Franchisor Stories
Franchise Opportunity Deep Dive: Great Clips is the world’s largest hair salon brand offering convenient affordable haircuts through a franchised system of locally owned salons.
Great Clips is one of the most recognizable haircut brands in North America, serving millions of customers each week through a network of franchised salons across the United States and Canada. The brand focuses on affordable convenient haircuts delivered through a streamlined salon model designed to reduce wait times and maintain consistent quality.
Great Clips was founded in 1982 in Minneapolis, Minnesota, by Steve Lemmon and David Rubenzer, who wanted to create a salon concept focused on convenience, speed and affordability rather than the traditional full-service salon experience.
Early company leader Ray Barton helped develop and expand the franchise model that would eventually turn Great Clips into the largest hair salon brand in the world. The concept introduced a simple approach: no appointments required standardized haircutting systems and a franchise network focused on consistent service.
Today the brand operates more than 4,400 locations across more than 190 markets and performs more than 90 million haircuts annually.
Mission: Great Clips aims to provide convenient high-quality haircuts at an affordable price while creating a reliable and welcoming salon experience for customers.
Vision: The brand seeks to remain the leading hair salon franchise in North America by combining strong franchise partnerships with technology that improves both the customer and salon experience.
Great Clips offers franchise opportunities throughout the United States and Canada depending on market availability.
High-priority U.S. markets include Boston, Massachusetts; Buffalo, Rochester and Syracuse, New York; Hartford-New Haven, Connecticut; Los Angeles, California; Miami-Fort Lauderdale, Florida; Providence-New Bedford, Rhode Island; and Washington, D.C.
High-priority Canadian markets include Kitchener, Ontario; London, Ontario; Ottawa, Ontario; Regina-Moose Jaw, Saskatchewan; and Winnipeg–Brandon, Manitoba.
Prospective owners can explore open markets and available territories through the brand’s available territory page.
Initial Costs: The estimated initial investment required to begin operation of a Great Clips franchise ranges from $187,800 to $419,900. The 2025 Franchise Disclosure Document (FDD) breaks these costs down as follows:
| Type of Expenditure | Min | Max |
| Initial Franchise Fee | $20,000 | $35,000 |
| Initial Advertising Contribution to the MDAF | $5,000 | $5,000 |
| Travel & Expenses While Training | $1,500 | $2,500 |
| Architecture Fees | $100 | $3,800 |
| Leasehold Improvements | $70,000 | $200,000 |
| Rent & Security Deposits | $1,000 | $10,000 |
| Fixtures, Signage & Furnishings | $40,000 | $55,000 |
| Freight | $4,000 | $7,000 |
| Sales Tax on Fixtures, Signage & Furnishings | $0 | $3,200 |
| Opening Inventory & Supplies | $4,700 | $6,400 |
| Grand Opening Advertising | $20,000 | $25,000 |
| Insurance | $1,500 | $3,000 |
| Lease Liability Fee & Lease Review Fee | $0 | $4,000 |
| Additional Funds (3-6 Months) | $20,000 | $60,000 |
Initial Franchise Fee: The initial franchise fee for a single Great Clips salon is $20,000, which is paid when the franchise agreement is signed. For additional salons, franchisees pay $10,000 at signing and the remaining $10,000 when ordering salon equipment.
Great Clips also offers a $5,000 rebate through the VetFran Program for honorably discharged U.S. and Canadian military veterans when they open their first salon.
Ongoing Fees: According to the 2025 FDD, Great Clips franchisees are responsible for the following ongoing payments and fees:
| Type of Fee | Amount |
| Continuing Franchise Fee | 6% of gross sales/every two weeks |
| Continuing Advertising Contribution to the Ad Fund | 5% of gross sales/every two weeks |
| Training Fee | $200 per salon/year |
| Recruiting Technology Fee | $750 per salon/year |
ROI Potential: According to the 2025 FDD, the 4,147 franchise salons operating for the entirety of FY 2024 reported the following annual sales:
| Sales Category | Average | Median | High | Low |
| Service | $388,522 | $371,729 | $1,065,849 | $37,607 |
| Product | $10,657 | $8,925 | $84,732 | $193 |
| Total | $399,179 | $382,316 | $1,099,873 | $37,920 |
Great Clips provides franchisees with guidance during site selection lease negotiations and salon buildout. The corporate team also assists with recruiting salon managers and stylists while preparing owners for their salon launch.
Franchisees participate in initial training programs that introduce them to the Great Clips operating system management processes and marketing strategies. Stylists and managers also receive ongoing training through in-person events and digital learning platforms.
Great Clips provides ongoing operational guidance including marketing support salon performance tracking and business consulting. Franchisees benefit from the brand’s established operational systems and collaborative franchisee network that shares knowledge and best practices.
Great Clips invests heavily in technology that supports both the customer experience and franchise operations.
Tools include: online check-in waitlist system, Clip Notes haircut tracking system, advanced POS systems, business intelligence dashboards and mobile operational apps for franchise owners.
These systems help owners manage scheduling, staffing performance, tracking and customer engagement.
Great Clips seeks franchisees with leadership skills, business management experience and a growth mindset. Owners are expected to follow the brand’s established systems while building teams and scaling multiple locations over time.
Many Great Clips franchisees operate multiple salons using a manager-run model where trained salon managers oversee day-to-day operations. This structure allows franchise owners to focus on leadership expansion and strategic growth rather than daily salon management.
Great Clips does not directly finance franchises, but many franchisees utilize SBA loans, bank financing or personal capital to fund their investment.
“I would absolutely recommend Great Clips for anybody looking to get into a new business. I’ve worked at some of the top brands on the planet, and Great Clips has got to be one of the absolute best operations that I’ve ever seen.”
- Ray Solnik, Franchisee — San Jose, CA
The U.S. hair salon industry continues to grow as consumers prioritize convenient affordable personal care services. According to IBISWorld the U.S. hair salon industry generates more than $60 billion annually with steady growth expected over the next several years.
Demand for quick convenient haircut services continues to increase as consumers seek lower-cost alternatives to full-service salons.
Great Clips stands out through its technology-driven convenience model strong national brand recognition and massive franchise network. Primary competitors include Sport Clips* Haircuts, Supercuts and Roosters Men’s Grooming Center.
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