A Great Clips franchise cost under the March 30, 2026 FDD is $187,800 to $419,900 per salon (Item 7), and the filing is written for owners who run several salons through trained managers.
Key takeaways
- Item 7 of the Great Clips Franchise Disclosure Document, issued March 30, 2026, puts one new salon at $187,800 to $419,900. The high end carries the $35,000 Three Star program fee; with the $20,000 single-salon fee the same lines top out at $404,900.
- Item 15 describes an “owner-operated” system that a Designated Operator or trained salon manager can run day to day, and the Great Clips franchise site says ownership “is not an absentee business”.
- Franchisees who have operated Great Clips salons for over five years average 8.5 salons each, according to Item 20, Table 3, note 2 of the 2026 FDD.
- Fees paid to Great Clips at the start come to $25,000 for one single-agreement salon, $40,000 for three salons under the Three Star Program, or $10,000 per salon under a Master Development Agreement (Item 5).
- Each salon gets a Protected Area of three-quarters of a mile, or one-tenth of a mile in dense areas, and no exclusive territory unless you hold a Master Development Agreement (Item 12).
- Every salon pays 6% of Gross Sales in royalty plus 5% to the ad fund, and about $2,150 a year in flat training, recruiting technology and average co-op charges (Item 6).
What does Great Clips ask of the person who signs?
Great Clips asks for an engaged owner who hires managers, not for a stylist. Item 15 of the March 30, 2026 FDD calls the chain a system of “owner-operated franchised locations” that you run through a Designated Operator or a trained salon manager, and the brand’s franchise site sets minimums of $500,000 net worth and $100,000 in liquid assets.
| Requirement | What the document says | Source |
|---|---|---|
| Who runs the salon | You manage “through Designated Operator(s) or a member of your Salon management team” who has completed the Great Clips Academy and required manager training | FDD Item 15, p. 44 |
| Staffing | You hire, supervise and set wages; “You may not utilize independent contractors to staff the Salon.” | FDD Item 15, p. 45 |
| Owner training | Designated Operators finish the QuickConnect program (49.56 classroom hours, 13 on-the-job hours) within 180 days of signing | FDD Item 11, pp. 27 and 36 |
| Personal guaranty | Each shareholder with any equity interest signs a personal guaranty | FDD Item 15, p. 45 |
| Non-compete | You and your spouse stay out of hair care for one year within five miles of any Great Clips salon after the term ends or you assign | FDD Item 15, p. 45 |
| Net worth | $500,000; $1,000,000 in high-cost markets | Great Clips investment page (Wayback capture, June 14, 2026) |
| Liquid assets | $100,000; $250,000 in high-cost markets | Great Clips investment page (Wayback capture, June 14, 2026) |
| Credit and residence | Credit score of at least 675; new franchisees must live in an open geographic market | Great Clips investment page (Wayback capture, June 14, 2026) |
The FTC Franchise Rule at 16 CFR 436.5(o) makes every franchisor state in Item 15 whether the owner must supervise on premises and who may stand in. Great Clips answers with a manager model: its franchisee traits page (Wayback capture of May 10, 2026) says “your daily presence in the salon isn’t required” but that you must stay engaged in operations, marketing and your market co-op. That puts the brand between owner-operator and passive formats, a split our research on semi-absentee franchise models tracks across other FDDs.
The cash minimums matter before any fee does. The $100,000 liquid figure on the Great Clips investment page (Wayback capture of June 14, 2026) is a brand screening rule, not an FDD number, and our franchise affordability study compares it with 49 other brands’ published minimums.
Does the Great Clips system assume you will own several salons?
The 2026 filing points that way. Item 20, Table 3, note 2 says franchisees who have operated Great Clips salons for over five years average 8.5 salons, and Table 5 lists 903 signed Franchise Agreements with no open salon at December 31, 2025, against 85 projected franchised openings in the next fiscal year.
