16 frequently asked questions answered with data from the 2025 Franchise Disclosure Document.
The total initial investment to open a Great Clips franchise ranges from $188K to $420K (2025 FDD). This includes the franchise fee, equipment, build-out, inventory, and working capital needed before opening.
View full investment analysisThe initial franchise fee for Great Clips is $20K (2025 FDD). This one-time fee is paid to the franchisor when signing the franchise agreement and covers the right to use the brand, systems, and initial training.
View full investment analysisData sourced from the Great Clips 2025 Franchise Disclosure Document (FDD). Always review the most current FDD and consult with a franchise attorney before making investment decisions.
No, Great Clips does not require franchisees to have dedicated real estate (2025 FDD). This can significantly reduce startup costs and ongoing overhead.
View full investment analysisGreat Clips charges a royalty fee of 6.0% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.
View full fees analysisThe total ongoing fee rate for a Great Clips franchise is approximately 11.0% of gross sales (2025 FDD). This includes the royalty fee, a 5.0% marketing/advertising fund contribution, a $250/month technology fee, and other recurring charges.
View full fees analysisGreat Clips has been involved in 0 litigation cases over the past 3 years (2025 FDD). There are no class action lawsuits pending.
View full litigation analysisNo, the Great Clips franchisor has no bankruptcy filings in their disclosure history (2025 FDD).
View full litigation analysisGreat Clips offers protected territory rights to its franchisees (2025 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales are managed by the franchisor, not individual franchisees.
View full territory analysisGreat Clips currently operates 4,439 locations (2025 FDD) (4,439 franchised, 0 company-owned). The system grew by 0.3% over the past year. The 3-year compound annual growth rate is -0.1%.
View full growth analysisThe 1-year franchisee turnover rate for Great Clips is 2.2% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.
View full growth analysisAccording to the Great Clips FDD Item 19 financial performance representation (2025 FDD), the median gross sales per unit is $394K (average: $413K).
View full financials analysisThe initial franchise agreement term for Great Clips is 10 years (2025 FDD). The total potential term is 10 years.
View full contract analysisGreat Clips's post-termination non-compete clause restricts former franchisees from operating a competing business for 1 year within 5 miles of the former location (2025 FDD).
View full legal analysisYes, Great Clips's franchise agreement requires mandatory arbitration for dispute resolution (2025 FDD).
View full legal analysisGreat Clips provides 62 hours of initial training (2025 FDD). The cost of training is covered by the franchisor (travel and lodging are typically the franchisee's responsibility). Ongoing field support is provided on a as-needed basis.
View full support analysisYes, Great Clips provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.
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