Cookie Cutters Haircuts Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$118,200 - $365,200
Franchise Fee
$10,000
Min Cash Required
$15,000
Total US Locations
116
Business Summary
COOKIE CUTTERS HAIRCUTS FOR KIDS operates a service business that specializes in providing haircuts, shampoos, and related products and services primarily for children aged 12 and under. The Cookie Cutters System is designed to make haircuts a fun experience for children, integrating home entertainment videos, computer and hand-held games, entertainment centers, playground equipment, carousel chairs, and fire truck wash shampoos. Beyond haircuts, Cookie Cutters salons also offer children's birthday parties, including hair styling, nail painting, and make-up for girls, and mock shaves, spiked hair, and video games for boys. While the primary focus is children, a small percentage of the business may cater to adults through family packages.
Corporate History
The Cookie Cutters franchise system was originally established by CC Franchising, Inc. in 2003, when that company began offering COOKIE CUTTERS franchises. Cookie Cutters Franchising Inc., the current franchisor, was incorporated in Utah on October 16, 2014, and subsequently purchased the entire Cookie Cutters franchise system from CC Franchising, Inc. on December 22, 2014. The current franchisor then began offering COOKIE CUTTERS HAIRCUTS FOR KIDS franchises in March 2015. Cookie Cutters' affiliate, Ucanah For Kids, L.C., began operating Cookie Cutters salons as a franchisee in the system in 2006.
Financial Overview
Investment Range
$118,200 - $365,200
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$40,000
Minimum Cash Required
$15,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$35,000
Equipment Costs (High)
$220,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Cookie Cutters' financial statements show a net loss of $60,076 in 2024, following a net income of $190,600 in 2023. While Cookie Cutters' working capital is positive for both years, several states, including Illinois, Maryland, and Washington, have expressed concerns about Cookie Cutters' financial condition. These states note that Cookie Cutters has limited financial resources that might not be adequate to fund its pre-opening obligations to franchisees and cover operating expenses. As a result, these states have required that initial franchise fees and other payments be deferred until Cookie Cutters has fulfilled its pre-opening obligations and the franchisee's business is operational. Additionally, the Virginia addendum highlights that 16.7% of Cookie Cutters' assets are intangible.
Financing Details
Cookie Cutters does not offer any direct or indirect financing to franchisees, nor does it guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
116
Franchised Units
115
Corporate Units
1
Avg Square Footage
1,200
Franchising Since
2003
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Cookie Cutters Franchising Inc. has no litigation history that is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Cookie Cutters Franchising Inc. has no bankruptcy information that is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, Cookie Cutters franchisees must provide written notice of their intention to renew at least 180 days before the initial term ends. Franchisees must also be in compliance with all material provisions of their Franchise Agreement and Cookie Cutters' operating and quality standards, including paying all outstanding financial obligations. Additionally, franchisees are required to make reasonable capital expenditures to remodel, modernize, and redecorate their salon to reflect the then-current appearance of new Cookie Cutters salons. A renewal fee of $10,000 is due upon signing Cookie Cutters' then-current standard franchise agreement. Franchisees and their owners/guarantors must also sign a general release of claims against Cookie Cutters and its affiliates.
Training & Support Program
Franchisor Assistance
Cookie Cutters provides comprehensive assistance to its franchisees both before and during operation. Before opening, Cookie Cutters offers initial training for the franchisee and one additional manager, provides a Confidential Operations Manual, a store design package with general fixture plans and signage specifications, assists with site approval, and provides a list of approved suppliers. During operation, Cookie Cutters offers continuing assistance as deemed appropriate, additional training upon request (for a fee), and updates to the Confidential Operations Manual. Cookie Cutters also makes efforts to negotiate volume purchasing contracts for equipment and supplies, reviews proposed equipment and suppliers, and administers a system-wide advertising and promotional fund. Franchisees are required to use Cookie Cutters' proprietary computer system for point-of-sale and management, which Cookie Cutters can independently access for data.
Initial Training Hours
60
Training Location
Salt Lake City, Utah
Ongoing Support
Cookie Cutters provides ongoing support to its franchisees after their salon opens. This includes continuing assistance that Cookie Cutters deems reasonable and appropriate, and additional training or guidance upon request for a per diem fee. Cookie Cutters regularly revises its Confidential Operations Manual to incorporate improvements and new developments in the system, including updated products, services, and suggested prices. Cookie Cutters also works to negotiate volume purchasing contracts for equipment and supplies. Franchisees must contribute to and participate in a system-wide advertising and promotional fund, which Cookie Cutters administers. Franchisees are also required to attend an annual regional or national seminar focusing on new business, marketing, and styling ideas. Franchisees must keep their Shortcuts computer system up-to-date, with an annual maintenance cost of $2,700 payable to Shortcuts.
Franchise Requirements
Ideal Candidate Profile
Cookie Cutters seeks individuals or entities with a strong commitment to personal and sustained effort, supervision, and attention in managing the franchised business. The franchisee, or their managing shareholder/partner, or a trained manager, must personally oversee the salon's operations at all times. If the franchisee is a corporation, limited liability company, or partnership, all shareholders, members, and partners are required to personally guarantee the obligations under the Franchise Agreement.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
Non-Exclusive
Staff Count
12
Territory Size Requirements
For Area Development Agreements, Cookie Cutters defines a Development Area as a geographic region with a specific radius (typically three, five, or ten miles), or a specific city, county, or other political subdivision. The size is determined based on factors like site availability, demographics, population density (especially of children ages 12 and under), and income levels. Single-unit franchisees do not receive an exclusive territory and may face competition from other Cookie Cutters franchisees or company-owned outlets.
Staffing Notes
Each Cookie Cutters salon typically employs a manager, two associate managers, and a staff of 8 to 10 cutters. All cutters must be licensed barbers, beauticians, or cosmetologists. The Cookie Cutters System encourages employee motivation through a commission system. Franchisees are required to use only employees, not independent contractors, and cannot rent chairs or booths to stylists. All managers and supervisory employees must sign a Confidentiality and Non-competition Agreement, and non-managerial employees must sign a Nondisclosure-Noncompetition Agreement. Managers and any employees who interact physically with children must pass a personal and character background check and adhere to specific rules of conduct towards children as outlined in the Confidential Operations Manual.