Great Clips INFO
Why Great Clips, and Why Now?
Since being founded nearly 40 years ago, Great Clips has become the world’s largest hair salon brand, with more than 4,500 salons and more than 1,000 franchise owners throughout 180 markets in the United States and Canada.
The brand has a recession-resistant business model and offers customers a convenient place to get their hair cut for a great price. It is the high-tech leader in the haircare industry, with in-salon Clip Notes® for customers and the innovative Great Clips app that includes Online Check-In®, hair cut reminders and the new ReadyNext™ alerts. In addition, Great Clips offers web-based business intelligence tools, an advanced, proprietary POS system and a tablet-based app for franchisees to monitor business away from the salon.
Although Great Clips already accounts for 50% of the salon segment’s market share in the United States, the brand is always creating opportunities to open new salons and serve more customers. Its scalable business model creates an attractive opportunity to expand into new territories. The average Great Clips franchisee operates five or six salons within five years of opening their first.
What Sets Great Clips Apart?
Great Clips was founded in 1982 in Minneapolis with the goal of providing customers an affordable hair cut option at times of the day that were most convenient for them, including evenings, seven days a week.
The concept was a huge hit, and today, over 1,000 Great Clips franchisees own and operate nearly 4,500 salons. They employ around 35,000 stylists and service approximately two million customers weekly.
But the brand’s growth doesn’t stop there. Proving its staying power, in 2019 Great Clips celebrated 15 consecutive years of same-store sales growth, with systemwide sales over $1B, even through 2020. This success not only speaks to the brand’s recession- and pandemic-resistant business model, but also to its strong franchisee-support infrastructure. All salons are owned and operated by franchisees, which means 100% of the brand’s attention is dedicated to helping those franchisees grow. The company has an exceptional team of franchise-industry leaders who focus on the metrics that matter most to franchisees.
The hair salon brand’s overall success reflects its simple but effective growth strategy. By keeping its focus on hair cuts, Great Clips provides a service that cannot be sidelined by e-commerce. Additionally, salons conveniently offer affordable hair cuts to men, women, children and seniors, which means an entire family can get their hair cut at once and at the same place.
Great Clips Franchisee
Why a Hair Care Salon Concept?
Hair salons are part of a $60B industry that continues to grow, and they provide a service that cannot be outsourced or performed online. They will always be a necessity, which makes them a solid business opportunity for many would-be entrepreneurs. Many Great Clips franchisees see the simplicity of the business model as the perfect opportunity to create a multi-unit legacy business and allow them to transition out of a corporate career into full time business ownership.
As the leading salon brand, Great Clips offers time-tested support, tools and resources to franchisees that allow them to focus on building their business. This includes support in real estate, grand-opening marketing, operations and much more. And because Great Clips’ salons require no previous haircare experience to own, they are an attractive opportunity for entrepreneurs in a variety of areas of expertise.
Great Clips franchisees understand that following the system (one that has been developed and tested for nearly 40 years) is essential for success. The brand is eager to work with franchisees who have entrepreneurial and leadership skills, a growth mindset and a love for their staff and local communities.
Why Franchisees Love the Brand
Many franchisees are attracted to the opportunity with Great Clips because of the brand’s simple model, name-brand recognition and low inventory requirements. Plus, Great Clips franchisees come from a variety of backgrounds, such as medicine, education, human resources and engineering.
The total investment to open a Great Clips salon ranges from $146,750 to $302,400 in the U.S. and from $96,450 to $194,730 in Canada.
The cost of a single franchise agreement is $25,000, royalties are 6% of gross sales and ongoing advertising fees are 5% of gross sales.
Franchisees are required to have a net worth of at least $300,000 (in most markets) and a minimum of $750,000 in liquid funds (select markets have increased requirements of up to $1,000,000 net worth and $250,000 in liquid funds to qualify).