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General

Industry

Health and Beauty

Category

Beauty Salon

Works with Franchise Brokers

Yes

Year of Founding

1982

Fees

Marketing Fee

5%

Royalty Fee

6%

Franchise Fee

$20,000-$20,000

Investment Range

$178K-$377K

Location units

Total U.S. Locations

4447

U.S. Franchised Units

4447

U.S. Corporate Units

N/A

Headquarters (City)

Minneapolis

Other

Item 19 - Franchise Financials

No

E-2 Visa Eligibility

Yes

Started Offering Franchises

1983

Issuance of FDD Data

03/30/2022

Key Indicators

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Franchise Payback Period (Years)

Owner Salary / Compensation

Average Unit Volume (AUV)

Franchise Cost

$178K-$377K

Franchise Fee

$20,000-$20,000

What to know about Great Clips franchise?

Great Clips, Inc. is a hair salon franchise with multiple locations across the United States and Canada. It is headquartered in Minneapolis, Minnesota. The company was founded in 1982 by Steve Lemmon and David Rubenzer and began franchising in 1983. Services offered at Great Clips salons include haircuts for men, women, and children, styling, color services, perms, shampooing, waxing, and texturizing. The company also offers a line of professional haircare products under the brand name " solutions." In addition to regular walk-in customers, Great Clips salons offer appointment scheduling through their website and mobile app. Great Clips also provides online check-in, which allows customers to add their names to the waitlist before arriving at the salon. A franchised Great Clips Salon offers a required line of haircare services and products from a designated location, customarily in a shopping center, identified by trademarks licensed by the franchisor, and using distinctive trade dress and business methods prescribed by Great Clips.

Great Clips is based in Minneapolis, MN. Scroll down to learn more!

How much does a Great Clips franchise cost?

Are you wondering how much is a Great Clips franchise? Before starting a Great Clips franchise, it is important to know the franchise fee, working capital and other costs required to start the business.

The minimum investment amount required to open a Great Clips franchise is $178,400 and can go all the way up to $376,900. Keep in mind, you should also allocate additional funds to live off of while the Great Clips business ramps up. This can take as little as 6 months to over 2 years depending on the franchise opportunity. You should speak to at least 5 Great Clips franchisees to understand the true cost of opening the franchise and how long it takes to: 1) start a Great Clips business 2) pass break even 3) hit significant income.

After (and if) you pass the point of earning significant income from your Great Clips franchise, there may be enough margin to hire a day-to-day manager and work less hours in the business.

Franchise Net Unit Growth

Industry Report Request

Download our guide to compare Great Clips. Hotels to the Beauty Salon, Outdoor Health and Beauty industry.

Franchise Data

Year Start of Year Units Opened Units Closed End of Year
2016 3868 293 69 4091
2017 4091 247 73 4261
2018 4261 201 91 4371
2019 4371 189 87 4473
2020 4473 156 157 4472
2021 4472 116 141 4447

Additional Details

How much does a Great Clips franchise owner make?

Great Clips franchise earnings and revenue can vary significantly from one franchisee to another.
The Great Clips franchise owner profits can be influenced by labor costs, lease rates, hours worked as well as other factors.

Great Clips unfortunately does not disclose financials on how much Great Clips franchise owners make. This means they do not disclose sales or earnings for franchisees operating in the U.S.

Every franchisor is required by law to disclose income statements and balance sheets for how the franchisor is performing but not for the franchisee level. Unfortunately, Great Clips does not make it easy to understand franchisee financial performance. This can be seen as a red flag and it is important to be that much more diligent in your conversations with Great Clips franchisees. Do note that Great Clips is not alone as about 40% of franchises do not disclose franchisee financial performance.

At Vetted Biz, we suggest you to speak with 5 to 10 Great Clips franchisees to understand how much money they are making from their Great Clips business.

You should also speak to former Great Clips franchisees to understand why they left the system. Did they sell their Great Clips at a profit? Were they forced to close their Great Clips franchise down because it kept losing money?

What is the Great Clips franchise fee?

Owning a Great Clips franchise requires 6% royalty fee and 5% marketing fee. These two expenses represent the main ongoing costs you can expect to pay the franchisor throughout the franchise relationship. There may be other ongoing fees disclosed in the Great Clips Franchise Disclosure Document

Keep in mind, there is also an initial Great Clips franchise fee of $20,000 that is included in the initial investment amount of $178,400 to $376,900. Depending on the franchise agreement you sign, you might have to pay the full franchise fee again if you decide to extend the Great Clips franchise relationship. Consult with a licensed franchise attorney to understand exactly what you receive for paying the Great Clips franchise fee of $20,000.

Visit the Great Clips metrics tab to explore the financials for this business, royalty and marketing fees compare to other Health and Beauty franchises. You can also compare these fees for 2,000+ franchises currently offered in the U.S.

When was Great Clips founded?

Great Clips started offering franchises in 1983. Great Clips was founded 40 years ago in 1982.

At Vetted Biz, we recommend franchises have 3-5 corporate locations and 5+ years of experience before offering a franchise. There needs to be proof that the business model works and is replicable before offering the franchise to other!

How many Great Clips locations are in the U.S.?

As of 2022, there were 4447 locations across the U.S. There are also 0 corporate locations. Most Health and Beauty franchises like Great Clips have more franchised locations than corporate locations.

