Great Clips franchise unit economics
Great Clips franchisees run walk-in haircare salons, usually in a shopping center, selling haircuts and a limited line of products to men, women and children.
Great Clips franchise at a glance
Great Clips’ Item 19 reports 2025 total sales for 4,158 salons open all year, and costs and operating cash flow by sales range for 2,376 reporting salons.
Great Clips franchisees averaged $410,783 of sales in 2025, with a median of $390,685, according to Item 19 of Great Clips’ 2026 FDD, issued 30 March 2026. The 4,158 in that group are 94%* of Great Clips’ 4,441 salons. Fees paid to Great Clips come to about 11.52%* of sales. A Great Clips franchise costs $187,800 to $419,900 to open.
- A Great Clips franchise costs $187,800 to $419,900 to open, according to Item 7; the high end includes the $35,000 Three Star Program fee.
- Great Clips charges a 6% continuing franchise fee and a 5% ad fund contribution on gross sales, both collected biweekly.
- Great Clips published costs for 2,376 reporting salons, whose average operating cash flow was $83,504, or 19.77% of sales, before income tax, depreciation and any labor cost for the franchisee or general manager.
- Great Clips reported labor at 49.25% and occupancy at 11.09% of sales for those 2,376 reporting salons.
- Great Clips’ 188 reporting salons with sales under $250,000 averaged a cash flow of −$5,248; the 274 above $600,000 averaged $188,148.
- Great Clips had 4,441 franchised salons and no company-owned salons at December 31, 2025, and 903 signed agreements for salons not yet open.
These figures come from Great Clips's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Averan Great Clips Conversion Package →- The 4,158 salons open all of 2025 averaged $410,783 of total sales. The median was $390,685, and 1,848 salons (44.44%) reached or exceeded the average. Service sales were $400,667 of the average and product sales $10,116.
- The 2,376 reporting salons kept an average operating cash flow of $83,504, or 19.77% of sales. The median was $75,896. The figure is before income tax, depreciation and any reserve for future capital spending, and labor excludes the general manager and the franchisee where identifiable.
- Labor was 49.25% of sales and occupancy 11.09% for the 2,376 reporting salons. That is $207,978 of labor and $46,850 of occupancy on average total sales of $422,283. Together the two lines were 60.34%* of sales.
- The 188 reporting salons under $250,000 of sales averaged a cash flow of −$5,248. Their costs were 102.46% of sales, with occupancy at 19.90%. The 274 salons over $600,000 averaged $188,148, a difference of $193,396* per salon.
- The system went from 4,427 salons at the start of 2023 to 4,441 at the end of 2025. Over the three years 323* salons opened and 309* left. At December 31, 2025, 903 agreements were signed for salons not yet open, and Great Clips projected 85 openings in the next fiscal year.
Revenue
How much does a Great Clips franchise make?
| Line | Average | Salons at or above average | Low / high | Median |
|---|---|---|---|---|
| Service sales | $400,667 | 1,844 (44.35%) | $27,439 / $1,037,494 | $381,782 |
| Product sales | $10,116 | 1,609 (38.70%) | $0 / $86,446 | $8,484 |
| Total sales | $410,783 | 1,848 (44.44%) | $28,036 / $1,082,803 | $390,685 |
Source: Great Clips 2026 FDD, Item 19, Table 1. Sales from Great Clips’ point-of-sale system, unaudited. Canadian sales converted at 0.71.
The 4,158 salons eligible to be open for all of 2025 averaged $410,783 of total sales. The median was $390,685. Of the 4,441 salons eligible to be open at December 31, 2025, the FDD excluded 283 that were not authorized to open for the whole year or that changed ownership during it.
Service sales were $400,667 of the average and product sales $10,116. Services cover haircuts, shampooing, conditioning, styling and bang, neck and beard trims. Products include shampoo, conditioner, gel and hairspray.
The lowest salon in the group sold $28,036 and the highest $1,082,803. The FDD states that the lowest salon was open to customers during 6 nonconsecutive months and had no sales in 36 weeks of 2025.
