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.
Quick answer: Great Clips’ 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.
| 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.
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 is a healthy operating business. The category economics are fundamentally different.
| Cost category | QSR | Hair services (Great Clips) |
|---|---|---|
| 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 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.
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.
| Brand | Sample | Median AUV | Investment | AUV/Investment |
|---|---|---|---|---|
| Great Clips | 4,147 | $382K | $188K-$420K | 1.0× |
| Sport Clips | 1,669 (mature) | $409K | $289K-$475K | 1.0× |
| Supercuts | varies | $300K-$400K | $150K-$350K | 1.5× |
| Fantastic Sams | smaller | $250K-$350K | $130K-$300K | 1.5× |
| SmartStyle | n/a public Item 19 | n/a | varies | n/a |
Great Clips and Sport Clips lead the category by absolute sample size and AUV. Smaller-investment brands (Supercuts, Fantastic Sams) 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 roundup.
A new Great Clips salon in year one typically generates 70-80% of system median — $270K-$305K. Month-by-month:
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.
For brand-specific cost detail, see the live Great Clips franchise page. For the broader category competitive set, see our Great Clips vs Supercuts comparison.
Great Clips' most recent Item 19 reports a $382,316 median annual gross sales across 4,147 franchised salons that were eligible to be open for the entire 2024 fiscal year.
Hair-services franchises have fundamentally different unit economics than QSR. The transaction value is lower ($20-$30 per haircut vs $8-$15 per QSR ticket), but the operating cost is also dramatically lower (no kitchen equipment, no food cost, simpler labor structure, smaller footprint). A $382K AUV salon can produce strong operating margins (15-25%) where a $382K QSR could not.
For multi-unit operators, yes. The AUV-to-investment ratio at the median (roughly 1×) is decent, and the operating margin profile is favorable. Single-unit operators face thin operating cash flow relative to debt service. The franchise system has structurally favored multi-unit operators for over two decades — most attractive territories are owned by operators with 5-15+ salons.
Sport Clips' Item 19 reports a $409K median across 1,669 mature salons (2+ years operating). The absolute medians are comparable. The differentiator is positioning — Sport Clips targets men with sports-bar-style decor and TV programming during cuts; Great Clips serves a broader family demographic. Operator profile and market dynamics drive brand choice more than AUV alone.
Item 7 reports a total initial investment range of $187,800 to $419,900 depending on market and buildout specifics. The franchise fee is $20,000-$25,000. Royalty is 6% of biweekly gross sales. The investment is among the lowest in publicly franchised hair services.
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