How Does the Great Clips Franchise Work?

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What Are Operating Procedures of Great Clips Franchise

Ever wondered how a Great Clips franchise operates and what it takes to succeed in the haircare industry? Discover the key elements of this popular franchise model, from initial investment to ongoing support, and see if it aligns with your entrepreneurial goals. Explore the potential for growth and profitability with our expertly crafted Great Clips Franchise Business Plan Template to guide your strategic planning.

What Is The Great Clips Business Model?

The Great Clips business model is built for scalability and semi-absentee ownership, allowing franchisees to manage multiple locations without being involved in the day-to-day operations of a single salon. As of 2025, more than 90% of Great Clips franchisees own multiple units, a testament to the effectiveness of its manager-run approach. This structure means a hired salon manager oversees daily activities, freeing up the franchisee to focus on growth and investment strategy.

How does the manager-run model work?

In the manager-run model, franchisees delegate the daily responsibilities of salon operations to a hired manager. This setup is ideal for individuals looking to own a Great Clips franchise while maintaining their primary careers or pursuing other business ventures. The operational simplicity is a cornerstone of this model. Great Clips focuses on a limited, high-demand service menu, primarily offering haircuts for men, women, and children. This specialization streamlines inventory management, staff training, and overall operational processes. The brand's operational manual is designed for efficiency, contributing to a key performance indicator of average customer visit times under 20 minutes in 2025.

Centralized systems play a crucial role in supporting this manager-run concept. Franchisees benefit from the franchisor's established infrastructure for marketing, payroll, and scheduling. This centralized support allows a single franchisee to effectively oversee an average of 5-6 salons within their first few years of operation, showcasing the model's inherent scalability.

What is the core value proposition?

The core value proposition of the Great Clips franchise opportunity is delivering convenient, high-quality haircuts at an affordable price point, consistently across all its locations. This commitment to value is bolstered by proprietary technology, such as the Online Check-In system, which, as of late 2024, was utilized by over 50% of customers to minimize wait times. The brand emphasizes a family-friendly atmosphere and a no-appointment-needed service, appealing to a broad demographic and capturing a significant segment of the estimated $45 billion US hair care services market. The average price for a haircut at Great Clips in 2025 is projected to be between $18 and $22, reinforcing its competitive pricing strategy.

Brand recognition, cultivated through extensive national and local marketing campaigns funded by a percentage of franchisee revenues, is another key element of the value proposition. The Great Clips franchise marketing support encompasses national television advertisements, digital marketing efforts, and strategic partnerships with major sports leagues, all contributing to a strong market presence.

For those interested in exploring this opportunity further, understanding the steps involved is crucial. You can learn more about how to open a Great Clips franchise in 7 steps: checklist.

What Is The Great Clips Franchise Cost?

Understanding the financial commitment is a critical first step when exploring the Great Clips franchise opportunity. The total investment to open a new salon can range significantly, impacting how much money you need to start a Great Clips franchise.

How much money to start a Great Clips franchise?

The initial investment for a Great Clips franchise in 2025 is estimated to be between $178,400 and $394,400. This broad range accounts for various factors, including the specific location, real estate costs, and build-out requirements for your salon. It's essential to review the Franchise Disclosure Document (FDD) for a detailed breakdown of these costs. For those looking to dive deeper into the specifics, a comprehensive look at the costs can be found at How Much Does a Great Clips Franchise Cost?

The initial franchise fee, a one-time payment, is $25,000 as of June 2025. A significant incentive for growth-minded individuals is the reduced fee of $5,000 for a second and any subsequent salon. This structure is designed to encourage multi-unit ownership and expansion within the Great Clips network.

Beyond the initial outlay, there are ongoing financial obligations. Franchisees are required to pay a 6% royalty fee on their gross sales. Additionally, a 5% contribution to the advertising fund is standard across all locations. These fees are crucial for maintaining brand consistency and supporting system-wide marketing efforts.

What are the owner financial requirements?

To qualify as a Great Clips franchise owner, prospective franchisees must meet specific financial benchmarks as of 2025. A minimum net worth of $500,000 is required. This figure is in place to ensure that candidates possess the financial capacity to manage the initial investment and sustain operations through the ramp-up period.

Furthermore, candidates need to have at least $75,000 in liquid capital. This readily available cash is essential for covering initial startup expenses and providing a necessary cash reserve for the early months of operation before the salon achieves profitability.

