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Great Clips Franchise Loan: The Complete Financing Guide for Great Clips Franchise Owners
Opening a Great Clips franchise is one of the most straightforward paths into the hair care industry. With over 4,500 locations across North America, Great Clips is the world's largest salon brand — and for good reason. The business model is proven, the brand recognition is unmatched, and the demand for affordable haircuts remains consistent regardless of economic conditions. But like any franchise investment, getting started requires capital. That's where small business loans and franchise-specific financing come in.
This guide covers everything you need to know about Great Clips franchise costs, financing options, qualification requirements, and how Crestmont Capital — the #1 business lender in the U.S. — can help you turn your Great Clips franchise ambition into a fully funded reality.
In This Article
What Is the Great Clips Franchise?
Great Clips was founded in 1982 in Minneapolis, Minnesota, and has grown to become the largest hair salon franchise chain in the world. The brand operates on a simple, scalable model: convenient locations, affordable pricing, no-appointment-needed service, and consistent quality. Customers walk in, get a haircut, and walk out — typically in 30 minutes or less.
Great Clips salons are typically located in high-traffic strip mall locations alongside grocery stores, pharmacies, and other destination retailers. The company offers franchisees a turnkey system with comprehensive training, marketing support, proprietary technology (including their popular online check-in system), and an established supplier network. Franchisees benefit from the brand's national advertising fund, which drives customer traffic without requiring franchisees to build brand awareness from scratch.
According to Great Clips' most recent Franchise Disclosure Document (FDD), there are over 4,500 Great Clips salons in the U.S. and Canada, generating millions of visits per year. The system-wide revenue figures make it one of the most productive franchise systems per unit in the personal care industry.
Key Fact: Great Clips serves approximately 35 million customers annually across its franchise network, making it one of the most visited hair care brands in North America.
Great Clips Franchise Cost Breakdown
Understanding the full investment required to open a Great Clips franchise is essential before approaching any lender. Great Clips operates under a single-unit franchise model, though many franchisees own multiple locations. Below is a detailed breakdown of typical costs based on publicly available FDD data.
Initial Franchise Fee: $20,000. This one-time fee grants you the right to operate under the Great Clips brand, access its training programs, use its proprietary technology, and receive ongoing support from the franchisor.
Total Initial Investment Range: $136,900 to $258,250. This range covers all startup costs including the franchise fee, leasehold improvements, equipment, furniture, fixtures, signage, initial inventory, and working capital. The variation depends on the size and condition of the space, local real estate costs, and whether you're building out a new location or taking over an existing salon.
Key Cost Components:
- Franchise fee: $20,000
- Leasehold improvements: $50,000 - $120,000
- Equipment and tools: $20,000 - $35,000
- Furniture and fixtures: $15,000 - $30,000
- Signage: $5,000 - $15,000
- Initial inventory: $2,000 - $5,000
- Technology and software: $5,000 - $8,000
- Training expenses: $3,000 - $7,000
- Working capital: $15,000 - $30,000
- Miscellaneous pre-opening expenses: $1,900 - $8,250
Ongoing Fees: Great Clips charges a royalty fee of 6% of gross revenues, plus an advertising contribution that typically ranges from 5-6% of gross revenues (split between the national advertising fund and local marketing). Total ongoing fees are approximately 11-12% of gross revenues.
| Cost Category | Low End | High End |
|---|---|---|
| Initial Franchise Fee | $20,000 | $20,000 |
| Leasehold Improvements | $50,000 | $120,000 |
| Equipment & Furniture | $35,000 | $65,000 |
| Signage | $5,000 | $15,000 |
| Working Capital | $15,000 | $30,000 |
| Total Investment | $136,900 | $258,250 |
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Apply Now →Great Clips Franchise Financing Options
Most prospective Great Clips franchisees need outside financing to cover their initial investment. The good news is that Great Clips is a well-established, recognizable brand — which makes lenders more comfortable extending capital for this type of franchise investment. Here are the most common financing options available:
SBA 7(a) Loans
The Small Business Administration's flagship loan program is one of the best options for franchise financing. SBA 7(a) loans offer loan amounts up to $5 million, long repayment terms (up to 10 years for working capital, up to 25 years for real estate), and competitive interest rates. Because Great Clips is an established franchise brand, SBA lenders often view these applications favorably. You'll typically need a 10-20% down payment, good personal credit, and documented management experience.
Conventional Term Loans
Traditional term loans from private lenders and alternative lending sources can provide faster approvals and more flexible qualification criteria than SBA loans. These loans typically feature fixed repayment schedules and can cover all or part of your franchise investment. Alternative lenders like Crestmont Capital can often fund franchise loans in days rather than weeks.
