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.
How COVID-19 affects franchising costs
Strict sanitation and employee protection measures during the coronavirus outbreak add to the typical costs you face when opening a new franchise. Paired with the unusually heavy amount of promotions that may be required by the franchise, you may not see as much in the way of profits starting out. For more information on what support is out there, read our guide to
loans for businesses affected by the coronavirus.
Estimated initial costs
Our cost estimates are accurate as of 2019 from
https://www.franchisedirect.com and include opening fees and expenses only. Your location 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 2019.
How to finance
The best way to finance Great Clips comes down to your personal financial situation. What assets you have available will largely determine how much you need to borrow, and which option suits you best. Potential solutions include:
- Bank loan. Your personal credit plays a large role in getting a business term loan from a bank. Typically this type of funding is for larger amounts.
- Online loan. Credit requirements may be more flexible for an online loan than a bank loan, but amounts may max out at a lower amount — typically around $1 million.
- SBA loan. The good part about SBA loans is that they top out at $5 million, but your business has to meet a number of requirements.
- Credit card. Small costs that aren't fixed, such as stray inventory and supply purchases, may be better off on a business credit card. Just make sure you can pay it off quickly to avoid high APRs.
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
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.
