Established in 1982, Great Clips is the
largest brand in the $55 billion hair care industry. Great Clips salons are
conveniently located in strip malls in more than 130 markets throughout the
U.S. and Canada, and no appointments are necessary for men, women, and children
to get quality haircuts and perms at competitive prices. With an extensive
support system, Great Clips will undoubtedly continue to capture significant
market share in the value haircut segment of the hair care industry.
Great
Clips satisfies a built-in demand that is stable and immune to recessions.
Serious franchisees are allowed to purchase multiple units to increase their
market penetration. Great Clips is efficiently run as a cash business with no
receivables and little inventory. Salons can be operated by managers and
franchisees can maintain their corporate positions while opening multiple
units.
Operating Units
12/31/2006
12/31/2007
12/31/2008
Franchised
2,566
2,646
2,738
% Change
--
3.1%
3.5%
Company-Owned
4
1
0
% Change
--
-75.0%
-100.0%
Total
2,570
2,647
2,738
% Change
--
3.0%
3.4%
Franchised as % of
Total
99.84%
99.96%
100.00%
Investment
Required
The
fee for a Great Clips franchise is $20,000.
Great
Clips provides the following range of investments required to open your initial
franchise. The range assumes that all items are paid for in cash. To the extent
that you choose to finance any of these expense items, your front-end
investment could be substantially reduced.
Item
Established Low
Range
Established High
Range
Franchise Fee
$20,000
$20,000
Initial Advertising Contribution
$5,000
$5,000
Training Expenses (perparticipant)
$1,500
$2,500
Architecture Fees
$500
$3,000
Leasehold Improvements, including Labor
$20,000
$50,000
Rent and Security Deposits
$1,000
$8,000
Fixtures, Signage and Furnishings,
including Computer
$30,000
$40,000
Freight
$1,200
$2,200
Sales Tax on Fixtures, Signage and
Furnishings
$0
$1,500
Opening Inventory and Supplies
$4,700
$6,400
Opening Advertising
$12,000
$12,000
Insurance
$1,500
$2,400
Lease Liability Fee
$0
$3,000
Lease Review Fee
$0
$1,500
Additional Funds (6-12 months)
$12,000
$45,000
Total Investment
$109,400
$202,500
On-going
Expenses
Great
Clips franchisees pay a continuing franchise fee equal to 6% of gross sales and
a continuing advertising fee equal to 5% of gross sales. Other fees payable by
the franchisee include monthly local co-op dues and software license and
support fees.
What You Get—Training
and Support
Great
Clips provides comprehensive training to the franchisee, salon manger and
stylists. Franchisees begin with a four-day New Franchisee Orientation and
Training session in Minneapolis, MN, and then receive marketing training and
ongoing support at area training centers. Professional Stylist Training and
employee training are also given at area training centers, reducing costs.
Great Clips focuses on recruitment and provides a range of custom recruiting
tools to gain quality staff.
In
addition to constantly updated operating manuals, forms, brochures, tools and
handbooks that assist in everyday operations, Great Clips provides an
informative newsletter for franchisees, management staff and stylists. Annual
meetings, conventions and leadership conferences take place to provide further
educational opportunities and exchange news and ideas.
Great
Clips promotes the Great Clips brand in print, radio and television. Great
Clips devotes itself to consumers’ needs, and assists franchisees in
maintaining local public relations, community relations, and marketing and
advertising efforts.
Territory
Great
Clips grants protected areas with a radius ranging from 1/10
to ¾ of a mile depending on population density.