While direct experience managing a hair salon isn't a prerequisite, Great Clips emphasizes the need for strong business acumen, effective leadership skills, and the financial stability to support a strategic growth plan, particularly for multi-unit development. This focus ensures that franchisees are well-equipped to manage the business aspects of owning a Great Clips location.

Is Great Clips A Good Franchise To Buy?

When considering if the Great Clips franchise opportunity is a sound investment, it's crucial to look at its financial performance and market position. The brand operates on a manager-run model, which can be attractive for franchisees looking for a more hands-off approach once operations are established.

What is the Great Clips franchise profit potential?

The profit potential for a Great Clips franchise is notably strong, largely due to its scalable business model and significant brand recognition. While the Franchise Disclosure Document (FDD) doesn't provide specific earnings figures, industry analyses from 2024 indicate that well-established salons can achieve an EBITDA margin of between 15% and 20%. In 2024, the average gross revenue for a single Great Clips salon was around $385,000, with top performers earning over $500,000. Key factors influencing profitability include the chosen location, lease agreements, and local labor costs.

For new Great Clips franchise owners, the break-even point is typically achieved within 12 to 24 months. The potential for a strong Great Clips franchise ROI becomes even more apparent as franchisees expand and open multiple units, benefiting from economies of scale. As of 2023, the average annual revenue per unit was $398,971, with an EBITDA of $81,921, representing a healthy 20.53% margin.

How does the franchise compare to competitors?

As the world's largest single salon brand, with over 4,400 locations across the U.S. and Canada by early 2025, Great Clips holds a distinct advantage in brand recognition and marketing power over smaller competitors. The brand's investment in technology, particularly its Online Check-In app, provides a significant competitive edge. With over 20 million downloads in 2024, this app offers unparalleled customer convenience unmatched by many in the value salon segment.

Furthermore, the high franchisee satisfaction rates are a testament to the viability of the Great Clips franchise. The brand consistently earns high marks in industry surveys, reflected in a franchisee continuity rate exceeding 95% over the past three years. This high retention rate suggests a stable and supportive franchise system. For those looking to own a Great Clips, understanding these comparative strengths is vital. You can learn more about the specific advantages and disadvantages in What are the Pros and Cons of Owning a Great Clips Franchise?

The initial investment for a Great Clips franchise ranges from approximately $182,950 to $414,400, with a required cash investment of at least $20,000 and a net worth requirement of $100,000 to $200,000. The initial franchise fee is $20,000, with ongoing royalty fees at 6% and marketing fees at 5% of gross revenue.

Operating Procedure To Apply For A Great Clips Franchise

What is the Great Clips franchise application process?

Embarking on the journey to own a Great Clips franchise begins with a structured application process. Initially, you'll submit an inquiry form via their franchise opportunity website. This is followed by a preliminary call with a franchise development director, designed to assess if you meet fundamental financial and professional benchmarks.

Should you qualify, the next critical step involves receiving the Franchise Disclosure Document (FDD). This comprehensive document, legally mandated and containing 23 sections, offers detailed insights into the Great Clips franchise agreement details and audited financial statements. As of 2025, a mandatory waiting period of at least 14 days after receiving the FDD is enforced before any agreements can be signed.

The final stages of the Great Clips franchise application process include completing a formal application, undergoing thorough background and credit checks, and attending a 'Discovery Day' at their Minneapolis corporate headquarters. This visit is crucial for meeting the executive team and validating the established business model firsthand.

What are the requirements for a Great Clips franchise?

To successfully navigate the path to owning a Great Clips franchise, prospective franchisees must meet specific criteria. The primary Great Clips franchise owner requirements include a minimum net worth of $500,000 and liquid assets totaling at least $75,000. These financial benchmarks, set by the franchisor for 2025, are firm and non-negotiable.

Beyond financial qualifications, strong leadership and management skills are paramount. Franchisees are expected to effectively hire and develop a salon manager and their team of stylists. It's worth noting that the franchisor prioritizes overall business acumen over direct cosmetology experience when evaluating candidates for a Great Clips business model.

A fundamental requirement is a deep commitment to the Great Clips brand and a genuine willingness to adhere to the established system. This includes diligent compliance with the Great Clips franchise operational manual and full participation in the brand's marketing strategies and technology initiatives.

Understanding the Great Clips franchise cost is a crucial part of the application. The initial investment can range from $182,950 to $414,400, which includes the initial franchise fee of $20,000. Prospective franchisees should also be aware of ongoing fees, such as the royalty fee of 6% and a marketing fee of 5%, both calculated on gross revenue. This financial framework is essential when considering how to open a Great Clips franchise.

