Great Clips Franchise Cost 2026: $188K–$420K, $20K Fee

Summary

Great Clips franchise cost: $187,800 to $419,900 per the 2026 FDD, a $20,000 fee, 6% royalty, 5% ad fund, and a $390,685 median across 4,158 salons.

Contents

Key facts


Quick answer A Great Clips salon costs $187,800 to $419,900 to open per Item 7 of the 2026 FDD, including a $20,000 initial franchise fee and a $5,000 initial ad contribution. The royalty is 6% of gross sales and the ad fund 5%. Item 19 reports $390,685 median total sales across 4,158 salons open all of 2025.

$187,800 to $419,900 for one salon, with a full cash-flow statement to test it

A Great Clips salon costs $187,800 to $419,900 to open, per Item 7 of the Great Clips, Inc. 2026 Franchise Disclosure Document (issuance date March 30, 2026). That includes a $20,000 initial franchise fee and a $5,000 initial advertising contribution. Once open, you pay a 6% royalty and a 5% advertising contribution on gross sales.

What sets this FDD apart is Item 19. Great Clips reports 2025 sales for 4,158 franchised salons, a median of $390,685, and then goes further than most franchisors: a line-by-line operating cash flow statement for 2,376 of those salons, plus a table showing how labor, rent and cash flow change as sales rise. That lets you check the cost of entry against what an operating unit actually keeps.

The short version: the median reporting salon generated $75,896 of operating cash flow in 2025. A salon below $250,000 in sales lost money. The rest of this guide shows each number, where it is in the FDD, and what it leaves out.

What the $187,800 to $419,900 buys

Item 7 (pages 15 to 18) prices a single salon under a standard Franchise Agreement. A typical salon is 900 to 1,200 square feet, usually in a shopping center, and the estimate assumes the landlord delivers it in “vanilla shell” condition with HVAC, electrical and plumbing in place.

Item 7 line Low High
Initial franchise fee $20,000 $35,000
Initial advertising contribution (MDAF) $5,000 $5,000
Training travel and expenses (per participant) $1,500 $2,500
Architecture fees $100 $3,800
Leasehold improvements, including labor $70,000 $200,000
Rent and security deposits $1,000 $10,000
Fixtures, signage, furnishings, salon technology $40,000 $55,000
Freight $4,000 $7,000
Sales tax on fixtures and furnishings $0 $3,200
Opening inventory and supplies $4,700 $6,400
Grand opening advertising $20,000 $25,000
Insurance $1,500 $3,000
Lease liability and lease review fees $0 $4,000
Additional funds, 3 to 6 months $20,000 $60,000
Total $187,800 $419,900

The $35,000 at the top of the fee line is not a higher price for one salon. It is the Three Star Program Fee, which covers three franchise agreements, and Item 7 applies it to your first Three Star salon. A single-salon buyer pays $20,000.

Leasehold improvements, $70,000 to $200,000, are the swing. Note 4 says the cost depends on the condition of the space at handover. A new build with utilities already where a Great Clips space plan needs them lands near the low end. An existing space where HVAC, electrical and plumbing must be moved lands higher, and those changes are “typically at the tenant’s expense.” Conversions of freestanding buildings are “too individually variable to be realistically predicted and may cost more.”

Grand opening advertising, $20,000 to $25,000, is required under the Grand Opening Policy for your first salon. Note 7 adds that it does not include the cost of discounted opening prices or extra staffing.

Additional funds, $20,000 to $60,000, cover the 3 to 6 months around opening and explicitly exclude any owner’s salary or draw (Note 10). Great Clips does not finance any part of the initial investment, directly or indirectly (Note 11).

Two cost items sit outside Item 7. Item 6 (page 14) requires a salon remodel every seven to 10 years, currently estimated at $20,000 to $80,000, and ongoing maintenance of $3,000 to $9,000 a year for painting, carpet, graphics and fixture repair. On a 10-year term, budget for at least one remodel. Our Item 7 walkthrough explains how to pressure-test each line.

The $20,000 fee and the rest of Item 5

The initial franchise fee is $20,000 for a single salon (Item 5, page 9). On your first agreement it is due at signing. On later agreements you pay $10,000 at signing and the remaining $10,000 when you place your equipment order, which you typically do only after signing a lease. Great Clips says the fee “should not be financed.”