Equipment Financing
A significant portion of the Great Clips startup investment goes toward salon equipment — styling chairs, shampoo bowls, dryers, clippers, and the technology infrastructure. Equipment financing lets you borrow specifically against these assets, often at favorable rates, since the equipment itself serves as collateral. This preserves your cash for other startup expenses like leasehold improvements and working capital.
Business Lines of Credit
A business line of credit provides flexible access to capital that you draw from as needed — ideal for covering fluctuating working capital needs in your first year of operation. As your salon ramps up and builds its customer base, a line of credit ensures you can handle payroll, supplies, and marketing expenses without disruption.
Franchisor Financing Programs
Great Clips has historically partnered with preferred lenders who are familiar with the brand and its FDD. These lenders may offer streamlined application processes for qualified Great Clips applicants. Ask your Great Clips franchise development representative for their current list of preferred lenders.
Working Capital Loans
During the first 6-12 months of operation, most new salons experience revenue ramp-up periods. Working capital loans help bridge the gap between your opening and the point where the business is cash flow positive. These short-term loans can cover rent, payroll, and supply costs while your customer base grows.
By the Numbers
Great Clips Franchise — Key Statistics
4,500+
Locations Worldwide
$137K
Minimum Total Investment
1982
Year Founded
35M+
Annual Customer Visits
How Great Clips Franchise Financing Works
Understanding the loan process helps set realistic expectations and allows you to prepare the documentation you'll need. Here's a step-by-step overview of how franchise financing typically works:
Step 1 — Review the FDD. Before approaching any lender, you'll need to have received and reviewed Great Clips' Franchise Disclosure Document. The FDD contains audited financial statements, information about existing franchisees, and the specific costs and fees associated with the franchise. Lenders will want to see this document and often use it to assess the viability of the franchise system.
Step 2 — Determine your financing needs. Calculate the total amount you need to borrow by subtracting your available equity and any other capital sources from your total startup investment. Be conservative — most lenders want to see that you can cover at least 20-30% of the total investment with your own funds.
Step 3 — Gather your financial documents. Lenders will typically require: personal tax returns (2-3 years), business tax returns if applicable, personal financial statement, bank statements (3-6 months), resume or biography showing relevant experience, and the signed franchise agreement.
Step 4 — Apply for financing. Submit your loan application along with all supporting documentation. Alternative lenders like Crestmont Capital can often give you a decision within 24-48 hours. SBA loans typically take 30-90 days.
Step 5 — Receive funding and open your salon. Once approved, you'll receive your loan proceeds and can begin the buildout process. Great Clips will assign you a franchise support specialist who guides you through site selection, construction, staffing, and pre-opening marketing.
Get Your Great Clips Financing Fast
Crestmont Capital specializes in franchise loans. We understand the franchise model and can often fund your loan in days, not weeks.
Start Your Application →Who Qualifies for a Great Clips Franchise Loan?
Lender qualification criteria vary by loan type and lender, but here are the general benchmarks for franchise financing:
Credit Score
Most conventional lenders look for a personal credit score of 680 or higher. SBA lenders typically want 680+, though some programs may accept scores as low as 620 with compensating factors. Crestmont Capital works with business owners across a wide range of credit profiles — including those with bad credit — by evaluating the overall strength of your business plan and financial position.
Net Worth and Liquidity
Great Clips itself typically requires franchisees to have a minimum net worth of $300,000 and liquid assets of at least $60,000. Lenders will review your personal financial statement to confirm you have sufficient assets to support the loan and cover any unexpected costs during the startup phase.
Business Experience
You don't need to be a hairstylist to own a Great Clips franchise — in fact, most successful franchisees come from business management backgrounds. However, you should be able to demonstrate relevant management or business ownership experience. Prior franchise experience is a plus but not required.
Collateral
Many franchise loans use the franchise assets themselves as collateral — the equipment, leasehold improvements, and sometimes even the franchise rights. If you have personal real estate or other significant assets, pledging these as additional collateral can improve your loan terms.
Business Plan
A detailed business plan that includes projected revenue, expense estimates, break-even analysis, and marketing strategy strengthens your loan application significantly. Great Clips provides financial performance representations in its FDD that you can use as a baseline for your projections.
Good to Know: Great Clips is a recognized brand in the SBA's Franchise Directory, which means SBA lenders are already familiar with the franchise system and may process your application more efficiently.
How Crestmont Capital Helps Great Clips Franchisees
Crestmont Capital has helped hundreds of franchise owners across the country secure the financing they need to open and grow their businesses. We understand the franchise model — the startup costs, the ramp-up period, the cash flow dynamics — and we've structured our loan programs to address the specific needs of new franchise operators.
