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Beauty/SalonRevenue OnlyItem 19: ✓ DisclosedHigh Confidence · 100/100FDD data: 2025 · Fresh

Great Clips Franchise Cost and Profit

FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Great Clips.

Based on 2025 FDD · 5 filings in corpus

FranchiseIQ Score
67
B
Moderate-Low Risk
Composite score from 3 risk dimensions. Click for breakdown ↓
Health Score
C
62/100
5/7 metrics · High confidence
Full analysis unlocks:
✓ Cash-on-Cash return
✓ Payback period
✓ SBA default rate
✓ Red flags assessment
✓ Comparable franchises
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Cost and profit at a glance

How much does a Great Clips franchise cost and make?

Based on FDDIQ's FDD corpus, a Great Clips franchise shows an estimated initial investment of $188K – $420K. Reported owner economics show $42K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.

Startup Cost
$188K – $420K
Total initial investment
Profit / Revenue
$42K
FDD Item 19 signal
Payback Signal
7.2 years
Modeled return metric
SBA Default Rate
2.3%
Loan repayment history
Compare franchise costs →Estimate franchise ROI →Check SBA default rates →Browse Beauty/Salon franchises →Compare similar franchises →

Quick fee read: $20K franchise fee · 11% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.

Free decision snapshot

Before you talk to Great Clips, check the numbers buyers usually miss.

The unlocked report ties this brand's FDD disclosures to SBA outcomes, Item 20 movement, fee load, missing-data labels, and buyer assumptions — so you can decide whether this is worth deeper diligence.

FDD disclosure qualitySBA default outcomesItem 20 unit movementFee/cost stressComparable brands
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Total Investment Range$188K – $420K
MinMid: $304KMax

Key Metrics

Franchise Fee
$20K
Royalty Rate
6%
Ad Fund Rate
5%
Total Burden
11.0%
Royalty + ad fund
Units (2023)
-
Net Unit Growth
→ -
Year over year
Cash-on-Cash Return
13.8%
Annual estimated return
Payback Period
7.2 yrs
Break-even timeline
SBA Default Rate
2.3%
vs ~7.2% industry avg
Median Revenue
$382K
Item 19 disclosed
Red Flags Assessment
MEDIUM: Royalty burden above 10%
MED ×1
Premium Data

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CoC ReturnPayback PeriodSBA Default RateMedian RevenueEbitda MarginRisk Score
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Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.

Great Clips vs. Beauty/Salon Average

MetricGreat ClipsBeauty/Salon Avg
SBA Default Rate2.3%▲7.2%
Cash-on-Cash Return13.8%▼15.5%
Total Investment$304K$250K

Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.

SBA Loan Performance

Real lending data from SBA 7(a) loans (2010-2026). 298 loans across 36 states.

Default Rate
2.3%
Low Risk
Total SBA Loans
298
36 states
Total Loan Volume
$91.7M
SBA 7(a) approved
Avg Loan Size
$308K
Per franchisee
Loan Status Breakdown
231
Paid in Full (78%)
34
Currently Active
6
Charged Off (1.1% by $)
$1.0M
Total Charged Off ($)
● Paid● Active● Charged Off

Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.

Compare

Great Clips vs The Barbershop A Hair Salon For MenGreat Clips vs House of ColourGreat Clips vs The Great American Barbershop

Similar Franchises · Beauty/Salon

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Limited Data
$33K–$52K
The Great American Barbershop
Limited Data
$265K–$413K
The Barbershop A Hair Salon For Men
$207K – $353K
House of Colour
$33K – $52K
The Great American Barbershop
$265K – $413K
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Questions to Ask Before You Sign

5 data-driven questions every Great Clips franchise buyer should ask.

  1. 1.What is Great Clips's SBA default rate compared to its competitors?Learn more →
  2. 2.Does Great Clips disclose Item 19 financial performance representations?Learn more →
  3. 3.What is the net unit growth trend over the past 3 years?Learn more →
  4. 4.What is the franchisee termination and transfer rate per Item 20?Learn more →
  5. 5.What do the FDD litigation disclosures (Item 3) reveal about franchisor legal history?Learn more →
Generate attorney questions for Great Clips →Validation call guide →
Data sourced from publicly filed Franchise Disclosure Documents (FDDs) submitted to state franchise regulators. SBA loan data from public SBA 7(a) records. Information reflects the most recent FDD filing in our database and may not reflect current terms. Always verify with the franchisor's current FDD before making any investment decision. Not legal or financial advice.

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