2026 FDD Issued Mar 30, 2026 Minnesota Commerce (CARDS) Checked Oct 9, 2026
Great Clips Franchise Cost (2026)
A Great Clips franchise costs an estimated $187,800 – $419,900 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $20,000 initial franchise fee (Item 5) and covers this format: First salon (standard agreement or Three Star Program). Item 6 lists continuing franchise fee: 6% of Gross Sales, subject to the conditions below.
- Total investment
- $188K – $420KItem 7 source and qualifications
- Franchise fee
- $20KItem 5 source and terms
- Continuing Franchise Fee
- 6% of Gross SalesItem 6 conditions and fee bases apply
- Brand fund
- 5% of Gross SalesItem 6 conditions and fee bases apply
- Liquid capital
- $100KFranchisor website, checked October 30, 2026 · See conditions
- Net worth
- $500KFranchisor website, checked October 30, 2026 · See conditions
- Units (2025)
- 4,441Item 20 source and scope
- Franchise exit rate
- 2.3% / yrCalculated 3-year average; definition and source
What stands out about Great Clips
The Three Star Program changes what the first salon's startup estimate includes: its program fee buys a bundle of franchise agreements, while the table still estimates opening the first location. Fee waivers for the other agreements depend on executed leases and the designated grand-opening plan. This is different from subsequent standard agreements, where paying the franchise fee in installments does not reduce its full amount.
Eligibility to open, not uninterrupted operation, defines the sales sample behind $410,783. The lowest-sales salon remained eligible despite prolonged temporary closures, while permanently closed salons and ownership changes were excluded. The reporting cash-flow sample is smaller still, and the FDD says the missing expense reports are unevenly distributed by sales. Cash flow omits identifiable franchisee and general-manager labor, income taxes and future capital reserves; it is not a paycheck.
Outlet movements combine U.S. states with Canadian provinces. The ceased-operations column also includes salons awaiting approved relocation, so a recorded exit is not necessarily a permanent shutdown. This explains why the movement table and the Item 19 permanent-closure discussion describe different populations. Transfers count affected salons and can include repeated transfers of the same location.
What are the initial franchise fees and financial requirements for Great Clips?
Item 5 lists an initial franchise fee of $20,000 for Great Clips. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Great Clips says higher-cost markets require at least $250,000 in liquid assets and $1,000,000 in net worth. The listed amounts are the lower thresholds for other markets. These minimums come from the franchisor’s website, not from the FDD, and can change: Great Clips franchise page (checked October 30, 2026).
The standard single-salon fee remains $20,000 for subsequent agreements: $10,000 is due at signing and $10,000 when equipment is ordered, not a discount (PDF p. 17). A separate $5,000 initial advertising contribution is required. The Three Star Program charges a $35,000 program fee plus $5,000 advertising contribution for three agreements; benefits depend on executed leases within 24 months and the designated grand-opening plan (PDF p. 18). A limited Master Development Agreement charges $4,000 development fee plus $6,000 initial franchise fee per salon, with conditional advertising-contribution waivers (PDF pp. 17-18). The first-salon VetFran rebate is $5,000, awarded to qualifying veterans at opening (PDF p. 19). Required initial purchases, architecture and applicable lease fees are additional and listed in Item 7.
Source: Great Clips 2026 FDD, Item 5, PDF p. 17.
How much does it cost to open a Great Clips franchise? (Item 7)
Source: Great Clips 2026 FDD, Item 7, PDF p. 23.
Item 7 of Great Clips’s 2026 Franchise Disclosure Document estimates the total cost to open one first salon (standard agreement or three star program) at $187,800 – $419,900. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Initial Franchise Fee | $20,000 | $35,000 |
| Initial Advertising Contribution to the MDAF | $5,000 | $5,000 |
| Travel and Expenses While Training | $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 and Furnishings, including Salon Technology Hardware | $40,000 | $55,000 |
| Freight | $4,000 | $7,000 |
| Sales Tax on Fixtures, Signage 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 Fee and Lease Review Fee | $0 | $4,000 |
| Additional Funds (3-6 Months) | $20,000 | $60,000 |
| Total | $187,800 | $419,900 |
The printed table combines a standard first salon with the first salon under the Three Star Program. Its initial-fee line is $20,000 OR a $35,000 program fee for three agreements, not a sliding single-salon franchise fee (PDF pp. 23-24). The range does not represent the cost of opening all three salons. Construction assumes a shopping-center space in vanilla-shell condition; other conversions are not estimated. Grand-opening advertising excludes discounted pricing and additional opening staff. The insurance line covers initial property/public-liability premiums only, not workers' compensation or other coverage. Additional funds cover pre-opening and 3-6 months of operations but exclude owner salary or draw. Existing-salon purchase costs may differ (PDF pp. 24-26). The separate Master Development Agreement table lists $14,000-$46,000 in development and first-agreement fees, not an all-in salon startup estimate (PDF p. 26).