Here's what sets Crestmont Capital apart for Great Clips franchise financing:
Fast approvals. We know time is money when you've found a great location. Our streamlined application process can deliver approvals in as little as 24 hours, with funding typically available within 2-5 business days. Compare that to SBA loans, which can take 30-90 days to process.
Flexible qualification criteria. We evaluate your application holistically — not just your credit score. If you have strong business experience, a solid business plan, and sufficient liquid assets, we may be able to offer financing even if your credit profile isn't perfect. We offer fast business loans designed for situations where speed and flexibility matter.
Multiple loan products. Rather than being limited to a single loan type, Crestmont Capital offers a range of financing options that can be combined to cover your full investment. We might pair an equipment financing loan to cover your salon buildout with a working capital line to cover your operating expenses during the ramp-up period.
Dedicated franchise specialists. Our team includes specialists who have funded dozens of franchise deals. They understand the Great Clips FDD, the franchise timeline, and the financial milestones that lenders care about. They can guide you through the application process and help you present the strongest possible loan file.
Many of our franchise clients also take advantage of our business lines of credit post-opening to manage the seasonal fluctuations in revenue that many retail-oriented businesses experience in their first couple of years.
Real-World Financing Scenarios
Understanding how other Great Clips franchisees have structured their financing can help you plan your own approach. Here are several common scenarios:
Scenario 1 — The First-Time Franchisee. Maria has spent 15 years in retail management and has saved $60,000 in liquid assets. She wants to open her first Great Clips in a growing suburban area. Her total investment estimate is $185,000. She approaches Crestmont Capital for a term loan covering $125,000 of the investment, with her own equity covering the remainder. Because of her strong management background and clean credit (720 score), she's approved within 48 hours at competitive rates.
Scenario 2 — The Multi-Unit Operator. James already owns two Great Clips locations and wants to open a third. His existing salons generate strong cash flow, which makes his loan application particularly compelling. He secures an online business loan through Crestmont Capital using his existing business cash flow as the primary qualifier — no personal assets required as collateral. The approval comes through in 24 hours.
Scenario 3 — The Equipment-First Approach. David wants to minimize his upfront cash outlay. He separates his financing into two tranches: an equipment financing loan covers the $45,000 in salon chairs, stations, and technology (using the equipment as collateral), and a working capital line covers the remaining startup costs and operating expenses. This approach preserves his personal liquidity while fully financing the salon's startup.
Scenario 4 — The Lease Assumption. Sarah finds an existing Great Clips location that's being sold by a retiring franchisee. The equipment is already in place and the salon has an established customer base. She needs $110,000 to purchase the franchise rights and provide working capital. A straightforward term loan from Crestmont Capital funds the entire transaction within five business days — before the seller finds another buyer.
Scenario 5 — The Rebuilding Credit Owner. Robert had a medical emergency that damaged his credit score, bringing it to 610. Despite this, he has strong equity in his home, solid management experience, and $75,000 in liquid assets. Through Crestmont Capital's bad credit business loans program, he secures financing by pledging his home equity as additional collateral. His Great Clips location opens on schedule.
Scenario 6 — The Career Changer. Linda spent 20 years in corporate HR and wants to transition to entrepreneurship through the Great Clips franchise. She has excellent credit (750+) and $80,000 saved. Her lack of direct business ownership experience is offset by her management track record and the strength of the Great Clips brand. An SBA-adjacent term loan program at Crestmont Capital provides the remaining $100,000 she needs at favorable rates.
Your Great Clips Story Starts Here
Whether you're opening your first location or expanding your portfolio, Crestmont Capital has the financing solution to move you forward.
Apply Now →Frequently Asked Questions
How to Get Started
Complete our quick application at offers.crestmontcapital.com/apply-now — it takes just a few minutes and there's no obligation.
A Crestmont Capital advisor familiar with franchise financing will review your situation and match you with the right loan product for your Great Clips investment.
Receive your financing and begin your Great Clips buildout. Our team remains available throughout your journey to address any financing needs as they arise.
Conclusion
The Great Clips franchise represents one of the strongest value propositions in the entire franchise industry — a proven brand, a recession-resistant service, and a scalable business model with over four decades of success. With the right great clips franchise cost understanding and the right financing partner, the path from aspiring entrepreneur to franchise owner is shorter than you might think.
Crestmont Capital has the expertise, the loan products, and the speed to help you secure the capital you need. Whether you're opening your first Great Clips or expanding your existing portfolio, we're ready to move as fast as you are.
Apply now and take the first step toward opening your Great Clips franchise today.
Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.
