Cookie Cutters Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Cookie Cutters franchise requires a total initial investment of $138K – $390K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $314K[2]. SBA 7(a) loans show a 14.3% charge-off rate across 24 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $138K – $390K
- 12th pct Personal Care…
- Avg gross sales
- $314K
- 4th pct Personal Care…
- Royalty
- 5.0%
- 4th pct Personal Care…
- Units
- 120
- 44th pct Personal Care…
- SBA charge-off
- 14.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = favorable by >10% vs Personal Care & Beauty avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $138K – $390K including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $314K/year (median $304K).
- RISKVerdict B (Above average), verdict score 63/100 (higher is better). SBA loan charge-off rate of 14.3% across 24 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- TERMSNo protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · 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
- Headquarters
- Utah
- Founded
- 2014
- FDD year
- 2026
- States available
- 28
Can you afford it, and what does the money buy?
Entry cost runs 49% below the typical personal care & beauty franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $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 7 · what it costs to open + operate
The Vitals
- Total investment
- $138K – $390K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $45K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Training fee | $3K |
| Renewal fee | $10K |
| Inventory (initial) | $3K – $5K |
What do units actually make?
Average unit sales run 56% below the personal care & beauty norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Cookie Cutters until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$294K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Cookie Cutters unit return on the cash you put in?
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.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
Financial Performance
- Avg gross sales
- $314K
- Per unit, per year
- Median gross sales
- $304K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Table 1 - Sales by tier (average, median, high, low) for 108 franchised locations operating full year 2025; Table 2 - 1 company-owned location
- Sample size
- 108 outlets
- vs category median 36 · large
- Range (low → high)
- $60K→$680K
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 177 Personal Care & Beauty brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $314K/year in gross sales. Revenue-to-investment ratio: 1.2x.
Fee burden
5.0% royalty + 1.0% ad fund — lower than the category average.
Operator retention
System expanding at 6.4% CAGR over 3 years across 120 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Personal Care & Beauty averages
How Cookie Cutters Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 120
- Opened
- 5
- Last reporting year
- Closed
- 0
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.9%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 7%
- vs corporate-owned
- Net growth (3-yr)
- +6.4%
- Net unit change over 3 years
- 3-yr CAGR
- +6.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 5
- Closed (3yr)
- 0
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 2
- Franchisor bought back
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 24
- Loan volume
- $3.8M
- Median loan
- $140K
- 50th percentile
- Charge-off rate
- 14.3%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 85.7%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 10
- Defaults
- 3
- Typical loan rate
- 6.3%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 8121
- Jobs supported
- 267
- 7.1 per loan
- Lender concentration
- 54%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Top lenders financing Cookie Cutters franchisees
Showing 3 of 10 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Cookie Cutters's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 7-year lending trend
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 14.3% — 11% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
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
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Utah |
| Governing law | Utah |
| Litigation count | 1 |
View Item 3 litigation summary
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.
Items 10, 11
Training & Operations
- Classroom training
- 43 hrs
- On-the-job training
- 17 hrs
- Training location
- Salt Lake City, Utah
- Ongoing training
- Required
- Time to open
- 7 mo
- From signing to launch
- Site selection
- franchisee (with franchisor approval)
- Franchisor financing
- Not offered
- Item 10
- POS system
- Shortcuts
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Shortcuts
Item 20 · call current owners
Franchisee Contacts
96 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Cookie Cutters franchise?
The total investment to open a Cookie Cutters franchise ranges from $138K – $390K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Cookie Cutters franchise owners earn?
According to Item 19 of the Cookie Cutters FDD, the average gross sales per unit is $314K. The median is $304K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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's franchise failure rate?
Based on SBA 7(a) loan data, Cookie Cutters has a charge-off rate of 14.3% across 24 loans, meaning 14.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Cookie Cutters franchise locations are there?
As of their most recent FDD filing, Cookie Cutters has 120 total units in the United States, including 117 franchised units and 3 company-owned units. 5 new units were opened in the latest reporting year.
Is Cookie Cutters a good franchise to buy?
FranchiseVerdict rates Cookie Cutters as a B-grade franchise with a verdict score of 63 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). 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.