There are a couple here that will do this, and it always frustrates me. (JoAnn's is the worst) The LQS that is the closest to me also measures to the exact inch-no 1/4" extra. They do use a ruler and rotary cutter, so it is straight.
I will also give credit where credit is due. Our local Hancock Fabrics always cuts on that line. You always know you will get the pattern line cut straight. I always watch though because everyone can make a mistake.