Great Clips Franchise
Certain businesses have the benefit of a repeat customer base. That includes the haircutting industry.
When you run a haircutting salon, you can count on the fact that people will need a trim from time to time in perpetuity, so you’ll never run out of customers provided you maximize your brand awareness and reputation.
It’s easier to do that by jumping into a Great Clips franchise as a new franchisee. Great Clips is the most popular and well-known hair salon franchise in North America, including the U.S. and Canada. It offers ample opportunities for aspiring business owners who have what it takes to lead talented teams to success.
Want to know more? Read on to discover everything you need to know about successfully starting and running a Great Clips franchise (and no, you don’t need to know how to cut hair to run one!)
Why should you start a Great Clips franchise?
Constant business is one big reason to start a Great Clips franchise as a business owner.
Simply put, so long as you run an attractive hair salon, you'll always have people coming in for haircuts. That means you'll be running a stable and recession-resistant organization. Few other industries can claim such resilience, especially in recent economic times.
However, starting a Great Clips franchise might be advantageous for a variety of other reasons:
- Great Clips as a brand brings lots of brand recognition to the table. Starting a hair salon is always tricky, but if you partner with Great Clips, you’ll immediately benefit from brand recognition and the variety of support resources corporate can provide to your location, ranging from training to tech support.
- Great Clips allows you to keep your day job while your salon is being built. Since you don’t have to cut hair while working as a Great Clips franchise owner, you don’t need extensive training to succeed.
- Compared to other franchise investments, Great Clips requires a relatively low investment, especially considering the long-term success you could enjoy once your business is up and running.
Ultimately, Great Clips is a 30-year brand that has only grown over its lifespan. Whether you have a lot of business and managerial experience or are just starting, it may be smarter to take advantage of the Great Clips brand than to create a hair salon brand from scratch.
As mentioned above, you don’t have to cut hair at Great Clips as a franchisee.
In fact, according to Great Clips itself, approximately 95% of all franchisees don’t know how to cut hair when they join the system. Even after managing stores, many franchisees still don’t know how to cut hair.
That’s because, as a Great Clips franchisee, your job is primarily to lead and grow your team, not to trim hair. However, you can choose to undergo stylist training if you so desire. It all depends on how much of a direct role you want to play in your salon.
If you choose not to learn to style hair, you will still be “in the office” a lot. However, you’ll mostly be in the back of your salon instead of interacting with customers.
Related: #8 on the Franchise 500: Great Clips Reinvents the Haircut Experience
What resources and support does Great Clips offer franchisees?
Great Clips provides its franchisees with many marketing and other ongoing support resources. These include access to a corporate newsletter and regular meeting and convention attendance options.
On top of that, franchisees will be trained in security and safety procedures, will receive assistance with lease negotiation and will have Great Clips' support for the grand opening of their location.
If you’re unsure where to set up your salon, Great Clips will assist with site selection so that your salon can succeed immediately. Great Clips will ensure that your location is good for business and help negotiate the lease if necessary.
Regarding marketing support, Great Clips offers co-op advertising deals, advertisem*nt templates and search engine optimization/SEO help.
Social media, national media and regional advertising campaigns and materials will be provided to your store so you can focus more on managing and leading your team effectively instead of coming up with marketing materials.
Furthermore, all Great Clips franchisees can use the Great Clips loyalty program and app. This is a great way to build up your customer base and reputation, plus keep people coming back to your salon for repeat haircuts so they can earn points and rewards.
Given all of these advantages, Great Clips franchisees feel supported and enabled in their partnerships.
How much territory is granted to Great Clips franchises?
Should you decide to open a Great Clips franchise, you can open and operate only the salon provided in your franchise agreement.
However, Great Clips is a unique franchisor in that it grants each franchisee a specific area (three-quarters of a mile from the salon's primary customer entrance) of exclusive territory.
That means you’ll gain access to that territory without worrying about another Great Clips salon or franchisee cutting in on your business.
Related: How Do You Innovate a Barbershop? Ask Great Clips Franchisees.
How much does starting a Great Clips franchise cost?
Before you start your own Great Clips franchise, you’ll need to know the financial requirements and total investment for this business model and full-time operation. That way, you’ll be approved for a franchised location immediately.
You’ll need an initial franchise fee of $20,000, due when you sign the paperwork to begin your official partnership. On top of that, you’ll need to secure an initial investment ranging from $178,400 to nearly $400,000 in total.
The initial investment fee can vary depending on how much equipment is needed and the location of the real estate.
To ensure that all franchisees have the money necessary to thrive in this business, Great Clips requires aspiring franchisees to have a net worth minimum between $300,000 and $1 million. Again, this depends on the estimated costs of the location you wish to open. You'll need to scrape together $75,000-$250,000, too.
Once you have the requisite money gathered and paid, remember that Great Clips charges regular 6% royalty fees for all your profits.
You’ll also have to pay a 5% ad royalty fee, as Great Clips will take care of most of your marketing for your location. These franchise costs will be in the Franchise Disclosure Document (FDD).
Does Great Clips offer franchising discounts?
On the plus side, Great Clips does offer particular discounts and financing assistance.
For example, veterans can use a $5,000 rebate for their first franchised stores. Thus, opening a Great Clips franchised location might be a great idea if you are a veteran looking to become a business owner.
Even if you already have a franchised location or aren’t a veteran, you can use the third-party relationships that Great Clips has cultivated over the years. These financing relationships can help you cover startup, inventory and equipment costs as needed.
Related: Why This Franchisor Doesn’t Look for the ‘Perfect’ Franchisee
What training is required to start a Great Clips franchise?
Every Great Clips franchisee has to complete a dedicated training program. That involves 56 hours of classroom training and 13 hours of on-the-job training. The on-the-job training occurs at the Great Clips, Inc. training center in Minneapolis, Minnesota.
Note that this does not include hair care training, which is more akin to a college course than a management class. Great Clips franchisees can usually complete all the training requirements within a few weeks.
Training is comprised of four primary components:
- The QuickConnect training program.
- The Great Clips Academy training program.
- LEADS for management staff.
- In-Salon training that teaches you what you need to know when running your day-to-day salon operations.
In addition to these training requirements, Great Clips will ensure you can train your staff members to operate your store location capably.
Great Clips provides resources to ensure you only hire trained and knowledgeable stylists and salon experts. That's vital for ensuring that your salon builds a reputation of quality, which can keep your customers returning.
Related: Great Clips Brand Spotlight Partner
Start a Great Clips franchise today
The right Great Clips franchise opportunity could help you reach your business goals and thrive.
Use the above information to decide whether Great Clips franchising is right for you.
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