Great Clips franchise startup costs run $140K–$285K — the largest hair-salon franchise in the US with 4,500+ locations, a walk-in no-appointment model, and one of the more accessible entry costs in personal services.
Great Clips franchise costs at a glance
Total investment
$140,000–$285,000
Franchise fee
$25,000
Royalty
6%
Ad / marketing fee
5%
Liquid capital required
$50,000
Net worth required
$300,000
Source: Great Clips Franchise Disclosure Document (FDD) · as of 2026-07-25. Figures vary by market and site; verify against the current FDD before signing.
Key takeaways
Total estimated startup cost: $140K–$285K (no-appointment hair salons)
Franchise fee: $25,000
Ongoing royalty: 6% of gross sales
Advertising fee: 5% of gross sales
Net worth requirement: $300K+; liquid capital requirement: $50K+. 4,500+ locations — largest hair-salon franchise system in the US.
Per Great Clips' current FDD, total estimated initial investment runs approximately $140K–$285K — one of the most accessible investment ranges in personal services franchising. Strip-center inline units are standard; build-out scope and landlord tenant improvement allowances drive the range. Major cost categories include:
Franchise fee: $25,000
Leasehold improvements and construction: $50K–$130K
Salon equipment (styling chairs, shampoo bowls, dryers, cabinetry): $20K–$50K
Great Clips charges a 6% royalty on gross sales and a 5% advertising fee, for a combined 11% ongoing fee load. The 5% advertising fee supports national television, digital marketing, and the ClipNotes and online check-in technology platforms that have become key retention tools for the brand's walk-in customer base.
3 Net worth and liquid capital requirements
Great Clips requires a minimum net worth of $300K+ and liquid capital of $50K+. These are accessible thresholds for the personal services franchise sector. Multi-unit development is common — many Great Clips franchisees operate 5–30+ locations. Hair industry experience is not required; franchisees hire licensed stylists and manage the business operations.
4 Financing options for Great Clips franchisees
Great Clips is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. At $140K–$285K per unit, this is one of the more accessible investment ranges for SBA 7(a) financing. Key financing options include:
SBA 7(a) loan: The most common path — covers franchise fee, build-out, salon equipment, and working capital at the $140K–$285K range.
Equipment financing: Styling chairs, shampoo bowls, and salon fixtures can be financed on standalone equipment loans.
Multi-unit development financing: Lenders experienced with Great Clips can structure facilities covering multiple locations under a development agreement.
Working capital line of credit: Revolving facility for managing payroll, product inventory, and seasonal cash flow.
Section 179 deduction: Qualifying salon equipment and technology purchases may be immediately expensed under IRS Section 179.
5 What lenders look for in a Great Clips franchise application
Debt service coverage ratio (DSCR): SBA 7(a) guidelines require a minimum DSCR of 1.15×. Most SBA lenders apply 1.25×–1.35× for hair-salon franchise startups given the 4–8 month ramp as a regular client base builds. A monthly cash flow pro forma using realistic stylist chair counts and ticket averages is required.
Equity injection: SBA requires a minimum 10% equity injection of total project cost from the borrower's personal funds. At the $140K–$285K range, lenders typically prefer 20–25% — at a $200K project, that is $40K–$50K from personal funds before the loan closes.
Net worth quality: Minimum $300K net worth and $50K+ liquid capital per Great Clips requirements. Lenders verify liquid net worth separate from retirement or illiquid real estate.
Operator experience: Prior retail or multi-unit service business experience is viewed favorably. No hair industry experience required — franchisees hire licensed stylists.
Multi-unit scale potential: Great Clips franchisees commonly develop 5–30+ locations. Lenders experienced with the system may structure staged multi-unit facilities to support development timelines.
6 Apply at ClearValue Lending
ClearValue Lending works with personal services franchise operators from single-unit startups to large multi-location portfolios. Start at small business financing or apply at Find my match. Your file routes to the funding partners best matched to your file. Use our business loan calculator to model your monthly cost.
Sources
Great Clips is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility. — SBA Franchise Directory
SBA 7(a) loans finance franchise startups including build-out, salon equipment, and working capital. — SBA 7(a) Loan Program
Qualifying salon equipment and technology investments may be immediately expensed under IRS Section 179. — IRS Publication 946
BLS data for personal care services (NAICS 8121) shows hair salons and barbershops among the most stable small business categories by employment during economic downturns, supporting the recession-resistant positioning of haircut franchise brands. — BLS Industry at a Glance — Personal Care Services
Frequently asked questions
How much does a Great Clips franchise cost in 2026?
Per the current FDD, total estimated initial investment runs $140K–$285K — one of the most accessible investment ranges in personal services franchising.
What is Great Clips' royalty and ad fee?
Great Clips charges a 6% royalty on gross sales and a 5% advertising fee, for a combined 11% ongoing fee load. The 5% ad fee supports national marketing, technology platforms, and the ClipNotes retention program.
How large is the Great Clips franchise system?
Great Clips has more than 4,500 locations across the US and Canada, making it the largest hair-salon franchise system in North America. The scale provides franchisees with brand recognition and technology infrastructure that smaller competitors cannot match.
Do I need hair industry experience to own a Great Clips franchise?
No. Great Clips franchisees hire licensed stylists and manage the business. Prior retail or service business management experience is more relevant than personal hairstyling background.
Can I use SBA financing for a Great Clips franchise?
Yes. Great Clips is on the SBA Franchise Directory. SBA 7(a) is the primary path at the $140K–$285K investment range, with favorable terms for a lower-investment franchise startup.
What DSCR do lenders require for a Great Clips franchise SBA loan?
SBA 7(a) guidelines set a minimum debt service coverage ratio (DSCR) of 1.15×. Most SBA lenders apply 1.25×–1.35× for hair-salon franchise startups, where revenue ramps over 4–8 months as a regular client base builds through walk-ins and referrals. A monthly cash flow pro forma is required for underwriting. SBA underwriting guidelines are published at sba.gov.
How much equity injection is required for a Great Clips SBA loan?
SBA requires a minimum 10% equity injection of total project cost from the borrower's personal funds. At the $140K–$285K investment range, most SBA lenders prefer 20–25% — at a $200K project that means $40K–$50K from your own funds before the loan closes. Equity injection requirements are sourced from SBA SOP 50 10 8.
Summary:
Great Clips franchise startup costs run $140K–$285K — the largest hair-salon franchise in the US with 4,500+ locations, a walk-in no-appointment model, and one of the more accessible entry costs in personal services.
This article is for educational purposes and is not financial, legal, or tax advice. Rates,
fees, qualification requirements, and product availability are illustrative ranges that vary
by lender, market conditions, and individual business profile. ClearValue Lending is a
funding platform; all financing is subject to lender partner approval and terms. Always read
your contract end-to-end and verify specific numbers before signing.
