How much does it cost to open a Great Clips franchise?

The total initial investment for a Great Clips franchise ranges from $187,800 to $419,900. This includes the franchise fee of $20,000, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a Great Clips franchise?

Great Clips franchisees pay a 6.0% royalty fee and a 5.0% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a Great Clips franchise?

Based on Item 19 financial performance data, the median Great Clips franchise generates $413,389 in annual revenue. Estimated owner profit is approximately $82,636.

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Wellness & Spa 4,439 Units

Great Clips Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$187,800 – $419,900

Franchise Fee

$20,000

Royalty Rate

6.0%

Initial Investment Range

Low: $187,800 High: $419,900

The total initial investment to open a Great Clips franchise ranges from $187,800 to $419,900, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $20,000.

Midpoint estimate: $303,850

Franchise Fee

$20,000

One-time initial fee

The Great Clips franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Great Clips brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

6.0%

of gross revenue

Ad/Marketing Fund

5.0%

of gross revenue

Total Ongoing Fee Burden: 11.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Continuing Franchise Fee	6.0	PCT	Gross Sales includes all revenue from the sale of all services, products and goods sold from or in connection with the franchise location, less sales taxes. Paid via automatic bank withdrawal.
Sales or other taxes due on Continuing Franchise Fee	N/A	VARIABLE	Great Clips has the right to collect from you any tax imposed on Great Clips by individual states or local government.
Continuing Advertising Contribution to the Ad Fund	5.0	PCT	Franchisee must also engage in local advertising and sales promotion activities at additional cost. Likely need to spend minimum 1-3% of Gross Sales on incremental advertising in addition to the 5% Ad Fund contribution. Paid via automatic bank withdrawal.
Training Fee (The Great Academy, LEADS for Management Staff, Great Clips University Courses, Tools, and Resources)	200.0	FIXED	Combined fee due April 1 of each year. Key brand-delivery personnel must complete training within 30 days of employment. Manager must complete training within 90 days of hire or promotion. Franchisee must pay trainees' wages for time worked, travel, and expenses. Subject to change at Great Clips' sole determination.
Renewal Fee	1750.0	FIXED	Due at expiration of initial 10-year term and end of each 10-year option term. May be adjusted annually in proportion to annual changes in US Consumer Price Index. Non-refundable unless Franchise Agreement is not renewed.
MDA Renewal Fee	1000.0	FIXED	Due at expiration of initial 10-year term and end of each 10-year option term. Applies only if salon opening requirements not met but Great Clips agrees to renew Master Development Agreement. Paid in addition to Initial Franchise Fee for each additional salon. May be adjusted annually in proportion to US Consumer Price Index changes.
Assignment Fee	1500.0	FIXED	Due upon request for consent to assign the Franchise Agreement to an assignee approved by Great Clips. May be adjusted annually in proportion to annual changes in US Consumer Price Index.
Local Co-op Dues	100.0	FIXED	Amount varies by Co-op. As determined by your Co-op. Franchisee required to join local cooperative organization designated by Great Clips and pay its dues, assessments or contributions. Any salon owned by Great Clips has equal vote and must pay dues.
Recruiting Technology Fee	750.0	FIXED	Collected semi-annually ($375 on November 15 and $375 on May 15 of each year). Covers fees for optional recruitment marketing platform, recruitment advertising and other recruiting technology powered by third-party vendors. Subject to change by Great Clips in its sole determination.
Franchisee Program Fee	447.5	VARIABLE	Due when incurred. Great Clips hosts meetings and events for franchisees including Convention, Zone Meetings, Institute, GM to Leader and various other programs.
Insurance Coverage	2250.0	VARIABLE	Due upon demand. Insurance premiums generally paid by franchisee to insurance carrier. If franchisee does not purchase required coverage, Great Clips may purchase on franchisee's behalf and bill back. Amounts only include property and public liability coverage.
Software License and Support Fee	250.0	FIXED	Due by first day of each month. Payable to Innovative Computer Software, Great Clips' sole designated POS software supplier. Includes software license fee, upgrades, documentation, and toll-free support help line during normal business hours. Subject to change.
Software License and Support Fee (After-Hours Support)	25.0	FIXED	Due as incurred. Charged if franchisee contacts software support help line during non-business hours. Payable to Innovative Computer Software.
Network and Hardware Managed Services Fee	18.99	FIXED	Billed monthly. Payable to Foundation Technologies, LLC (The Foundation), Great Clips' sole designated network and hardware managed services provider. Includes configuration, monitoring, and support of technology hardware. Ensures salon networks are configured per current PCI guidelines. Subject to change.
Mobile Device Management Licensing Fee	54.0	FIXED	Billed monthly. Payable to The Foundation. Includes licensing for iPad management software to ensure salon iPads are securely and properly managed to meet current PCI guidelines. Subject to change.
Management iPad Management Fee	24.96	FIXED	Billed monthly. Payable to The Foundation. For franchisees choosing to install Management iPads in their salons. Includes licensing for iPad management in a specific franchisee group within mobile device management environment. Subject to change.
