Great Clips Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

4439
+
0%
0%
Investment required

?

$188,000 - $420,000
Revenue (AUV)

?

$382,000
Undisclosed
Pro
+
12.7%
+
xx%
-xx%
12.7%
Initial franchise fee

?

$20,000
Royalty fees

?

6.00%
+
5.00%
Operating Profit

?

19.4%

Pro
Franchisees

?

4439
+
0%
0%
Investment required

?

$188,000 - $420,000
Franchise fee

?

$20,000
Royalty fees

?

6.00%
+
5.00%
Revenue (AUV)

?

$382,000
Undisclosed
Pro
+
12.7%
+
xx%
-xx%
12.7%
Operating Profit

?

19.4%

Pro

Great Clips: Revolutionizing Haircare with Convenience and Affordability

Great Clips is a leading franchise in the haircare sector, widely recognized for its accessible and budget-friendly salon services. Established in 1982 by Steve Lemmon and David Rubenzer in Minneapolis, Minnesota, Great Clips has expanded into one of the largest salon networks across North America.

The franchise initiated its franchising operations in 1983, giving entrepreneurs the chance to join a brand committed to delivering high-quality haircuts at reasonable prices. Great Clips offers a broad range of hair services, including cuts for men, women, and children, as well as various styling and grooming options.

One of the distinctive features of Great Clips is its focus on walk-in services, allowing clients to get a haircut without prior appointments. Additionally, the franchise utilizes technology through its online check-in system, minimizing wait times and improving the overall customer experience.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount (Low) Amount (High)
Initial Franchise Fee $20,000 $35,000
Initial Advertising Contribution to the MDAF $5,000 $5,000
Travel and Expenses While Training (per participant) $1,500 $2,500
Architecture Fees $100 $3,800
Leasehold Improvements, including Labor $70,000 $200,000
Rent and Security Deposits $1,000 $10,000
Fixtures, Signage and Furnishings, including Salon Technology Hardware $40,000 $55,000
Freight $4,000 $7,000
Sales Tax on Fixtures, Signage and Furnishings $0 $3,200
Opening Inventory and Supplies $4,700 $6,400
Grand Opening Advertising $20,000 $25,000
Insurance $1,500 $3,000
Lease Liability Fee and Lease Review Fee $0 $4,000
Additional Funds (3-6 Months) $20,000 $60,000
Total $187,800 $419,900

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

4439

+
0%
0%
No growth
New

$20,000

$188,000

-

$420,000

n.a.

$382,000

Pro

98.4%

Pro

19.4%

Pro

Beauty

Training 

Great Clips offers extensive training for franchisees and their key staff, incorporating various programs designed to ensure effective operation and compliance with brand standards. The training programs include:

QuickConnect Franchisee Training: This essential program for franchisees covers the foundational aspects of setting up and managing a Great Clips salon. It combines online modules via GREAT CLIPS® University, virtual sessions, in-person training, participation in the Great Clips Academy, LEADS, in-salon training, and classroom instruction.

Great Clips Academy: Mandatory for franchisees and key personnel such as stylists, this program delves into the critical elements of running a salon, ensuring the consistent delivery of the GREAT CLIPS® brand promise.

LEADS (Leading Excellence and Developing Staff): Targeted at franchisees and their management teams, this program focuses on maintaining the GREAT CLIPS® brand standards within the salon.

In-Salon Training: As part of the QuickConnect Franchisee Training, franchisees must complete hands-on training in a salon environment, gaining familiarity with daily operations, including the use of salon technology and the point-of-sale system.

Territory Protection

Great Clips does not grant franchisees an exclusive territory. Instead, franchisees receive a protected territory, delineated by a specific radius from the salon's main entrance. This radius is typically three-quarters of a mile for standard locations and one-tenth of a mile in areas with high population density.

Despite this protected territory, franchisees may encounter competition from other franchisees, company-operated locations, or other brands under the Great Clips umbrella, even within the designated area.

This approach allows Great Clips to strategically place salons to maximize market coverage and brand presence while ensuring each franchisee has a fair opportunity to thrive. The protected territory helps balance franchisee interests with the overall growth and accessibility goals of the Great Clips brand.

Number of units

2025
Franchised units

4427

4427

4439

Company-owned units

0

0

0

Total units

4427

4427

4439

Competitors

Knockouts

Investment required
$245,000
-
$388,000
Franchisees
51
+
11%
11%

Scissors & Scotch Barbershop

Investment required
$631,000
-
$845,000
Franchisees
16
+
23%
23%

Lemon Tree Hair Salons

Investment required
$179,000
-
$271,000
Franchisees
34
+
3%
3%

Sit Still Kid's Salon

Investment required
$125,000
-
$401,000
Franchisees
17
+
750%
750%

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