Hours of operation varied from salon to salon. Item 19 states that newly opened salons tend to have average sales and cash flows significantly below these averages, especially new salons opened by new franchisees in markets with few existing salons. It gives no figures for new salons.
Many franchisees own more than one salon. Among franchisees who have operated Great Clips salons for over five years, the average number of salons at December 31, 2025 was 8.5 and the median was 5.
Costs and cash flow
Costs and cash flow, 2,376 reporting salons, 2025
| Line | Average | % of total sales | Median |
|---|---|---|---|
| Service sales | $411,368 | 97.42% | $390,960 |
| Product sales | $10,914 | 2.58% | $9,218 |
| 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: Great Clips 2026 FDD, Item 19, Table 2. From franchisee financial statements, mostly prepared on a cash basis, unaudited; some figures annualized.
2,376 of the 4,158 salons provided enough data to be included in the cost figures. The other 1,782 were excluded. Of those, 1,019 had total sales below the reporting group’s median and 763 at or above it. The FDD states that including them would have lowered the reporting group’s median total sales by 2.8%.
The reporting salons averaged $422,283 of total sales. That is $11,500* above the 4,158-salon average of $410,783.
Operating cash flow is total sales less total expenses. It includes no provision for income taxes, depreciation, amortization or a reserve for future capital spending. Labor covers wages, payroll taxes, benefits and the salon manager, and excludes any general manager or franchisee labor where identifiable.
The franchise fee line shows 6.02% of sales and advertising 5.31%. The FDD states that the fee line is not exactly 6% because most franchisees use cash accounting. Advertising includes the 5% ad fund, and the FDD adds that virtually all franchisees also take part in discretionary local or regional advertising.
Results in the reporting group ranged widely. Total sales ran from $137,034 to $1,063,124 and operating cash flow from −$130,672 to $336,116. 1,087 salons (45.7%) exceeded the average cash flow.
By sales range
Results by sales range, 2025
| Sales range | Salons | Share | Average sales | Labor | Occupancy | All other | Total costs | Cash flow |
|---|---|---|---|---|---|---|---|---|
| Under $250,000 | 188 | 7.91% | $213,290 | 58.81% | 19.90% | 23.75% | 102.46% | −$5,248 |
| $250,000–$300,000 | 268 | 11.28% | $278,367 | 53.22% | 16.03% | 22.38% | 91.62% | $23,321 |
| $300,000–$350,000 | 354 | 14.90% | $324,699 | 50.78% | 13.53% | 21.30% | 85.61% | $46,711 |
| $350,000–$400,000 | 368 | 15.49% | $373,803 | 48.88% | 12.38% | 20.42% | 81.68% | $68,492 |
| $400,000–$450,000 | 333 | 14.02% | $426,068 | 49.20% | 11.42% | 20.01% | 80.64% | $82,502 |
| $450,000–$500,000 | 250 | 10.52% | $473,840 | 48.01% | 9.85% | 19.61% | 77.46% | $106,798 |
| $500,000–$600,000 | 341 | 14.35% | $543,119 | 47.52% | 9.09% | 18.72% | 75.34% | $133,950 |
| Over $600,000 | 274 | 11.53% | $695,605 | 47.52% | 7.39% | 18.04% | 72.95% | $188,148 |
| All reporting salons | 2,376 | 100% | $422,283 | 49.25% | 11.09% | 19.88% | 80.23% | $83,504 |
Source: Great Clips 2026 FDD, Item 19, Table 3. Costs as a percentage of each range’s average sales. All other covers products, franchise fees, advertising and other cash costs.
Average cash flow rose from −2.46% of sales in the lowest range to 27.05% in the highest. In dollars it ran from −$5,248 to $188,148 a salon.
Occupancy was 19.90% of sales in the under-$250,000 range and 7.39% in the over-$600,000 range. Labor was 58.81% and 47.52% in the same two ranges. All other costs were 23.75% and 18.04%.