The system is entirely franchised. Item 20, Table 1 shows 4,427 franchised salons at the end of 2023, 4,439 at the end of 2024 and 4,441 at the end of 2025, with zero company-owned salons in each year. In 2025, 110 salons opened and 103 ceased operations for other reasons, a column that includes salons closing to relocate; note 3 counts 23 salons that closed and reopened at a new site during 2025.
Growth past the first salon is not automatic. Item 12 says Great Clips “has no obligation to enter into additional or new Franchise Agreements with existing franchisees”, so a second or third agreement is a new approval each time. The brand’s traits page frames the path the same way: you “may start by opening a single Great Clips location”, while its most active owners become multi-unit owners. Industry-level counts for salons, barbers and nail chains sit in our beauty salon franchise statistics.
What does each new salon cost to open under Item 7?
Item 7 of the March 30, 2026 Great Clips FDD estimates $187,800 to $419,900 to open one salon of roughly 900 to 1,200 square feet, usually in a shopping center handed over in vanilla shell condition. Leasehold improvements of $70,000 to $200,000 and $20,000 to $60,000 of working capital for the first 3 to 6 months account for most of the spread.
| Item 7 line | Low | High | Paid to |
|---|---|---|---|
| Initial Franchise Fee | $20,000 | $35,000 (Three Star) | Great Clips |
| Initial Advertising Contribution to the MDAF | $5,000 | $5,000 | Great Clips |
| Travel and expenses while training (per participant) | $1,500 | $2,500 | Airlines, hotels, restaurants |
| Architecture fees | $100 | $3,800 | Great Clips |
| Leasehold improvements, including labor | $70,000 | $200,000 | Suppliers, Great Clips, landlord |
| Rent and security deposits | $1,000 | $10,000 | Landlord, utilities, Great Clips |
| Fixtures, signage and furnishings, including salon technology hardware | $40,000 | $55,000 | Suppliers, Great Clips, landlord |
| Freight | $4,000 | $7,000 | Carriers, suppliers, Great Clips |
| Sales tax on fixtures, signage and furnishings | $0 | $3,200 | Suppliers, Great Clips |
| Opening inventory and supplies | $4,700 | $6,400 | Suppliers, Great Clips |
| Grand opening advertising | $20,000 | $25,000 | Suppliers |
| Insurance (property and public liability) | $1,500 | $3,000 | Agent or carrier |
| Lease liability fee and lease review fee | $0 | $4,000 | Great Clips |
| Additional funds (3 to 6 months) | $20,000 | $60,000 | Employees, suppliers, utilities |
| Total | $187,800 | $419,900 | Item 7, p. 15 |
Leasehold improvements at up to $200,000 are the largest line in the $419,900 high-end estimate. Great Clips FDD issued March 30, 2026, Item 7.
Read the high end with care. The $419,900 total adds the $35,000 Three Star program fee, which buys three agreements, to one salon’s build-out. Swapping in the $20,000 single-agreement fee on the same 14 lines gives $404,900 (our arithmetic: $419,900 minus $35,000 plus $20,000). The FDD cover states that $73,800 to $104,400 of a single-agreement budget is paid to Great Clips or an affiliate: the $20,000 fee, the $5,000 MDAF contribution, $48,700 to $71,600 in required fixture, signage, flooring and inventory purchases, $100 to $3,800 in architecture fees and up to $4,000 in lease fees (Item 5).
Two exclusions change the cash plan. Item 7 note 10 says the additional funds line “does not include an owner’s salary or draw”, and note 11 says Great Clips does not offer financing, so personal living costs and any loan sit outside the range. Item 10 adds that Great Clips may guarantee a loan only “under limited circumstances” and may guarantee a lease for a $1,500 lease liability fee. Our guide to reading a Franchise Disclosure Document walks through Items 5, 6 and 7 line by line.
Single agreement, Three Star or Master Development: how do the entry fees compare?
