Paradox
Mandatoryrogram and sign the Participation Agreement. (Franchise Agreement – Section 7.25) h. Employee Recruiting Software. Although not required, you may elect to use our approved vendor, Paradox, to recruit
From the filings
HQ-led decisions
Cost Cutters
Personal servicesSoftware purchasing at Cost Cutters is controlled at the corporate level, with a mandated technology stack that includes Zenoti for point-of-sale and back-office operations. The franchise system comprises 405 total units, with 329 franchised locations representing the primary addressable market for vendor sales. The most recent Franchise Disclosure Document (FDD) from 2026 identifies key executives and a strict technology mandate, signaling a centralized procurement process.
For software vendors selling into US franchise brands.
Live signals
Total units
405
329 franchised
Unit growth YoY
-28.942%
vs prior filing
AUV
$280K
Item 19, 2025
Royalty
4%
of gross sales
Ad fund
4%
national + local
Initial fee
$40K
per unit
Investment range
$181K–$342K
all-in, Item 7
Procurement
Approved supplier
from the filing
Item 19
Claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
8%of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
3 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.
SVS
Mandatoryrograms. We will create and implement promotions and loyalty programs aimed at driving customers to Cost Cutters. We have implemented a gift card program with our approved vendor, SVS, and you must pa
Zenoti
Mandatoryale and Back Office System You must purchase your computer point of sale cash register and back office hardware and software-as-a-service (SaaS) system from our approved supplier, Zenoti (the “Zenoti
Mindbody
in July 2020 and also co-founded Apex Perspectives, LLC in July 2020. Mr. Mansbach was the Board Director of Product Plan from October 2020 through May 2022, was the President of MINDBODY, Inc. from J
Franchisor behaviours
What the franchisor requires
27 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 5 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We and our designee have continuous, unlimited, independent access to all operational information on the Computer System.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
The FRANCHISEE’S quarterly financial statements will be delivered to COST CUTTERS by the FRANCHISEE within thirty (30) days after the end of the quarter and the annual financial statements will be delivered within ninety (90) days of the FRANCHISEE’S fiscal year end.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesFranchise agreement
The FRANCHISEE will purchase exclusively from COST CUTTERS’ designated and/or approved suppliers (which may include COST CUTTERS and its affiliates) all hair care products, supplies, and merchandise, including, without limitation, all retail inventory, backbar and shop supplies to be used or sold by the FRANCHISEE in…
Is there a franchisee advisory council, association or committee?
YesItem 11
Cost Cutters has established an advisory council composed of five Cost Cutters franchisees who are elected by all the Cost Cutters franchisees (the “Cost Cutters Council”).
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We periodically may modify Brand Standards, which may accommodate regional or local variations, and those modifications may obligate you to invest additional capital in the Cost Cutters Salon and/or incur higher operating costs.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We and/or our affiliates may derive revenue—in the form of promotional allowances, volume discounts, commissions, other discounts, performance payments, signing bonuses, rebates, marketing and advertising allowances, free products, and other economic benefits and payments—from suppliers that we designate, approve, or…
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
5Item 8
Collectively, your purchases and leases from us or our affiliates, from designated or approved suppliers, or according to our standards and specifications represent about 5% of your overall purchases and leases to establish and then to operate the Cost Cutters Salon.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
You must pay upon request any actual expenses we incur to determine whether the items, services, suppliers, or distributors meet our requirements and specifications, which we will decide within 90 days of your request.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If we approve any supplier or distributor you recommend, we may authorize other Cost Cutters Salons to buy or lease any Operating Assets, products, or services from that supplier or distributor without compensating you.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesItem 11
independently determining what is required for you to comply (and then complying) at all times with the most-current version of the Payment Card Industry Data Security Standards, and with all laws (including privacy laws) governing the use, disclosure, and protection of Consumer Data and the Computer System, and…
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 9
s. Inspections and audits Articles 7.19 and 19.4 of Franchise 6 and 11 Agreement
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
COST CUTTERS reserves the right to revise the Manual at any time during the term of this Agreement.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
The FRANCHISEE will not lease, purchase or otherwise acquire a site for the Franchised Location until: (1) the proposed site has been reviewed and approved in writing by COST CUTTERS for FRANCHISEE’S Franchised Location
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
You may not develop, maintain, or authorize any Digital Marketing or Social Media mentioning or describing the Cost Cutters Salon or displaying any Marks without our prior written approval and, if applicable, without complying with our Brand Standards for such Digital Marketing and Social Media.
Is a minimum grand opening advertising spend required?
YesFranchise agreement
The FRANCHISEE will be required to spend a minimum of Five Thousand Dollars ($5,000) to implement and conduct grand opening advertising, marketing, public relations and promotional programs for its Cost Cutters Business which have been approved by COST CUTTERS in writing.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 11
You must spend at least 1% of your Gross Revenues for local advertising and promotion of your Cost Cutters Business.
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 8
You must also participate in, and comply with, the requirements of any of our other customer loyalty programs as well as use our mobile or digital-ordering and franchise system applications and other digital channels.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
Despite these procedures, we may limit the number of approved suppliers and distributors, designate sources you must use, and refuse your requests for any reason, including because we already have designated an exclusive source (which might be us or our affiliate) for a particular item or service or believe that…
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 11
Integrated processing is required for its use.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
I hereby authorize Regis Corporation to initiate Electronic Funds Transfer (EFT) or Automated Clearing House (ACH) transactions against my checking/savings account and I instruct the financial institution named below to honor said transactions.
Must the franchisee participate in a gift card program?
YesItem 11
We have implemented a gift card program with our approved vendor, SVS, and you must participate in that gift card program and sign the Participation Agreement.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
The Salon must have at least 1 on-site manager, whether that individual is you or another Salon manager.