456* of the 2,376 reporting salons, 19.19%*, sold under $300,000. The 188 salons under $250,000 had a median of $221,198, and their sales ran from $137,034 to $249,675.
The 274 salons over $600,000 had a median of $675,303. Their sales ran from $600,687 to $1,063,124.
Item 19 does not give a cash flow figure for any single salon. The cash flow column is an average for each range, so some salons inside a range will be above it and some below.
Brand charges
Brand charges
| Charge | Amount | On average sales of $410,783 |
|---|---|---|
| Continuing franchise fee | 6% of gross sales, biweekly | $24,647* |
| Continuing advertising contribution to the ad fund | 5% of gross sales, biweekly | $20,539* |
| Local co-op dues | System average $100 a month | $1,200* |
| Recruiting technology fee | $750 a year, collected $375 semi-annually | $750 |
| Training fee | $200 a year per salon | $200 |
| Total | 11% of sales plus $2,150* a year | $47,336*, or 11.52%* of sales |
Source: Great Clips 2026 FDD, Item 6. Dollar amounts on average sales are Averan calculations. Local advertising outside the ad fund is not included.
Great Clips charges 6% of gross sales as a continuing franchise fee and 5% as an ad fund contribution. Both are collected biweekly by automatic bank withdrawal. Gross sales are all service and product sales less sales taxes.
Item 6 states that a salon will likely need to spend a minimum of 1% to 3% of gross sales on local advertising. This is in addition to the 5% ad fund contribution and is not included in the table total.
The recruiting technology fee and training fee are fixed amounts with caps. Great Clips may raise the recruiting technology fee up to the greater of $750 a year or 1% of annual gross sales, and the training fee up to the greater of $200 a year or 1% of annual gross sales.
Other charges arise at set points. The renewal fee is $1,750 per salon at the end of the 10-year term and the assignment fee is $1,500 per salon, both adjustable each year with the Consumer Price Index. Meetings and events cost $345 to $550 each.
Item 6 also lists salon upgrades of $20,000 to $80,000 every seven to 10 years and maintenance of $3,000 to $9,000 a year. These are estimates paid to suppliers. Item 6 lists no minimum royalty, and Item 12 sets no minimum sales quota.
Cost to open
Cost to open
| Line | Low | High |
|---|---|---|
| Leasehold improvements, including labor | $70,000 | $200,000 |
| Fixtures, signage and furnishings, including salon technology hardware | $40,000 | $55,000 |
| Grand opening advertising | $20,000 | $25,000 |
| Additional funds, 3–6 months | $20,000 | $60,000 |
| Initial franchise fee ($35,000 under the Three Star Program) | $20,000 | $35,000 |
| Initial advertising contribution to the MDAF | $5,000 | $5,000 |
| Opening inventory and supplies | $4,700 | $6,400 |
| Freight | $4,000 | $7,000 |
| Travel and expenses while training | $1,500 | $2,500 |
| Insurance | $1,500 | $3,000 |
| Rent and security deposits | $1,000 | $10,000 |
| Architecture fees | $100 | $3,800 |
| Sales tax on fixtures, signage and furnishings | $0 | $3,200 |
| Lease liability fee and lease review fee | $0 | $4,000 |
| Total | $187,800 | $419,900 |
Source: Great Clips 2026 FDD, Item 7. The high column uses the $35,000 Three Star Program fee.
Item 7 puts the cost to open a single Great Clips salon at $187,800 to $419,900. Of that, $73,800 to $104,400 is paid to Great Clips or an affiliate under a single franchise agreement. The additional funds line does not include an owner’s salary or draw.
The high total uses the $35,000 Three Star Program fee. With the $20,000 single-salon fee in its place, the high end would be $404,900*. The Three Star Program fee covers three franchise agreements, all of which need a signed lease within 24 months.
Leasehold improvements are the largest line, at $70,000 to $200,000. The estimate assumes the landlord hands over a standard vanilla shell. A typical salon is about 900 to 1,200 square feet.
