Great Clips franchise financing options

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 2022 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.

Franchise	Cost
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.

Equipment	Cost
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.

Real estate	Cost
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.

Training	Cost
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.

Inventory	Cost
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.

Marketing	Cost
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	Cost
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.

Admin	Cost
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.

Other	Cost
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 2022.

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:

1. Go to the Great Clips franchising website and review its financial requirements, including cash-on-hand requirements.
2. Reach out to Great Clips about in-house financing for franchisees.
3. 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.
4. Compare lenders based on amounts, interest rates and what types of personal and business credit history they accept.
5. Once you settle on a lender, gather all required documents, including account statements and assets.
6. 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.

	Curves	Great Clips	Little Caesars
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.