Must employees wear uniforms specified by the franchisor?
YesFranchise agreement
The FRANCHISEE will require its employees to wear the standard attire or uniforms approved by COST CUTTERS.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesFranchise agreement
FRANCHISEE must use the then current computerized point of sale cash register system and franchise back office system designated by COST CUTTERS.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We and our designee have continuous, unlimited, independent access to all operational information on the Computer System.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
The FRANCHISEE will be required to pay COST CUTTERS the then-current training fee charged by COST CUTTERS for any additional training attended by the FRANCHISEE or its employees.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
The FRANCHISEE will attend the annual convention conducted by COST CUTTERS for Cost Cutters franchisees during each year of this Agreement.
The filing answers no to 2 questions
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
- Must equipment be purchased from designated or approved suppliers?Item 8
Who buys here
The buyer at this brand
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
HQ leadership: CEO/President + VP Ops/Franchise + a first dedicated IT/systems owner.
VP SalesHead of SalesCROSales Director
- With 298 active personal services brands, I can't see which ones are growing or have the tech gaps my product fills, so I waste weeks chasing the wrong targets.A rep burning 10 hours/week on manual research at $50/hr loses $26,000/year. FranCloud's fit_scoring and corpus_search surface high-fit brands in seconds, reclaiming that time for selling.
- 63.5% of personal services brands mandate no POS system, but I can't identify the 108 that do without digging through hundreds of FDDs.Manually reviewing one FDD takes 3+ hours. At 108 targets, that's 324 hours. FranCloud's tech_landscape reveals POS mandates instantly, turning a $16,200 research slog into a single query.
- 91.6% of brands don't mandate a CRM, but the 25 that do are hidden in static reports, delaying my outreach to high-intent prospects.Landing one CRM-displacing deal in this segment can yield $30k+ ARR. FranCloud's find_lookalikes pinpoints those 25 brands and their peers, accelerating pipeline by months.
The vendor opportunity at Cost Cutters
Cost Cutters operates in the personal services segment with a total of 405 locations, of which 329 are franchised units. For a software vendor, these 329 franchised locations represent the addressable market, as the 76 company-owned units may follow a separate procurement path. The average unit volume (AUV) is $279,898, and the royalty rate stands at 4.0%. However, the system contracted significantly, with a year-over-year unit decline of -28.9%, a factor that may influence budget cycles and appetite for new technology.
Who controls software purchasing
Decision-making authority rests at the headquarters level, based on the franchisor's technology mandates. The FDD lists Susan Lintonsmith as Chairman of the Board of Directors, alongside directors Michael J. Merriman, Lockie Andrews, Michael Mansbach, and Nancy Benacci. While a dedicated Chief Information Officer or VP of Technology is not named in the available Item 1 extract, the board-level composition indicates that strategic software purchases are approved by senior leadership. Vendors should target this C-suite and director group when initiating contact.
Mandated and current tech stack
The 2026 FDD is explicit about the technology franchisees must use. The brand mandates a point-of-sale and back-office computer system, with Zenoti and the Zenoti System named as the required solutions. Additionally, SVS is listed as a mandated system, and Paradox is identified as a recommended or mandated technology. This creates a narrow window for vendors: any new software must either integrate with the Zenoti ecosystem or replace a mandated component, which would require a corporate-level decision. The absence of other named systems suggests the stack is tightly controlled.
Procurement, renewals, and timing
Procurement details are sparse in the available data. Item 8 of the FDD, which typically describes purchasing restrictions and approved suppliers, provided no extract, meaning the specific procurement model—whether designated supplier, approved supplier, or open—is not disclosed in the most recent FDD. Similarly, the initial franchise term length and Item 17 renewal signals are absent, making it difficult to predict contract windows. The significant unit decline may signal a period of consolidation, which could either freeze new software spending or create urgency for efficiency tools.
How to read the Cost Cutters FDD
The 2026 Franchise Disclosure Document is the primary source for understanding the legal and operational constraints on technology adoption. Key sections for software vendors include Item 11 (mandated systems, where Zenoti and SVS are named) and Item 1 (executive leadership). Because Item 8 and Item 17 details are not available in this extract, vendors should review the full FDD below for supplier approval processes and renewal terms. The document is filed with state franchise regulators and embedded on this page for direct analysis. For a ranked target list of franchise systems aligned with your software, FranCloud can help prioritize your outreach.
Questions vendors ask
Cost Cutters, answered from the filing
The FDD lists Susan Lintonsmith as Chairman, with directors Michael J. Merriman, Lockie Andrews, Michael Mansbach, and Nancy Benacci. A specific CIO or VP of IT is not named, but the board-level control suggests a top-down purchasing decision.
The 2026 FDD mandates a point-of-sale and back-office computer system, specifically naming Zenoti and the Zenoti System, along with SVS and Paradox as required or recommended technology.
The system has 405 total units, consisting of 329 franchised and 76 company-owned locations. The brand operates in the personal services segment.
The procurement model is not disclosed in the most recent FDD. Item 8, which typically outlines purchasing restrictions and approved suppliers, provided no extract in the available data.
Contract renewal timing is unclear. The initial term length and Item 17 renewal signals were not disclosed in the 2026 FDD, and the system experienced a -28.9% year-over-year unit decline, suggesting potential instability.
The 2026 FDD was filed with state franchise regulators. You can review the embedded PDF viewer below for the full legal document and technology disclosures.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Cost Cutters files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
385 operators run 385 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit385
Top states by locations
| WI | 85 |
|---|---|
| TX | 39 |
| IA | 34 |
| AZ | 26 |
| NE | 24 |
Ownership
The portfolio behind Cost Cutters
strategic_multibrand of Regis Corporation.
Sibling brands
Related Personal services brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.