Great Clips FDD – Franchise Information, Costs and Fees
Type of Business
A franchised GREAT CLIPS® Salon offers a required line of haircare services and products from a designated location, customarily in a shopping center, identified by trademarks licensed by the franchisor and using distinctive trade dress and business methods prescribed by Great Clips.
Corporate Information
Great Clips Inc. is a Minnesota corporation that was incorporated on July 12, 1982. Great Clips’ principal business office is 4400 West 78th Street, Suite 700, Minneapolis, MN 55435. Great Clips opened its first GREAT CLIPS® salon in 1982 and began franchising in 1983.
Investment
The total investment necessary to begin operation of a Great Clips franchise is from $182,950 – $414,400. This includes $73,950 – $103,900 that must be paid to Great Clips or an affiliate for a single franchise agreement, and $88,950-$118,900 that must be paid to Great Clips or an affiliate for the first salon you develop under a Three Star Program Agreement. The Three Star Program is a lease signing incentive program where a franchisee signs three Franchise Agreements and the Three Star Program Agreement and receives a discounted Initial Franchise Fee and is required to open three Salons within 24 months.
If you sign a Master Development Agreement (“MDA”), you also must pay to Great Clips or an affiliate a Development Fee of $4,000 for each salon you agree to develop under the MDA (minimum of two), plus a $6,000 Initial Franchise Fee for the first Franchise Agreement you sign in connection with the MDA which would amount to $14,000 to $46,000 in total fees if you were granted the right to develop between two and 10 salons.