When evaluating if owning a Great Clips franchise is a sound investment, reviewing the revenue potential is key. The average annual revenue per unit stands at $382,633, with a median of $366,735. The breakeven point is typically around 15 months, and the investment payback period averages about 42 months. These figures provide a realistic outlook on the Great Clips franchise ROI.

For those interested in the detailed steps and what it takes to start a Great Clips franchise, a comprehensive guide is available: How to Start a Great Clips Franchise in 7 Steps: Checklist. This resource breaks down the entire process, from initial inquiry to grand opening, ensuring aspiring owners are well-informed about the franchise Great Clips opportunity.

Operating Procedure To Finance A Great Clips Franchise

What are the Great Clips franchise fees explained?

When considering a Great Clips franchise, understanding the fee structure is paramount. The initial franchise fee for your first salon is a one-time payment of $25,000, granting you the license to operate under the established brand and leverage their proven business system. This fee is typically due upon signing the franchise agreement.

Beyond the initial investment, ongoing fees are integral to the Great Clips business model. These include a weekly royalty fee of 6% of your salon's gross sales. This fee supports continuous operational guidance, coaching, and access to proprietary technology that helps manage your business efficiently. Additionally, 5% of gross sales is contributed to a national advertising fund. This pooled resource, as detailed in the 2025 FDD, fuels the large-scale marketing efforts that drive brand recognition and customer traffic, a significant benefit for any Great Clips franchise owner.

Does Great Clips offer financing assistance?

While Great Clips does not provide direct financing to franchisees, they have cultivated strong relationships with a network of third-party lenders. These financial institutions are well-versed in the Great Clips franchise opportunity and have streamlined lending processes for qualified candidates looking to own a Great Clips. This network can significantly ease the financial application process.

For those exploring government-backed loans, Great Clips is listed on the SBA Franchise Directory. This designation can expedite the SBA loan approval process. In fact, approximately 60% of new franchisees utilized some form of SBA financing in 2024, highlighting its popularity and effectiveness in funding a Great Clips franchise investment.

Great Clips also recognizes the contributions of military personnel with a substantial veteran discount. Qualified military veterans receive a 50% discount on the initial franchise fee for their first salon. This reduces the upfront cost from $25,000 to $12,500 as of 2025, making it more accessible for veterans to enter the hair salon franchise Great Clips sector.

Operating Procedure To Launch A Great Clips Salon

Embarking on the journey to own a Great Clips franchise involves a structured approach, with the franchisor providing significant support throughout the launch process. Understanding these operational steps is crucial for aspiring franchisees aiming to successfully open their hair salon franchise.

What does the Great Clips franchise training program cover?

The Great Clips franchise training program is designed to equip new owners with the necessary skills and knowledge to operate a successful salon. This comprehensive program is divided into distinct phases.

• The initial phase consists of a three-day virtual training session. This covers fundamental business aspects, including financial management and marketing strategies.
• Following the virtual training, a five-day intensive in-person session is conducted at the corporate headquarters in Minneapolis.
• A core component of the training is a deep dive into the Great Clips franchise operational manual. This manual details key performance indicators (KPIs), effective staff management techniques, customer service protocols, and the proficient use of the brand's technology suite for salon management.
• To further support continuous learning, Great Clips has committed to expanding its on-demand training modules for both owners and salon managers by 20% for 2025, building on the previous year's offerings.

How does Great Clips assist with site selection?

Site selection is a critical step in the Great Clips business model, and the franchisor offers extensive real estate support. This assistance is data-driven, aiming to identify locations with the highest potential for success.

Great Clips utilizes sophisticated demographic and psychographic data analysis to pinpoint optimal trade areas. As of 2025, their analysis model incorporates over 100 data points, considering factors such as traffic patterns, visibility, and proximity to complementary national retailers.

Franchisees collaborate with a dedicated Great Clips real estate manager and approved local brokers to evaluate prospective sites. The franchisor also provides a standardized Letter of Intent (LOI) and offers support during lease negotiations to secure favorable terms. The final approval of any location rests with the corporate real estate committee, ensuring that every new salon meets the brand's stringent criteria. This meticulous approach contributes to the system's high salon success rate, with over 98% of locations operating for more than two years showing continued success as of late 2024.

For those interested in the specifics of starting their own Great Clips franchise, a detailed guide is available: How to Start a Great Clips Franchise in 7 Steps: Checklist.

Operating Procedure To Manage A Great Clips Salon

What is in the Great Clips franchise operational manual?

