How must a Cost Cutters Family Hair Salon franchisee hold itself out to the public?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
The FRANCHISEE will hold itself out to the public as an independent contractor operating its Cost Cutters Business pursuant to a franchise from COST CUTTERS.
The FRANCHISEE will clearly indicate on its business checks, stationery, purchase orders, business cards, receipts, promotional materials and other written materials that the FRANCHISEE is a Cost Cutters Franchisee.
The FRANCHISEE will display a sign, to be provided by COST CUTTERS, at the Franchised Location which is clearly visible to the general public indicating that the Business is independently owned and operated as a franchised business.
The FRANCHISEE will file for a Certificate of Assumed Name in the manner required by law so as to notify the public that the FRANCHISEE is operating the franchised Cost Cutters Business as an independent business pursuant to this Agreement.
7.3 SIGNS. The FRANCHISEE will display only the approved Cost Cutters Sign (the "Sign") and will not use or display any other signs of any kind or nature without the express prior written approval of COST CUTTERS.
7.4 ADVERTISING MATERIALS. The FRANCHISEE will use only approved advertising and promotional materials for the advertising and promotions conducted by the FRANCHISEE.
Source: Item 23 — RECEIPT (FDD pages 76–439)
What This Means (2024 FDD)
According to Cost Cutters Family Hair Salon's 2024 Franchise Disclosure Document, a franchisee must present themselves as an independent contractor operating under a Cost Cutters Family Hair Salon franchise. This means that while they benefit from the brand recognition and system of Cost Cutters Family Hair Salon, they are responsible for their own business operations.
The franchisee is required to clearly state their franchise affiliation on all business-related materials. This includes checks, stationery, purchase orders, business cards, receipts, and promotional materials. This transparency ensures that customers and vendors are aware of the franchisee's relationship with Cost Cutters Family Hair Salon.
To further reinforce this independent but franchised status, the franchisee must display a sign provided by Cost Cutters Family Hair Salon at their location. This sign should be clearly visible to the public, indicating that the business is independently owned and operated as a franchise. Additionally, the franchisee is obligated to file for a Certificate of Assumed Name, as required by law, to formally notify the public that they are operating the Cost Cutters Family Hair Salon business independently under a franchise agreement. The franchisee must only display the approved Cost Cutters Family Hair Salon sign and use only approved advertising and promotional materials.