Great Clips Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$187,800 - $419,900
Franchise Fee
$6,000
Min Cash Required
$20,000
Total US Locations
4,280
Business Summary
Great Clips licenses the operation of GREAT CLIPS® salons, which are specialized and distinctive retailers of haircare and personal grooming services and products. GREAT CLIPS® salons provide consistent, high-quality, and affordable haircare services, along with a limited selection of designated products for men, women, and children, all within a distinctive retail setting. The franchise grants a license to develop and operate a single GREAT CLIPS® business at an approved location.
Corporate History
Great Clips, Inc. was incorporated in Minnesota on July 12, 1982. The company opened its first GREAT CLIPS® salon in 1982 and began offering franchises in 1983. As of December 31, 2024, Great Clips operated no company-owned GREAT CLIPS® salons, focusing solely on its franchise system.
Financial Overview
Investment Range
$187,800 - $419,900
Franchise Fee (Low)
$6,000
Franchise Fee (High)
$35,000
Minimum Cash Required
$20,000
Royalty %
6%
Marketing %
5%
Equipment Costs (Low)
$110,000
Equipment Costs (High)
$255,000
Working Capital
$40,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Great Clips' financial statements show a strong financial position with unqualified audit opinions for 2024, 2023, and 2022. The company has consistently positive net earnings, with $22.3 million in 2024, $19.9 million in 2023, and $22.8 million in 2022. Cash and cash equivalents remained robust, totaling $39.8 million in 2024. Shareholder equity also demonstrates significant growth, reaching $43.7 million in 2024, up from $24.5 million in 2023 and $9.7 million in 2022. The auditors did not identify any substantial doubt about Great Clips' ability to continue as a going concern.
Financing Details
Great Clips does not offer direct financing arrangements for the purchase of its GREAT CLIPS® salons. However, Great Clips may, at its sole discretion and under limited circumstances, guarantee a loan or a lease for a franchisee. If Great Clips guarantees a loan, it may charge a fee for this service. For lease guarantees, a non-refundable lease liability fee of $1,500 and a lease review fee of $2,200-$2,500 will be charged. Great Clips is also listed on the Franchise Registry, which helps franchisees access Small Business Administration (SBA) loan programs through third-party lenders.
Performance Metrics
Total US Locations
4,280
Franchised Units
4,280
Corporate Units
0
Avg Square Footage
1,050
Franchising Since
1983
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Great Clips has no litigation required to be disclosed in Item 3 of its Franchise Disclosure Document, indicating a clean legal history for the franchise.
Bankruptcy History
Great Clips has no bankruptcy information to disclose in Item 4 of its Franchise Disclosure Document, indicating no bankruptcy history for the franchisor or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew the Franchise Agreement, Great Clips franchisees must provide written notice between 90 and 180 days before the agreement expires. Franchisees must be in full compliance with their Franchise Agreement and all Great Clips' policies, and they must upgrade their salon to meet current brand standards. A renewal fee of $1,750, which may be adjusted annually, is required. Franchisees may also be required to re-attend training at Great Clips' discretion. Finally, franchisees and their shareholders must sign the then-current form of General Release and Franchise Agreement, which may have different terms and conditions from the original agreement.
Training & Support Program
Franchisor Assistance
Great Clips provides extensive assistance to its franchisees both before and during the operation of the business. Before opening, Great Clips offers guidance on site selection, salon design, construction, obtaining licenses, and procurement of initial equipment and inventory. Franchisees receive advice on marketing, business planning, and grand opening promotions. They also gain online access to Great Clips' resources, including the Operations Manual and recruiting technology. Initial training, called QuickConnect Franchisee Training, is provided for franchisees and their key personnel. During operation, Great Clips continues to provide support through regular System communications, periodic meetings and seminars on new concepts and procedures, and ongoing consulting on advertising, training, and operational challenges. The franchisor also establishes marketing and sales promotion programs, including customer loyalty programs, and requires franchisee participation. Additional training on System Standards is available for managers and key personnel. Great Clips offers access to purchasing programs for salon items and maintains online resources like GREAT CLIPS® University and INsite+ for franchisees.
Initial Training Hours
63
Training Location
Corporate headquarters in Minneapolis, MN
Ongoing Support
After opening, Great Clips franchisees receive continuous support through regular System communications, periodic meetings, and seminars for new concepts and procedures. The franchisor provides ongoing consulting and information on advertising, promotional matters, training, and general operational guidance via email, online resources, and on-site field support visits. Franchisees have access to electronic accounting forms and purchasing programs for various salon items. Great Clips establishes mandatory marketing and sales promotion programs, including discount pricing and promotional items, in which franchisees must participate. Additional training on System Standards is available for franchisees, their management staff, and key brand-delivery personnel, for an annual fee of $200 per salon. Franchisees are expected to attend all meetings and seminars, covering their own travel and expenses. The Operations Manual and other brand documents are continuously updated, and franchisees must adhere to these evolving System Standards.
Franchise Requirements
Ideal Candidate Profile
Great Clips looks for dedicated individuals who will devote their best efforts to the management and operation of the franchised business. Candidates should be prepared to manage or operate the salon on a regular basis, either personally as a Designated Operator or through a qualified salon management team member who has completed Great Clips' training programs. Ideal franchisees must attend local co-op meetings and other franchisee gatherings to stay informed about the business. They are expected to adhere to the Franchisee Code of Ethics, comply with all laws, and maintain confidentiality. Great Clips franchisees are solely responsible for staffing, recruiting, hiring, supervising, and discharging employees, ensuring their ongoing training and competence, and setting their wages and terms of employment. Franchisees are also bound by non-competition covenants during and after the franchise term, indicating a commitment to the Great Clips business model.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
protected
Territory Size Requirements
Great Clips grants franchisees a protected territory defined by a radius of three-quarters of a mile from the primary customer entrance of the salon. In densely populated areas, this Protected Area is a radius of one-tenth of a mile, determined by Great Clips. For Non-Traditional Locations, the Protected Area is determined by Great Clips at the time of designation.
Staffing Notes
Great Clips requires franchisees to staff their salons with qualified, competent employees who are courteous to the public and trained according to Great Clips' brand-delivery standards. Franchisees are solely responsible for all aspects of employment, including staffing, recruiting, hiring, supervising, discharging employees, setting wages, and ensuring compliance with all federal, state, and local employment laws. Independent contractors are not permitted for staffing. Management staff and other key brand-delivery personnel (e.g., stylists) must successfully complete all required System Standards training, including Great Clips Academy and LEADS programs, within specified timeframes (e.g., managers within 90 days of hire/promotion, key brand-delivery personnel within 30 days). Franchisees are responsible for paying all wages, benefits, and expenses for their employees attending training. All stylists must be licensed by the state's Cosmetology Board or equivalent official licensing entity.