FRANCHISEL.COM — LENDER READINESS PACK
Great Clips
GREAT CLIPS INC
Generated April 6, 2026
Source: 2025 FDD
Government-Filed Source ✓
Great Clips
Lender Readiness Pack · 2025 FDD
Purpose of This Document
This Lender Readiness Pack summarizes key financial metrics for a Great Clips franchise opportunity, sourced from the 2025 Franchise Disclosure Document filed with a state franchise regulator. All financial figures are from official FDD disclosures. Editorial projections are labeled as such and do not constitute guarantees. Consult a franchise attorney and SBA lender before making any commitments.1. Business Overview
Items 1-2| Franchisor | GREAT CLIPS INC |
| Concept | Great Clips |
| Category | Health Beauty |
| Year Franchising Began | 1983 |
| Total System Units | 4,447 |
| Franchised Units | 4,002 |
| FDD Year | 2025 |
| Data Source | 2025 Government-Filed FDD ✓ |
2. Investment Requirements
Items 5-7| Total Investment Range | $187,800 – $419,900 |
| Investment — Low Estimate | $187,800 |
| Investment — High Estimate | $419,900 |
| Investment — Midpoint | $303,850 |
| Initial Franchise Fee | $20,000 |
| Ongoing Royalty | 6% |
| Marketing Fund | 5% |
3. Revenue Performance (Item 19)
Item 19| Average Gross Revenue | $388,522 |
| Units Included | 4,447 |
| Basis | subset |
| Revenue Type | not specified |
| Measurement Period | FY 2025 |
5. System Health (Item 20)
Item 20| Units Opened (reporting period) | 0 |
| Units Closed | 0 |
| Net Unit Growth | +0 |
| Annual Turnover Rate | See FDD |
| System Health Score (FDD-derived) | 7/10 |
6. Franchisor Financial Health (Item 21)
Item 21| Audited Financials | Yes — independent audit |
| Auditor | EY |
| Going Concern Warning | ⚠ YES — review before proceeding |
| Franchisor Revenue | $106,824,630 |
| Total Assets | $127,196,785 |
| Net Income | $450,000 |
| Financial Strength Signal | Weak |
| Franchisor Strength Score (FDD-derived) | 2/10 |
7. Contract Summary (Item 17)
Item 17| Initial Term | 10 years |
| Cure Period (before termination) | 30 days |
| Non-Compete (post-termination) | 1yr / 5mi |
| Mandatory Arbitration | Yes |
| Dispute Venue | Hennepin County, Minnesota |
| Contract Friction Score (FDD-derived) | 7/10 |
9. Management Team (Item 2)
Item 2| Management Quality Score | 8 / 10 — Strong Management Signal |
| Senior Executives | 7 |
| Franchise System Experience | Yes — disclosed in Item 2 |
| Long-Tenured Leadership (5+ yrs) | Yes |
| Recent Leadership Changes | Yes — within 2 yrs of FDD filing |
Leadership has prior franchise system experience; long-tenured executives (5+ years); recent leadership changes detected; 7 senior roles identified.
Extracted from Item 2 (Business Experience) via automated pattern matching · Confidence: medium
12. SBA Lending Notes
Loan Amount Guidance
Based on the investment range ($187,800 – $419,900), an SBA 7(a) loan would typically cover $150,240–$335,920 (80% of total investment). Down payment requirement: typically 10–30% of total project cost.
SBA Registry Status
Check the SBA Franchise Registry (franchisedirectory.sba.gov) to confirm whether Great Clips is listed. Brands on the registry have pre-approved franchise agreements, simplifying the loan process.
Documents Required for SBA Application
- Current FDD (Item 21 audited financial statements are required)
- Signed franchise agreement (or executed copy)
- Personal financial statement (SBA Form 413)
- Business plan with financial projections (prepare separately with your accountant)
- 3 years personal tax returns
- Real estate lease or letter of intent
Disclaimer: This Lender Readiness Pack was generated by Franchisel.com from the 2025 Franchise Disclosure Document filed with a state franchise regulator. Source: Extracted from 2025 FDD filed with MN CARDS (file #928). Data verified from government filing.. Scenario economics are editorial projections using category cost benchmarks — they are NOT guarantees of performance and are NOT sourced from the FDD. This document does not constitute legal, financial, or investment advice. Verify all figures with a qualified franchise attorney and SBA lender before proceeding. Generated April 6, 2026 by Franchisel.com — buyer-aligned, never franchisor-funded.