Great Clips

The concept was a huge hit, and the hair salon brand has since grown to nearly 4,500 locations in the United States and Canada. Around 1,200 Great Clips franchisees own and operate the salons, employ 40,000 stylists in more than 180 markets and service approximately two million customers weekly.

Proving its staying power, Great Clips recently celebrated a milestone that would make it the envy of any franchise brand: 15 consecutive years of same-store sales growth.

Sales growth history

This kind of success has not gone unnoticed. A January 2020 Star Tribune report noted that the Minnesota-based company’s systemwide sales have grown from $1.1 billion to $1.5 billion.

The Great Clips leadership team is thrilled by the brand’s recent success, which reflects a long history of excellent service and innovation.

“Great Clips has seen many changes in the hair salon industry over the years, and we’ve proved our staying power time and time again,” Director of Franchise Development Beth Nilssen said. “By simply focusing on offering a good haircut and providing resources that will help franchisees deliver on that product, Great Clips continues to position itself as a sustainable brand that provides a valuable service to local communities.”

Business model success

**There are many factors that contribute to the hair salon brand’s overall success. For one, Great Clips provides a service that cannot be sidelined by e-commerce. Great Clips also keeps its focus on haircuts and hair trimming as opposed to offering more services such as hair coloring.

This leads to a simpler business model, as franchise owners do not need to worry about scheduling for a variety of service offerings. Salons conveniently offer haircuts to children, men, women and seniors, which means an entire family can get their hair cut at once. Additionally, haircuts are competitively priced at an average price of just $15.

Most importantly, the brand embraces technology. In 2011, Great Clips was the first brand in the haircare industry to offer Online Check-In, which allows customers to put their name on the list using their computer or the Great Clips mobile app. In 2019, Great Clips began to roll out Salon X to all of its stores, a technology initiative that enhances the way the brand serves and engages with customers.

Franchisee growth

All of this has translated into success for the brand’s franchisees. Indeed, much of Great Clips’ franchise growth comes from franchisees who opt to become multi-unit owners. The average Great Clips franchise owner operates five to six salons after five years.

The industry has certainly taken note of Great Clips as a franchise opportunity. The brand ranked first in its category for the third year in a row on the Entrepreneur Franchise 500 list. Great Clips was also recognized on Franchise Times’ Top 200+ List for 2019.

While Great Clips has come a long way since it was founded, the brand is still growing and is especially interested in expanding its footprint throughout Canada and the Northeastern United States in 2020. Within Canada, Great Clips seeks franchisees in the national capital city of Ottawa, as well as the entire province of Manitoba, including the province’s capital, Winnipeg.

“Great Clips has come a long way since we were first founded and we still have so much more territory to conquer,” Nilssen said. “We are interested in partnering with growth-minded franchisees who want to help us take the brand to the next level. Our brand offers a wide array of benefits and support for franchisees, and we can’t wait to discuss the Great Clips franchise opportunity with prospective candidates this year.”