Cost Cutters Franchise

Cost Cutters, a Regis Corp franchise, has been franchising since 1986 - 4 years after the concept was founded in 1982 , currently with 400 total locations in the personal-services sector, headquartered in MN. According to the 2024 FDD, the total initial investment ranges from $96K to $318K - a 231% spread between the low and high end that reflects how site size, market, and buildout scope change the capital requirement. This figure includes the franchise fee of $25K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Ongoing royalties run 4.0% of gross sales. Notably, Cost Cutters does not disclose financial performance (Item 19) in its FDD. That is common (Item 19 is optional under the FTC Franchise Rule) but it puts the burden on prospective buyers to survey existing franchisees (Item 20 contact list), model unit economics from public comparables, and demand validated profit-and-loss data before signing.

Network momentum is currently negative: Cost Cutters contracted by 2.5% year-over-year with 20 closures on the record. Contraction warrants careful investigation, it can reflect market saturation, unit-level unprofitability, franchisee disputes, or a deliberate pruning of underperforming locations. Call Item 20 contacts and ask specifically about closure reasons. Before committing capital, triangulate this summary against the full FDD, a franchise attorney's review, and direct conversations with five or more current and former franchisees from Item 20.