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 is a no-appointment hair-salon franchise with more than 4,500 locations across the US and Canada — making it the largest hair-salon franchise system in North America. Founded in Minneapolis in 1982, the brand built its market position on a walk-in convenience model: no appointments, standardized haircuts, competitive pricing. The recurring-revenue, essential-service profile — hair continues to grow regardless of economic conditions — makes Great Clips one of the more defensive franchise models in the personal services sector. This guide is for prospective Great Clips franchisees at the capital planning stage.
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:
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.
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.
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:
At $140K–$285K per unit, Great Clips is among the most accessible SBA 7(a) franchise deals — a single-unit project fits well within standard SBA limits and lender appetite. For multi-unit development agreements (common in the Great Clips system), a staged draw structure tied to construction milestones is typical. SBA underwriting guidelines are published at sba.gov.
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Per the current FDD, total estimated initial investment runs $140K–$285K — one of the most accessible investment ranges in personal services franchising.
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.
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.
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.
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.
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.
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 7.