The Great Clips franchise operational manual is a comprehensive, confidential guide designed to streamline every aspect of running your salon. It details essential procedures, from daily opening and closing routines to precise cash handling protocols and effective inventory management for professional hair care products. For those looking into the Great Clips franchise opportunity, understanding this manual is key.

A significant focus within the 2025 manual is dedicated to human resources. This section provides clear guidelines for recruiting, hiring, training, and effectively managing your team of stylists and a salon manager. It includes standardized job descriptions, performance review templates, and best practices for scheduling to ensure optimal salon operations. This emphasis on people management is crucial for anyone considering how to open a Great Clips franchise.

Furthermore, the manual outlines the brand's strict standards for customer service, salon cleanliness, and marketing execution. It offers step-by-step instructions for implementing local marketing initiatives and leveraging the corporate-provided customer relationship management (CRM) tools. This ensures a consistent brand experience across all locations, a vital component of the Great Clips business model.

What ongoing support can owners expect?

As a Great Clips franchise owner, you're not alone. Franchisees are assigned a dedicated Franchise Business Coach (FBC) who provides regular, personalized coaching and support. These FBCs assist owners in analyzing their salon's performance data, setting achievable goals, and developing strategies for growth. They typically conduct an average of 4-6 on-site or virtual visits per year to offer this guidance.

The marketing support for the Great Clips franchise is ongoing and robust. The corporate team manages national advertising campaigns and provides a vast library of customizable local marketing materials. Franchisees also benefit significantly from the brand's strong digital presence and sophisticated customer data analytics, which can significantly boost the Great Clips franchise ROI.

Owners can also rely on a 24/7 technical support help desk for all proprietary software and hardware. This includes critical systems like the point-of-sale (POS) system and the Online Check-In platform, ensuring minimal operational downtime and a smoother customer experience. For those asking 'is Great Clips a good franchise to buy?', this level of support is a major advantage.

When evaluating the Great Clips franchise opportunity, it's essential to consider the operational framework. The initial investment can range from $182,950 to $414,400, with a required cash investment of at least $20,000 and a net worth of $100,000 - $200,000. The ongoing fees include a 6% royalty fee and a 5% marketing fee. For those interested in the Great Clips franchise cost and potential returns, understanding the operational manual and support systems is paramount.

For a deeper dive into the competitive landscape and to explore other avenues, you might want to look into What Are Some Alternatives to the Great Clips Franchise?

Operating Procedure To Grow With A Great Clips Franchise

How does multi-unit ownership work?

The Great Clips franchise opportunity is structured to encourage and support multi-unit ownership. This is a core part of their growth strategy. In fact, as of 2025, over 90% of Great Clips franchisees operate more than one salon, with the average owner managing between five and six units. This widespread adoption of multi-unit ownership is facilitated by a significant financial incentive: the franchise fee for each subsequent salon is reduced by 80%, dropping from $25,000 to just $5,000. This makes expanding your portfolio more accessible.

The key to successfully managing multiple locations lies in the brand's manager-run business model. As you scale your operations, you'll build a team of reliable salon managers. This delegation allows you to step back from the day-to-day operations of individual salons and focus on higher-level responsibilities. These include strategic planning, identifying prime locations for new sites, and overseeing the overall management of your growing franchise portfolio.

What is the Great Clips franchise ROI for multiple units?

Multi-unit ownership with Great Clips offers a compelling advantage for increasing your franchise ROI. The economies of scale kick in significantly as you expand. For instance, you can optimize staffing by sharing employees between nearby salons during busy periods. Centralizing administrative tasks also streamlines operations, and you can achieve greater efficiency with your local marketing spend across multiple locations.

While the initial investment for your first salon typically ranges from $178,400 to $394,400, subsequent salon startups often require a slightly lower investment. This is due to your increased familiarity with the build-out process and launch procedures. For example, the franchise fee for a new unit is only $5,000, an 80% reduction from the initial fee.

Industry analysts in 2024 projected that multi-unit operators who reach five or more salons could see their overall portfolio EBITDA margins increase by 2-4 percentage points compared to single-unit owners. This highlights the substantial financial benefits of scaling your Great Clips franchise business.

The average annual revenue per unit for a Great Clips franchise was $382,633 in 2023, with a median of $366,735. This consistent performance across a large network, numbering 4,427 franchised units in 2023, provides a solid foundation for growth. Understanding the What are the Pros and Cons of Owning a Great Clips Franchise? can further inform your multi-unit strategy.