Cookie Cutters Franchise Cost & 2026 FDD Data
65/100
Second tier
65 this brand56 Personal Care & Beauty medianlikely 61–69: narrower with more SBA loans (high confidence)
Higher is better · an editorial assessment, not investment advice
#784 of 3,069 graded brands
Why a B: Helped by unit growth, legal record and transparency. Held back by unit economics. See all six factors
- Total investment
- $138K – $390K
- Avg gross sales
- $314K
- 108 outlets reporting; not profit
- SBA charge-off
- 14.3%
1 in 7 SBA 7(a) loans to Cookie Cutters owners charged off (3 of 21 resolved loans, approved since FY1991); Personal Care & Beauty median 8.3%. Loans approved FY2016–FY2017: 1 of 14 resolved loans charged off (7.1%); newer loans have not had time to default, so this is not a trend.
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Cookie Cutters franchise requires a total initial investment of $138K – $390K, including a $40K franchise fee. Once open, the ongoing royalty is 5.0%. Per the 2026 FDD, average gross sales were $314K (108 outlets reporting; gross sales, not profit). SBA 7(a) loans show a 14.3% charge-off rate on 21 resolved loans. Verdict grade: B (Second tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · SBA 7(a) loan records (FOIA) · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Personal Care & Beauty median
Top edge: green = better than the Personal Care & Beauty median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $314K/year (outlet median $304K; 108 outlets reporting; gross sales, not profit).
- GROWTHIn the latest Item 20 year, the number of franchised outlets grew by 2 (5 opened, 3 left the franchised system, 2 of them bought back by the franchisor).
- TERMSNo protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
AT STAKEOne unit at the Item 7 midpoint: $34K a year in payments on assumed SBA 7(a)-style terms.You put in about $53K of your own cash and personally guarantee a $211K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (4)
- SBA 7(a) charge-off 14.3% on 21 resolved loans, loans approved since FY1991, above the Personal Care & Beauty median of 8.3% (27 brands).
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- The franchisor receives rebates or payments from suppliers you buy from (Item 8, required suppliers).
- Item 15 (owner participation) requires the owner, or a principal the franchisor approves, to run the business day to day. Ask how much of the business that principal must own.
Checked and clear: no auditor doubt that the franchisor can keep operating, no net loss of franchised outlets in the latest Item 20 years, no pending lawsuit naming the franchisor and the full filing on file, and an Item 19 average from 108 units. Not on file here, so ask: jury-trial waiver.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 41% below the Personal Care & Beauty median ($447K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Cookie Cutters Franchising Inc. (Item 1: 8 East Broadway, Suite 201, Salt Lake City, Utah 84111) and your lender what they require, and keep living costs for the first year outside the deal.
FDD Item 7 (startup costs) · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (first 3 months) | $15K | $45K |
| Equipment, build-out, other | $83K | $305K |
| Total initial investment | $138K | $390K |
Source: Cookie Cutters 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fundBrand-wide marketing pool. 1% of Gross Sales (may be increased to up to 3%) | 1.0% of gross sales |
Technology feesThe filing's detailShortcuts POS annual maintenance $2,700; QuickBooks Online accounting software ~$200/year; Server Support and Maintenance Fee $18/month; Certificate Program Support Fee $2/month; Motion Picture Licensing Fee ~$35/month | See the list |
| Training feeAdditional training charge listed in Item 6 | $2,500 |
| Renewal fee | $10,000 |
| Total fee loadbelow the Personal Care & Beauty median of 8.0% (lean) | 6.0% of sales |
A 6.0% total fee load is below the Personal Care & Beauty median of 8.0% (lean). More of each revenue dollar stays with the franchisee.
What do units actually make?
Average gross sales are 39% below the Personal Care & Beauty median ($519K).
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Cookie Cutters unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $314K (FDD p.44), and the royalty and ad fund take about $19K of that a year (Item 6). This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $34K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $264K Item 7 midpoint is a $211K loan, paid over 10 years at 10.5%: $34K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Cookie Cutters' past SBA 7(a) loans averaged 6.3% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $53K Assumption (the part the loan does not cover of the $264K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $211K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Cookie Cutters unit leave you each year after the loan payment?
Item 19 reports $314,383 per unit.
Gross sales, not profit: the costs below decide what is left.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners.
Illustrative category typicals, not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Item 7 midpoint of $138K to $390K
Item 7's $15K to $45K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $211K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD · filed by Cookie Cutters Franchising Inc.
Financial performance
- Range (low → high)
- $60K→$680KSource: 2026 FDD, page 44
- Cohort dispersion (min → max)
Percentile ranks within Personal Care & Beauty
Each rank is among the Personal Care & Beauty brands that report that figure (the count is under each bar).
vs Personal Care & Beauty medians
How Cookie Cutters compares
Category median of published Personal Care & Beauty brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Who are you contracting with?