Great Clips sells the same salon through three contracts. Item 5 of the 2026 FDD charges $20,000 plus a $5,000 ad fund contribution for each single agreement, $40,000 for three agreements under the Three Star Program, and $10,000 per salon under a Master Development Agreement, which the FDD says is available in an “extremely limited” number of DMAs.
| Route | Fees to Great Clips | Key condition | Territory | Source |
|---|---|---|---|---|
| Single Franchise Agreement | $20,000 fee plus $5,000 MDAF; later agreements pay $10,000 at signing and $10,000 at the equipment order | Great Clips may cancel if the salon is not open within 24 months | Protected Area per salon | Item 5, p. 9 |
| Three Star Program | $35,000 program fee plus $5,000 MDAF ($40,000 total) for three agreements | A fully executed lease for each agreement within the 24-month term; offered only in certain markets | Protected Area per salon | Item 5, p. 10 |
| Master Development Agreement | $4,000 Development Fee per salon plus $6,000 per Franchise Agreement; MDAF waived if the grand opening plan is followed | Development schedule of one salon a year for each 10 units of Initial Market Unit Potential | Exclusive DMA while on schedule | Items 1, 5 and 12 |
The arithmetic for a three-salon plan shows why the routes matter. Every input below comes from Item 5; the MDA row assumes a DMA whose Initial Market Unit Potential is three salons and a followed grand opening plan.
| Three salons via | Calculation | Fees to Great Clips |
|---|---|---|
| Three single agreements | 3 x ($20,000 + $5,000) | $75,000 |
| Three Star Program | $35,000 + $5,000 | $40,000 |
| Master Development Agreement | 3 x $4,000 + 3 x $6,000 | $30,000 |
Three salons cost $75,000 in initial fees as single agreements, $40,000 under Three Star and $30,000 under a three-unit MDA. Great Clips FDD, March 30, 2026, Item 5; our arithmetic.
The Three Star discount carries a deadline risk. If any of the three agreements lacks a signed lease when month 24 ends, you “forfeit all Three Star Program benefits” for that agreement, and Item 17 says the 24-month term “will not be extended”. With two leases signed, Great Clips may let you convert the third into a single agreement for $15,000 ($10,000 fee plus $5,000 MDAF). The FDD cover describes the program as requiring three salons to open within 24 months, while Item 5 ties the benefit to signed leases, so read Exhibit G before relying on either wording.
A Master Development Agreement prices the whole market up front. Its Development Fee is $4,000 times every unit in the Initial Market Unit Potential, is non-refundable even if you miss the schedule (Exhibit H, section 2), and the FDD’s Item 7 example runs from $14,000 for two salons to $46,000 for 10 at signing. Item 5 also lists a Deferral Program for a salon inside an existing salon’s Protected Area, an Expediter rebate of up to $20,000 toward site acquisition and a $5,000 VetFran rebate for a first salon. Our study of area development agreements in 259 FDDs compares these structures across brands.
How far does a Great Clips Protected Area reach?
A single Great Clips salon gets a Protected Area of three-quarters of a mile from its primary customer entrance, or one-tenth of a mile in an area Great Clips classes as densely populated, under Item 12 of the March 2026 FDD. That is not an exclusive territory; only a Master Development Agreement grants an Exclusive DMA, and only while you stay on schedule.
| Item 12 rule | Single or Three Star agreement | Master Development Agreement |
|---|---|---|
| Territory granted | Protected Area: 0.75 mile radius, 0.1 mile in dense areas | Exclusive DMA (Nielsen television market) |
| Exclusive? | No | Yes, while compliant with the development schedule |
| Non-Traditional Locations | Excluded from the Protected Area | Covered when inside the Exclusive DMA |
| Sales quota to keep the area | None | Development schedule |
| Your own extra salon inside the area | Allowed with prior consent | Each salon needs its own approved agreement |
| Online, texting or telemarketing solicitation | Needs written consent | Needs written consent |
Item 12 names nine Non-Traditional Location types that a Protected Area does not cover: military bases, transport terminals including airports, college campuses, sites inside grocery, club, big box and business or industrial locations, amusement parks, casinos, community events, racing events and sporting events. Great Clips may also run other brands that sell similar services “at any location, including the Protected Area”. If a proposed new Great Clips nearby worries you, Item 6 lists a Sister Store Review Appeal fee of $500 to $1,000, refundable if the outcome goes your way.
