Consider becoming a Great clips franchise salon owner in the United States. Contemplating how to start, where to go? How much money is required? What are the possibilities? And there are many more questions.
The Great clips with more than 4500 franchise salon locations is a recession-free business as it deals in essential hair cutting services. This article provides an overview of the Great Clips franchise.
Great Clips haircut franchise, the world’s largest hair salon brand, began franchising in 1983 throughout the United States and Canada, with over 4500 locations. Great Clips Salon Franchise In the franchise 500 for 2021, it is ranked 13th, behind Mcdonald’s.
The United States hair and beauty care industry is estimated at $46.5 million in 2019.45.5% of this revenue comes from haircutting and styling. Therefore, this 45.5 % is the target market for Great clips in the United States.
What is the Great Clips franchise?
Firstly, Great Clips salon is an excellent franchise opportunity for those looking for a low-risk, consistent business. Secondly, Great Clips is a recession-proof business that requires little capital and allows franchisees to keep their day jobs while growing their salon business.
Additionally, Great Clips hair salons, frequently found in strip malls, are open in the evenings and on weekends and do not require appointments. The franchise business does not require prior hair care experience for franchises.
Great Clips Franchise Info
Great Clips is a good franchise option to invest in because of its brand name, franchisor expertise, and abundant resources. It controls more than half of the current organised market share of hair care salons in the United States.
Due to the manager-run operational model, great clip owners continue to work in various capacities while running their franchise, with over 4500 salons. Great Clips franchises are all independently owned.
Great clips also demonstrate their industry leadership by providing interactive experiences such as online Clip Notes and appointments. Currently, over seven million customers use the great clips mobile app to book appointments.
In addition, Great Clips also offers their franchise owners daily operational support and software that helps their employees work efficiently.
I have listed the Great Clips franchise information to start
- You must first pay $5000, which you cannot pay in cash.
- After acquiring the Great Clips franchise, it may decline under the following conditions:
- If you do not open your franchise within 24 months of receiving franchise approval,
- If you do not participate in the required training, great clips describe.
- If you found great clips, you took the franchise for speculative purposes.
Eventually, in such cases, your initial fee of $5000 will not be refunded.
3. Firstly, in collaboration with Vet Fran, Great Clips offers a $5000 discount to military veterans in the United States and Canada. Finally, this rebate is given to qualified veterans when they open their first Great Clips salon.
Great Clips Franchise Information
|Industry Type||Beauty & Wellness|
|Sub Category||Hair Care & Beauty Salons, Non-Food Franchises|
|Year Established||September 22, 1982|
|Company Name||Great Clips, Inc.|
|Founder/Management Head||Steve Lemmon|
|Franchising Started||July 16, 1983|
|Employees at Company H.O||1,250+ employees|
|Franchise Expansion Plan||The United States & Canada|
|Number of Units||4500 + units U.S & Canada|
|Number of Franchise Units||4100 (as if 2020)|
|Social Media Handles|
|Company Office location||4400 West 78th Street Suite 700 Minneapolis, MN 55435 United States.|
Great Clips Franchise Requirements
1. Make sure you have enough money to start a franchise
To open a Great Clips franchise salon, you will need an initial investment of $140,00 to $260,000, with an overall investment of $300,000 and approximately $80,000 in liquid cash.
2. Understanding the total investment required for a salon franchise
Before purchasing a franchise, you must also consider the costs of license and permits, insurance, building, and real estate costs, equipment and signs, and many other hidden costs that you may have overlooked previously.
3. Assess your previous experience and strength
A franchise owner must also assess their strengths before purchasing a franchise. Though great clips will provide the owner with initial training, it is also essential to understand your strengths and weaknesses before diving into great clips.
4. Considering your market availability
Evaluating your market before purchasing the Great Clips franchise is always a good idea. The essential factors to consider are how much potential your business has, how it can grow, and how excited people are about great clips in your market area.
5. Finalise the location
Before you begin your business, you must choose a location. Nonetheless, great clips will assist you with the matter. However, selecting a site is an essential factor for a business.
6. Navigate through the legal contracts
It is always a good idea to read the legal contracts before purchasing a franchise to understand the policies.
What are the Great clips franchise approval process?
