Great Clips franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.23 ↗

Franchise fees and ongoing costs

Franchise fee

$20,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

6% · 6% of Gross Sales (Continuing Franchise Fee), paid biweekly by automatic bank withdrawal

Marketing contribution

5% (basis not captured; see original filing)

Technology fee

Recruiting Technology Fee $750 per year per salon ($375 semi-annually); capped at greater of $750 or 1% of annual Gross Sales

Other fees

Training Fee $200/year per salon (capped at greater of $200 or 1% of Gross Sales); Local Co-op dues avg $100/month; Franchisee Program Fee $345-$550 per meeting/event

Working capital (FDD Item 7)

Additional Funds (3-6 Months): $20,000 to $60,000 (initial payroll, professional fees, advertising, insurance, rent, repairs, recruiting, etc.; excludes owner salary)

Fees sourceFDD p.20 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.23 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average, median, low and high annual sales (service, product, total) for 4,158 salons (Table 1); average operating cash flow statement with expenses for 2,376 reporting salons (Table 2), and cash flow by sales range (Table 3)

Reporting period

Calendar year 2025 (Jan 1 - Dec 31, 2025)

Sample

4,158 of 4,441 salons (Table 1, sales from POS system); 2,376 reporting salons (Tables 2-3, franchisee-submitted financial statements, some annualized)

Reported average

$410,783

Reported median

$390,685

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.61 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

4439

Year-end outlets

4441

Net change

+2

Derivation

ending minus starting outlets

Openings

110

Terminations

3

Non-renewals

2

Other closures

103

Reacquisitions

0

Transfers

175

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.68 ↗

SBA loan history

Loan activity

28 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$420,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

17 loans

Historical charge-off share

2.16%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

5 / 231

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does Great Clips franchise cost?

Single salon under Franchise Agreement (leased shopping-center space): $187,800 to $419,900; Master Development Agreement (development fee + first initial franchise fee only, for 2-10 salons; excludes first salon build-out): $14,000 to $46,000 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $20,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.23 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Great Clips owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average, median, low and high annual sales (service, product, total) for 4,158 salons (Table 1); average operating cash flow statement with expenses for 2,376 reporting salons (Table 2), and cash flow by sales range (Table 3). Sample: 4,158 of 4,441 salons (Table 1, sales from POS system); 2,376 reporting salons (Tables 2-3, franchisee-submitted financial statements, some annualized). Period: Calendar year 2025 (Jan 1 - Dec 31, 2025).

Item 19 performance sourceFDD p.61 ↗

What's the SBA charge-off rate for Great Clips?

2.16%; numerator / denominator: 5 / 231. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $420,000; window: FY2023-FY2026 YTD through 2026-06-30; sample: 17 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