Where you can buy is a second filter. The Great Clips territories page (Wayback capture of June 14, 2026) lists 15 high-priority markets for multi-unit growth: Boston, Buffalo, Hartford-New Haven, Kitchener, London (Ontario), Los Angeles, Miami-Fort Lauderdale, New York, Ottawa, Providence-New Bedford, Regina-Moose Jaw, Rochester, Syracuse, Washington DC and Winnipeg-Brandon. Our franchise territory rights research sets the 0.75-mile radius against territory sizes coded from 259 FDDs.
Which recurring Great Clips charges multiply with every salon?
Every Great Clips salon pays 6% of Gross Sales as a Continuing Franchise Fee and 5% to the ad fund, both biweekly by automatic withdrawal, under Item 6 of the 2026 FDD. Item 6 adds that you will likely need 1% to 3% more on local advertising, and several flat charges apply per salon, so a 10-salon owner pays each of them 10 times.
| Item 6 charge | Amount | When due |
|---|---|---|
| Continuing Franchise Fee | 6% of Gross Sales | Biweekly |
| Continuing Advertising Contribution | 5% of Gross Sales | Biweekly |
| Local advertising Great Clips says you will likely need | Minimum of 1% to 3% of Gross Sales | As spent |
| Training Fee | $200 per year per salon | April 1 |
| Recruiting Technology Fee | $750 per year per salon | $375 semi-annually |
| Local co-op dues | System average of $100 per month | Set by your co-op |
| Franchisee Program Fee | $345 to $550 per meeting or event | When due |
| Ongoing maintenance | $3,000 to $9,000 a year | As incurred |
| Salon upgrades | $20,000 to $80,000 | Every 7 to 10 years |
The flat per-salon charges are simple to scale. Using Item 6’s training fee, recruiting technology fee and the $100 monthly co-op system average, the arithmetic below shows what an owner commits to before any sales-based fee.
| Salons owned | Training ($200 each) | Recruiting technology ($750 each) | Co-op at system average ($1,200 each) | Flat total a year |
|---|---|---|---|---|
| 1 | $200 | $750 | $1,200 | $2,150 |
| 3 | $600 | $2,250 | $3,600 | $6,450 |
| 10 | $2,000 | $7,500 | $12,000 | $21,500 |
Sales-based fees add to 11% of Gross Sales (6% plus 5%), or 12% to 14% with the local spend Item 6 describes. Item 8 adds supply control: purchases from Great Clips or designated suppliers make up about 90% to 95% of what you buy to open and 80% to 85% of ongoing purchases, and required-purchase sales were $17,175,075, or 14.6% of Great Clips’ 2025 revenue of $117,518,218. Our franchise advertising fund research compares the 5% contribution with other systems.
Which deadlines start the day you sign?
The Great Clips clock starts at signing. Item 11 of the 2026 FDD gives six to 24 months as the typical time from signing to opening, Item 5 lets Great Clips cancel an agreement whose salon is not open within 24 months, and Designated Operators must finish required training within 180 days of signing.
| Deadline | Rule | Source |
|---|---|---|
| 14 calendar days before signing | You must receive the disclosure document | FDD cover |
| 30 days after each hire | Managers and stylists complete Great Clips Academy | Item 11, p. 38 |
| 90 days after hire or promotion | Managers complete LEADS training | Item 6, p. 12 |
| 180 days after signing | Designated Operators complete QuickConnect training | Item 11, p. 27 |
| 6 to 24 months after signing | Typical opening window | Item 11, p. 28 |
| 24 months | Cancellation right if not open; Three Star lease deadline | Items 5 and 17 |
| 7 to 10 years | Remodel at $20,000 to $80,000 | Item 6, p. 14 |
| 10 years from opening | Term ends; renewal at Great Clips’ sole determination, fee currently $1,750 | Item 17, p. 46 |
For a multi-salon owner these clocks overlap: each agreement has its own 24-month opening window and its own 10-year term, while a Master Development Agreement runs 10 years from acceptance with yearly opening targets from its first anniversary. Our research on how long franchises take to open compares the six to 24 months with other brands’ Item 11 windows.