Under a Master Development Agreement the fee is $10,000 per salon. That is a $4,000 development fee and a $6,000 initial franchise fee for each salon, with total fees of $14,000 to $46,000 for two to 10 salons.
The typical time from signing to opening is six to 24 months. Great Clips may cancel the franchise agreement if the salon has not opened within 24 months. The protected area is a radius of three-quarters of a mile from the salon entrance, or one-tenth of a mile in densely populated areas.
Locations
Locations, 2023 to 2025
| Year | Start | Opened | Terminated | Not renewed | Reacquired | Ceased, other reasons | End | Transfers |
|---|---|---|---|---|---|---|---|---|
| 2023 | 4,427 | 98 | 3 | 6 | 0 | 89 | 4,427 | 164 |
| 2024 | 4,427 | 115 | 4 | 1 | 0 | 98 | 4,439 | 207 |
| 2025 | 4,439 | 110 | 3 | 2 | 0 | 103 | 4,441 | 175 |
Source: Great Clips 2026 FDD, Item 20, Tables 1 to 3. Great Clips had no company-owned salons in any of the three years.
Great Clips had 4,441 franchised salons at December 31, 2025. That is 14* more than the 4,427 at the start of 2023. The franchisor owned no salons in 2023, 2024 or 2025.
In 2025, 110 salons opened and 108 left. Of those that left, 3 were terminated, 2 were not renewed and 103 ceased operations for other reasons. The FDD notes that 23 salons closed and then relocated or reopened within 2025.
175 salons changed owner in 2025. Transfers were 164 in 2023 and 207 in 2024. The FDD notes that many transfers involved several salons moving between the same parties.
903 franchise agreements were signed for salons not yet open at December 31, 2025. Great Clips projected 85 new franchised salons in the next fiscal year and no new company-owned salons.
Questions we get asked
Questions owners ask
How much does it cost to open a Great Clips franchise?
Item 7 of the 2026 FDD puts the total at $187,800 to $419,900 for a single salon. The high end includes the $35,000 Three Star Program fee; with the $20,000 single-salon fee it would be $404,900*. The largest line is leasehold improvements, at $70,000 to $200,000.
What fees does a Great Clips franchisee pay?
The initial franchise fee is $20,000 for a single salon, plus a $5,000 initial advertising contribution. Ongoing, a salon pays 6% of gross sales as a continuing franchise fee and 5% to the ad fund, plus a $750 recruiting technology fee, a $200 training fee and local co-op dues that average $100 a month. On the 4,158-salon average that comes to $47,336*, or 11.52%* of sales, before local advertising.
How much does a Great Clips salon make in sales?
The 4,158 salons eligible to be open for all of 2025 averaged $410,783 of total sales, with a median of $390,685. 1,848 salons (44.44%) reached or exceeded the average.
How much does a Great Clips salon keep?
For the 2,376 salons that reported costs, average operating cash flow was $83,504, or 19.77% of sales, and the median was $75,896. This is before income tax, depreciation and any reserve for future capital spending, and labor excludes the franchisee and any general manager where identifiable.
How many Great Clips salons are there?
Item 20 shows 4,441 franchised salons at December 31, 2025 and no company-owned salons. In 2025, 110 opened and 108 left, and 903 signed agreements were for salons not yet open.
How long does it take to open a Great Clips salon?
Item 11 gives a typical time of six to 24 months from signing the franchise agreement to opening. Great Clips may cancel the agreement if the salon has not opened within 24 months.
Questions worth putting to Great Clips
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- Which factors does Great Clips see in its highest-selling locations, such as territory, years open and staffing?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Great Clips locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. It also checks whether you are ready to open another one. It is free and it runs in your browser.
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Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
Where these figures come from
Every figure here comes from Great Clips, Inc.’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear. The figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Great Clips is a trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Great Clips, Inc., 2026 Franchise Disclosure Document, issued 30 March 2026.