Franchise Facts Report → compare → Cost Cutters vs House of Color
Cost Cutters vs House of Color
Two beauty & personal care franchises, compared on the numbers their own Franchise Disclosure Documents put on record — investment, fees, Item 19 earnings, outlet churn, and litigation. Not marketing copy.
| Cost Cutters | House of Color | |
|---|---|---|
| Total initial investment FDD Item 7 | $180,990 – $342,340 | $27,845 – $57,700 |
| Initial franchise fee FDD Item 5 | $39,500 | $24,500 |
| Royalty FDD Item 6 | 6% | 4% |
| Item 19 earnings disclosed FDD Item 19 | Yes | Not disclosed |
| Avg unit revenue (headline) FDD Item 19 | $1,144,397 | — |
| Franchised outlets FDD Item 20 | 329 | 266 |
| Net outlet change (latest yr) FDD Item 20 | -134 | +59 |
| Closure rate FDD Item 20 | 8.9% | 6.3% |
| Franchisee lawsuits FDD Item 3 | disclosed | 0 |
| Risk level our read | Medium | Medium |
| FDD year registration | 2025 | 2025 |
Are Cost Cutters and House of Color the same company?
No — Cost Cutters and House of Color are franchised by separate companies. Cost Cutters's franchisor is THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC.; House of Color's is House of Colour USA, Inc.. Each registers and files its own Franchise Disclosure Document, and you would be signing with a different entity depending on which you chose. Note that a registry filing names the franchisor, not necessarily its ultimate parent — two brands owned by the same parent company can still have separate franchisors.
Cost to open
House of Color is the cheaper franchise to open: its FDD Item 7 puts the total initial investment at $27,845 – $57,700, against $180,990 – $342,340 for Cost Cutters.
How much does each make? (Item 19)
Only Cost Cutters disclosed earnings: it makes an Item 19 financial performance representation (headline average unit revenue $1,144,397), while House of Color's most recent FDD makes none. That asymmetry is itself a data point: one franchisor puts its unit economics on paper, the other doesn't.
Closures & failure rate
Cost Cutters reports 329 franchised outlets, net change -134 in the latest reported year, a 8.9% closure rate (FDD Item 20). House of Color reports 266 franchised outlets, net change +59 in the latest reported year, a 6.3% closure rate (FDD Item 20). Outlet churn — closures, terminations, non-renewals — is the closest thing an FDD has to a failure rate; the full report puts both brands' churn against beauty & personal care medians.
Litigation
Cost Cutters discloses litigation in FDD Item 3 (case detail in the full report). House of Color discloses no franchisee-initiated proceedings in FDD Item 3.
This page is the headline numbers. The Deep report compares up to three brands on the complete FDD record — every fee line, the actual Item 19 figures and what they represent, each lawsuit, and churn benchmarked against beauty & personal care peers.
Only looking at one of them?
Cost Cutters vs House of Color — frequently asked
Are Cost Cutters and House of Color the same company?
No — Cost Cutters and House of Color are franchised by separate companies. Cost Cutters's franchisor is THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC.; House of Color's is House of Colour USA, Inc.. Each registers and files its own Franchise Disclosure Document, and you would be signing with a different entity depending on which you chose. Note that a registry filing names the franchisor, not necessarily its ultimate parent — two brands owned by the same parent company can still have separate franchisors.
What is the difference between Cost Cutters and House of Color?
Cost Cutters and House of Color are beauty & personal care franchises from different franchisors (THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC. and House of Colour USA, Inc.). House of Color is the cheaper franchise to open: its FDD Item 7 puts the total initial investment at $27,845 – $57,700, against $180,990 – $342,340 for Cost Cutters. Only Cost Cutters disclosed earnings: it makes an Item 19 financial performance representation (headline average unit revenue $1,144,397), while House of Color's most recent FDD makes none. That asymmetry is itself a data point: one franchisor puts its unit economics on paper, the other doesn't.
Is Cost Cutters more profitable than House of Color?
Only Cost Cutters disclosed earnings: it makes an Item 19 financial performance representation (headline average unit revenue $1,144,397), while House of Color's most recent FDD makes none. That asymmetry is itself a data point: one franchisor puts its unit economics on paper, the other doesn't.
Which is cheaper to open — Cost Cutters or House of Color?
House of Color is the cheaper franchise to open: its FDD Item 7 puts the total initial investment at $27,845 – $57,700, against $180,990 – $342,340 for Cost Cutters.
Is Cost Cutters or House of Color growing faster?
Cost Cutters reports 329 franchised outlets, net change -134 in the latest reported year, a 8.9% closure rate (FDD Item 20). House of Color reports 266 franchised outlets, net change +59 in the latest reported year, a 6.3% closure rate (FDD Item 20).
Go deeper on each brand
Beauty & personal care rankings
Figures are as disclosed in each brand's most recent registered FDD (Cost Cutters 2025, House of Color 2025). “—” means the FDD does not disclose it or the table did not parse cleanly — never an estimate.