Meraki MX68-CW Salon Router Maintenance Fee	312.0	FIXED	Billed monthly. Payable to The Foundation. Continuing fee after first year to manage salon routers to provide secure networks that meet current PCI guidelines. Only applies if franchisee purchases Meraki MX68-CW salon router. Subject to change.
Lane 5000 Warranty and Support Program	59.76	FIXED	Billed monthly. Payable to The Foundation, who pays to Ingenico on behalf of franchisee. Effective June 2026, Ingenico Lane/5000 payment terminal will no longer be supported by manufacturer. Franchisees may be required to pay similar fee for different payment terminal. Subject to change.
Other Technology Fees (Salon Router Transfer)	90.0	FIXED	Due as incurred. Payable to The Foundation. Fees associated with reconfiguration of salon technology when existing salon is purchased to transfer ownership. Subject to change.
Other Technology Fees (iPad Transfer)	30.0	FIXED	Due as incurred. Payable to The Foundation. Fees associated with reconfiguration of salon technology when existing salon is purchased to transfer ownership. Subject to change.
Credit Card Processing Fee (Setup)	15.0	FIXED	Due as incurred. One-time fee. Franchisee required to utilize Heartland Payments Solution for credit card processing. Payable to Heartland. Subject to change.
Credit Card Processing Fee (Transaction)	0.016	FIXED	Due as incurred. Payable to Heartland Payments Systems. Subject to change.
Credit Card Processing Fee (Merchant Protection Program)	5.0	FIXED	Billed monthly. Relates to Heartland Payment Systems' required Merchant Protection Program. Franchisee automatically enrolled as participating merchant. Subject to change.
Gift Cards and Gift Card Processing Fee (Physical Card)	0.32	FIXED	Due as incurred. Franchisee required to offer Gift Cards. Payable to Stored Value Systems, Inc., the third-party processor for the Gift Card Program. Subject to change.
Gift Cards and Gift Card Processing Fee (Transaction)	0.095	FIXED	Due as incurred. Processing fee per transaction payable to Stored Value Systems, Inc. Subject to change.
Out-of-Pocket Expenses Related to Lease or Sublease Assignment	N/A	VARIABLE	Due upon assignment of lease or sublease to franchisee. If Great Clips assigns lease or subleases to franchisee, franchisee must cover Great Clips' out-of-pocket expenses related to the assignment, including renewals, amendments and subsequent assignments.
Real Estate Commission	N/A	VARIABLE	Due upon demand. In rare cases franchisee may be required to pay real estate commission on a site for the salon. Would be paid directly to landlord, broker, or to Great Clips if they had been charged a commission.
Sister Store Review Appeal Fee	750.0	VARIABLE	Due as incurred. If franchisee wishes to participate in executive-level Sister Store Review Appeal to evaluate potential sales transfer impact of proposed new Great Clips location. May be entitled to refund if outcome is decided in franchisee's favor.
Late Charges	14.0	PCT	Due upon demand. Great Clips entitled to recover its costs, including reasonable attorneys' fees, costs, overdraft charges, insufficient funds charges and other expenses in collecting amounts due. Interest begins to run from date of non-payment or underpayment.
Audit or Inspection Cost	N/A	VARIABLE	Due upon demand. Franchisee must pay cost of audit, inspection, and reasonable professional fees if Great Clips inspects books and finds discrepancy of 5% or greater in any data reported or underpayment of 2% or more of any fees or Ad Fund contributions due.
Taxes, Business Debts or Liens	N/A	VARIABLE	Generally paid by franchisee to government agency, supplier or other creditor. If franchisee does not pay these charges, Great Clips may (but is not obliged to) pay any taxes, business debts or liens incurred by franchisee in connection with Salon, and will bill back to franchisee.
Salon Upgrades	50000.0	VARIABLE	Required every seven to 10 years depending on then-current standards and overall condition of Salon. This is an estimated range as of the date of this Disclosure Document, and subject to change in the future.
Salon Ongoing Maintenance Costs	6000.0	VARIABLE	Due as incurred. Franchisee required to make periodic improvements and upgrades, such as painting, carpeting, graphics updates, fixture repair and ongoing maintenance depending on wear and tear of Salon. This is an estimated range as of the date of this Disclosure Document, and subject to change in the future.
Architectural Fees	1950.0	VARIABLE	Due as incurred. If franchisee remodels or relocates Salon, must pay architectural fees at the beginning of the remodel or relocation project.

What You Get

Financial Performance (Item 19)

Median Revenue

$413,389

per year, per location

Mean Revenue

$413,389

per year, per location

Profitability Estimate

Estimated Owner Profit

$82,636

per year

Profit Margin

20.0%

of revenue

Estimation method: disclosed+benchmark

Estimated ROI (Simple Payback): 3.7 years

Based on midpoint investment of $303,850 and estimated annual owner profit of $82,636.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.9%

Low risk — below industry average

Net Unit Growth

-8 units

From 2022 to 2024

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2022	4447	+116	-4	—	4427
2023	4427	+98	-3	—	4427
2024	4427	+115	-4	—	4439

Is a Great Clips Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Great Clips franchise opportunity:

Overall Score

76/100

Strong opportunity

Est. Payback Period

3.7 yrs

Average payback

Risk Level

Low

0.9% annual closure rate

Great Clips scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $413,389 and a combined fee burden of 11.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.