What ongoing royalties and fees does Great Clips charge? (Item 6)
Source: Great Clips 2026 FDD, Item 6, PDF p. 20.
Item 6 of Great Clips’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Continuing Franchise Fee | 6% of Gross Sales | Every period | Biweekly; Gross Sales excludes sales taxes. (Item 6, PDF p. 20) |
| Sales or Other Taxes on Continuing Franchise Fee | Varies | When it applies | State/local taxes imposed on the franchisor may be collected from the franchisee. (Item 6, PDF p. 20) |
| Continuing Advertising Contribution | 5% of Gross Sales | Every period | Biweekly. Additional local advertising is required; the stated incremental 1%-3% is expected spending, not a fixed mandated rate. (Item 6, PDF p. 20) |
| Training Fee | $200 per year | When it applies | Mandatory combined per-salon annual fee, due April 1 each year. May change, but cannot exceed the greater of $200 per year or 1% of annual Gross Sales. Trainee wages, travel and expenses are additional. This annual training obligation is shown separately, not included in an aggregate fee-model estimate. (Item 6, PDF p. 20) |
| Renewal Fee | $1,750 | When it applies | Per salon, subject to CPI adjustment and renewal conditions. (Item 6, PDF p. 21) |
| MDA Renewal Fee | Varies | When it applies | Currently $1,000 per unopened salon where renewal of an unfulfilled Master Development Agreement is permitted; subject to CPI adjustment. (Item 6, PDF p. 21) |
| Assignment Fee | $1,500 | When it applies | Per salon for assignment consent; subject to CPI adjustment. (Item 6, PDF p. 21) |
| Local Co-op Dues | Varies | Every period | Mandatory cooperative dues vary by cooperative. $100 monthly is the system average, not an amount fixed for every salon. (Item 6, PDF p. 21) |
| Recruiting Technology Fee | $750 per year | When it applies | Per salon for the optional recruiting platform/services; collected as two $375 installments. May change, but cannot exceed the greater of $750 per year or 1% of annual Gross Sales. (Item 6, PDF p. 21) |
| Franchisee Program Fee | $345 – $550 | When it applies | Per applicable meeting/event. (Item 6, PDF p. 21) |
| Insurance Coverage | Varies | When it applies | Property/public-liability estimated $1,500-$3,000 yearly. Premiums generally paid to insurer; reimbursement if franchisor obtains missing coverage. Other coverage varies. (Item 6, PDF p. 21) |
| Out-of-Pocket Lease or Sublease Assignment Expenses | Varies | When it applies | Assignment costs, including renewals, amendments and subsequent assignments. (Item 6, PDF p. 21) |
| Real Estate Commission | Varies | When it applies | Applicable site commission paid directly or reimbursed if charged to franchisor. (Item 6, PDF p. 21) |
| Sister Store Review Appeal Fee | $500 – $1,000 | When it applies | For executive-level appeal; possible refund if decided favorably. (Item 6, PDF p. 21) |
| Late Charges | Varies | When it applies | Interest at 14% per annum or the highest rate allowed by the salon's state, plus applicable collection expenses. (Item 6, PDF p. 22) |
| Audit or Inspection Cost | Varies | When it applies | Audit/professional costs for a reported-data discrepancy of 5% or more or underpayment of fees/advertising of 2% or more. (Item 6, PDF p. 22) |
| Taxes, Business Debts or Liens | Varies | When it applies | Reimbursement if franchisor pays unpaid obligations. (Item 6, PDF p. 22) |
| Salon Upgrades | $20,000 – $80,000 | When it applies | Estimated remodel cost every seven to ten years, depending on standards and condition. (Item 6, PDF p. 22) |
| Salon Ongoing Maintenance Costs | $3,000 – $9,000 per year | When it applies | Estimated periodic improvements, repairs and maintenance as incurred, depending on wear. (Item 6, PDF p. 22) |
| Architectural Fees | $100 – $3,800 | When it applies | For remodel/relocation plans. (Item 6, PDF p. 22) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
Great Clips startup investment and modeled fees over 10 years
Mandatory local co-op dues vary by cooperative; the disclosed system average is not a universal salon fee. Training charges can change and local advertising is additional, so a complete uniform fee total is not estimated. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: Great Clips franchised outlet history
Source: Great Clips 2026 FDD, Item 20, PDF p. 76.
Item 20 Table 3 reports 4,441 franchised outlets at the end of 2025. The company-owned table reports a further 0 outlets. Our calculated average annual franchised exit rate is 2.3% across the 3 reported years, using the definition below.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 4,427 | 98 | 98 | 4,427 | 2.2% |
| 2024 | 4,427 | 115 | 103 | 4,439 | 2.3% |
| 2025 | 4,439 | 110 | 108 | 4,441 | 2.4% |
Franchised units went from 4,427 to 4,441 over 3 years (+14).
