Great Clips Franchise FDD, Costs & Fees (2025)

Great Clips is a hair salon franchise that offers affordable and convenient haircuts for men, women, and children, providing quick and quality hair care services in a friendly and comfortable salon environment.

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
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

Competitors

Below are some of

Great Clips

key competitors in the

Hair salon

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
Upgrade
Gross Profit
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EBITDA
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4439

New
+
0%
0%

$20,000

$188,000

$420,000

n.a.

$382,000

$xxx,xxx

98.4%

xx%

n.a.

19.4%

xx%

n.a.

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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.

Competitors

Knockouts

Knockouts offers a unique sports-themed grooming experience for men, combining haircuts, shaves, and relaxation in a comfortable environment.

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51
+
11%
11%
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?

$245,000 - $388,000
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16
+
23%
23%
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?

$631,000 - $845,000

Lemon Tree Hair Salons

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+
3%
3%
Investment

?

$179,000 - $271,000
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Primp and Blow

Primp and Blow offers blowout and styling services, providing a luxurious salon experience with professional hair care and makeup services for special occasions and everyday pampering.

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?

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+
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?

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Diesel Barbershop

Diesel Barbershop is a modern barbershop offering haircuts, shaves, and grooming services in a stylish and masculine environment, catering to men of all ages.

Franchisees

?

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+
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17%
Investment

?

$361,000 - $503,000
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Sit Still Kid's Salon

Sit Still Kid's Salon offers haircuts and styling services specifically for children, providing a fun and stress-free experience in a kid-friendly environment.

Franchisees

?

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+
300%
300%
Investment

?

$183,000 - $495,000
Beauty
Hair salon