UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549


                                   FORM 10-QSB

[X]  Quarterly report pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934 For the quarterly period ended June 26, 1997

[ ]  Transition report pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934 For the transition period from _____ to _____.

                         COMMISSION FILE NUMBER: 0-24466

                 THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC.

             (Exact name of registrant as specified in its charter)

                  Minnesota                             41-0945858
      (State or other Jurisdiction of                (I.R.S. Employer
       incorporation or organization)               Identification No.)

                           300 Industrial Boulevard NE
                              Minneapolis, MN 55413
                    (Address of principal executive offices)
                                 (612) 331-8500
              (Registrant's telephone number, including area code)

         Check whether the registrant: (1) filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days Yes X No__

         On August 8, 1997, the registrant had 2,585,704 outstanding shares of
common stock, $. 10 par value.




<PAGE>


                 THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC.

                                      INDEX

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements (Unaudited)

         Condensed Consolidated Statements of Earnings for the Quarter Ended
         June 26, 1997 and June 27, 1996

         Condensed Consolidated Statements of Financial Position at
         June 26, 1997 and September 26, 1996

         Condensed Consolidated Statements of Cash Flows for the
         Quarter Ended June 26, 1997 and June 27, 1996

         Notes to Condensed Consolidated Financial Statements

Item 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations



PART II - OTHER INFORMATION

Item 1.  Legal Proceedings
Item 6.  Exhibits and Reports on Form 8-K

SIGNATURES

Exhibit 11     Statement re: computation of earnings per share
Exhibit 27     Financial Data Schedule




<PAGE>


                 THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                               THIRD QUARTER F1997
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                    Three Months Ended               Nine Months Ended
                                                 June 26,        June 27,        June 26,         June 27,
                                                   1997            1996            1997             1996
                                               -----------     -----------     ------------     ------------
<S>                                            <C>             <C>             <C>              <C>         
REVENUES
      Franchise Royalties                      $ 1,923,927     $ 1,588,490     $  5,175,194     $  4,481,948
      Franchise Fees                               222,750         309,299          647,068          919,349
      Company-Owned Salons                       1,200,842         850,453        3,325,719        1,934,769
      Beauty Products & Equipment                2,169,520       2,051,056        6,461,455        6,114,134
      Other                                         81,136         113,319          416,030          313,867
                                               -----------     -----------     ------------     ------------
      Total Revenues                             5,598,175       4,912,617       16,025,466       13,764,067

COSTS & EXPENSES
      Franchise Operations
        Salaries & Benefits                        511,948         456,051        1,464,034        1,362,568
        General & Administrative                   259,078         243,220          797,015          768,532
                                               -----------     -----------     ------------     ------------
      Total                                        771,026         699,271        2,261,049        2,131,100
                                               -----------     -----------     ------------     ------------

      Company-Owned Salons
        Salaries & Benefits                        643,027         510,638        1,803,862        1,149,402
        General & Administrative                   293,086         260,547          907,701          609,649
        Cost of Products & Services                195,711         132,097          498,752          298,387
                                               -----------     -----------     ------------     ------------
      Total                                      1,131,824         903,282        3,210,315        2,057,438
                                               -----------     -----------     ------------     ------------

      Distribution & General Administration
        Salaries & Benefits                        751,705         674,939        2,185,036        1,931,364
        General & Administrative                   695,280         574,988        1,928,564        1,697,128
        Cost of Products & Equipment             1,638,994       1,582,130        4,911,714        4,792,456
                                               -----------     -----------     ------------     ------------
      Total                                      3,085,979       2,832,057        9,025,314        8,420,948
                                               -----------     -----------     ------------     ------------


OPERATING INCOME                                   609,346         478,007        1,528,788        1,154,581

OTHER INCOME (EXPENSE)
      Interest Income                               35,596          30,362          103,063           90,537
      Interest Expense                             (54,512)        (15,903)         (95,577)         (28,465)
      Net Gain(Loss) on Disposal of Assets          (6,171)              -           (3,105)          31,092
                                               -----------     -----------     ------------     ------------

INCOME BEFORE INCOME TAXES                         584,259         492,466        1,533,169        1,247,745

INCOME TAX EXPENSE                                 244,000         207,000          643,000          524,000
                                               -----------     -----------     ------------     ------------

NET INCOME                                     $   340,259     $   285,466     $    890,169     $    723,745
                                               ===========     ===========     ============     ============

NET INCOME PER SHARE                           $      0.12     $      0.10     $       0.32     $       0.26
                                               ===========     ===========     ============     ============

WEIGHTED AVERAGE COMMON AND COMMON
    EQUIVALENT SHARES OUTSTANDING                2,820,088       2,758,585        2,811,250        2,735,458
                                               ===========     ===========     ============     ============
</TABLE>
See notes to condensed consolidated financial statements.




