(A note from Ambrosio: Last week’s exclusive interview with Anytime Fitness CEO Chuck Runyon was very well received. I know most of us appreciate getting the inside scoop from key executives of our favorite franchises.
So I’m very happy that the VP of Franchise Development for Great Clips has agreed to participate in an exclusive Q&A with Franchise Chatter. Thank you so much to Rob Goggins for allowing us to take a closer look at the Great Clips franchise opportunity.
We have more exclusive interviews in the pipeline that I’m sure you’ll enjoy, so please check back often. But right now, let’s get to know Great Clips better through Rob Goggins.)
Curious About the Average Sales, Expenses and Operating Cash Flow for Great Clips Salons in 2010?
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Rob Goggins joined Great Clips in July 2007 as Vice President of Franchise Development. Prior to Great Clips, Rob was Vice President of Franchise Development for Service Brands International. In that position, Rob helped grow franchise sales for all four of the Service Brands’ franchise concepts: 1-800-DryClean, Mr. Handyman, Molly Maid and DUCTZ.
He has been a panelist at the International Institute for Franchise Education’s Emerging Franchisor Conference and the International Franchise Association.
Prior to his franchise career, Rob spent more than 10 years in a variety of industrial sales management positions.
1. Why should someone interested in owning his or her own business consider a salon franchise?
It’s a $55 billion dollar, recession-resistant industry with very few large, established brand names – so there is plenty of room for growth. For example, Great Clips is the largest salon brand in the world and we “only” produce $800M in total consumer sales, about 1.5% of the market.
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code to see which franchises are still available near you, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.Additionally, it’s a manager-run franchise model so franchisees can maintain their full-time job while they build the business, if they wish.
Finally, most franchisees in the salon industry own multiple units, helping them grow their profits while spreading the risk.
2. What sets Great Clips apart from your competitors in the salon franchise industry?
We are 100% focused on our franchisees – every single Great Clips salon is owned by a franchisee. Our franchisees know that we are
fully committed to helping them grow their businesses. We are not distracted with operations of our own salons.
We are also laser-focused on a handful of brand measures that our customers tell us are important. While some brands regularly introduce new products or services, we continue to make incremental improvements in our operations so customers feel comfortable that we can provide a great haircut for a fair price in a reasonable amount of time.
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code to see which franchises are still available near you, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does.3. What qualities are you looking for in a prospective franchisee?
On a basic level, we need them to have the proper financial resources: $300k+ net worth, and $50k+ liquid funds.
In addition to the financial requirements, we recruit people who understand business and a profit and loss statement, they’ve had experience managing people and they know how to drive growth.
Our prospective franchisees know they’re not going to get rich quick in our business, but rather they see a 5-10 year plan, or even a 20 year plan, where they can achieve their goals and eventually sell the business, or perhaps hand it down to their children.
4. Can you describe the ideal Great Clips salon location?
In a strip center anchored by the #1 or #2 grocery store in the market, or a Target or Wal-Mart anchored center. There are a number of other factors we consider, including demographics, visibility, signage, access, traffic counts, co-tenants, etc.
5. Based on your observations, what concrete steps do your most successful franchisees take in order to build and grow their businesses?
They hire a good manager, execute our model by focusing on the brand measures and seek out growth opportunities.
6. What kind of ongoing support do you extend to your franchisees to help them become more successful?
Once we sign someone up, they are promptly handed off to our real estate department where we help them find locations and sign a lease. Our training group educates them in the business via online courses and in-person training here in Minnesota. Then we help them design and build out the salon.
Next our marketing team helps them prepare for grand opening and ongoing marketing. Finally, our Business Services group provides ongoing support to the salon manager, general managers and of course the franchisees.
In addition to all of this support, we offer proprietary software to help run the business, HR tools to help them recruit and retain employees, in-market ongoing training for all of their employees and of course annual meetings and conventions.
7. What would you tell a prospective franchisee who wants to know about the profit potential of a Great Clips franchise?
We have the most detailed Item 19 Financial Performance Representation of any salon franchise in our industry. I’d encourage them to read that carefully, and then speak with our franchisees to verify the information.
8. Is there anything else that’s new with Great Clips that you’d like to share with us?
Great Clips is on a roll! We now have achieved 26 straight quarters of same-store sales growth – recession or not, we do well.
Great Clips also launched an industry game-changing online check-in service, and our customers are raving about it. Visit GreatClips.com and see for yourself how easy it is to check wait times at salons near you, and then check-in online and reserve your spot at the salon!
To read my exclusive interview with David Hands, franchisee of Great Clips with 7 salons in Illinois, click here.
To read my review of the Great Clips franchise opportunity, click here.)
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After going to a friend who is a stylist for last 25 years for a haircut I had to move on due to her retirement..I decided to try the Great Clips in Westchester Illinois ,due to the close proximity to our home and on the advice of my adult children, who have gone there with our grandchildren. I was worried about how this would go and if I would be happy with the haircut. I walked in and was greeted by Cersei ,she entered my information in the system and then showed me her work station and we got started..She was very personable, and the detail she put into cutting my hair to make sure I was satisfied was fantastic. I have since gone back to her again, she will be my go to person at Great Clips for a long time..I have worked for the last 15 years in retail and customer service is the top priority for me..My return customers generate many thousands of dollars for my Kitchen Design Department and Home Depot. The development of those relationships with clients are so important and that’s how Cersei went about her work. Fantastic experience ! Please feel free to share my thoughts with the Franchise owners and Cersei..