Top 250 Franchise by Entrepreneur – Rank no. 29 – Great Clips – US
Products & Services: Hair salon
Number of Locations: 3,287
Total Investment: $109.15K – 208.3K
Began Franchising: 1983
About Great Clips
Established in 1982, Great Clips started franchising in 1983 and now has locations throughout the United States and Canada. Usually located in strip malls, Great Clips hair salons are open evenings and weekends and do not require appointments. No hair-care experience is required for franchisees, who operated 5 to 6 units after 5 years on average.
Great Clips has national partnerships with brands like NASCAR, EA Sports, NFL.com and Old Navy.
Startup Costs, Ongoing Fees and Financing
Franchise Fee: $20,000
Ongoing Royalty Fee: 6%
Term of Franchise Agreement: 10 years, renewable
Net Worth: $300,000
Liquid Cash Available: $50,000 – $150,000
Number of employees needed to run franchised unit: 8 – 10. Absentee ownership of franchise is allowed. (95% of current franchisees are owner/operators).
|FINANCING TYPE||IN-HOUSE||THIRD PARTY|
How This Franchise Supports Franchisees
Franchise Ranking History
|Headquarters||Edina, Minnesota, U.S.|
|Key people||Ray Barton (Chairman of the Board)
Rhoda Olsen (CEO)
Charlie Simpson (President)
Great Clips is a hair salon franchise in the United States and Canada with over 3,000 locations across the United States and Canada. It is headquartered in Edina, a suburb of Minneapolis, Minnesota. In 2010, it had system wide sales of $850 million.
Great Clips was founded in 1982.
The first Great Clips salon opened near the University of Minnesota campus in 1982. The first franchised Great Clips salon followed the next year, opening in Brooklyn Center, Minnesota. The company grew from 150 franchised salons in 1988 to 1000 in 1997,2500 in 2006, 3,000 by 2011.
Current Chairman of the Board, Ray Barton, began working with Lemmon and Rubenzer in the fall of 1982 and became part owner and CEO in March 1983. Barton bought out Lemmon and Rubenzer in 1997, and is currently the majority owner.
In 2011, Rhoda Olsen was promoted to CEO and Charlie Simpson was promoted to President.
Also in 2011, Great Clips launched Online Check-In, the industry’s first real-time check-in application, allowing customers to check wait times and add their name to the wait list before they visit the salon.