I will answer to your question-How to start a Great Clips Franchise ?
First, you must have the necessary initial financial investment.
Secondly, you must go to the Great Clips website to obtain information and investment ideas for the franchise.
Thirdly, you’ll select the location-by-location guide. Though great clips will highlight their local stores, they will also help you learn about the new market and when it will be open.
Now is the time to choose your proprietor and begin your investment, but keep in mind,the organisation seeks hands-on pioneers who can take on and provide guidance in staff selection and motivation. In addition, 8- 10 employees must possess the store running smoothly.
Finally, complete the application process, including personal, background, and financial information, and contact them.
How much does a Great Clips franchise cost?
A total investment of approximately $300,000 is required to obtain the Great Clips franchisee. The Great Clips franchise fee is up to $20,000, with a total investment ranging from $136,900 to $259,400.
Initial investments include a $5,000 ad fund contribution, leasehold improvements and site fees ranging from $73,800 to $154,400, additional funds for 12 months ranging from $15,000 to $50,000, a $20,000 to $25,000 grand opening advertising fund, Training, travelling, and living expense costs ranging from $1,500 to $2,500, and insurance costs ranging from $1,600 to $2,500
|Great Clips Franchise Cost in USA|
|Great Clips Franchise Fee||$ 20,00|
|Initial Investment||$136,900 – $259,400|
|Great Clips Royalty Fee||6 %|
|Advertising Fee||5 %|
|Term of Agreement||10 years|
|Is franchise term renewable?||Yes|
|Renewable Franchise Fees||50% of Initial Franchise fees|
The Great clips franchise cost in the United States is $ $136,900 to $259,400 as per latest Great Clips Franchise Discloure Document.
Great Clips Training Offered
Great Clips provides excellent training and support to their franchisees, including financial assistance, site selection assistance, recruiting assistance, advertising, and many other services, as well as the tools, resources, and technology needed to open their first salon and for initial and future growth.
Through the Great Clips University trains stylists, managers, General Managers, and Franchisees can learn the fundamentals of real estate, marketing, and day-to-day operations. They also provide hands-on experience by bringing you together with other franchise owners, stylists, and management trainees in your local market.
Great Clips Operations support
For the successful operation of great clips salon, 8 – 10 employees required at the salon where absentee franchise ownership is permitted. The organisation also provides operational support and training, and recruitment services.
Great clips have their stylist recruitment website, which helps the team attract and retain key talent for their salons. Great clips also help human resources motivate their stylists and managers.
How is Great Clips Franchise Territory Granted
The franchisor will offer the franchise a protected area circularly defined by a radius of 3/4 mile ( 2 sq/km approximately) from the salon’s primary customer entrance.
Except in non-traditional areas, franchisees are not allowed to run a Great Clips salon or franchise within the protected region without the franchisor’s prior approval.
In addition,exceptional cases the protected area will have a radius of 0.1 miles for densely inhabited locations. The great clips will decide the covered area at defined times if the franchisor deems the site non-traditional.
The territory available and Great Clips can be reached at- https://www.greatclipsfranchise.com/is-great-clips-right-for-you/territories
What is the Great Clips Franchise Term of Agreement and Renewal?
The Great Clips franchise term of the agreement is 10 years from the salon’s opening day, or if an existing salon purchases the franchise, it will be the remaining time of that salon’s contract.
To summarise,If all conditions met, the franchise agreement’s renewal period includes an additional 10 years.
Why you should buy the Great Clips Franchise?
- Great Clips provides franchisees with tried-and-true support, resources, and tools to concentrate on growing their business.
- In addition to running and managing the salon, you can continue doing your regular job.
- Provides cutting-edge technology so franchisees can keep an eye on business while away from the salon utilising tablet-based software. It also offers online check-in, a haircut reminder, and other facilities.
- Great clips allow franchisees complete ownership independence.
- No prior hair care knowledge is necessary to own a Great Clips franchise; franchisees come from various backgrounds.
- · Additionally, the company offers a straightforward concept, little stock demand, and a well-known brand name.
- The average Great Clips franchise owner operates five or six salons within five years of purchasing their first franchise.This is strong indicator why you should buy the Great clips Franchise.
