Great Clips Franchise FDD, Profits & Costs (2025)
Great Clips, founded in 1982 near the University of Minnesota, is now the world’s largest salon brand. It is known for offering consistent, affordable haircare services. Based in Minneapolis, the company began franchising in 1983, just one year after its first salon opened.
This rapid growth has expanded its presence across the U.S. and Canada. The franchise stands out for its efficient operations, focusing on speed, affordability, and convenience.
Great Clips offers extended hours and uses innovative technology, like online check-ins and the Clip Notes system, which helps stylists track customer preferences. Franchisees benefit from extensive training, ongoing support, and effective marketing tools that drive business success.
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Initial Investment
How much does it cost to start a Great Clips franchise? It costs on average between $183,000 – $414,000 to start a Great Clips franchised salon.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of facility you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $20,000 or $35,000 |
| Initial Advertising Contribution to the MDAF | $5,000 |
| Travel and Expenses While Training | $1,500 to $2,500 per participant |
| Architecture Fees | $250 to $3,500 |
| Leasehold Improvements, including Labor | $70,000 to $200,000 |
| Rent and Security Deposits | $1,000 to $10,000 |
| Fixtures, Signage and Furnishings, including Salon Technology Hardware | $40,000 to $55,000 |
| Freight | $4,000 to $7,000 |
| Sales Tax on Fixtures, Signage and Furnishings | $0 to $3,000 |
| Opening Inventory and Supplies | $4,700 to $6,400 |
| Grand Opening Advertising | $20,000 to $25,000 |
| Insurance | $1,500 to $3,000 |
| Lease Liability Fee and Lease Review Fee | $0 to $4,000 |
| Additional Funds (6-12 Months) | $15,000 to $55,000 |
| Total | $183,000 to $414,000 |
Average Revenue (AUV)
How much revenue can you make with a Great Clips franchise? A Great Clips franchised salon makes on average $367,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $343,000 yearly revenue for similar hair salon franchises. Below are 10 Great Clips competitors as a comparison:
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We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Great Clips Franchise Disclosure Document
Frequently Asked Questions
How many Great Clips locations are there?
As of the latest data, Great Clips operates over 4,400 salons across the United States and Canada. Importantly, all of these salons are 100% franchised, meaning there are no company-owned units.
The salons are independently owned by more than 700 franchisees throughout North America. This franchise-only model has been key to Great Clips’ growth, providing local ownership and management while benefiting from the brand’s national reputation and resources.
What is the total investment required to open a Great Clips franchise?
The total investment required to open a Great Clips franchise ranges from $183,000 to $414,000.
What are the ongoing fees for a Great Clips franchise?
Great Clips franchisees are required to pay ongoing fees that include a royalty fee and a marketing fee. The royalty fee is set at 6% of gross sales. In addition to the royalty fee, franchisees contribute 5% of their gross sales to a national advertising fund.
These fees ensure that franchisees benefit from continuous brand exposure and support in maintaining operational standards.
What are the financial requirements to become a Great Clips franchisee?
To become a Great Clips franchisee, there are specific financial requirements. Prospective franchisees need to have a minimum net worth of between $300,000 to $500,000. This ensures they have the financial capacity to support the business, including startup costs and ongoing operational expenses.
Additionally, franchisees are required to have at least $75,000 in liquid assets. This ensures they can cover initial expenses like inventory, equipment, and rent, and support the business during the early stages before it becomes profitable. These financial criteria help ensure the long-term success of new franchisees.
How much can a Great Clips franchise owner expect to earn?
The average gross sales for a Great Clips franchise are approximately $0.34 million per location. Assuming a 15% operating profit margin, $0.34 million yearly revenue can result in $51,450 EBITDA annually.
Disclaimer
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