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Below is an in-depth analysis and side-by-side comparison of Cost Cutters Family Hair Care vs Lord's & Lady's Hair Salons including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $148,930 - $316,700 | $50,000 - $175,000 |
Franchise Fee | $39,500 | $25,000 |
Royalty Fee | 6% | 6% |
Advertising Fee | 4% | - |
Year Founded | 1982 | 1975 |
Year Franchised | 1982 | 1980 |
Term Of Agreement | 15 years | 10 years +10 |
Term Of Agreement | 15 years | 10 years +10 |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | - | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | -/- |
Start-up Costs | No/Yes | -/- |
Equipment | No/Yes | -/- |
Inventory | No/Yes | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | On-the-job training: 46.5 hours Classroom training: 24 hours Additional training: As needed | Boston, MA 2-5 Days |
Support | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform | Central Data Processing Central Purchasing Field Operation Evaluation Field Training Initial Store Opening Inventory Control Regional or National Meetings 800 Telephone Hotline |
Marketing | Co-op Advertising Ad Templates Regional Advertising Social media SEO | - |
Operations |
Franchisees required to buy multiple units/master licenses; 95% of all franchisees own more than one unit Number of employees needed to run franchised unit: 6 - 8
Absentee ownership of franchise is allowed. (20% of current franchisees are owner/operators) | Average Number of Employees: 6 Full-time, 8 Part-time Passive Ownership: Allowed, But Discouraged |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | - |
International Expansion | No | - |
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 owns a host of other hair salons, including City Looks, Regis Salons, Supercuts and We Care Hair.