Cost Cutters Family Hair Care vs Merle Norman Cosmetics Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Cost Cutters Family Hair Care vs Merle Norman Cosmetics including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
	Cost Cutters Family Hair Care Franchise	Merle Norman Cosmetics Franchise
Investment	$148,930 - $316,700	$39,471 - $180,888
Franchise Fee	$39,500	N/A
Royalty Fee	6%	0
Advertising Fee	4%	-
Year Founded	1982	1931
Year Franchised	1982	1989
Term Of Agreement	15 years	Open-ended
Term Of Agreement	15 years	Open-ended
Renewal Fee	-	-
Business Experience Requirements
	Cost Cutters Family Hair Care Franchise	Merle Norman Cosmetics Franchise
Experience	General business experience Marketing skills Retail/service industry experience useful	-
Financing Options
	Cost Cutters Family Hair Care Franchise	Merle Norman Cosmetics Franchise
	In-House/3rd Party	In-House/3rd Party
Franchise Fees	No/No	No/No
Start-up Costs	No/Yes	No/Yes
Equipment	No/Yes	Yes/No
Inventory	No/Yes	Yes/No
Receivables	No/No	No/No
Payroll	No/No	No/No
Training & Support
	Cost Cutters Family Hair Care Franchise	Merle Norman Cosmetics Franchise
Training	On-the-job training: 46.5 hours Classroom training: 24 hours Additional training: As needed	Field training classes, field visits, advanced home office training and point-of-sale software training Classroom Training: 40 hours Additional Training: Online training
Support	Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform	Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Proprietary Software Franchisee Intranet Platform
Marketing	Co-op Advertising Ad Templates Regional Advertising Social media SEO	Co-op Advertising Ad Templates National Media Regional Advertising Social media Email marketing
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)	Number of employees needed to run franchised unit: 2 Absentee ownership of franchisee is allowed.
Expansion Plans
	Cost Cutters Family Hair Care Franchise	Merle Norman Cosmetics Franchise
US Expansion	Yes	Yes
Canada Expansion	No	No
International Expansion	No	Yes

Company Overviews

About Cost Cutters Family Hair Care

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.

Veteran Incentives  $2,500 rebate on first-store franchise fee

#244 in Franchise 500 for 2020.

About Merle Norman Cosmetics

Even before she opened her first studio in Santa Monica in 1931, Merle Norman's philosophy of "Try Before You Buy" was being carried out as she offered free samples of her products to neighbors, hoping they'd discover the benefits and return as paying customers. And return they did. Many even opened their own studios and the company now has studios throughout the United States and Canada. Carrying on the Merle Norman tradition, franchisees now offer skin care, from cleansers and toners to sun defense, and a full line of cosmetics.

Veteran Incentives  $5,000 in inventory