<PAGE>


                 THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC.
             CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
<TABLE>
<CAPTION>
                                                               June 26,     September 26,
                                                                1997            1996
                                                             -----------    -------------
ASSETS                                                       (Unaudited)       (Note 1)
<S>                                                          <C>             <C>       
Current assets:
     Cash                                                    $ 2,070,426     $1,317,448
     Trade receivable, less allowance for doubtful
       accounts of $450,000 in June, 1997 and
       $315,000 in September, 1996                             2,893,432      2,163,968
     Notes receivable                                            422,641        235,206
     Inventories held for resale                               1,417,578      1,199,939
     Prepaid expenses                                             76,169         74,372
     Deferred income taxes                                       287,000        287,000
                                                             -----------     ----------
Total current assets                                           7,167,246      5,277,933

Notes receivable, less current portion and allowance for
       doubtful notes of $100,000 in June, 1997 and
       September, 1996                                           745,545        733,924
Property, equipment and leasehold impovements, at cost:
    Equipment                                                  1,996,181      1,918,682
    Leasehold improvements                                       910,037        852,109
                                                             -----------     ----------
                                                               2,906,218      2,770,791
    Less accumulated depreciation                              2,024,589      1,816,151
                                                             -----------     ----------
Net property, equipment and leasehold improvements               881,629        954,640

Investment in franchise contracts, less accumulated
       amortization of $347,839 in June, 1997 and
       $221,805 in September, 1996                             2,664,943        733,419
Deferred income taxes                                            338,000        338,000
Other assets                                                     252,712        210,287
                                                             -----------     ----------

Total assets                                                 $12,050,075     $8,248,203
                                                             ===========     ==========


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
     Current maturities of long-term debt and capital
        lease obligations                                    $   312,565     $   86,675
     Accounts payable                                            699,046        481,897
     Deferred franchise fees                                     107,750        113,750
     Committed advertising                                       714,350        521,208
     Accrued compensation and related payroll taxes              723,274        741,704
     Other accrued expenses                                      453,958        287,011
     Income taxes payable                                        (17,464)        82,943
                                                             -----------     ----------
Total current liabilities                                      2,993,479      2,315,188

Long term debt and capital lease obligations                   2,196,985         56,250
Deferred franchise fees                                          226,000        226,000
Deferred compensation                                            265,125        204,278

Shareholders' equity:
     Common stock                                                257,820        256,827
     Additional paid in capital                                  406,570        375,733
     Retained earnings                                         5,704,096      4,813,927
                                                             -----------     ----------
Total shareholder's equity                                     6,368,486      5,446,487
                                                             -----------     ----------

Total liabilities and shareholders' equity                   $12,050,075     $8,248,203
                                                             ===========     ==========
</TABLE>

Note 1: The balance sheet at September 26, 1996 has been derived from the
audited financial statements at that date but does not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. Certain fiscal 1996 items have been
reclassified to conform with the fiscal 1997 presentation.


See notes to condensed consolidated financial statements.




<PAGE>


                 THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                   Nine Months Ended
                                                                June 26,        June 26,
                                                                 1997            1996
                                                              -----------     -----------
<S>                                                           <C>             <C>        
OPERATING ACTIVITIES
Net income                                                    $   890,169     $   723,745
Adjustments to reconcile net income to net cash
       provided by (used in) operating activities:
     Depreciation and amortization                                367,483         267,500
     Provision for losses on accounts and notes receivable        191,286         204,646
     (Gain)/Loss on sales of property and equipment                 3,105         (31,092)
     Deferred income taxes                                              -         (60,000)
     Stock compensation                                            19,080          56,198
     Stock awarded to Franchisees under the 
       Designer Salon Program                                           -          39,450
     Changes in operating assets and liabilities:
       Decrease (increase) in:
         Accounts and notes receivable                         (1,119,806)     (1,196,487)
         Inventories held for resale                             (217,639)       (364,356)
         Prepaid expenses                                          (1,797)        (61,411)
         Other assets                                             (42,425)        (21,276)
      (Decrease) increase in:
         Payables and accrued expenses                            619,655         (92,366)
         Deferred franchise fees                                   (6,000)        (80,227)
         Income taxes payable                                    (100,407)        (14,625)
                                                              -----------     -----------
Net cash provided by (used in) operating activities               602,704        (630,301)

