Cookie Cutters Haircuts for Kids
Bottom line
- Total investment $138K – $390K including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $314K/year (median $304K).
- Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 22 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Cookie Cutters Haircuts for Kids unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Cookie Cutters Haircuts for Kids units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$629K
on $3.1M purchase
Total debt
$2.5M
SBA $1.6M + senior + seller note
Overview
About
Cookie Cutters franchisees operate children's hair salons serving ages 0-12, delivering haircuts in themed, play-focused environments designed to reduce child anxiety. Day-to-day operations include scheduling appointments, performing haircuts, managing staff (typically 2-4 stylists), handling walk-ins, sanitizing stations, and managing inventory of kid-friendly products and toys.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Stagnant growth, unprotected territory, undisclosed profitability, and recent litigation over financial representations create material risks for franchise viability and franchisor transparency.
Score breakdown · what drove the 46 / 100 rating
- 01MINORMinimal system growth (1.7% YoY) suggests market saturation or stagnation in a 120-unit system
- 02MINORNo unprotected territory creates direct competition risk — multiple franchisees can operate in same area
- 03MEDNet income not disclosed by franchisor — inability to verify $314K revenue translates to viable profit
- 04HIGH2025 litigation alleging unauthorized financial performance representations indicates potential disclosure violations under FTC rules
- 05MINORHigh investment-to-revenue ratio (138K-390K initial vs 314K avg revenue) means 44-124% payback period before profit
- 06MINOR5% royalty on gross sales (not net) creates cash flow pressure during low-revenue months
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
96 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Cookie Cutters Haircuts for Kids · FDD (2026) PDF