QUICK SUMMARY
Great Clips, founded in 1982 near the University of Minnesota, has become one of North America’s leading hair salon franchises.
With streamlined operations emphasizing speed and affordability, Great Clips offers extended hours and innovative technology like online check-ins.
With franchising opportunities beginning in 1983, Great Clips rapidly experienced rapid expansion with 3,000 salons by 2010.
The company provides extensive training, ongoing support, and practical marketing tools to empower Great Clips franchisees for success.
Known for consistent, high-quality services, Great Clips thrives as the world’s largest salon brand.
KEY TAKEAWAYS
- Great Clips began offering franchise opportunities in 1983, providing exclusive territories and maintaining brand consistency.
- Currently, there are over 4,400 Great Clips franchise locations operating in the United States and Canada.
- Comprehensive support includes marketing resources, security training, and assistance with site selection and lease negotiation.
- The initial investment for a Great Clips franchise ranges from $178,400 to nearly $400,000, with a $20,000 initial franchise fee.
- Franchisees can expect an annual salary ranging from $48,000 to $82,000, with additional pay averaging $6,000 annually.
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Is Great Clips A Franchise?
Yes, Great Clips began offering franchise opportunities in 1983, just one year after its inception.
Great Clips grants exclusive territory to franchisees within three-quarters of a mile from the salon’s entrance, safeguarding against competition from other franchisees.
As the franchisor, Great Clips mandates specific services and products from designated locations, maintaining brand consistency and business methods.
How Many Great Clips Locations Are There?
There are 4,427 Great Clips franchise locations, all of which are in the North American countries of the United States and Canada.
In 2020, Great Clips corporate office implemented a five-year strategic plan and annual Growth Scorecard to set goals and objectives for the entire organization.
As of December 31, 2023, Great Clips has 91 new franchised outlets projected to open within the 2024 fiscal year.
In 2023, Great Clips was, for the sixth year in a row, ranked #1 in Entrepreneur’s 2023 Franchise 500® list for its category. This showcases the company’s dominant presence in the hair salon industry.
What Training Is Required To Open A Great Clips?
Great Clips offers comprehensive ongoing support to franchisees, including marketing resources, security training, and assistance with site selection and lease negotiation.
Virtual training through Great Clips University prepares franchisees for salon operations, while a 3-day onboarding session in Minneapolis welcomes them into the Great Clips community.
The 69 hours of required training before opening a new franchise includes the following:
- 13 hours of on-the-job training
- 56 hours of classroom training and various education programs
Franchisees also benefit from co-op advertising deals, SEO assistance, and access to the Great Clips loyalty program and app.
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How Much Does It Cost To Open A Great Clips?
Compared with other similar franchises, Great Clips presents a lucrative franchise opportunity with a relatively low initial investment.
To qualify for a new Great Clips salon, aspiring franchisees must have a net worth between $300,000 and $1 million, with liquid assets totaling $75,000 to $250,000. The numbers vary based on location-specific costs such as leasing.
If approved to open a new franchise, the Great Clips franchise’s total cost will include:
- Initial Franchise Fee of $20,000
- Grand Opening Marketing Investment of $20,000 -$25,000
- 6% Royalty Fee on Gross Sales
- 5% Ad Royalty Fee
- $1,750 for Renewal Fee (billed per salon every ten years)
The projected total initial investment to open a Great Clips franchise ranges from $178,400 to nearly $400,000, depending on location and equipment needs.
Those seeking greater clarity in the Great Clips investment process or detailed information regarding company reporting should refer to the Franchise Disclosure Document (FDD).
What Is The Great Clips Franchise Fee?
As stated above, the initial franchise fee to begin operating a new Great Clips franchise is $20,000. This represents the lowest initial franchise fee among North America’s nine leading hair salons.
Great Clips is one of many similar franchises in the United States that waives the initial franchise fee for veterans who aspire to become franchisees.
How Much Does A Great Clips Franchise Owner Make A Year?
Great Clips franchise owners can anticipate an annual salary ranging from $48,000 to $82,000, with a base salary averaging $57,000 per year. Additional pay, averaging $6,000 annually, may include bonuses, stock, commission, profit sharing, or tips.
Franchisees who are hair stylists can enjoy a modest increase in personal profit by cutting into labor costs, which represent nearly 50% of total annual expenses. However, less than 5% of current Great Clips franchisees cut hair themselves.
Those who have seen the greatest success with Great Clips franchise opportunities have opened multiple locations. Notably, there is a Great Clips franchisee who has opened 81 new stores.
With the hair salon industry in the US generating $46 billion in annual revenue, Great Clips stands out with its strong corporate brand, proven business model, and low initial investment.