Does the Great Clips provide Financial Assistance to franchises?
The franchisor, its representatives, or its affiliates have not provided financing options for a salon. Depending on the interest rate, the availability of capital, and other financial factors, the franchisor might offer it in the future.
The franchisor does not receive any money from a business and is not permitted to assign, sell, or otherwise deal with a third party. Depending on his discretion, the franchisor may guarantee a franchise loan.
Due to the SBA’s inclusion on the franchise registry and uniform franchisor addendum, franchisees of Great Clips can benefit from an expedited loan application procedure.
You can know more on franchise loans.
How much do Great Clips franchise owners make?
The income of a fantastic clips franchise owner may change depending on variables like location, size, season, etc. Franchise owners need time to start making money because they first incur charges such as operating fees for things like furnishings, décor, and refurbishment.
The average Great clips salons makes $ 371,000 annually as per Item 19 of Franchise Disclosure document of 2021.The average expenses is $ 293,000 as per latest FDD.
What is Great Clips franchise profit ?
However, once the business is up and running, the owners begin to profit. According to 2021 FDD, the average yearly income of fantastic clips franchise owners is $46.025. The maximum annual income is $71,500. This franchise profit is Covid-hit period.20% down from previos year due to Covid 19 and its resrcitions on retail businesses
The positive cash flow of average Great clips salons as per latest FDD is $ 371,000 – $ 293,000 = $ 78,000
I will look at a mean profit of $ 60,000 annually.Therefore, you can think of this terrific clipping salon franchise as successful.
Great Clips Franchise Rankings
- Great Clips has been ranked #1 in the Hair Care sector and #23 overall in 2022 by Entrepreneur magazine’s Franchise 500, the complete franchise ranking in the world.
- A top the Franchise Times Top 400 list at number 83.
The Franchise Rankings are based on unit growth,financial strength and performance and brand recall and pwer as factors for rankings overall ability of Great Clips.
Franchise Deck Analysis and Overview
Great Clips is one of the greatest franchises in the hair care sector. The company stands out from the competition because of its straightforward business model and disaster-resistant design.
Additionally, Great Clips uses cutting-edge technology to assist franchisees and offer ongoing training to owners and employees. Great clips are one of the most incredible possibilities to select if you are interested in the hair care market and want to spend less time working on your business.
A benefit of the franchise is that it has an accessible support system and a well-structured franchise website. On the website, the general cost structure of a franchise is well-described. One of Great clips’ most potent tactics is to give business owners the freedom to run their enterprises.
The ROI on this business is very attractive( 25% or more) considering no prior experiece and no full-time managing of business unlike most of franchises.
In addition, they take the Great clips franchise to a new level with their cutting-edge tech support, premium, individualised training, and assistance connecting the owner community with other franchises.
The franchise deck consistently advises business owners in buying a franchise.Maintain regular contact with your other franchise owners, and always cultivate a healthy working relationship with your team. Maintain an optimistic outlook when analysing franchise opportunities.
In the United States, it is anticipated that the hair care business will have a bright future. You may build a successful franchise quickly with careful planning and sound money management. Indeed, if you choose a hair care franchise like Great Clips, which has been around for over 35 years and presently controls approximately 50% of the American hair care market, expanding swiftly.
This industry’s most delicate element is recession-proof because of the constant demand for personal care and the rising per capita income.
I will be happy to hear from you on questions,feedback and keep appreciating our research and hardwork.
Frequently Asked Questions (FAQs)
1. Is the Great Clips franchise profitable?
Yes, great clips is a profitable franchise.the average profit of franchises of Great clips is $ 60,000 annually.
2. Can you make money owning a Great Clip?
Yes, you can make money by owning great clips.
3. Is a Great Clips franchise good business?
The Great clips franchise is a good business. Lots of owners have more than one franchise.
4. How do Great Clips franchises make money?
The Great Clips franchises make money by offering haircut services to customers and few hair care products sales.The majority of franchise revenues comes from hair cutting services.
5. Why are you interested in owning The Great Clips centre?
Great clips offer good support and training programmes without interfering with owners’ rights to sustain and grow the business. Additionally, give their owners access to a 24-hour support desk so they can manage their company without having to be in the salon.