Buying a Great Clips salon that already operates: what changes?
Buying an operating salon swaps construction risk for a price the seller sets. Item 20 of the 2026 FDD counts 164 transfers in 2023, 207 in 2024 and 175 in 2025, and Item 17 says the buyer receives only the balance of the seller’s 10-year term, with a $1,500 Assignment Fee per salon under Item 6.
| Year | Salons affected by a transfer of controlling interest | Source |
|---|---|---|
| 2023 | 164 | Item 20, Table 2 |
| 2024 | 207 (Great Clips used its right of first refusal on 3) | Item 20, Table 2 |
| 2025 | 175 | Item 20, Table 2 |
Table 2’s note says many of these were single deals covering multiple salons, which fits a system where owners average 8.5 salons after five years. Item 7 note 12 warns that costs may vary if you buy an existing salon, Item 11 lets a buyer do in-salon training alongside the salon’s own manager, and Item 17 keeps a Great Clips right of first refusal on any proposed sale. Our franchise transfer fee research sets the $1,500 fee against other brands.
Which Great Clips cost numbers online predate the March 2026 filing?
Several cost pages still show figures that do not match the March 30, 2026 FDD or the brand’s own requirements page. The gaps cover the total investment, the franchise fee, the cash minimums and the multi-unit average, and each one changes the budget a buyer brings to a lender by tens of thousands of dollars.
| Claim found online (checked November 2, 2026) | What the primary source says | Source |
|---|---|---|
| A lender’s cost page updated October 11, 2026: total $140,000 to $285,000, franchise fee $25,000 | $187,800 to $419,900; fee $20,000 for a single agreement | FDD cover, Items 5 and 7 |
| A franchise blog last modified in 2022: total $114,150 to $216,000, fees of $20,000 to $45,000 | Item 5 lists $20,000 (single) and a $35,000 Three Star program fee; no $45,000 fee | FDD Item 5 |
| Both pages: $50,000 liquid capital and $300,000 net worth | $100,000 liquid and $500,000 net worth; $250,000 and $1,000,000 in high-cost markets | Great Clips investment page |
| A lending data site updated October 2026: fee rising to $25,000 for 2026 | The FDD issued March 30, 2026 still states $20,000 | FDD Item 5 |
| Same site: owners average 5 to 6 salons after five years | 8.5 salons per franchisee who has operated salons for over five years | FDD Item 20, note 2 |
Item 19 of the 2026 FDD does contain performance data: Section I reports 2025 average sales for a defined subset of salons, and Section II reports sales, expenses and cash flows for a smaller reporting subset. This site does not reproduce Item 19 numbers; read them in the filing itself, and see our Item 19 research for how these disclosures are built.
One salon or a market: which Great Clips contract fits your plan?
Match the contract to the number of salons you can lease and staff, not to the lowest fee. The 2026 FDD offers four entry points, from a $25,000 single agreement to a Master Development Agreement priced at $4,000 per unit of market potential, and each carries its own deadline under Items 5, 12 and 17.
| If your plan is | Route | Paid to Great Clips at signing | Watch for |
|---|---|---|---|
| One salon in an open market | Single Franchise Agreement | $25,000 ($20,000 fee plus $5,000 MDAF) | 24-month opening window; no right to later agreements (Item 12) |
| A second salon near your first | Additional agreement, possibly the Deferral Program | $10,000, then $10,000 plus $5,000 at the equipment order | A deferred fee comes due if either salon is sold, relocates or closes |
| Three salons with leases inside 24 months | Three Star Program | $40,000 | Benefits lost for any agreement without a lease at month 24 |
| Two leases signed at month 24 | Three Star conversion | $15,000 for the third agreement | Offered at Great Clips’ sole determination |
| Developing a whole DMA | Master Development Agreement | $4,000 x market potential units plus $6,000 | Non-refundable fee; one opening a year per 10 units |
| Taking over a running salon | Transfer from a franchisee | $1,500 Assignment Fee per salon | Only the remaining term; right of first refusal |
| A passive investment | No route fits | Not applicable | Item 15 owner-operated rule; brand says not an absentee business |
| You live outside an open market | Not eligible as a new franchisee | Not applicable | Brand residence rule |
This article is general information, not legal, financial or investment advice. Before signing, ask Great Clips for the Initial Market Unit Potential of your DMA, whether your target market counts as high cost under its $250,000 liquid rule, and the current Deferral and Grand Opening policies, then have a franchise attorney read Exhibits F, G and H against Item 17.
