Do you want to open a salon business by buying Great Clips franchise? If YES, here is how much it cost to open a Great Clips franchise successfully. Recognized as an invaluable resource for potential franchisees, the Franchise 500® ranks Great Clips as No. 7 for its outstanding performance in areas including unit growth, financial strength and stability, and brand power. This ranking for Great Clips is proof to its strength as a franchise opportunity.

Great Clips, Inc. was founded in 1982 in Minneapolis. Today, Great Clips boasts of over 4,200 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.

Why Buy Great Clips Franchise?

Since being a walk – in salon, Great Clips offers value – priced, high – quality hair care for men, women and children. In the shops scattered all over the United States, appointments are not needed, and salons are open nights and weekends. For Great Clips, getting a great haircut is more valued than protocols.

Great Clips boasts a network of more than 1,000 owners and a pioneering executive team—someone will always be there to support you and share their knowledge. The company’s proprietary software, Styleware Touch, is the leading management tool in the industry. It tracks cash, inventory, employee productivity and performance, scheduling, staffing and payroll.

Additionally, Great Clips have 24/7 technological support in case a franchisee needs an extra hand. To top it off, all shop owners, salon managers, and stylist training are the most comprehensive in the industry, and the company’s recruitment strategies are an invaluable tool for owners.

Great Clips two – day Building Your Legacy training highlights all aspects of the Great Clips operating system for new owners. With over 65 conveniently located North American training centres to provide stylist and manager training, the platform is set for new franchisees.

Great Clips also employs Education Specialists who provide ongoing training to Great Clips stylists and salon managers across North America. The company’s stylist recruitment website attracts more than 41,000 online applications every year! The company boasts of having powerful relationships with many area cosmetology schools, providing franchisees access to stylists just beginning their careers.

Great Clips is ideal for individuals seeking a moderate-risk, steady growth business. Great Clips is a recession resistant business which requires a relatively low investment and allows franchisees to keep their day job while building their salon business.

Financial Requirements for Opening a Great Clips Franchise

The financial information properly outlined below is from the Franchise Disclosure Document of Great Clips. The FDD is meant to provide franchisees with extensive information concerning the costs and expenses required to start a Great Clips franchise.

1. Initial Franchise Fee: $20,000

The Initial Franchise Fee is $20,000 if you are applying for a single Franchise Agreement with no participation in an incentive program.

2. Initial Advertising Contribution to the Market Development Ad Fund: $5,000

3. Travel and Living Expenses While Training (per participant): $1,500 to $2,500

Great Clips offers training to the franchisee, stylists and management staff of the Great Clips salon. There are four components of training: (1) Franchisee Orientation and Training, (2) Academy for Hair, (3) LEADS for Management Staff, (4) In – Salon Training.

4. Architecture Fees: $600 to $3,500

You are expected to pay architecture fees for plans and drawings for your Salon and for the costs of copying and delivering the drawings. Note that this amount may be higher if revisions to completed plans are needed, or if you’re local code requires engineered mechanical, electrical, and plumbing drawings. It can also be higher if your Salon will be located in a building requiring LEED certification (Leadership in Energy and Environmental Design Green Building Rating System).

5. Leasehold Improvements, including Labour: $20,000 to $50,000

Have it in mind that a typical Great Clips Salon is approximately 900 to 1,200 square feet. Your Salon will likely be in a shopping centre rather than a newly built, free – standing building. Also remember that the cost of leasehold improvements will differ depending on the condition of the location when it is handed over to you from the landlord.

Note that these estimated costs are based upon receiving the location in a standard “vanilla shell” condition. Leasehold improvements, fixtures, signage, furnishings, and labour may be financed through lessors or third parties at your discretion. If you finance these items, you will incur financing costs.

6. Rent and Security Deposits: $1,000 to $8,000

For Great Clips, rent is generally non – refundable. Security deposits may be refundable either in full or in part, depending on the terms of your lease or contract.

7. Fixtures, Signage and Furnishings, including Computer: $30,000 to $40,000

8. Freight: $2,000 to $6,000

9. Sales Tax on Fixtures, Signage and Furnishings: $0 to $2,500

10. Opening Inventory and Supplies: $4,700 to $6,400

11. Grand Opening Advertising: $15,000 to $18,000

Note that this amount does not include the cost of your discounted price or additional staffing required to successfully opening your Salon.

12. Insurance: $1,500 to $2,400

Notably, this amount only includes your initial premium for the required property and public liability insurance, and is the estimated cost per year per Salon. However, the cost of other coverage, including your discretionary purchases and workers’ compensation, varies too widely to be easily estimated.

13. Lease Liability Fee: $0 to $3,000

Once Great Clips guarantees your lease or assigns a lease to you with continuing liability to Great Clips, you must pay a non – refundable lease liability fee of $3,350.

14. Lease Review Fee: $850 to $3,350

Once you have an attorney review your lease, expect the legal fees to be around $850 and $3,350. If Great Clips assigns a lease to you, the costs of Great Clips’ attorney’s review have already been included in the lease liability fee.

15. Additional Funds (6 – 12 months): $12,000 to $45,000

Note that this is an estimate only of the additional operating capital required to operate your Salon during the initial 6 – 12 months after you open for business. Great Clips cannot guarantee that you will not have additional expenses starting the business.

ESTIMATED TOTAL: $114,150 to $216,000

Steps on How to Open a Great Clips Franchise

The term of Great Clips Franchise Agreement is 10 years from date of opening of the salon or, if the franchisee buys an existing Salon, the term will be the balance of the term of the existing Salon. The Franchise Agreement provides for consecutive additional renewal terms of 10 years each, if requirements are met. If you believe you want to invest into this franchise, below are key steps to take.

  • Ascertain that you have the financial capabilities to invest in the franchise: a minimum of $50,000 in liquid funds and a minimum personal net worth of at least $300,000. The total investment to open a salon ranges from just over $114,150,000 to $216,000 in the U.S. and from $132,000 to $260,000 in Canada. Franchise fees range from $20,000 to $45,000. You will receive ongoing royalty fees of 6 percent.
  • Navigate the Great Clips franchise website at for information on investment and becoming a franchise owner.
  • Take a look at the territory map of North America to find where you would most like to start your Great Clips franchise. The company has markets in various regions in the U.S. and Canada but will notify you of new markets when they become open.
  • Take your time to decide if you are an ideal owner and would like to begin your investment in Great Clips, which encourages multi – unit ownership and manager – run salons. The company always wants hands – on leaders who can take and give direction with skills in recruiting and motivating a staff.
  • Carefully complete the application at the website or call 800 – 947 – 1143 if you have further questions. Note that your application will include personal, background, employment and financial information, such as assets, liabilities and monthly expenses. You will also be asked about the areas you prefer to start a franchise and questions related to your business experience. After submitting the application, it will go through review. An interview may follow.


In this fast-paced age, people want a salon that fits their busy schedules. That’s why Great Clips is open evenings and weekends, with no appointments necessary. Great Clips offers affordable, quality haircuts in a comfortable, friendly salon. Note that the financial figures outlined above are estimates in setting up a Great Clips franchise and operating it for 6 – 12 months. It is possible to exceed costs in any of the areas above.