INVESTING ACTIVITIES
Proceeds from sale of property and equipment                      111,786          35,880
Capital expenditures                                             (283,329)       (458,049)
Investment in franchise contracts                              (2,057,558)        (30,177)
                                                              -----------     -----------
Net cash used in investing activities                          (2,229,101)       (452,346)

FINANCING ACTIVITIES
Additions to long-term debt                                     2,500,000         500,000
Principle payments on long-term debt                             (121,700)        (56,250)
Principle payments on capital lease obligations                   (11,675)        (18,510)
Proceeds from issuance of stock options                            12,750               -
                                                              -----------     -----------
Net cash provided by(used in) financing activities              2,379,375         425,240 
                                                              -----------     -----------

Net increase(decrease) in cash and cash equivalents               752,978        (657,407)

Cash and cash equivalents at beginning of period                1,317,448       2,121,310
                                                              -----------     -----------

Cash and cash equivalents at end of period                    $ 2,070,426     $ 1,463,903
                                                              ===========     ===========


CASH PAID DURING PERIOD FOR:
     Interest                                                 $    95,577     $    28,465
     Taxes                                                    $   743,407     $   598,625
</TABLE>

See notes to condensed consolidated financial statements.




<PAGE>


              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE A - BASIS OF PRESENTATION

         The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all adjustments
(consisting solely of normal recurring accruals) considered necessary for a fair
presentation of results have been included. Operating results for the three
months ended June 26, 1997, are not necessarily indicative of the results that
may be expected for the year ended September 25, 1997. For further information,
refer to the consolidated financial statements and footnotes thereto included in
the Company's annual report for the fiscal year ended September 26, 1996.

NOTE B - NET INCOME PER SHARE

         The net income per share is computed using the weighted average number
of shares of common stock, and common stock equivalents, outstanding during the
periods presented.

         In February 1997, the Financial Accounting Standards Board issued
Statement No. 128, EARNINGS PER SHARE, which is required to be adopted on
December 31, 1997. At that time, the company will be required to change the
method currently used to compute earnings per share and to restate all prior
periods. Under the new requirements for calculating primary earnings per share,
the dilutive effect of stock options will be excluded. The impact is expected to
result in a $.01 increase in primary earnings per share for the third quarters
of both fiscal years. Year to date primary earnings per share would increase
$.03 for the current fiscal year and $.02 for the previous fiscal year.




<PAGE>


                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

         The Company is in the business of franchising three different hair care
salon concepts that provide hair care products for men, women, and children.
Most franchises do business under the names "Cost Cutters Family Hair Care(R)"
("Cost Cutters") and "City Looks Salons International(R)" ("City Looks") and "We
Care Hair(R)". The Company also has a limited number of franchises operating
under the names "The Barbers, Hairstyling for Men & Women(R)", "Family Haircut
Stores" and "The Hair Performers". The Company currently sells only franchises
in Cost Cutters, City Looks and We Care Hair.

         The Company had 947 franchised and company-owned salons in operation as
of June 26, 1997, compared to 768 at June 27, 1996. The Company primarily earns
revenue through its franchise operations from initial franchise fees, franchise
royalties, and sales of beauty products and equipment to the franchisees.

         The Company operates on a 52/53 week year basis. The fiscal years 1997
and 1996 include 52 weeks of operations.

RESULTS OF OPERATIONS

REVENUES: The Company's total revenues were $5,598,175 for the third quarter of
fiscal 1997 and $16,025,466 for the first nine months of fiscal 1997, an
increase of 14.0% and 16.4% respectively over the comparable periods of the
previous year. Franchise royalties totaled $1,923,927 for the third quarter of
fiscal 1997 which is an increase of 21.1% over the third quarter of the previous
year. Franchise royalties for the first nine months increased 15.5% to
$5,175,194 versus the comparable period of the previous year. The increase in
franchise royalties was due to an increase in the number of salons in operation
in the first nine months of fiscal 1997, including new salon openings and the
purchase of the We Care Hair franchises, as compared to the same period of
fiscal 1996 and an increase in average per store sales by franchised salons.
Franchise fee revenue (initial franchise fees) was $222,750 during the third
quarter of fiscal 1997, an decrease of 28.0% versus the third quarter of fiscal
1996. The decrease in franchise fee revenue was due to a decrease in the number
of salons opened during the comparable periods. A total of nineteen new salons
opened in the third quarter of fiscal 1997 compared to opening 30 salons during
the third quarter of the previous year. Year to date the franchise fee revenue
has decreased $272,281 or 29.6% over the prior year comparable period to
$647,068. This represents openings of 51 franchised locations and four
company-owned salons versus 78 franchised locations and eight company-owned
salons for the first nine months of the previous year. Revenue from
company-owned salons was $1,200,842 for the third quarter and $3,325,719 for the
first nine months of fiscal 1997, an increase of 41.2% and 71.9% respectively
over the comparable periods of the previous year. The increase in revenue from
company-owned salons is due primarily to the addition of new company-owned
salons and sales growth at salons opened last year. Beauty product and equipment
sales for the third quarter of fiscal 1997 were $2,169,520, an increase of
$118,464 or 5.8% over the third quarter of the previous year. Year to date
revenue from beauty products and equipment was $6,461,455, an increase of 5.7%
over the first nine months of the previous year. The increase in beauty product
and equipment sales includes a $225,000 increase in export sales. Product sales
also increased due to the addition of new salons and selected price increases.
Equipment prices also increased, but total equipment sales decreased 9.3%
because of a decrease in the number of new salon openings.




