If you want to open a hair salon, you could do it in collaboration with Great Clips as a franchisee.
Great Clips is a well-known franchise that counts more than 4000 salons in the United States. It is one of the best haircut franchises that you must own. After researching the market, it is founded that this franchise opportunity is so excellent that it is also one of the best franchises that one must own.
With them, you can exploit many advantages:
- You can count on the company’s support for any aspect of launching and managing your system;
- The brand would be already known, and it would be easier for you to find the first clients;
- You can invest a lower amount of money in marketing;
- You can receive financial support more easily.
However, as you certainly already know, a franchise’s advantages always come at a cost: the franchise fee (and sometimes there is also a royalty fee).
That’s why it is important to understand what opportunities the Great Clips franchise can give to you, but also what are costs.
In this article, we’ll discuss any aspect worth knowing about the Great Clips Franchise.
About Great Clips Franchise
Interested In Great Clips Franchise?
Great Clips Franchise is a very successful hair salon franchise. It counts 4261 hair salons in the United States and Canada and has an annual revenue of over $1 billion!
The kind of service they offer to clients is very quick: Great Clips hair salons are places where people can go and ask for treatment without appointments. Prices are also very affordable.
If you want to open a Great Clips hair salon, you need to – of course – adequate your business model to this.
History Of The Great Clips Franchise
The very first Great Clips hair salon was opened in 1982 on the campus of the University of Minnesota. They specialized in cheap and no-frills cuts, and they had instant success.
The founders, Steve Lemmon and David Rubenzer, soon opened two more salons in the span of three months.
It was in 1983 that Great Clips began its franchise program: it allowed it to grow from 3 salons to 150 in the span of five years. In 1997, the Great Clips hair salons were 1000.
The Great Clips franchise kept growing over the years, and today, as we’ve mentioned, they count more than 4000 hair salons in North America.
During the pandemic, they were quick to adopt anti-Covic measures to avoid the spread of the virus inside their salons.
With these measures, they were able to survive the crisis and keep being successful even after 2020.
Great Clips Business Model
Great Clips is a hair salon franchise. They are specialized in offering quick and low-priced services. They are constantly open to new franchise applications.
| Company Name | Great Clips |
| Founded in | 1982 |
| Franchise | Yes |
| Number of locations | 4261 |
| Franchise Fee | $20,000 |
| Royalty fee | 6% |
| Ad royalty fee | 5% |
| Annual Revenue | $1.03 billion |
Interested In Great Clips Franchise?
How Much Does It Cost To Open A Great Clips Hair Salon?
When opening a Great Clips hair salon, your initial investment includes the franchise fee and the money you need to launch a new hair salon business.
The franchise fee, in the case of Great Clips, is $20,000. To set up and launch your hair salon, you can consider these expenses:
- Location rent and improvement: $80,000
- Advertising: $20,000
- Insurance: $1,600
- Training: $1500 per participant
- Supply: $15,000
All included, the total initial investment is $138,100.
It’s important to know that the Great Clips franchise does require not only a franchise fee but also an ongoing royalty fee of 6% and an ad royalty fee of 5%.
Requirements
Great Clips requires that, if you want to open a franchise hair salon with them, you have a net worth of more than $300,000. Furthermore, they need to approve your designed location.
Last but not least, you’ll need to follow the company’s business model when offering your services: they need to be quick and low-cost services.
One of the most important things to know is how much does Great Clips franchise owner makes. This will allow you to make better decisions.
Training And Support
Great Clips provides support to franchisees that require it. You have some options:
- On-the-job training: a course of 8 hours;
- Classroom training: a course of 86 hours.
- Additional training is provided at the local training center.
Terms Of Agreement And Renewal
The contract with Great Clips can last forever. The person who opened the very first Great Clips franchise hair salon is still its owner.
However, you need to keep on paying ongoing fees, which are the 6% royalty fee and the 5% ad royalty fee.
Obligations and Restrictions
When you open a Great Clips Hairs Salon, the business is yours, and you are the owner. However, you have some limitations.
We’ve already mentioned the first: you must adapt to the company’s business model and offer only quick and low-price services to your clients.
As a franchise business, you also have other limitations: for example, the number of employees is indicated by the main company.
They usually provide a range. For example, Great Clips require from 8 to 10 employees for hair salons of precise dimensions.
Obligations and restrictions are always indicated in the contract, and they can be customized depending on the dimensions and location of your hair salon.
Therefore, make sure you read the franchise contract carefully before signing.
Financial Assistance
Great Clips is not known for providing financial assistance to its franchisees. If you need it, you need to rely on third-party providers.
Great Clips Comparison
| Company | Great Clips | Supercuts |
|---|---|---|
| Founded | 1982 | 1975 |
| Number of Outlets | 4621 | 1721 |
| Franchise | Yes | Yes |
| Franchise Fee | $20,000 | $10,000 |
| Total Initial Investment | $138,000 | $200,000 |
Conclusion
Opening a Great Clips hair salon is usually a great opportunity. The history of his brand proves it: their hair salon are always successful and very durable.
However, the initial investment is high, and you have ongoing fees, so make sure you read this article carefully to understand if you are fit for this adventure with the Great Clips Franchise.
Great Clips Franchise: FAQs
Is Great Clips a franchise or chain?
Great Clips is a franchise. It means that you can open your own Great Clips hair salon and exploit its brand name.
Who is the owner of the Great Clips franchise?
Rob Goggins is the current president of the Great Clips company, Ray Barton is the chairman of the board, and Steve Hockett is the company’s CEO.
How many Great Clips franchise hair salons are currently there?
There are 4261 Great Clips hair salons in North America.
Is the Great Clips franchise a good investment?
Investing in the Great Clips franchise is a great opportunity because their hair salons have always proven to be successful.
Is the Great Clips Franchise worth it?
The Great Clips franchise is one of the most expensive. Not only because you need to set up a hair salon, which requires a great investment, but also because it requires ongoing fees.
However, the Great Clips franchise can still be considered worth it: clients are very familiar with the brand, and there is a high demand for the type of service provided in these salons.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.