Every agreement also requires a $5,000 Initial Advertising Contribution to the Market Development Advertising Fund (MDAF), non-refundable.

Great Clips can cancel the agreement, and keep a first-time franchisee’s fee, if you do not open within 24 months, do not complete training, or are judged to be using the agreement “for speculative purposes.”

Item 5 then describes three ways to pay less per salon, each in exchange for a commitment:

Item 5 also lists the Expediter Program, a rebate of up to $20,000 against what you pay a third party to secure a specific real estate location, and a Deferral Program that postpones (but does not waive) the fee on a salon opened near one you already own.

The initial purchases from Great Clips for fixtures, signage, flooring and opening inventory are estimated at $48,700 to $71,600 (page 12). Architecture fees run $100 to $3,800, a lease review fee $2,200 to $2,500, and a lease liability fee of $1,500 applies if Great Clips guarantees or assigns your lease.

See the full Great Clips data sheet

Item 6 (pages 12 to 14) sets two percentage fees, both on biweekly gross sales and both drawn automatically:

Gross sales include “all revenue from the sale of all services, products and goods,” less sales tax. At the 2025 median of $390,685, the two fees come to about $42,975 a year.

The FDD then says something most franchisors leave out: “In order to stay competitive in the market, you will likely need to spend a minimum of 1-3% of your Gross Sales on incremental advertising in addition to the 5%.” Item 19 confirms that “virtually all franchisees” spend on discretionary local advertising. Budget 12% to 14% of sales for royalty plus marketing, not 11%.

The fixed fees are small next to the percentages:

Item 6 fee Amount
Local co-op dues System average of $100 a month
Recruiting Technology Fee $750 a year per salon, capped at the greater of $750 or 1% of sales
Training Fee $200 a year per salon, capped at the greater of $200 or 1% of sales
Franchisee program and event fees $345 to $550 per event
Renewal fee $1,750 per salon
Assignment (transfer) fee $1,500 per salon
Late payments 14% annual interest or the legal maximum

Unlike many brands, Great Clips’ transfer fee is modest, which matters in a system where 175 salons changed owners in 2025.

Item 19: what Great Clips salons sell and keep

Item 19 (pages 50 to 59) has two parts, and the difference between them matters.

Section I covers sales for nearly the whole system. Of the 4,441 salons eligible to be open at December 31, 2025, the 4,158 eligible to be open for the full year are included. The 283 excluded salons either were not open for all of 2025 or changed owners during the year.

2025 sales, 4,158 salons Average Median Low High
Service sales $400,667 $381,782 $27,439 $1,037,494
Product sales $10,116 $8,484 $0 $86,446
Total sales $410,783 $390,685 $28,036 $1,082,803

Source: Item 19, Table 1, page 53. 1,848 salons (44.44%) met or beat the average. The $28,036 low comes from a salon that was closed for 36 weeks of the year but remained eligible to be open.

This is a haircut business. Product sales are about 2.5% of revenue, so the salon’s economics are stylist hours times ticket.

Section II covers costs for a smaller group. 2,376 salons submitted financial statements complete enough to include. The other 1,782 did not, and Great Clips discloses how that skews the sample: 1,019 of the non-reporting salons had sales below the reporting group’s median and 763 above, and including them would have lowered the median total sales by 2.8%.

Reporting salons, 2025 Average % of sales Median
Total sales $422,283 100.00% $402,271
Labor $207,978 49.25% $196,393
Occupancy $46,850 11.09% $45,711
Products $7,116 1.69% $6,460
Continuing franchise fees $25,435 6.02% $24,261
Advertising $22,422 5.31% $21,408
Other $28,978 6.86% $27,709
Total expenses $338,778 80.23% $324,531
Operating cash flow $83,504 19.77% $75,896

Source: Item 19, Table 2, page 54.

Labor is half of revenue. Rent is about 11%. Royalty and advertising together are about 11%. What remains is roughly 20 cents on the dollar.