<PAGE>


COSTS & EXPENSES - FRANCHISE OPERATIONS: Total franchise operations expenses
were $771,026 for the third quarter and $2,261,049 for the first nine months of
fiscal 1997. This was an increase of 10.3% and 6.1% respectively over the
comparable periods of fiscal 1996. The increase was due to growth in field staff
and related travel to service new salons including the new We Care Hair salons,
and general salary increases averaging about 4%.

COSTS & EXPENSES - COMPANY-OWNED SALONS: The Company presently owns and operates
twenty-one salons: twenty operate as Cost Cutters salons and one operates as a
City Looks. Sixteen of the Cost Cutters operate inside Wal-Mart Supercenters.
Third quarter operating costs for the company-owned salons were $1,131,824 as
compared to $903,282 for the third quarter of the previous year, an increase of
25.3%. Year to date operating costs were $3,210,315 versus $2,057,438 for the
comparable period of the previous year. The increase was primarily due to the
costs associated with opening and operating new Cost Cutters salons.

COSTS & EXPENSES - DISTRIBUTION AND GENERAL ADMINISTRATION: Total operating
expenses for distribution and general administration for the third quarter of
fiscal 1997 were $3,085,979 which is an increase of $253,922 or 9.0% over the
third quarter of the prior year. Expenses for the first nine months of fiscal
1997 were $9,025,314 as compared to $8,420,948 in fiscal 1996, an increase of
7.2%. Most of this increase was due to increased cost of products and equipment
sold, which corresponds to the increase in sales of products and equipment. The
third quarter cost of products and equipment sold was $1,638,994 versus a prior
year cost of $1,582,130, an increase of 3.6%. Year to date costs of products and
equipment were $4,911,714 versus $4,792,456 the previous year, an increase of
2.5%. Margins on the sale of products and equipment were 24.5% and 24.0% for the
third quarter and first nine months respectively. This compares with 22.9% and
21.6% for the same periods of the previous year. The increase in margins is
primarily to due to changes in product mix. Salaries and benefits were $751,705
and $2,185,036 for the third quarter and first nine months of fiscal 1997. This
compares with $674,939 and $1,931,364 for the comparable periods of the previous
year and represents an increase of 11.4% and 13.1% respectively. The increase
was due to increases in staff size, as well as an average increase in salaries
of 4.0%. General and administrative expenses for the third quarter increased
20.9% to $695,280. Year to date general and administrative expenses increased by
$231,436 or 13.6% over the previous year to $1,928,564. Legal and other
professional fees related to the We Care Hair franchises accounted for over half
of this increase.

OPERATING INCOME: Operating income was $609,346 for the third quarter and
$1,528,788 for the first nine months of fiscal 1997. This compares to $478,007
and $1,154,581 for the comparable periods of the prior year, an increase of
27.5% and 32.4% respectively. Operating income as a percent of revenue was 10.9%
for the third quarter and 9.5% for the first nine months of fiscal 1997. This
compares to 9.7% and 8.4% for the comparable periods of the previous fiscal
year.

INTEREST INCOME AND EXPENSE: Interest income was $35,596 for the third quarter
and $103,063 for the first nine months of fiscal 1997, an increase versus the
previous year of 17.2% and 13.8% respectively. Interest expense was $54,512 for
the third quarter and $95,577 for the first nine months of fiscal 1997. This
compares to $15,903 and $28,465 for the comparable periods of fiscal 1996. The
increase in interest expense was due to the debt incurred by the Company to
acquire the We Care Hair chain.




<PAGE>


NET GAIN(LOSS) ON DISPOSAL OF ASSETS: Gains and losses on disposal of assets
have been minimal. Year to date, the Company has sold five company-owned salons.
In fiscal 1996, the Company sold one company-owned salon and one rental
property.

