Great Clips Inc. the world’s largest salon brand, has more than 4,400 franchises across the US and Canada. Since its inception in the 1980s, the salon brand has had a reputation of value for money. Great Clips announced $1.4 billion in revenue in 2017, and projected $1.5 billion in 2018. The company experienced 2.8 percent growth in 2017, whereas forecasted to more than double to seven percent in 2018. So, how much does the Great Clips franchise cost?
For many years Great Clips has made good use of technology to make its business more competent and customer oriented. Customers are now able to use the Great Clips app for reservations.
How to open a Great Clips franchise
The processing of starting a Franchise with Great Clips starts with an online application and takes 60 days. The details process is given below:
- Collect information on the franchise business model and Great Clips
- Submit an application
- Participate in the mutual evaluation process
- Sign the agreement
- Participate in Online and Offline training sessions
- Location selection
- Design and build the salon, both interior and exterior
- Staff hiring
- Promote your business
- Opening ceremony of salon
Franchise cost and fee
The initial franchise fee with Great Clips is $20,000 – $35,000. The estimated range of detailed investment fees with Great Clips for the US region is given below:
| Description | Low | High |
| Franchise Fee | $20,000 | $35,000 |
| Initial Ad Fund Contribution | $5,000 | $5,000 |
| Leasehold improvement and site fees | $114,800 | $251,400 |
| Additional funds for 12 months | $15,000 | $55,000 |
| Grand Opening advertising | $20,000 | $25,000 |
| Training, Travel, and Living Expenses | $1,500 | $2,500 |
| Insurance | $2,100 | $3,000 |
| Total | $178,400 | $376,900 |
Where is Great Clips headquarters
Great Clips, Inc. was established in Minneapolis, Minnesota, by founders David Rubenzer and Steve Lemmon in 1982. At that time, most people received haircuts in one of three ways: in full-service hair salons, barbershops, or at home.
David observed that the salon industry was changing rapidly, and customers were looking for a service that could fit their lifestyle and value for money. Then David and his partner started walk-in haircut salon service every day, including evening hours. Later became a success in the business, with more than 4400 salons all over US and Canada. The Great Clips Inc headquarter is situated in –
4400 West 78th Street, Suite 700
Minneapolis, MN 55435
The United States, Phone Number: +1 952-893-9088
How much money do Great Clips franchise owners make?
Great Clips Inc. was founded in 1982 in Minneapolis to provide haircut service at any time of the day at an affordable price. Their business concept was hit from that time until today and had more than 4400 salons across the US and Canada.
Their growth didn’t stop there, but it was increasing day by day. In 2020 The average gross sales of Great Clips outlets were $299,604, which is 20% less than the previous year due to COVID. However, Great Clips customers continue spending on personal grooming even in economic hardship.
Great Clips is the biggest hair salon franchise, and its profit margin is quite high. Great Clips estimated that they would make annually 1 billion US dollars. As of July 2022, a Great Clips franchise owner can earn $71,000 annually.
How Much Is a Great Clips franchise worth?
Can you remember the last time you got a haircut by visiting Amazon? Or call center? Or on Facebook? You probably could not recall because a haircut is not something that can be ordered online but is a personal service. Therefore, we usually look for convenience and quality at a good price, which is the main reason to invest in walk-in haircare like Great Clips.
The haircare industry is growing rapidly, and it’s a $70billion industry now. Great Clips, a growth-oriented franchisor, has more than 4,400 salons and operates 1200 franchises throughout the US and Canada. In 2017, Great Clips announced that it earned 1.4 billion in revenue. In addition, their simple and recession-resistant business model attracts more franchises to work with Great Clips. Here are some reasons why the Great Clips franchise is worth investment.
- Equipped with technology: Great Clips introduces the Great Clips app, making it easy for customers to do haircuts and smooth franchise operations.
- Low-cost investment: Great Clips’ main business concept is a great haircut at an easy location. Franchises need to invest low to build and maintain a cost-effective salon.
- Brand and Marketing: With over 1200 franchises and 4200 locations, Great Clips possesses a strong brand name in its industry. Their online and offline brand marketing helps franchisees to grow their business.
Is Great Clips profitable?
Great Clips Inc. has been the largest chain salon service in the US since 1982. Franchisees are attracted to Great Clips because its new technology helps salon owners operate their businesses smoothly. The customers are happy to use their app, and the owner can monitor support staff inside or outside the salon.
The net income of Great Clips is increasing every year except in the COVID period. The haircut industry has been a competitive and growing business throughout the years. The salon is a recession-resistant business, meaning everybody wants a haircut, whatever the economy.
According to the statistics, salon business makes an average of 9% profit whereas other general businesses earn less. Great Clips is a good franchise option for its brand name, service, quality, and in terms of profit.
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