share sales figures |
| Sales against cost to openYearly sales over the cost midpoint | 1.1× | Lower than 73% of brands that share sales figures |
How much a Cost Cutters franchise costs
Opening one Cost Cutters costs an estimated $180,990 to $342,340. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements ($60,000 to $120,000) and furniture, equipment and supplies ($25,000 to $50,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $39,500 | ||
| Leasehold Improvements | $60,000 | $120,000 | |
| Furniture, Equipment and Supplies | $25,000 | $50,000 | |
| Construction Management Services Fee | $5,500 | $7,500 | |
| Construction and Design Plan Review | $500 | $1,000 | |
| Post Build Review | $1,500 | $3,000 | |
| Computer Software (Point of Sale System) | $2,040 | ||
| Computer Hardware/Installation and Onsite Training | $400 | $2,000 | |
| Opening Inventory | $5,000 | $10,000 | |
| Travel and Living Expenses during Orientation Training | $2,050 | $4,500 | |
| First and Last Month’s Rent and Security Deposit | $7,500 | $28,800 | |
| Grand Opening(8) Advertising | $5,000 | ||
| Signs | $6,000 | $12,000 | |
| Professional Fees | $6,000 | $12,000 | |
| Additional Funds – 3-6 Months | $15,000 | $45,000 | |
| Total | $180,990 | $342,340 | |
Source: THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC, 2025 filing, page 29
Cost Cutters franchise fee
The franchise fee is $39,500, Single-salon development fee, which covers the franchise rights.. You pay it when you sign the franchise agreement.
Source: THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC, 2025 filing, page 22
Royalty and ongoing fees
| Royalty | 4% of gross revenues for the first 52 weeks, then 6%, paid weekly. |
|---|---|
| Brand or marketing fund | 1% of gross revenue, paid weekly; it can rise to 4%. |
| Computer Software (Point of Sale System) | $2,040 ($170 per month) |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC, 2025 filing, page 25
Other fees as filed, from page 29. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Cost Cutters publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
- Average revenue
- $279,898
- Median revenue
- $260,529
Yearly figures for fiscal year ended June 30, 2025, covering franchised U.S. salons reporting sales in all 12 months (323 locations). The average is about 1.1 times the midpoint of the cost to open.
Sales are what a location takes in before rent, payroll, royalties and other costs, not what its owner keeps.
Source: THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC, 2025 filing, page 64
SBA loans to Cost Cutters franchisees
Lenders approved 30 SBA 7(a) loans for Cost Cutters franchisees from 1991 to 2026, $8.89M in all. Of the 27 that have ended, 25 were paid in full and 2 were charged off (7.4%). The other 3 haven’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
Growth and closures
Share of franchised locations, 2025 / 2023–2025. Typical means the median: half of brands are above it, half below.
| Measure | Cost Cutters | Typical salon brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | −29% / −46% | +4.6% / +15% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 11% / 32% | 2.7% / 7.2% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 17% / 13% | 0% / 0% | 0% / 0% |
Typical salon brand is the median of the 42 brands in salon franchises with three years of counts.
How Cost Cutters compares
Of the 101 salon franchises on this site, Cost Cutters is the 23rd cheapest to open and the 11th largest by number of locations.
| Figure | Cost Cutters | Typical salon brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $181K | $303K | $222K |
| Cost to open, high end | $342K | $531K | $477K |
| Franchise fee | $40K | $45K | $40K |
| Brand fund | 1% | 2% | 2% |
| Sales per location | $280K | $487K | $794K |
| US locations | 405 | 26 | 21 |
| Shares earnings figures | Yes | 75 of 101 | 2,147 of 3,352 |
Typical is the median across the 101 brands in salon franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2022 | 604 (−34) | 1 | – | – |
| 2023 | 521 (−83) | 0 | 0 | −83 |
| 2024 | 463 (−58) | 0 | +2 | −60 |
| 2025 | 329 (−134) | 76 | 0 | −134 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating. The outlet years below are the franchisor's fiscal years ending June 30.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Over 4 years, from the start of 2022 to the end of 2025, franchised locations went from 638 to 329 (−309, −48%). The earlier years come from the brand's 2024 filing.
Source: THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC, 2025 filing, pages 65–66
2022: THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC, 2024 filing, page 66
Where Cost Cutters locations are
At the end of 2025, Cost Cutters had locations in 33 states. The most are in Wisconsin, Ohio and Iowa.
- Wisconsin81
- Ohio56
- Iowa32
- Texas32
- Nebraska22
- Arizona20
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| Wisconsin | 81 | 0 | 81 |
| Ohio | 0 | 56 | 56 |
| Iowa | 32 | 0 | 32 |
| Texas | 32 | 0 | 32 |
| Nebraska | 22 | 0 | 22 |
| Arizona | 20 | 0 | 20 |
| Colorado | 16 | 0 | 16 |
| Pennsylvania | 2 | 14 | 16 |
| Minnesota | 15 | 0 | 15 |
| Connecticut | 12 | 0 | 12 |
All 33 states
Source: THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC, 2025 filing, page 66
Who owns Cost Cutters?
Cost Cutters franchises are sold by THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC.
From THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC’s 2025 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 18–22. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC, 2025 filing, litigation on pages 18–22, bankruptcy on page 22
Cost Cutters filings
A franchisor files a new disclosure each year it sells franchises. The figures on this page come from THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC’s 2025 filing, issued October 17, 2025; the earlier ones below are on record with the Minnesota Department of Commerce and fill in older location counts.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2025 filing | October 17, 2025 | Minnesota | Costs, fees and locations, 2023–2025 |
| 2024 filing | – | Minnesota | Locations, 2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