Cookie Cutters Franchising Inc.
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- Cookie Cutters Franchising Inc.
- CEO title
- Chief Executive Officer
- Neal Courtney
- Incorporated in
- Utah
- HQ
- 8 East Broadway, Suite 201, Salt Lake City, Utah 84111
Overview
About
Children's hair salons providing haircuts, shampoos, birthday parties and related products/services for children ages 12 and under, featuring entertainment centers, video games, and themed decor.
- CEO
- Neal Courtney
- States and territories listed
- 28
- registered or offered in, as the filing lists them (DC and territories included); not where units may open
Is the system healthy?
+7 franchised outlets over the two years to 2025 (110 to 117, +6.4% in total, +3.1% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 7%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 2
- Franchisor bought back
Item 20 · franchised units at year end
Franchised units rose from 110 in 2023 to 117 in 2025
Axis does not start at zero.
Source and method
Item 20 (outlet counts) outlets · 25 states
Where current outlets are
States with at least one current outlet in the Item 20 list the franchisor prints. Former owners are not counted, and this is not a list of where the franchisor may sell new units.
Current outlets (count on the tile) · 25 statesNo current outlet
96 current outlets in 25 states: the 96 on the owner list, of 117 franchised at year end (Item 20).
Counts only, from the list the franchisor prints in Item 20. The contact details are for your own due diligence and are not shown here.
Government records
SBA loan data
Lenders charged off 14.3% of 21 resolved SBA 7(a) loans, above the 8.3% category median. 7(a) is the SBA's main small-business loan; a resolved loan was paid in full or charged off.
- Loans on file
- 24
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $3.8M
- Average loan
- $157K
- loan volume divided by loans
- Charge-off rate
- 14.3%
- 3 of 21 resolved loans
- Paid in full
- 85.7%
- of resolved loans
- Charge-off, loans approved FY2016–FY2017
- 7.1%
- 1 of 14 resolved loans; newer loans have not had time to default, so this is not a trend
- Lenders
- 10
- Average interest rate
- 6.3%
- Jobs reported
- 267
- Lender concentration
- 54%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Benchmark: the median Personal Care & Beauty brand charges off 8.3% (27 brands with a published rate, same cumulative window and source). This brand is 6.0 points above it.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Cookie Cutters from SBA 7(a) FOIA loan records.
- Average SBA guarantee
- 79%
- Average interest rate
- 6.3%
- Lender concentration
- 54%
- Jobs reported
- 267
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| Stearns Bank National Association | ||
| 13 | $1.9M | Not on file |
| JPMorgan Chase Bank, National Association | ||
| 2 | $555K | Not on file |
| Forum CU | ||
| 2 | $350K | Not on file |
| PNC Bank, National Association | ||
| 1 | $129K | Not on file |
| Texas Champion Bank | ||
| 1 | $50K | Not on file |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| CA California | 3 | 0 | Too few3 resolved |
| UT Utah | 3 | 0 | Too few3 resolved |
| FL Florida | 2 | 0 | Too few1 resolved |
| IN Indiana | 2 | 2 | Too few2 resolved |
| TX Texas | 2 | 0 | Too few1 resolved |
| AZ Arizona | 1 | 0 | Too few1 resolved |
| GA Georgia | 1 | 1 | Too few1 resolved |
| ID Idaho | 1 | 0 | Too few1 resolved |
| MD Maryland | 1 | 0 | Too few1 resolved |
| NC North Carolina | 1 | 0 | Too few1 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
What are the risks?
Main risk in the grade: unit economics. The reasons are below.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade B: Second tier, 65/100 (category median 56); the full grade is at the top of the page.
How the grade is built
Why a B, factor by factor
- Financial health NeutralAudited financials; no going-concern doubt
- Unit economics Weighs on it, weakest dimensionAvg gross sales $314K on a $264K investment midpoint, 1.2x (gross sales, not profit)
- Unit growth Helps+7 franchised outlets over the two years to 2025 (110 to 117, +6.4% in total, +3.1% a year compounded); turnover 2.5%
- Scale Neutral117 franchised units, +3 company-owned (120 in all); franchising since 2015; mostly company-owned (7% franchised)
- Legal HelpsNo litigation naming the franchisor in Item 3
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (-6 points)SBA loan record: the SBA charge-off rate (14.3% on 21 resolved loans) is between 10% and 20%, a range the score counts against a brand, so it took 6 points off. The score uses fixed ranges, not the category median, so a rate below its category median can still cost points.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Sugar Buns, LLC v. Chip Partners, LLC, Neal Courtney, Sean Wilson and Sarah Wilson (Utah Business and Chancery Court, filed May 2025): franchisee of an unrelated cookie brand (Chip) alleged unauthorized financial performance representations; settled August 2025, dismissed with prejudice September 2025.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Franchisor takes supplier rebates: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Litigation case detail1 matter · Item 3
Litigation cases
Officers and directors (individuals, not the company)
Concluded (1)
Sugar Buns, LLC v. Chip Partners, LLC, Neal Courtney, Sean Wilson and Sarah Wilson
settledBrought by a franchisee · Neal Courtney (our CEO), with Chip Partners, LLC, Sean Wilson and Sarah Wilson · filed 2025-05-27 · Utah Business and Chancery Court · 250200036
“… (Utah Business and Chancery Court, Case No. 250200036, filed May 27, 2025).”Page 11 of the 2026 FDD, Item 3
Outcome: “The court dismissed the case with prejudice on September 23, 2025. No other litigation is required to be disclosed in this Item.”
