What is the range for the estimated initial investment for a Cost Cutters Family Hair Salon?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT
| Type of Expenditure | Type of Expenditure Amount | Method Of | When Due | To Whom Payment is to be Made | |
|---|---|---|---|---|---|
| Payment(8) | |||||
| Initial Franchise Fee(1) | $39,500-$39,500 | Per Agreement | at signing of Franchise Agreement | Cost Cutters See Note (1) | |
| Leasehold Improvements(2) | $60,000 - $120,000 | As Incurred | Before Start/As Incurred | Landlord, Suppliers & Contractors See Note (2) | |
| Furniture, Equipment and Supplies(3) | $25,000 - $50,000 | Lump Sum | Before Start/As Arranged | Suppliers / Approved Suppliers See Note (3) | |
| Construction Management Services Fee(4) | $5,500-$7,500 | Lump Sum | Upon Signing Construction Management Services Agreement | Independent Supplier See Note (4) | |
| Construction and Design Plan Review(4) | $500-$1,000 | Lump Sum | Prior to starting construction | Cost Cutters or its affiliate See Note (4) | |
| Post Build Review(4) | $1,500-$3,000 | Lump Sum | Prior to opening for business | Cost Cutters of its affiliate See Note (4) | |
| Computer Software | $2,040 ($170 per | Lump Sum or | Before and After | Approved Supplier | |
| (Point of Sale System)(5) | month) | Monthly | Opening | Note (5) | |
| Computer Hardware/Installation and Onsite Training(5) | $1,876-$2,418 | Lump Sum, Lease, or Financing is Available | Before Opening | Independent Supplier / Approved Supplier Note (5) | |
| Opening Inventory(6) | $5,000 - $10,000 | Lump Sum | As Arranged | Cost Cutters’ designated suppliers Note (6) |
| Type of Expenditure | Amount | Method Of Payment(8) | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Travel and Living Expenses during Orientation Training | $2,050 - $4,500 | As Incurred | As Incurred | Airlines, Hotels & Restaurants |
| Rent and Security | $2,500 - $9,600 | Lump Sum | Before Start | Landlord or Regis |
| Deposit (7) | Note (7) | |||
| Grand Opening(8) Advertising | $5,000 | As Incurred | Within 60 days of opening of Cost Cutters Business | Independent Suppliers Note (8) |
| Signs | $6,000 - $12,000 | Lump Sum | Before Start | Supplier |
| Professional Fees(9) | $6,000 - $12,000 | Lump Sum | Within 5 days of receipt of an invoice | Suppliers Note (9) |
| Additional Funds – 3-6 Months(10) | $15,000 - $45,000 | As Incurred | As Incurred | Employees, Suppliers, Utilities and Cost Cutters Note (10) |
| TOTAL | $ |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–36)
What This Means (2024 FDD)
According to Cost Cutters Family Hair Salon's 2024 Franchise Disclosure Document, the total estimated initial investment to open a Cost Cutters Family Hair Salon ranges from $177,466 to $323,558. This includes various expenditures that are required to start the business. These expenses include the initial franchise fee, leasehold improvements, furniture, equipment and supplies, construction management services fee, construction and design plan review, post build review, computer software, computer hardware/installation and onsite training, opening inventory, travel and living expenses during orientation training, rent and security deposit, grand opening advertising, signs, professional fees, and additional funds for 3-6 months.
The initial franchise fee is $39,500. Leasehold improvements are estimated to cost between $60,000 and $120,000. Furniture, equipment, and supplies range from $25,000 to $50,000. The construction management services fee is between $5,500 and $7,500. The construction and design plan review fee is between $500 and $1,000, while the post build review fee is between $1,500 and $3,000. Computer software (point of sale system) costs $2,040, and computer hardware/installation and onsite training ranges from $1,876 to $2,418.
Opening inventory is estimated to cost between $5,000 and $10,000, and grand opening advertising costs $5,000. Signs range from $6,000 to $12,000, and professional fees range from $6,000 to $12,000. Additional funds for the first 3-6 months of operation are estimated to be between $15,000 and $45,000. Travel and living expenses during orientation training are estimated to be between $2,050 and $4,500, while rent and security deposit range from $2,500 to $9,600.
Prospective franchisees should carefully review these figures with a business advisor to understand the full scope of the investment and to investigate specific costs in their area. Cost Cutters Family Hair Salon does not offer financing for any part of the initial investment, so franchisees will need to secure their own financing through a third-party lender.