Great Clips: The Billion-Dollar Franchise That Still Runs Like a Family Business
Great Clips: The Billion-Dollar Franchise That Still Runs Like a Family Business
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When most people think “4,400-unit franchise,” they picture corporate bureaucracy, high turnover, and maybe even private equity pulling the strings.
Great Clips is none of those things.
For over 40 years, the brand has stayed in the same family’s hands, grown to more than $1 billion in system revenue, and kept private equity out entirely. The result is a culture where owners are expected to be involved and engaged, and where the system is designed to make that possible, even if you’re starting part-time.
The Basics
Industry: Value & convenience haircuts for the whole family (95% of revenue from haircuts alone: no color, nails, or upsell services).
Total Investment: $187,000 – $419,000 depending on market and build-out.
Liquidity/Net Worth Requirements: Typically $100K liquid / $500K net worth. In high-cost markets (Boston, LA, San Francisco, New York, DC) it’s $250K liquid / $1M net worth.
Franchise Fee: $25,000 for a single unit (discounted multi-pack option available).
Royalty / Ad Fund: 6% royalty + 5% ad fund.
Average Growth Path: 1 location at entry; 5–6 locations after 5 years. Owner keeps their day job until 2-4 units up and running.
Large Franchisees: 158 owners with 10+ salons.
What Makes Great Clips Special
1. A Business Built for “Conservatively Ambitious” Owners
Beth Nilssen, Great Clips’ Director of Franchise Development, says their best franchisees aren’t chasing the newest shiny thing, they’re people with proven management experience who want a business that’s stable, scalable, and rooted in a proven model. The model works for owners who want to start while keeping their day job, then scale into multi-unit ownership over time.
2. No Haircutting Experience Preferred
About 95% of owners don’t know how to cut hair, which makes sense because owners should be working on the business, not in it. Great Clips wants owners focused on growth strategy, marketing, and operational oversight, not working behind the chair.
3. A True Community of Franchisees
In most franchises, you get some access to other owners, but you’re mostly on your own. Here, owners report being shocked at how open fellow franchisees are with their numbers, strategies, and advice. Beth says it’s common for franchisees to tell candidates: “Call me anytime, even after you buy.”
4. Relocation Without Penalty
One under-the-radar advantage: If your location’s anchor tenant leaves or the lease goes south, Great Clips gives you up to two years to relocate without buying a new agreement. This keeps owners from being stuck in bad real estate deals—a huge safety net that many franchises don’t offer.
5. Multi-Layer Marketing That Actually Reaches People
Corporate handles national partnerships (think NHL and NCAA), regional co-ops run campaigns in local media markets, and you control neighborhood-level promotions. For the local campaigns you control, Great Clips hands you plug-and-play assets so you can launch a Facebook ad or coupon drop in minutes.
6. Dedicated Recruiting Department
Hiring stylists is a constant in this industry. Unlike most brands, Great Clips has a full recruiting department, not just a single HR person, that creates job ad templates, runs campaigns, and even rewrites your ads to make them appeal to stylists.
7. Data-Driven Operations
Their POS system tracks wait times, haircut times, stylist retention rates, and return visits. Even the scheduling tool uses historical data to predict your busy hours so you can staff accordingly.
Insider Takeaways You Won’t Find on a Website
- Flat Growth Can Still Be Healthy
Beth predicts system-wide growth will be flat for the next couple of years—not because demand is slowing, but because they just rolled out a new interior design. Some multi-unit owners will use that as a moment to retire or trim underperforming locations rather than remodel. That “pruning” keeps the system healthy long-term.
- The Three-Star Program Isn’t Always the Best Start
While buying three units upfront at a discount sounds appealing, Beth advises most new owners to start with one and grow. The three-star program’s two-year deadline to sign leases can create unnecessary pressure for a first-time operator.
- They Won’t Sell to Private Equity—And Neither Can You
PE ownership is off the table for franchisees. Beth says it’s a cultural choice: keep owners personally invested in their teams and communities. The implications are you won't find a buyer if you want a big exit of 5+ locations. However, for those who want a lifestyle business and a franchisee community that feels like family, no PE will keep it that way. In the podcast, Beth talks about succession planning mostly consisting of children taking over the business, seller financing to the franchisee's number 2, or an employee buyout plan.
- The Real Keys to Success Aren’t Glamorous
Beth boils it down to three pillars: a good location, strong marketing, and tight operations. Nail those, follow the system, and you can outperform even in a moderate site.
Who Should Look at Great Clips
If you’re an operator at heart this is a great fit. Someone who can manage managers, drive local marketing, and stick to a proven system—this brand should be on your short list. It’s not for absentee owners or people who want to reinvent the wheel, but if you’re willing to get involved and stay involved, you’re buying into one of the most stable, high-retention systems in franchising.
Bottom line: Great Clips is proof that a franchise can be huge without losing its soul. The combination of a simple business model, unusually strong peer network, relocation safety net, and data-driven tools makes it a rare opportunity in a crowded industry.
If more franchises operated this way, the whole sector’s reputation would improve. And if you’re hunting for a scalable, manager-run business in a stable industry, this is one you want to investigate before those last open markets are gone.