Read the definition before you treat $75,896 as income. Operating cash flow excludes income taxes, depreciation, amortization and “any reserve for future capital expenditures” (Note 11), and it is before any loan payments on your build-out. Labor excludes, “if identifiable,” the cost of a general manager or the franchisee. If you plan to manage the salon yourself, the median figure is roughly what you are paid for doing so, before debt service.

By cohort, the spread is wide. Table 3 (page 55) groups the 2,376 reporting salons by sales:

Annual sales Salons Share Labor Occupancy Avg. cash flow
Under $250K 188 7.91% 58.81% 19.90% ($5,248)
$250K to $300K 268 11.28% 53.22% 16.03% $23,321
$300K to $350K 354 14.90% 50.78% 13.53% $46,711
$350K to $400K 368 15.49% 48.88% 12.38% $68,492
$400K to $450K 333 14.02% 49.20% 11.42% $82,502
$450K to $500K 250 10.52% 48.01% 9.85% $106,798
$500K to $600K 341 14.35% 47.52% 9.09% $133,950
Over $600K 274 11.53% 47.52% 7.39% $188,148

The pattern is operating leverage. Rent is close to fixed, so it falls from 19.90% of sales in the bottom band to 7.39% in the top. Labor falls from 58.81% to 47.52%. A salon at $350,000 to $400,000 averages $68,492; one at $500,000 to $600,000 averages nearly twice that. The 456 salons under $300,000, about 19% of the sample, averaged $23,321 or less.

One sentence on page 59 matters more than any table for a new owner: “Newly opened GREAT CLIPS salons tend to have average sales and cash flows significantly below the average.” The FDD adds that this is “especially true” for new franchisees in markets with few existing salons, because markets with many salons fund larger co-op advertising budgets. Underwrite your first year against the lower bands, not the median. The Great Clips Item 19 deep dive works through the earlier cohort, and the Great Clips financials page keeps the disclosed figures in one place.

Item 20: 4,441 salons, flat for three years

Year Start Opened Terminated Non-renewed Ceased, other End
2023 4,427 98 3 6 89 4,427
2024 4,427 115 4 1 98 4,439
2025 4,439 110 3 2 103 4,441

Source: Item 20, Tables 1 and 3 (pages 60 and 68). Great Clips owns no salons.

The system has stopped growing in unit count. Over three years it opened 323 salons and lost 309, for a net gain of 14. Closures run about 2.4% of the base a year. Some of the “ceased, other” column is relocation rather than failure: Great Clips notes that it includes salons closed and in the process of relocating, and that 23 salons closed and reopened elsewhere within 2025. Item 19 separately reports that 108 salons permanently ceased operations in 2025, and that none of them had been open less than 12 months.

Transfers are steady. 164 salons changed hands in 2023, 207 in 2024 and 175 in 2025 (Table 2, page 64). With most owners running several salons, many transfers are multi-unit packages.

The pipeline is large relative to openings. Table 5 (page 70) reports 903 signed franchise agreements for salons not yet open, against 85 projected franchised openings in the next fiscal year. Texas alone has 132 signed and unopened. That gap reflects how development agreements are sold, but it also means a new buyer is competing with existing commitments for sites. Ask how long the average signed agreement takes to open.

How Great Clips compares with other salon franchises

Brand Item 7 investment Royalty Item 19 median sales (sample)
Great Clips $187,800 to $419,900 6% + 5% ad $390,685 (4,158 salons, 2025)
Sport Clips $236,800 to $580,500 6% $416,189 (1,645 mature stores, 2025)
Supercuts Up to $323,460 4% first year, then 6% $297,216 (1,661 franchised salons, FY 2024 to 2025)
Cost Cutters Up to $323,140 6% $260,529 (323 franchised salons, FY 2024 to 2025)

Figures are from each brand’s current FDD on file.

Great Clips sits in the middle on entry cost and near the top on disclosed sales. Sport Clips reports a slightly higher median, but on a narrower sample of stores open more than two years, and its Item 7 ceiling is $160,600 higher. Supercuts and Cost Cutters cost less at the top end and report lower medians. What Great Clips adds beyond the median is the cash-flow statement by sales band, which lets you see where in the range a salon starts to pay its owner.