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables. Compare Great Clips’s exit rate with other brands.
175 units changed owners in 2025.
Totals include U.S. states and Canadian provinces, not U.S.-only salons. Table 3's ceased-operations column includes closed salons awaiting approved relocation, which the policy permits within two years; 23 salons closed and relocated/reopened during 2025. These movements are not all permanent closures (PDF pp. 76-77). Company-owned totals are zero in Table 4 (PDF p. 77). Table 2 transfers count salons affected by controlling-interest transfers and can include multiple transfers of the same salon; three 2024 transfers involved simultaneous resale after the franchisor exercised its right of first refusal (PDF p. 72).
How much do Great Clips franchise owners make? (Item 19)
Source: Great Clips 2026 FDD, Item 19, PDF p. 61.
Item 19 of the 2026 FDD reports average Total Sales of $410,783 (January 1, 2025 to December 31, 2025, 4,158 U.S. and Canadian franchised salons eligible to be open throughout 2025, not necessarily open every week). Besides sales, Great Clips’s Item 19 reports “Average Operating Cash Flow”, “Median Operating Cash Flow” and 2 similar figures. Each figure follows the franchisor’s own definition in Item 19, which decides which costs are deducted and whether an owner’s salary is one of them. None of them is necessarily an owner’s take-home pay.
See every Great Clips Item 19 figure, with its period and sample.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How to interpret Great Clips’s Item 19 figures and sample limits.
How long is the Great Clips franchise agreement term?
Source: Great Clips 2026 FDD, Item 17, PDF p. 54.
The standard Great Clips franchise agreement runs 10 years, with renewal terms of 10 years.
A new salon's term begins at opening. An existing-salon buyer receives the balance of its agreement term. There is no contractual right to renewal; Great Clips may offer a further 10-year term in its sole determination, subject to agreement conditions.
How long does it take to open a Great Clips franchise? (Item 11)
Source: Great Clips 2026 FDD, Item 11, PDF p. 36.
Item 11 of the 2026 FDD states the time from signing the franchise agreement to opening: 6 to 24 months, and possibly longer in some markets.
Compare Great Clips with other franchises
Head-to-head FDD cost, fee, and earnings comparisons:
Franchises with a similar investment range
These published records are selected by proximity to Great Clips’s $187,800 low-end Item 7 investment, starting with Beauty & Personal Care. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
- Supercuts $186K – $323K Beauty & Personal Care
- GNC $188K – $530K Retail
- Woof Gang Bakery $191K – $560K Source review pending Provisional publication Pet Services
- Huntington Learning Center $192K – $341K Education & Tutoring
- Valvoline Instant Oil Change $192K – $3.48M Source review pending Automotive
- College Hunks Hauling Junk & Moving $193K – $346K Home Services
Compare other beauty & personal care franchises
Frequently Asked Questions about Great Clips
- What is the initial franchise fee for a Great Clips salon?
- Item 5 lists $20,000 for a standard single-salon agreement. Subsequent standard agreements have the same full fee, split between signing and the equipment order. The Three Star Program and limited Master Development Agreements have separate fee structures and conditions.
- How much does it cost to open a Great Clips salon?
- Item 7 lists $187,800 – $419,900 for a first salon under a standard agreement or the Three Star Program. The high fee line includes the program's bundled agreements, not the cost of opening every salon. Owner salary or draw, other insurance coverage and some opening costs are excluded or separately qualified.
- What is the ongoing royalty fee for Great Clips?
- Franchisees pay a continuing royalty fee of 6% of Gross Sales. In addition, there is a continuing advertising contribution of 5% of Gross Sales.
- What sales sample does Great Clips disclose?
- Item 19 reports average total sales of $410,783 for U.S. and Canadian salons eligible to be open throughout 2025, not necessarily operating every week. Permanently closed salons and ownership changes are excluded. Its separate operating-cash-flow table uses a smaller reporting sample and is not take-home owner income.
Sources
Great Clips, Inc. Franchise Disclosure Document, issued March 30, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 17
- Item 6: cited PDF p. 20
- Item 7: cited PDF p. 23
- Item 19: cited PDF p. 61
- Item 20: cited PDF p. 76
- Agreement term (Item 17): cited PDF p. 54
Page references for Great Clips use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- October 30, 2026: Record updated.
- October 30, 2026: Added liquid-capital and net-worth qualification amounts from Great Clips' official franchise investment page. Higher-cost-market thresholds are stated separately; these figures are not from the FDD.
- October 9, 2026: Source check completed against the recorded FDD.
- October 9, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued March 30, 2026).