Worth It?HistoryDatabaseCompareDistress SignalsFDD Changes
Beauty/SalonRevenue OnlyItem 19: ✓ DisclosedQuality: 100/100

Great Clips

Based on 2025 FDD · 6 filings in corpus

FranchiseIQ Score
78
B
Moderate-Low Risk
Composite score based on SBA default rate, unit growth, disclosure quality & investment efficiency.
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)
0
+12 vs prior yr
Net Unit Growth
→ —
Year over year

Financial Analysis

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

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.

Compare

Great Clips vs The Barbershop A Hair Salon for Men, LLCGreat Clips vs House of ColourGreat Clips vs Bellacures

Similar Franchises · Beauty/Salon

The Barbershop A Hair Salon for Men, LLC
Limited Data
$207K–$353K
House of Colour
Limited Data
$33K–$52K
Bellacures
Revenue Only
$320K–$650K
The Barbershop A Hair Salon for Men, LLC
$207K – $353K
House of Colour
$33K – $52K
Bellacures
$320K – $650K
The Great American Barbershop
$265K – $413K

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 →

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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.