INCOME TAXES: The Company's effective tax rates for the third quarter and first
nine months of fiscal 1997 were 41.8% and 41.9%, respectively, versus a rate of
42.0% for the third quarter and the first nine months of fiscal 1996. The
Company anticipates that the rate for the balance of fiscal 1997 will be
approximately 42%.

NET INCOME: The Company's net income for the third quarter of 1997 was $340,259
or $.12 per share. This was an increase of $54,793 or 19.2% over the third
quarter of fiscal 1996 net income and an increase of $.02 per share. Net income
for the first nine months of fiscal 1997 was up 23.0% to $890,169. Earnings per
share for the first nine months were $.32 per share as compared to $.26 for the
previous year.

LIQUIDITY AND CAPITAL RESOURCES: The Company has generally been able to finance
the routine expansion of its business from current cash on hand, cash generated
from operations, and the Company's line of credit. The Company has financed
acquisitions by obtaining additional bank debt. The Company expects capital
expenditures during fiscal 1997 to be approximately $400,000, primarily due to
the addition of several new company-owned salons and routine replacement of
office equipment.

The Company currently has a line of credit in the amount of $1,500,000 which
carries an interest rate at the bank's prime rate which expires June 30, 1998.
In addition, the Company also has three term loans with this same lender. One of
these loans carries an interest rate equal to the bank's prime rate and had a
balance of $75,000 at June 26, 1997. A second loan also carries an interest rate
equal to the bank's prime rate and had a balance of $1,000,000 at the end of the
quarter. The third loan carries an interest rate if 8.82% and had a balance of
$1,434,550.

                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

On February 4, 1997, the Company was named as a defendant in LELA BISHOP, ET
AL., V. DOCTOR'S ASSOCIATES, INC., FREDERICK DELUCA, PETER H. BUCK, FRANCHISE
WORLD HEADQUARTERS, INC., WE CARE HAIR DEVELOPMENT, INC., JOHN AMICO, SR., FRED
FLORIO, THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC., WE CARE HAIR REALTY,
INC., FRANCHISE REAL ESTATE LEASING CORP., JOHN F. AMICO & COMPANY, WCH, INC.
AND JAMI INTERNATIONAL, INC. (Circuit Court, Third Judicial Circuit, Madison
County, Illinois, Cause No. 97-L-231, filed February 4, 1997). Eighteen We Care
Hair(R) franchisees have filed this lawsuit and requested certification of the
lawsuit as a class action pursuant to 735 ILCS Section 5/2-801 et seq. on behalf
of all past and present We Care Hair(R) franchisees. This lawsuit has been
brought against the above defendants for alleged breaches of fiduciary duty,
fraud, violations of the Illinois Franchise Disclosure Act and violations of the
Illinois Anti-trust Statute. The plaintiffs seek to recover an award of actual
damages, punitive damages, treble damages and attorneys fees in an amount not to
exceed, in the aggregate, under all counts of the complaint, against all
defendants, the sum of $74,950 for each franchisee, and for court costs. The
Barbers and its wholly-owned subsidiary, WCH, Inc., have been named as
defendants in this lawsuit under the theory that they acted with all other
defendants pursuant to a civil conspiracy and/or mutual scheme with concerted
action for the purpose of constructively terminating the We Care Hair(R)
franchises throughout the country by convincing We Care Hair(R) franchisees to
execute new franchise agreements with The Barbers to operate as Cost Cutters




<PAGE>


franchisees and decrease and/or eliminate all services and advertising for
remaining We Care Hair(R) franchisees. We Care Hair Realty, Inc., a wholly-owned
subsidiary of WCH, Inc., has been named as a defendant in this lawsuit under the
theory that it also participated in the conspiracy or scheme by attempting to
transfer the We Care Hair(R) subleases to The Barbers and WCH, Inc. This case is
in the early pretrial stage.


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)      The following exhibits are included herein:

Exhibit
Number                     Description
------                     -----------
11       Statement re: computation of earnings per share
27       Financial Data Schedule

(b)      The Company filed a report on Form 8-K under item 2 on February 6, 1997
         and filed an amendment to such report on April 7, 1997 which included
         financial statements required by Item 7 of Form 8-K.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                 THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC.
                                  (Registrant)

Date:  August 8, 1997                              By:  /s/ Frederick A. Huggins
                                                   Frederick A. Huggins
                                                   President


                                                   By:  /s/ J. Brent Hanson
                                                   J. Brent Hanson
                                                   Chief Financial Officer