How many Great Clips franchises opened over the past few years?

Over the prior 3 years we have data for, Great Clips has opened 461 outlets throughout the U.S. Visit the Great Clips metrics tab to explore how the openings compare to other Health and Beauty franchises.

How many Great Clips franchises closed over the past few years?

Over the prior 3 years we have data for, Great Clips has closed 385 outlets throughout the U.S

Visit the Great Clips metrics tab to explore how the openings compare to other Health and Beauty franchises.

Is Great Clips growing? Are they opening more locations than they are closing?

The net unit growth rate for Great Clips over the past 3 years is 2%. Over the last year we have data for, Great Clips had a net unit growth rate of -1%.

Without a comparison, this number doesn’t mean much. Compare how the Great Clips growth rate compares to 2,000+ other franchises and Industry franchises like Great Clips. More info in the Great Clips metrics tab.

Is Great Clips franchise eligible for an SBA Loan?

Great Clips is eligible for SBA loans including the 7(a) loan. To find out more about the SBA loan program for franchising click here.

Great Clips franchise was assigned the SBA Franchise ID of S0743 on 10/01/2017. This DOES NOT mean the SBA endorses this franchise. The SBA Franchise Directory will only include business models like Great Clips that are reviewed and found eligible under SBA’s affiliation rules and other eligibility criteria. Currently, there are over 7,000 franchise opportunities that the SBA has deemed eligible for SBA financing.

Is Great Clips a franchise in the United States?

According to the SBA, Great Clips meets the Federal Trade Commission (FTC) definition of a franchise. The FTC Franchise Rule requires franchisors to provide all potential franchisees with a disclosure document (FDD) containing 23 items about the franchise, its officers, and other franchisees. Be sure that Great Clips provides you with an FDD if you are in discussion to buy a Great Clips.

What is the Great Clips Franchise for Sale Rate?

The Great Clips systemwide health and franchisee satisfaction can be measured by the Great Clipsfranchise for sale rate. The franchise for sale rate is calculated by the percentage of units transferred to new franchisees and reacquired by franchisor.

Great Clips franchise for sale rate over the past 3 years is 12%. Over the last year we have data for, Great Clips had a franchise for sale rate of 5%.

Without a comparison, this number doesn’t mean much. Compare how the Great Clips franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Great Clips. More info in the Great Clips metrics tab.

What is the Great Clips Franchise Failure Rate?

Great Clips franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons. The failure rate is one of the most important franchise metrics to consider when investing in a franchise!

Great Clips failure rate over the past 3 years is 9%. Over the last year we have data for, Great Clips had a franchise failure rate of 3%.

Without a comparison, this number doesn’t mean much. Compare how the Great Clips franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Great Clips. More info in the Great Clips metrics tab.

How can I find out more details on Great Clips franchise?

Visit the Great Clips metrics tab to explore franchise profitability, industry comparables and more. Become a Vetted Member today today for exclusive access on this franchise opportunity!

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Investment Midpoint

The average of the low and high range of the investment amounts calculated from the most recently available Franchise Disclosure Document

Great Clips

$277,650

Industry median

All franchises median

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Royalty Fee

The median royalty fee from the Franchise Disclosure Document

Great Clips

6%

Industry median

All franchises median

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Franchise Fee Midpoint

Payment that the franchisee must pay to the franchise owner in order to start a franchise.

Great Clips

$20,000

Industry median

All franchises median

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Item 19 – Financial Performance Representations

Historical financial performance representations

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Franchise Financials

Franchisor company financial information and financial performance representations, if disclosed by the franchisor.

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General

Industry

Health and Beauty

Category

Beauty Salon

Works with Franchise Brokers

Yes

Year of Founding

1982

Fees

Marketing Fee

5%

Royalty Fee

6%

Franchise Fee

$20,000-$20,000

Investment Range

$178K-$377K

Location units

Total U.S. Locations

4447

U.S. Franchised Units

4447

U.S. Corporate Units

N/A

Headquarters (City)

Minneapolis

Other

Item 19 - Franchise Financials

No

E-2 Visa Eligibility

Yes

Started Offering Franchises

1983

Issuance of FDD Data

03/30/2022

Detailed Franchise metrics for Great Clips

Detailed Franchise Metrics are metrics calculated and reviewed by Vetted Biz. You can find the available metrics for Great Clips below. “N/A" or Not Applicable results mean that there is not enough data available to compute a precise rate or that the result is not mathematically computable. When results are not mathematically computable, you should pay attention to the absolute values (#) instead of the percentage rate itself.

Growth Rate

The percentage change of total franchise units from one year to the next by franchisor.

 

1 year

3 years

Great Clips

0%

2%

Industry median

All franchises median

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Franchise for Sale Rate

The percentage of units transferred to new franchisees and reacquired by franchisor.

 

1 year

3 years

Great Clips

4%

12%

Industry median

All franchises median

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Net Unit Growth (most recent year)

Net Unit Growth (3 years)

Failure Rate

Franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons.

 

1 year

3 years

Great Clips

2%

9%

Industry median

All franchises median

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Business details

Website

greatclipsfranchise.com

Business email

**********@******.com

Mailing address

4400 West 78th Street, Suite 700

State headquarters

Minnesota

Contact Name

Great Clips

Phone

+1 (000) 0********00

City

Minneapolis

Zip code

55435
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