Quick summary

Great Clips Franchise Costs & Profits (2024): Great Clips, founded in 1982 near the University of Minnesota, has grown into one of North America’s leading hair salon franchises. With a focus on speed, affordability, and customer convenience, the brand utilizes extended hours and innovative technology like online check-ins. Franchising opportunities began in 1983, and the brand has since expanded rapidly, boasting over 4,400 locations across the United States and Canada.

Franchisees benefit from extensive training, ongoing support, and effective marketing tools. Known for consistent, high-quality services, Great Clips holds the title of the world’s largest salon brand.

• Great Clips began franchising in 1983, offering exclusive territories to franchisees.
• There are over 4,400 Great Clips franchise locations in the United States and Canada.
• Franchisees receive marketing resources, training, and assistance with site selection and lease negotiation.
• Initial investment ranges from $178,400 to nearly $400,000, including a $20,000 franchise fee.
• Annual earnings for franchise owners range from $48,000 to $82,000, with additional pay averaging $6,000.

Yes, Great Clips began franchising in 1983, one year after its founding. Franchisees receive exclusive territory rights, ensuring no competition from other Great Clips locations within three-quarters of a mile.

As the franchisor, Great Clips maintains strict brand consistency by mandating specific services and products from approved vendors. This guarantees uniformity across all franchise locations.

Currently, Great Clips operates 4,427 franchise locations across the United States and Canada. The company has implemented a strategic five-year growth plan, with 91 new locations projected to open in 2024.

For the sixth consecutive year, Great Clips ranked #1 in Entrepreneur’s Franchise 500® list for its category, solidifying its dominance in the hair salon industry.

Great Clips offers comprehensive support to franchisees, including:

• Marketing Resources: Access to co-op advertising, SEO assistance, and loyalty programs.
• Training Programs: Virtual courses via Great Clips University and a 3-day onboarding session in Minneapolis.
• Required Training:
  • 13 hours of on-the-job training.
  • 56 hours of classroom training.

Franchisees also benefit from assistance with site selection, lease negotiation, and ongoing operational support.

Great Clips provides a lucrative franchise opportunity with relatively low initial investment requirements. To qualify, prospective franchisees must have a net worth between $300,000 and $1 million, including liquid assets of $75,000 to $250,000.

Breakdown of Costs:

• Initial Franchise Fee: $20,000

• Grand Opening Marketing: $20,000–$25,000

• Royalty Fee: 6% of gross sales

• Ad Royalty Fee: 5% of gross sales

• Renewal Fee: $1,750 per salon every ten years

The total initial investment ranges from $178,400 to nearly $400,000, depending on factors such as location and equipment needs.

Great Clips franchise owners can expect an annual salary ranging from $48,000 to $82,000, with additional pay averaging $6,000. This extra income may include bonuses, profit sharing, or commissions.

Franchisees who actively cut hair themselves can reduce labor costs, which account for nearly 50% of total annual expenses. However, less than 5% of franchisees choose to cut hair. The most successful franchisees often expand their operations, with some owning multiple locations. For instance, one franchisee operates 81 salons.

Pros:

• Low initial franchise fee compared to competitors.

• Comprehensive training and marketing support.

• Strong brand reputation and proven business model.

• Exclusive territories and corporate support for site selection.

Cons:

• High labor costs, which can impact profitability.

• Strict adherence to franchisor guidelines.

• Competition from other hair salon franchises.

With the U.S. hair salon industry generating $46 billion annually, Great Clips stands out for its strong corporate backing, low initial investment, and scalable business model. Whether you’re a first-time franchisee or an experienced business owner, Great Clips provides a pathway to long-term success.

Interested in exploring more franchise opportunities? Check out our guide to 5 Low-Cost Franchises That Make $1,000,000 and discover how to maximize your investment potential!