When is the post-build review fee due for a Cost Cutters Family Hair Salon?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Type of Expenditure Amount | Method Of | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Payment(8) | ||||
| Post Build Review(4) | $1,500-$3,000 | Lump Sum | Prior to opening for business | Cost Cutters of its affiliate See Note (4) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–36)
What This Means (2024 FDD)
According to the 2024 Cost Cutters Family Hair Salon Franchise Disclosure Document, the post-build review fee, which ranges from $1,500 to $3,000, is due as a lump sum payment prior to opening for business. This fee is paid to Cost Cutters Family Hair Salon or its affiliate.
This fee covers the cost for Cost Cutters Family Hair Salon to review the franchisee's store after construction is completed but before the salon opens. This review ensures that the construction aligns with the brand's standards and design specifications. Franchisees need to budget for this expense and ensure payment is made on time to avoid any delays in the opening of their Cost Cutters Family Hair Salon.
It is important to note that this post-build review fee is separate from the construction and design plan review fee, which ranges from $500 to $1,000 and is due prior to starting construction. Both fees are part of the overall costs associated with setting up a new Cost Cutters Family Hair Salon and should be considered during the initial investment planning.