Great Clips Franchise Information

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ABOUT GREAT CLIPS

  • How much it costs
  • Franchisee Success
  • Great Clips Franchisee
  • Franchisee Growth
  • Why Great Clips, and Why Now?
  • What Sets Great Clips Apart?
  • Why a Hair Care Salon Concept?
  • Why You?
  • Why Franchisees Love the Brand
  • Investment
$178,400- $376,900
Start-Up Cost
$60,100 to $80,000
Initial Franchise Fee

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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.

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.

 

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.

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 necessary to begin operation of a Great Clips franchise is from $178,400 to $376,900. This includes $60,100-$80,000 that must be paid to Great Clips or an affiliate for a single franchise agreement, and $75,100-$95,000 that must be paid to Great Clips or an affiliate for the first salon developed under a Three Star Program Agreement.

Executive Q&A

The Top 5 Reasons To Invest in Great Clips

Great Clips COO to Take Over as President with Plans to Fuel Both Franchise and Consumer Growth

10 years after joining the brand, Rob Goggins is positioned to step into the president role at the end of 2017.

For the past 35 years, Great Clips has been raising the bar in the salon industry. The leading franchise has a long history of putting its customers first, creating a unique culture that’s attractive to consumers across North America. It’s clear that the brand’s approach to business development is working—Great Clips currently has more than 4,091 locations in the United States and Canada. And as the brand continues expanding in key development markets on both the domestic and international levels, Great Clips is poised for another successful year.

But the brand’s 2017 initiatives aren’t all focused on external growth—Great Clips is also experiencing growth within its own internal team. After more than six years as the CEO of Great Clips, Rhoda Olsen is giving up her title and transitioning into a new role as vice chair of the board at the end of the year. Great Clips’ current president, Steve Hockett, will take over as CEO, with current COO, Rob Goggins, taking the role of president.

These executive changes point to positive movement within the Great Clips system, especially given the expertise that each team member brings to the table. Goggins, for example, is no stranger to the franchising industry or the Great Clips brand. He got his start working for Service Brands International—now part of Dwyer Group—which is known for being behind franchises like Molly Maid, Mr. Handyman and ProTect Painters. Goggins worked in the franchise sales and development department at Service Brands before being recruited by Great Clips in 2007.

When Goggins first joined Great Clips as vice president of franchise development, the brand was welcoming around 50 new franchise salon owners to its system every year. Under his leadership, that number jumped to around 120 annually. Goggins took over the real estate department in 2011 before eventually becoming COO, adding operations and facilities and purchasing to his areas of responsibility. With his impending role as president, effective Jan. 1, 2018, Goggins looks forward to learning even more about all the Great Clips corporate team has to offer.

“It’s an incredibly exciting time to be a part of the Great Clips brand, and I’m looking forward to transitioning into this new role. I’m already becoming more involved in our marketing and communications groups, so I’m eager to learn more about that critical side of the business,” said Goggins. “There’s never been any doubt that Great Clips has one of the best corporate teams in the entire franchising industry. I’m excited to take on more responsibility and see what else I can do to make a positive impact across our system.”

Those positive changes are already starting to take shape—Goggins is focusing his efforts on boosting Great Clips’ digital presence and figuring out how to best leverage its national ad fund. By having a level of familiarity with the brand, its franchisees and its customers, Goggins will help ensure that Great Clips is continuing to build on the momentum and one-of-a-kind business ownership opportunity that the hair care franchise is known for.

“These leadership transitions tell a good story of positive growth for the Great Clips brand, and an ongoing commitment to leadership development. This thoughtful planning is ultimately what will set us up for a smooth succession at the end of the year,” said Beth Caron, director of franchise development at Great Clips. “Our franchisees are already familiar with Rhoda, Steve, and Rob, and understand the value of their combined strengths. It’s clear their new roles are a natural next step as we continue to grow.”

Great Clips has set its sights on impressive growth again in 2017. In its role as franchisor, Great Clips, Inc. continues to welcome new franchisees into its system and provide unrivaled support for its existing network of local owners. Between the organization’s experienced corporate team and strong brand awareness throughout the U.S. and expanding in Canada, the brand is attractive to consumers and franchisees alike. With startup costs ranging from $131,650-$249,600, including a $20,000 franchise fee, Great Clips provides entrepreneurs with an affordable way to be a part of the brand driving the salon industry forward.

“Our top priorities are always focused on growth and helping our franchisees get more customers in their stores. We want to do everything that we possibly can to help our local owners be more profitable by delivering the experience Great Clips customers expect,” said Goggins. “As we prepare to step into our new roles, those priorities aren’t going to shift. There’s a lot of room for Great Clips to grow across the U.S. and Canada, and we’re looking forward to opening up salons in a variety of different communities.”

 

ABOUT GREAT CLIPS, INC.

Great Clips, Inc. was established in 1982 in Minneapolis. Today, Great Clips has more than 4,000 salons throughout the United States and Canada, making it the world’s largest salon brand. Great Clips is 100 percent franchised and salons are owned locally by more than 1,200 franchisees across North America. Great Clips franchisees employ nearly 40,000 stylists who receive ongoing training to learn the Great Clips customer care system and advanced technical skills. As a walk-in salon, Great Clips provides value-priced, high-quality haircare for men, women and children. No appointments are needed and salons are open nights and weekends. Getting a great haircut is more convenient than ever with Great Clips’ Online Check-In and Clip Notes®. To check in online, visit GreatClips.com or download the app for Android and iPhone. For more information about Great Clips, Inc. or to find a location near you, visit GreatClips.com."

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