For the head-to-head on concept and territory, see Sport Clips vs Great Clips vs Supercuts. The best hair salon and barbershop franchises ranking covers the wider field, and the health and beauty category lists every brand in our database. For the qualitative case, read Great Clips pros and cons.

What to ask Great Clips before you sign

  1. What do new salons in my market sell in years one and two? Item 19 says new salons run “significantly below” average. Ask for the opening-year sales curve in your DMA, not the system median.
  2. How many salons and how much co-op money are in my market? The FDD ties higher sales to markets with many salons. A thin market means a smaller co-op budget and slower ramp.
  3. How large is my Protected Area? The standard is a three-quarter-mile radius from the salon entrance, cut to one-tenth of a mile in densely populated areas (Item 12, page 39). Ask which applies before you sign a lease.
  4. Which incentive programs apply here? Three Star, Expediter and Deferral all change your entry cost, and Great Clips can modify or withdraw them without notice.
  5. What is the remodel schedule for a salon opened today? The $20,000 to $80,000 upgrade every seven to 10 years falls inside a 10-year term.
  6. Will the agreement renew? Item 17 (page 46) gives no right to renew. Renewal for a further 10 years is at Great Clips’ sole determination.

Great Clips publishes enough to build a real model. Use it: start from the band your market’s new salons actually reach, take labor at 50% or more, and subtract your debt service and a remodel reserve from operating cash flow before you decide what the salon will pay you.

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About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our data & methodology.

Frequently Asked Questions

How much does a Great Clips franchise cost?

The 2026 FDD estimates $187,800 to $419,900 for one salon (Item 7). The largest lines are leasehold improvements at $70,000 to $200,000, fixtures, signage and furnishings at $40,000 to $55,000, additional funds for the first 3 to 6 months at $20,000 to $60,000, and grand opening advertising at $20,000 to $25,000. The estimate assumes a 900 to 1,200 square foot shopping-center space delivered in vanilla shell condition.

What is the Great Clips franchise fee?

$20,000 for a single salon, plus a non-refundable $5,000 Initial Advertising Contribution to the Market Development Advertising Fund (Item 5). On a first agreement both are due at signing. On later agreements, $10,000 of the fee is due at signing and the other $10,000 when you order equipment. The Three Star Program replaces three $20,000 fees with one $35,000 Program Fee if you sign leases for all three salons within 24 months. Qualifying veterans get a $5,000 rebate on their first salon.

What is the Great Clips royalty?

6% of biweekly gross sales, called the Continuing Franchise Fee, plus a Continuing Advertising Contribution of 5% of biweekly gross sales (Item 6). Both are drawn automatically. The FDD adds that to stay competitive you will likely need to spend another 1% to 3% of gross sales on local advertising, plus local co-op dues that averaged $100 a month system-wide.

How much does a Great Clips franchise owner make?

Item 19 of the 2026 FDD reports operating cash flow for 2,376 franchised salons that submitted financial statements. The median was $75,896 a year and the average $83,504, on median total sales of $402,271. Operating cash flow is before income taxes, depreciation, debt service and any capital reserve, and it excludes identifiable franchisee and general manager labor. Results by sales band ranged from an average loss of $5,248 for salons under $250,000 to $188,148 for salons above $600,000.

How much does a Great Clips salon make in sales?

Across the 4,158 franchised salons eligible to be open for all of 2025, median total sales were $390,685 and average total sales were $410,783 (Item 19, Table 1). Service sales were $400,667 on average and product sales $10,116. The highest salon reported $1,082,803 and the lowest $28,036. About 44% of salons reached the average.

How many Great Clips salons are there?

4,441 franchised salons in the United States and Canada at the end of 2025, and no company-owned salons (Item 20, Table 1). Franchisees opened 110 salons in 2025 while 108 left the system through closures, terminations and non-renewals. Great Clips reports 903 signed franchise agreements for salons not yet open and projects 85 franchised openings in the next fiscal year.

Can you own just one Great Clips?

The FDD sells a single-salon agreement, and Item 7 prices one salon. The system runs on multi-unit owners, though: Item 19 states that franchisees who have operated Great Clips salons for more than five years own 8.5 salons on average and 5 at the median. The Three Star Program and Master Development Agreement both discount fees for committing to more than one salon.

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