2. What are the personal financial requirements and initial investment range to get into a Great Clips franchise?
Opening up a franchised Great Clips salon does require a certain amount of financial stability to get started- Great Clips is an affordable option, but it takes funds to get your business up & running. Our minimum requirements to qualify are a net worth (assets minus liabilities) of at least $300,000 with liquid assets of at least $75,000. However, we recognize that certain areas are simply a higher cost of living area- and therefore will require significantly higher net worth and liquid asset minimums to proceed in those markets.
- Net Worth$300,000 (High-cost markets: $1,000,000)
- Liquid Assets$75,000 (High-cost markets: $250,000)
- Credit ScoreAt least 675
Clean background and criminal record
New franchisees must live in an open geographic market
A breakdown of the initial investment range for a Great Clips franchise.
Getting started with a Great Clips franchise can range in cost from $182,950- $414,000 in the US*, which is one of the most affordable initial investment ranges in the hair salon franchise industry. That includes construction, grand opening marketing and working capital to get started. The chart below offers a comprehensive look at what is included in that range.
*Canadians have costs in both CAD and USD. That total investment with the combined currencies could be between $190,000-$415,00. Click on the Canada Tab to see a breakdown of costs for Canadian units.
| Description | Low | High |
|---|---|---|
| Franchise Fee | $20,000 | $35,000 |
| Initial Ad Fund Contribution | $5,000 | $5,000 |
| Leasehold Improvements and Site Fees* | $115,950 | $288,900 |
| Additional Funds for 12 Months | $15,000 | $55,000 |
| Grand Opening Advertising | $20,000 | $25,000 |
| Training, Travel, and Living Expenses (per participant) | $1,500 | $2,500 |
| Insurance | $1,500 | $3,000 |
| Total | $182,950 | $414,400 |
| Canadian Dollar Portion of Initial Investment | ||
|---|---|---|
| Description | Low | High |
| Franchise Fee | $20,000 | $35,000 |
| Initial Ad Fund Contribution | $5,000 | $5,000 |
| Leasehold Improvements (including labour, rent, security deposit and lease review fee) | $72,700 | $196,000 |
| Additional Funds for 12 Months | $18,000 | $60,000 |
| Grand Opening Advertising | $20,000 | $25,000 |
| Training, Travel, and Living Expenses (per participant) | $1,800 | $3,000 |
| Insurance | $2,100 | $3,000 |
| Total | $139,600 | $324,000 |
| US Dollar Portion of Initial Investment | ||
|---|---|---|
| Description | Low | High |
| Fixtures, Signage & Furnishings (including salon technology hardware) | $40,000 | $66,000 |
| Freight | $4,600 | $8,000 |
| Opening Inventory & Supplies | $5,640 | $7,680 |
| Architecture Fees | $100 | $3,500 |
| Total | $50,340 | $85,180 |
*Includes the following: labor, fixtures, opening inventory supplies, rent and security deposits, lease liability fee, lease review fee, freight and sales tax on fixtures, signage and furnishings.This is not an offer for a franchise. Such an offer can only be made through our Franchise Disclosure Document (FDD). Certain states require that we register the FDD in those states. This communication is not directed by us to the residents of any of those states and we will not offer or sell franchises in those states until we have registered the franchise (or obtained an applicable exemption from registration). Likewise, this communication is not directed to residents of Canada, as an offer for a franchise can only be made through the provision of our Canadian Franchise Disclosure Document. Notice to prospective franchisees protected by the New York Franchise Sales Act: This is not an offering. An offering can only be made by prospectus first filed with the State of New York Department of Law, and such a filing does not constitute approval by the department. ©Great Clips, Inc. 4400 West 78th Street, Suite 700, Minneapolis, MN 55435.
Financing
We can help
We have long-standing relationships with key lenders. Thousands of North American Great Clips locations have been financed over the last 35 years. There are several third-party financing options you can choose from, including small business loans. Please ask us for more information.
Get in touch
We'd love to learn more about your goals and answer your questions about becoming a Great Clips franchisee. Please fill out our contact form, and someone will get back to you as soon as possible. Chatting with us is completely confidential.