- 2021 Franchise 500 Rank
#13 Ranked #15 last year
- Initial investment
$147K - $282K
- Units as of 2020
4,473 9.3% over 3 years
Established in 1982, Great Clips started franchising in 1983 and now has more than 4,000 locations throughout the United States and Canada. Usually located in strip malls, Great Clips hair salons are open evenings and weekends and do not require appointments. No hair-care experience is required for franchisees, who operate 5 to 6 units after 5 years on average.
About Great Clips
More from Great Clips
Haircare is a $70Billion dollar industry, and still growing. Great Clips is in the convenient, no appointment haircutting segment of the industry, and is the largest and fastest growing haircutting brand in the world. It is a simple, recession resistant business model- we do not offer color, waxing, tanning, or nail services because we want to keep the business simple and focus on the service that we do best- cutting hair. And, no matter what the economy looks like, people still need their hair cut, usually every 4-6 weeks.
Great Clips was founded in 1982, and has been franchising since 1983. With over 4200 locations in the US & Canada, we are still accepting new franchisees in over 75 markets in North America. Our salons are manager-run, so it is possible for franchisees who have a flexible full time job to keep that position and do the business on the side, knowing it’s kind of like a second full time job to start a new business! Great Clips franchisees are always involved and engaged in the success of their business- so whether it’s a husband/wife partnership or that flexible full time position, Great Clips franchisees are aware that they are the driver of their positive results. Haircare experience is not necessary to become a franchisee- rather, solid business backgrounds and people management skills are the traits we see in our successful franchisees.
Great Clips has a support network that is outstanding- from assistance during the site selection process, build out, hiring, grand opening marketing strategies, ongoing growth plans- all the way to helping franchisees who are ready to sell their salons- Great Clips is dedicated to the success of our franchisees. With 100% of our salons franchisee-owned, Great Clips’ success depends on the success of our franchisees. On average, after 5 years in business, our franchisees own between 5-6 salons. Plus, all franchisee's stylists and managers are trained in the Great Clips system by Great Clips corporate staff at our local training centers.
“Great Clips improves my ability to grow profitably. I also benefit from working with other franchisees and the hard working and knowledgeable Great Clips Corporate employees. The biggest benefit is the culture of Great Clips. Their actions consistently show that they really do care about you.” Keith C, owns 5 locations.
“Initially I anticipated opening just one or two stores, but the business grew to be so successful that it made sense for me to leave my existing job as vice president!” Jim H, owns 9 locations
- Franchising Since
- 1983 (38 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
This company is seeking new franchisees in the following international regions: Canada
- # of Units
- 4,473 (as of 2020)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Great Clips franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $146,900 - $282,400
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
- $300,000 - $1,000,000
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
- $75,000 - $250,000
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- $5,000 rebate on first-store franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Great Clips has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, inventory
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 13 hours
- Classroom Training
- 56 hours
- Additional Training
- At local training center
- Ongoing Support
NewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingMarketing Planning & SupportSocial MediaSEOEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where Great Clips landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Great Clips ranked on other franchise lists? Find out below.
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