Franchimp Summary Rating
Lower than 63% of peers
Higher than 76% of peers
Franchise Summary
Description
A franchised GREAT CLIPS® Salon offers a required line of haircare services and products from a designated location, customarily in a shopping center, identified by trademarks licensed by the franchisor and using distinctive trade dress and business methods prescribed by Great Clips.
Company Background
Great Clips is a hair salon franchise with more than 3,500 locations in the United States and Canada. What started in 1982 as a single haircutting chair has grown into one of the most well-known brands in America. Great Clips is franchising new salons at an average rate of 50 per year, so there's always room for your dreams.
Franchise Opportunity
You need a haircut, but don't want to spend the time or money at a high-end salon. It's no secret that getting a haircut can be expensive and time consuming. Not only do you have to find a reputable salon, but you also have to schedule an appointment and then wait for your turn. Great Clips is the solution. We offer affordable haircuts without the hassle. Plus, we're open late and on weekends so you can get your haircut when it's convenient for you.
Corporate Structure
Great Clips Inc. is a Minnesota corporation that was incorporated on July 12, 1982. Great Clips’ principal business office is 4400 West 78th Street, Suite 700, Minneapolis, MN 55435.
Investment and Franchisee Fees
The total investment necessary to begin operation of a Great Clips franchise is from $114,150 to $216.000. This includes $25,000 to $40,000 that must be paid to Great Clips or an affiliate.
Earnings Transparency
This Franchise discloses slightly more information about the financial performance of their franchisees compared to other franchises in the same industry
Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet
Financial Performance of "Standard" Units
Average Revenue Per Unit
Compared vs. Beauty related services Industry$353,577 / unit
Franchise Type: Standard
Average Revenue During 2022
Franchisee Attrition
This franchise's rate of attrition in 2014
of 2.38%
was
Slightly Lower
than the 3% in the Beauty related services industry. Generally speaking, a higher rate of attrition represents a less stable franchise system and a lower rate of attrition indicates a more successful system
What's Included in franchise attrition?
We define the franchisee attrition rate as the sum of terminations, re-acquisitions by
franchisor, non-renewals, and ceased operations, divided by the number of outlest at the start of the year.
It is a strong indicator of the strength of the underlying operating model
Management Team
| # | Name | Position |
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Distribution of Great Clips Franchisees
Great Clips Franchise System Development in 2021
FAQ
How much investment do I need to start my own Great Clips business?
Franchisees typically require at least $187,800 to $419,900 investment to get their Great Clips business started
What are the initial franchise fees for Great Clips?
Franchisees typically need to pay at least $73,800 in fees directly to Great Clips in order to earn the right to launch their business
How much money can I make with a Great Clips franchise? What are
the average revenues for a typical Great Clips business?
We estimate that the average revenue of an individual
Great Clips unit is approximately
$353,577. We based this on Item 19 in franchise disclosure
document
How long do I need to commit to running a Great Clips unit? What
is my contractual commitment?
Great Clips franchisees are typically required to sign up to a
10 year contract initially. The renewal length
is 10 years. You can of course exit early but
don’t expect to get any refund!
Accessibility
The Franchisor's investment costs ranges from
$347,750 to $925,000
which is
Much Higher
than the $0 to $0 average in the Beauty related services industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc
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