# Great Clips Item 19 Deep Dive: $382K Median Across 4,147 Salons

> Great Clips Item 19: $382K median across 4,147 franchised salons in fiscal 2024. Why the modest median produces strong unit economics, year-one ramp, and how it compares to Sport Clips and Supercuts.

**Last updated**: 2026-06-05
**URL**: https://vetmyfranchise.com/blog/great-clips-item-19-deep-dive?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md

> **Quick answer:** [Great Clips](/franchise/great-clips-inc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md)' Item 19 reports a $382K median across 4,147 franchised salons — one of the largest hair-services samples in franchise disclosure. The modest absolute AUV is misleading without category context: hair-services unit economics work at AUVs that would be uneconomic in QSR. The AUV-to-investment ratio at the median is roughly 1×, supported by low buildout cost and lean operating model.

## The Disclosure

| Metric | Value |
|---|---:|
| Sample size | 4,147 franchised salons |
| Sample criteria | All franchised units eligible to be open during entire 2024 period |
| Reporting period | Fiscal year 2024 |
| Median annual gross sales | $382,316 |
| Total system units | 4,439 |
| Total investment (Item 7) | $187,800 - $419,900 |
| Royalty rate | 6% of biweekly gross sales |

The "eligible to be open during entire 2024" criteria is a soft tenure filter — it includes salons that existed throughout 2024 (most of the system) while excluding units that opened mid-year. That methodology produces a representative central tendency without inflating the median by stripping out ramp-stage units. The 4,147-salon sample is among the largest hair-services Item 19 disclosures available.

The royalty structure is unusual: 6% on biweekly gross sales rather than monthly or annual basis. The biweekly basis aligns with the operating rhythm of a hair salon and the franchisor's reporting infrastructure. For buyers, the practical effect is the same as a 6% monthly royalty — the structure is administrative.

## Why $382K Is Not a "Small" Number

Buyers coming from QSR research instinctively look at AUV numbers in QSR context. A $382K QSR would be a money-losing unit. A $382K [Great Clips](/franchise/great-clips-inc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) is a healthy operating business. The category economics are fundamentally different.

| Cost category | QSR | Hair services ([Great Clips](/franchise/great-clips-inc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md)) |
|---|---|---|
| Cost of goods | 28-32% | <5% (shampoo, color, supplies) |
| Labor cost | 25-30% | 40-50% (stylist commission/wages) |
| Rent | 6-9% | 7-10% |
| Other operating | 8-12% | 5-8% |
| Operating margin | 12-18% mature | 15-25% mature |

The cost structures look superficially similar but the absolute dollar amounts at $382K of revenue produce a survivable, profitable business in hair services that wouldn't work in QSR. A mature [Great Clips](/franchise/great-clips-inc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) salon at $382K typically produces $60K-$95K of operating cash flow before debt service and owner draw. For a multi-unit operator running 5 salons at the median, that's $300K-$475K of system-level operating cash flow against $1M-$1.5M of total invested capital.

The model favors operators who can scale to multiple units — the math works at scale where management overhead is amortized.

## Multi-Unit Dominance

Great Clips' franchise base is overwhelmingly multi-unit. The franchise system has favored multi-unit operators for over two decades, and most attractive territories are now owned by operators with 5-15+ salons. New single-unit applications face structural friction.

The reasons:

**Operating efficiency at scale.** A single salon needs the same minimum management attention as a five-salon group. Multi-unit operators amortize management costs and produce better unit-level margins than single-unit owners.

**Capital efficiency.** Single-unit Great Clips investments are $200K-$400K — too small to support full-time management overhead but large enough to require operator attention. Five salons at $1M-$2M total investment is a more workable equity-deployment profile for the typical buyer.

**Brand development priorities.** The franchisor's development team allocates time and territory toward operators committing to multi-unit growth. Single-unit candidates are typically directed toward less-attractive territories or required to commit to development agreements.

For buyers, the implication is straightforward: Great Clips works as a multi-unit play, not a single-unit play. If your capital base and operating bandwidth supports 3-5+ salons under management, the brand is investable. If you're a single-unit first-time buyer, the deal economics will be thin and the territory options will be limited.

## How Great Clips Compares to Hair-Services Peers

| Brand | Sample | Median AUV | Investment | AUV/Investment |
|---|---:|---:|---|---:|
| Great Clips | 4,147 | $382K | $188K-$420K | 1.0× |
| [Sport Clips](/franchise/sport-clips-inc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) | 1,669 (mature) | $409K | $289K-$475K | 1.0× |
| [Supercuts](/franchise/supercuts-inc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) | varies | $300K-$400K | $150K-$350K | 1.5× |
| [Fantastic Sams](/franchise/fantastic-sams-franchise-corporation?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) | smaller | $250K-$350K | $130K-$300K | 1.5× |
| SmartStyle | n/a public Item 19 | n/a | varies | n/a |

Great Clips and [Sport Clips](/franchise/sport-clips-inc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) lead the category by absolute sample size and AUV. Smaller-investment brands ([Supercuts](/franchise/supercuts-inc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md), [Fantastic Sams](/franchise/fantastic-sams-franchise-corporation?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md)) produce slightly stronger AUV-to-investment ratios but at lower absolute revenue. The category overall produces reasonable franchise economics — none of the brands run the dazzling ratios of senior care (10×) or service businesses, but all produce viable unit economics for disciplined operators.

For broader category context, see our [best hair salon barbershop franchises](/blog/best-hair-salon-barbershop-franchises?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md) roundup.

## Year-One Ramp

A new Great Clips salon in year one typically generates 70-80% of system median — $270K-$305K. Month-by-month:

- Months 1-3: $20K-$28K monthly revenue
- Months 4-6: $22K-$30K monthly revenue
- Months 7-9: $24K-$32K monthly revenue
- Months 10-12: $25K-$35K monthly revenue
- Annualized year-one: $270K-$330K

Year two typically lands at $320K-$370K as clientele builds. Year three approaches or exceeds the median. The ramp is faster than membership-driven businesses but slower than QSR — clientele building in hair services depends on repeat customer development, which takes time.

## What This Means for Buyers

- **The Item 19 is methodologically clean.** Large sample, soft tenure filter, full fiscal year. The $382K median is a defensible operating baseline.
- **Category context matters.** Don't compare absolute AUV to QSR. Hair-services economics work at this revenue level; QSR doesn't.
- **Multi-unit is the realistic path.** Single-unit deals work but face structural friction. Plan for 3-5+ salon development to capture the model's scale benefits.
- **Year one will be 70-80% of median.** Plan accordingly.
- **The brand is mature.** Territory is constrained; growth in attractive markets comes from existing operators expanding rather than new operators entering.

For brand-specific cost detail, the live `/franchise/great-clips-inc` page. For the broader category competitive set, see our [Great Clips vs Supercuts comparison](/compare/great-clips-inc-vs-supercuts-inc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md).

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## Brands mentioned in this post

- [Great Clips](/franchise/great-clips-inc?utm_source=claude&utm_medium=ai_referral&utm_campaign=vmf_agent_md)
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