Business start year:1982
Franchised since:1983
Headquarters:Minneapolis, Minnesota
Estimated number of units: 4.475
Franchise Description:Great Clips, Inc. is the franchisor. A Great Clips franchised salon provides a required range of hair care services and products in a specific location, usually a shopping mall, identified by brands licensed by the franchisor and using the branding and distinctive business methods prescribed by the franchisor.
Training overview:The franchisor provides training for franchisees as well as their managers and other key employees (eg stylists). Franchisees must meet and complete all current training requirements outlined in the Operations Manual within the time frame set by the Franchisor. Currently, refresher courses are not required, but franchisees can revisit all or part of the Great Clips training programs at no additional cost beyond travel and living expenses. As a condition of renewal of the Franchise Agreement, Franchisees may be required to re-enroll in any Great Clips training program, in whole or in part, at Great Clips' discretion. There are four training components: (1) QuickConnect Training Program for Franchisees, (2) Great Clips Academy Training, (3) LEADS for Executives, (4) In-Salon Training.
Assigned Territory:Franchisees conduct Great Clips business in an authorized location, establishing and operating the salon as provided in the franchise agreement. The franchisor grants franchisees a restricted area consisting of a circular area defined by a three-quarter mile radius from the customer's main entrance to the salon. Franchisor agrees that it will not operate Great Clips salons or grant Great Clips franchises within the Conservation Area, except in non-traditional locations, however Franchisees may establish additional salons within the Conservation Area if Franchisees obtain prior approval from the franchisor. If the salon is located in a densely populated area, the protected area is a radius of one tenth of a mile as determined by the franchisor prior to the salon opening. If the salon location is determined by Franchisor to be a non-traditional location, Great Clips' protected area will be determined at the time of designation.
Obligations and Restrictions:Franchisees must use their best efforts in managing and operating the Great Clips business and regularly manage or operate the salon through designated operators or a manager who has successfully completed the Great Clips Academy and management training programs. Franchise executives and other key brand vendors (eg, stylists) must successfully complete all required training within the time frame set by the franchisor. Franchisees and their spouses are required by the Franchise Agreement not to become involved, associate, participate or consult with any other company or activity, or share their revenues, profits or property with any other company or rental activities that compete with Local de Great Clips business, including any hair care or body care store, spa, beauty school, hairdressing school, cosmetology school, or any business that sells hair care products during the franchise term, for one year upon expiration or termination of the Franchise Agreement anywhere within five miles of a Great Clips salon or via the Internet, or for one year after assigning your interest in the Franchise Agreement anywhere within five miles of a Great Clips salon, subject to to legal requirements, that is, he claims. Franchisees may only offer services and inventory items designated by the franchisor, and franchisees must provide the full range of necessary services and inventory items approved by the franchisor.
Duration and scope of the contract:The duration of the initial franchise term is 10 years from the opening of the salon or, if the franchisee purchases an existing salon, the term is the remainder of the existing salon term. The franchise agreement provides for continuous extensions of 10 years each, as long as the requirements are met.
Financial help:Neither the Franchisor, nor its agents, nor its affiliates offer financing arrangements for the purchase of a salon. Depending on interest rates, availability of funds and other economic factors, the franchisor may offer financing arrangements in the future. The franchisor does not receive payments from any company to obtain financing. The Franchisor has no practice or intention to sell, assign or discount any Financing Agreement in whole or in part to third parties. Although not generally available, the Franchisor, in its sole business discretion, may grant a loan to a Franchisee under certain circumstances and based on certain criteria established by the Franchisor. Great Clips franchisees who apply for loans from the SBA receive the benefits of a streamlined loan process due to inclusion in the franchise registry and uniform franchisor addendum that must be signed in connection with an SBA loan.
Investment tables:
| rate name | Low | hoch |
|---|---|---|
| Initial franchise fee | 20.000 $ | 20.000 $ |
| Initial advertising contribution to the market development announcements fund | 5.000 $ | 5.000 $ |
| Travel and accommodation expenses during the training (per participant) | 1.500 $ | 2.500 $ |
| architectural fees | $ 100 | $ 6.000 |
| Lease improvements, including labor | 65.000 $ | 160.000 $ |
| Rent and Deposit | 1.000 $ | 10.000 $ |
| Light fixtures, signage and furniture, including computers | 40.000 $ | 55.000 $ |
| freight | 4.000 $ | 7.000 $ |
| Sales tax on furniture, signage and furnishings | $ 0 | 3.000 $ |
| Open inventory and supplies | 4.700 $ | 6.400 $ |
| Advertising for the grand opening | 20.000 $ | 25.000 $ |
| Safe | 2.100 $ | 3.000 $ |
| Lease liability fee and lease verification fee | $ 0 | 4.000 $ |
| Additional funds (6-12 months) | 15.000 $ | 55.000 $ |
| TOTAL ESTIMATED | 178.400 $ | 376.900 $ |
| rate type | Crowd |
|---|---|
| Ongoing franchise fee | 6% of gross sales. |
| Sales or other taxes due on the ongoing franchise fee | As required by state or local authorities. |
| Ongoing advertising contribution to the North American Advertising Fund | 5% of gross sales. |
| Training Fee: 1) Die Great Clips-Akademie 2) LEADS for leaders 3) Great Clips College Courses, Tools, and Resources | Blended fee of $200 per salon per year. |
| renewal fee | $1750 for the salon. |
| assignment fee | $1,500 for the Salon. |
| Local cooperative rates | Average of $100 per month. |
| Recruitment Technology Fee | 500$ professional salon |
| Franchise program fee | Varies by event, but ranges from $345 to $550 per meeting or event. |
| insurance coverage | $2,100 - $3,000 per year. |
| Software license fee and support fee | $155 per month; $25 per phone call. |
| Network and hardware service and support fee | $14.99 per month per salon. |
| License fee to manage mobile devices | $51 per year per iPad. |
| Management iPad admin fee | $25 per year per management iPad. |
| Aerohive BR200 Salon Router Garantiegebühr | $43 per year. |
| Meraki MX68-CW Salon Router Maintenance Fee | $240 per year per router. |
| Fee for TotalCare replacement service | $34 per year per terminal. |
| Lane/5000 Warranty and Support Program | $58.56 per year per terminal. |
| Other technology fees | Fees related to re-configuration of hall technology must be paid to The Foundation when purchasing an existing hall to transfer ownership. Technology support includes, but is not limited to: $75 per salon router; $30 per salon iPad. These fees are subject to change. |
| Credit card processing fee | $25 application processing fee; $0.016 per transaction; $5 per salon |
| Gift card processing fee | $0.095 per transaction. |
| Expenses related to lease or sublease agreements | As incurred. |
| real estate commission | As incurred. |
| Affiliate Review Appeal Fee | $ 500 - $ 1.000 |
| late fees | Accrued interest of 14% per annum or the highest interest rate permitted by law in the state where the salon is located. |
| Audit or inspection costs | exam cost. |
| taxes, commercial debts or encumbrances | As applicable. |
| Salon-Upgrades | 20.000 - 80.000 $ |
| Ongoing salon maintenance costs | Search from US$ 3,000 to US$ 9,000. |
| architect fees | $100 for $2,600 |
The above information was compiled from the Great Clips FDD. FDD year: 2022.
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