Great Clips

Great Clips, Inc. was established on September 22, 1982, when founders Steve Lemmon and David Rubenzer opened the first salon, then called Super Clips, near the University of Minnesota campus in Minneapolis. In early 1983, Ray Barton joined as a third partner to lead expansion and franchising. The company is headquartered in Bloomington, Minnesota. Great Clips is known as the world's largest salon brand and offers haircuts without appointments, supported by technology intended to improve the customer experience. The company broadly reports more than 4,400 locations across the United States and Canada and reported 4,439 total units in 2025. The franchise data reviewed for this profile lists 488 total units, all franchised owned. PeerSense presents this information as an independent review for prospective franchise investors, separate from brand marketing materials.

Haircuts are generally viewed as essential personal care, which can support demand during economic downturns. Great Clips focuses on no appointment, low priced haircuts and a relatively lean operating model. Great Clips does not operate in the nail salon segment, although that market provides broader personal care context. The global nail salon market was valued at USD 11.96 billion in 2023 and is projected to reach USD 20.30 billion by 2030, with a 7.9% CAGR from 2024 to 2030. Other estimates place the market at USD 12.88 billion in 2024, reaching USD 26.17 billion by 2033 with an 8.2% CAGR from 2026 to 2033, or at $14.2 billion in 2025, reaching $25.5 billion by 2034 with a 6.7% CAGR. Another forecast projects growth of USD 9.48 billion at a 10.7% CAGR from 2024 to 2029. These estimates reflect demand for self care, grooming, customization such as nail art, and services supported by rising disposable incomes. North America held more than 33% of the global nail salon market in 2023, while Asia Pacific is projected to grow at a 9.4% CAGR from 2024 to 2030. Technology improvements and greater attention to hygiene after COVID 19 also affect personal care services. Great Clips operates in a category with recurring demand and a straightforward service offering.

The current initial franchise fee is $20,000, with a planned increase to $25,000 for 2026. The initial advertising contribution to the Market Development Ad Fund ranges from $20,000 to $25,000 and includes a required $5,000 contribution for each agreement purchased, making the total upfront fee for this component $25,000. The specific franchise data lists total initial investment of $187,800 to $419,900. Other sources report $178,400 to nearly $400,000 or $182,950 to $414,400. Leasehold improvements may cost $70,000 to $200,000, while fixtures, signage, furnishings, and salon technology hardware cost $40,000 to $55,000. Working funds for 3 to 6 months are estimated at $20,000 to $60,000. Rent and security deposits range from $1,000 to $10,000, and opening inventory and supplies cost $4,700 to $6,400. Some markets require minimum net worth of $500,000 with $100,000 in liquid assets, or $1,000,000 in net worth with $250,000 in liquid assets. Ongoing charges include a 6.0% royalty fee and a 5.0% advertising fee based on gross sales, a $1,750 renewal fee per salon every ten years, and a $1,500 assignment fee per salon. Local co op dues average $100 per month. Recruiting technology costs $750 per year per salon. Software license and support costs $250 per month per salon, plus $25 per telephone support call. Network and hardware managed services cost $18.99 per month per salon. Mobile device management licensing costs $54 per year per iPad, and management iPad management costs $24.96 per year per management iPad. A Meraki MX68 CW Salon Router costs $312 per year for maintenance, and a Lane 5000 terminal costs $59.76 per year for warranty and support. Credit card charges include $15 per location setup, $0.016 per transaction, and $5 per salon. Gift cards cost $0.32 per card plus $0.095 per transaction. Salon upgrades may cost $20,000 to $80,000, with ongoing maintenance of approximately $3,000 to $9,000. Great Clips does not provide direct financing for salon purchases, so franchisees must arrange their own funding. The company is privately held and headquartered in Bloomington, Minnesota.

Great Clips centers its operating model on convenient, value priced haircare without appointments, supporting high customer volume. Online check in and Clip Notes help deliver quick, consistent service. Labor represents nearly 50% of annual expenses, making staff management central to performance. Fewer than 5% of franchisees cut hair themselves, so the model generally favors owners who manage the business rather than work as stylists. The salons are located in accessible physical sites, with no specific drive through or kiosk format detailed. Training includes virtual courses through Great Clips University and a required 3 day onboarding session at company headquarters in Minneapolis. The curriculum includes 13 hours of practical on the job training and 56 hours of classroom instruction. Online modules serve stylists, salon managers, general managers, and franchisees. Corporate support includes site selection, lease negotiation, and ongoing operating guidance. Marketing resources include co op advertising, SEO assistance, customer loyalty programs, and national campaigns involving NASCAR, Disney, Discovery Channel, and the NFL network. Approved vendors supply required products and services. Exclusive territory is generally a circular area with a radius of three quarters of a mile from the salon's primary customer entrance. In dense urban areas, the radius may be one tenth of a mile. Great Clips determines protection for nontraditional locations when the territory is designated. The average franchisee owns 5 to 6 salons after five years, while some multi unit owners operate as many as 81 salons. This is an active ownership model rather than a semi absent or passive investment, and it requires a dedicated physical salon.

Labor accounts for nearly 50% of annual expenses. Average cash flow of $78,000 indicates positive performance despite the 2021 conditions.

Great Clips began franchising in 1983, one year after its founding. By 1989, it had sold all corporate salons and operated exclusively as a franchisor. The system grew from 150 franchised salons in 1988 to 1,000 locations in 1997 and 2,500 salons in 2006. The company broadly reports more than 4,400 locations in the United States and Canada and 4,439 total units in 2025, while the specific franchise data lists 488 units, all franchised. Its five year growth plan projected 91 new locations in 2024. The brand recorded same salon sales growth for 48 consecutive quarters, nearly 12 years. Ray Barton stepped down as CEO in 2011 after 28 years and was succeeded by Rhoda Olsen, who joined Great Clips in 1984. Steve Hockett became CEO in 2018, with Rob Goggins as President. Goggins is scheduled to become President and Chief Executive Officer on January 1, 2026, after Hockett retires at the end of 2025. Kerry Bundy was also promoted to Chief Legal Officer. Barton remains chairman of the board. Great Clips' market position includes its size, no appointment service, and technology such as Online Check In, which has been downloaded more than 5 million times and used by approximately 20% of customers. Engagement tripled during the COVID 19 pandemic, and franchisee polls indicated usage as high as 85% in some salons. Clip Notes records haircut preferences, while ReadyNext texts provide wait time updates. Under Hockett, the company achieved 61 consecutive quarters of salon sales growth and formed partnerships involving the National Hockey League, College Football Playoff, and March Madness.

Great Clips franchise owners come from varied backgrounds, although many have experience with self employment. Most owners are men, while female ownership increased 83% between 2011 and 2017. The median owner age is in the 45 to 54 bracket. Approximately 44% of owners hold a bachelor's degree, and veterans represent 14% of franchisees. The system supports multi unit ownership, with an average of 5 to 6 salons after five years and some operators managing as many as 81 salons. Great Clips assists with site selection, although specific available territories are not listed. Successful salons commonly operate in suburban retail corridors with strong daytime populations, moderate to high household incomes, and proximity to residential areas. Important site features include visibility from major roads, ample parking, and co tenancy with daily needs retailers. The initial franchise agreement lasts 10 years, with consecutive 10 year renewal options available when franchisees satisfy the stated requirements.