Cost Cutters charges a royalty fee of 6.0% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.

The total ongoing fee rate for a Cost Cutters franchise is approximately 10.0% of gross sales (2025 FDD). This includes the royalty fee, a 4.0% marketing/advertising fund contribution, a $170/month technology fee, and other recurring charges.

Cost Cutters has been involved in 11 litigation cases over the past 3 years (2025 FDD). There are currently 1 pending cases. There are no class action lawsuits pending.

No, the Cost Cutters franchisor has no bankruptcy filings in their disclosure history (2025 FDD).

Cost Cutters offers non-exclusive territory rights to its franchisees (2025 FDD). The franchise agreement does not include encroachment protection. Online sales are managed by the franchisor, not individual franchisees.

Cost Cutters currently operates 405 locations (2025 FDD) (329 franchised, 76 company-owned). The system contracted by 12.5% over the past year. The 3-year compound annual growth rate is -8.1%.

The 1-year franchisee turnover rate for Cost Cutters is 29.0% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.

According to the Cost Cutters FDD Item 19 financial performance representation (2025 FDD), the median gross sales per unit is $261K (average: $280K).

The initial franchise agreement term for Cost Cutters is 15 years (2025 FDD). Franchisees can renew 1 time for 15-year periods. The total potential term is 30 years.

Cost Cutters's post-termination non-compete clause restricts former franchisees from operating a competing business for 2 years within 6 miles of the former location (2025 FDD).

Yes, Cost Cutters's franchise agreement requires mandatory arbitration for dispute resolution (2025 FDD).

Cost Cutters provides 9 hours of initial training over approximately 1 weeks (2025 FDD). The cost of training is covered by the franchisor (travel and lodging are typically the franchisee's responsibility). Ongoing field support is provided on a as-needed basis.

Yes, Cost Cutters provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.