Overall costs for Great Clips run anywhere from $146,050 to $263,400. See how the costs break down and what funding options might be right for your new venture into the franchise foray.
Estimated initial costs
Our cost estimates are accurate as of 2021 from Franchise Direct and include opening fees and expenses only. The location you choose for your Great Clips franchise may result in higher or lower fees.
Franchise fees
Great Clips franchise fees total around $20,000, which beats out the $37,000 average for the 200 largest franchises nationwide.
| Initial franchise fee |
$20,000 to $20,000 |
| Estimated total |
$20,000 to $20,000 |
Equipment fees
Equipment fees total $43,750 for Great Clips. This is less than the $180,023 average for the top 200 franchises.
| Fixtures, signage and furnishings, including computer |
$35,000 to $50,000 |
| Sales tax on fixtures, signage and furnishings |
$0 to $2,500 |
| Estimated total |
$35,000 to $52,500 |
Real estate fees
Real estate will set you back $67,375 for Great Clips, thought it's less than the average of $788,376 for the top 200 franchises.
| Architecture fees |
$250 to $3,500 |
| Leasehold improvements, including labor |
$40,000 to $80,000 |
| Rent and security deposits |
$1,000 to $10,000 |
| Lease liability fee |
$1,500 |
| Lease review fee |
$850-$2,500 |
| Architectural fees |
$300-$650 |
| Estimated total |
$41,250 to $93,500 |
Training fees
Great Clips initial training costs total $2,000, which comes in under the nationwide average of $9,788.
| Travel and living expenses while training, per participant |
$1,500 to $2,500 |
| Estimated total |
$1,500 to $2,500 |
Inventory costs
Initial inventory for Great Clips shakes out to $5,550. This is less than the nationwide average of $53,119.
| Opening inventory and supplies |
$4,700 to $6,400 |
| Estimated total |
$4,700 to $6,400 |
Marketing costs
Advertisement and marketing costs total up to $27,500 for Great Clips, which is more than the nationwide average of $9,938.
| Initial advertising contribution to the market development ad fund |
$5,000 to $5,000 |
| Grand opening advertising |
$20,000 to $25,000 |
| Estimated total |
$25,000 to $30,000 |
Insurance costs
Initial insurance costs for Great Clips run $2,050. This means you'll be paying less than the overall nationwide average of $6,311.
| Insurance |
$1,600 to $2,500 |
| Estimated total |
$1,600 to $2,500 |
Administrative fees
Great Clips administrative fees total up to $4,000 — which comes in under the overall nationwide average of $6,761.
| Freight |
$2,000 to $6,000 |
| Estimated total |
$2,000 to $6,000 |
Other expenses
Miscellaneous expenses for Great Clips total $32,500 — less than the nationwide average of $69,970.
| Six to 12 months' additional funds |
$15,000 to $50,000 |
| Estimated total |
$15,000 to $50,000 |
All costs were found using the 200 largest franchises nationwide using Franchise Direct's list of more than 300 franchises, and are accurate as of 2021.
How to finance
Since the estimated total for Great Clips is on the more costly side, we recommend following these steps to get fully financed:
- Go to the Great Clips franchising website and review its financial requirements, including cash-on-hand requirements.
- Reach out to Great Clips about in-house financing for franchisees.
- If in-house financing isn't available, look for online loans, bank loans and SBA loans to help meet the $204,725 estimated opening costs.
- Compare lenders based on amounts, interest rates and what types of personal and business credit history they accept.
- Once you settle on a lender, gather all required documents, including account statements and assets.
- Apply for financing online or in person as required by the lender.
What types of financing is available?
You have several options when it comes to financing a Great Clips — even if the cost is on the heavier side. What assets you have available will largely determine how much you need to borrow, and which option suits you best.
- Online loan. A number of online business lenders offer amounts up to $1 million, with some extending up to $5 million.
- Bank loan. Your personal credit will typically need to at least be good — 670 or higher — when it comes to getting a bank loan large enough to cover a significant portion of Great Clips opening costs.
- SBA loan. While your personal credit score doesn't need to be as good to qualify for an SBA loan, they usually cost more than standard term loans from banks or online lenders.
Also check if Great Clips franchise financing is available. You may be able to get some of the costs covered for less than you would with other traditional funding options.
Compare small business lenders
You may not need financing to cover the estimated $146,050. But if you need funds for other business ventures, select the loan amount, your time in business and revenue and your personal credit score to compare a selection of lenders.
How Great Clips stacks up
Compare how Great Clips holds up against two similarly sized franchises.
| Average Franchise fees |
$33,750 |
$20,000 |
$10,000 |
| Average Equipment fees |
$9,525 |
$43,750 |
$289,000 |
| Average Real estate fees |
$4,375 |
$67,375 |
$533,500 |
| Average Training fees |
$2,750 |
$2,000 |
$14,250 |
| Average Inventory fees |
$750 |
$5,550 |
$108,500 |
| Average Marketing fees |
$6,000 |
$27,500 |
$16,000 |
| Average Licenses and permits fees |
$250 |
NA |
$10,500 |
| Average Insurance fees |
NA |
$2,050 |
$1,600 |
| Average Admin fees |
NA |
$4,000 |
NA |
| Average Personnel fees |
NA |
NA |
NA |
| Average Other fees |
$2,000 |
$32,500 |
NA |
Bottom line
Great Clips franchise costs run a total of $204,725. Before you decide to become a franchisee, compare the total costs against industry averages. And to learn more about financing
read our guide to franchise financing.