How we compiled this
We read the Great Clips Franchise Disclosure Document issued March 30, 2026 (413 pages, Minnesota CARDS file 928), Items 1 to 22 plus Exhibits G and H, three Wayback Machine captures of the brand’s franchise site (the live site returned HTTP 403 to our fetcher on November 2, 2026) and 16 CFR 436.5 on eCFR. We excluded every Item 19 figure under this site’s no-earnings rule and did not survey or contact franchisees; all arithmetic uses Item 5, 6 and 7 numbers only.
Frequently asked questions
How much is a Great Clips franchise?
Item 7 of the March 30, 2026 FDD estimates $187,800 to $419,900 to open one salon. That covers the $20,000 franchise fee (or the $35,000 Three Star program fee), a $5,000 ad fund contribution, $70,000 to $200,000 of leasehold improvements, $40,000 to $55,000 of fixtures and signage, $20,000 to $25,000 of grand opening advertising and $20,000 to $60,000 of working capital.
How much does a Great Clips franchise owner make?
This site does not publish earnings figures. Item 19 of the March 30, 2026 FDD reports 2025 average sales for a subset of salons and expenses and cash flows for a smaller subset, so read it there. What you keep depends on the 6% royalty and 5% ad fund in Item 6, rent, stylist wages, and how many salons you run.
Can you own just one Great Clips salon?
Yes. The single Franchise Agreement covers one salon for a $20,000 fee plus a $5,000 ad fund contribution (Item 5). The brand still expects growth: Item 20 note 2 says franchisees who have operated salons for over five years average 8.5 salons, and Item 12 says Great Clips has no obligation to grant you more agreements.
Is buying a Great Clips franchise for sale different from opening a new salon?
Yes. Item 20 counts 175 salons affected by transfers in 2025. A buyer pays the seller’s price instead of the Item 7 build-out, pays a $1,500 Assignment Fee per salon (Item 6) and receives only the balance of the seller’s 10-year term (Item 17). Great Clips holds a right of first refusal on proposed sales.
Does Great Clips offer financing?
No. Item 10 of the March 30, 2026 FDD says Great Clips does not offer financing, though it may guarantee a loan under limited circumstances and may guarantee a lease for a $1,500 lease liability fee plus a $2,200 to $2,500 lease review fee. Item 7 notes that landlords or third parties may finance build-out costs.
What net worth do you need to buy a Great Clips franchise?
The Great Clips investment page (Wayback capture of June 14, 2026) lists $500,000 net worth and $100,000 in liquid assets, rising to $1,000,000 and $250,000 in high-cost markets, plus a credit score of at least 675. These are brand screening rules, not FDD figures, and new franchisees must live in an open market.
Sources
- Great Clips, Inc., Franchise Disclosure Document, issued March 30, 2026, Minnesota Department of Commerce CARDS, document 35696-202603-08, Items 1, 5 to 8, 10 to 12, 15, 17, 19 and 20, Exhibits G and H. Accessed November 2, 2026.
- Great Clips, “Is Great Clips right for you? Investment”, Wayback Machine capture of June 14, 2026. Accessed November 2, 2026.
- Great Clips, “Available territories”, Wayback Machine capture of June 14, 2026. Accessed November 2, 2026.
- Great Clips, “Traits of a Great Franchisee”, Wayback Machine capture of May 10, 2026. Accessed November 2, 2026.
- 16 CFR 436.5, Disclosure items (FTC Franchise Rule), eCFR, version of October 1, 2026. Accessed November 2, 2026.