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Allowed renewals | 2 |
|---|---|
| Protected territory | No |
| Territory condition | Franchisee must maintain minimum Gross Sales after year 3 (60% of regional average) or face termination. |
| Exclusive territory | No |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | The owner, or a principal the franchisor approves, must run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 25 mi |
| Right of first refusal | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Utah |
| Governing law | Utah |
Items 5 (initial fees), 7 (startup costs), 12 (territory) and 20 (outlet counts) · development agreement
Area development (several units)
The filing offers a development agreement for several units.
Every term, with its page
- Development fee
- The Development Fee is equal to $40,000 for the first Salon, $20,000 for the second Salon, and $10,000 for each additional Salon..
2026 FDD p.18
“The Development Fee is equal to $40,000 for the first Salon, $20,000 for the second Salon, and $10,000 for each additional Salon.”
Each unit still needs its own Item 7 investment on top of the development fee. Have a franchise attorney read the schedule and the default terms before you sign.
Items 10 (financing), 11 (training and support)
Training and operations
- Classroom training
- 43 hrs
- On-the-job training
- 17 hrs
- Training location
- Salt Lake City, Utah
- Ongoing training
- Required
- Time to open
- 6–9 mo
- From signing to launch (FDD p.29)
- Site selection
- franchisee (with franchisor approval)
- Franchisor financing
- Not offered
- Item 10
- POS system
- Shortcuts
- Operating tech stack
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Item 20 (outlet counts) · call current owners
Franchisee contacts
Who can you call before you sign?
96 current outlets listed
Each record has a phone number and state. No franchisee names or cities. 96 records. From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list covers 96 of the 117 franchised outlets Item 20 counts at year end; the owner exhibit prints the rest without a usable phone number, or omits them.
For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.
The list is not offered for this brand yet. The FDD's Item 20 exhibit lists the owners.
Frequently asked questions
How much does it cost to open a Cookie Cutters franchise?
Per the 2026 FDD, the total investment to open a Cookie Cutters franchise ranges from $138K to $390K, with an initial franchise fee of $40K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Cookie Cutters franchise owners earn?
According to Item 19 of the Cookie Cutters FDD, average gross sales were $314K (108 outlets reporting; gross sales, not profit). The median is $304K. What an owner keeps depends on location, operating costs and management.
Who owns Cookie Cutters?
Cookie Cutters is franchised by Cookie Cutters Franchising Inc. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Cookie Cutters FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Cookie Cutters FDD and qualifies whose outlets they describe.
What is Cookie Cutters' franchise failure rate?
There is no published franchise failure rate. What is measurable is Cookie Cutters' SBA charge-off rate: 14.3% on 21 resolved loans. Put plainly: 1 in 7 SBA 7(a) loans to Cookie Cutters owners charged off (3 of 21 resolved loans, approved since FY1991); loans approved FY2016–FY2017: 1 of 14 resolved loans charged off (7.1%); newer loans have not had time to default, so this is not a trend. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. A franchisee can repay and close, or default and keep trading.
How many Cookie Cutters franchise locations are there?
Per the 2026 FDD, Cookie Cutters has 117 franchised units and 3 company-owned (120 in all). In the latest year, the number of franchised outlets grew by 2 (5 opened, 3 left the franchised system, 2 of them bought back by the franchisor).
Is Cookie Cutters a good franchise to buy?
FranchiseVerdict gives Cookie Cutters a B Verdict grade (Second tier) with a verdict score of 65 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by unit growth (+7 franchised outlets over the two years to 2025: 110 to 117, +6.4% in total, +3.1% a year compounded), legal record and transparency. Held back by unit economics (avg gross sales $314K on a $264K investment midpoint, 1.2x: gross sales, not profit). The “Why a B” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Personal Care & Beauty franchises
Similar investment first, then by grade
This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.