Leading Haircare Franchise Secures $14 Million to Finance New Franchisees in North America
MINNEAPOLIS, Nov. 11 // PRNewswire // -- Great Clips, Inc., the largest single brand franchisor in the $55 billion-a-year haircare industry and one of Entrepreneur magazine's top-20 franchise concepts in 2008, proves that despite a down economy, their business concept is recession-resistant. With more than 2,700 salons operating in over 130 markets, Great Clips announced plans this month to open more than 300 additional salons throughout North America in 2008 and 2009.
"Our aggressive growth plans are part of Great Clips' North American development strategy, which includes expanding in existing markets while entering new cities," said Ray Barton, chief executive officer and chairman, Great Clips, Inc. "As we establish a greater presence throughout North America, Great Clips' focus on excellent customer service and franchisee profitability will continue to set us apart and solidify our leadership in the U.S. and Canada."
Great Clips has awarded 75 new franchisees since the beginning of 2008 and has more than 1,000 franchisees currently operating in their network. This year alone, Great Clips will award 30 percent more franchisees than they did last year.
Supporting its development plans is Great Clips' recent success with its financial partners. Recently, InSource Business Finance announced the immediate availability of a $14 million fund devoted to financing Great Clips franchisees. The fund will be used for financing build-outs for new or existing franchisees, salon acquisitions, business debt consolidation and refinancing.
"Having worked with Great Clips franchisees for many years, we are incredibly excited about the availability of this fund," said Brian Link, president and founder, InSource Business Finance. "In today's credit market, many franchisees have called us expressing concern over what they read in the papers. This fund represents our commitment to the Great Clips brand and to its continuing success."
According to the International Franchise Association, there are 909,253 franchised businesses in the United States, providing more than 11 million jobs, or 8.1 percent of the national private-sector workforce. Amid a national financial crisis and a chaotic job market, professionals across the country are now more than ever seeking recession-resistant careers and financial solutions.
"The Great Clips business concept has proven to be recession-resistant, simple and enjoys a steady growth rate. Entrepreneurs will be hard pressed to find a better business model that meets all of these criteria," said Rob Goggins, vice president of franchise development, Great Clips, Inc. "We are interested in working with business professionals across the U.S. and Canada who are seeking a moderate-risk, steady growth business with strong cash flow and a relatively low investment requirement,"
Great Clips offers franchisees a cash-based business with no receivables and manager-run locations. According to Goggins, its 26-year positive track record is due in part to the extensive local support provided to franchisees, such as local corporate support staff and an area training center. No haircare experience is required for potential franchisees, who should possess strong people management skills, a personal net worth starting at $300,000 and liquid assets of at least $40,000, as well as a business management background.
Great Clips, Inc., headquartered in Minneapolis, Minn., is North America's largest franchisor under one brand in the $55 billion-a-year hair care industry. Established in 1982, Great Clips perfected a system for delivering competitively priced, high quality haircuts to men, women and children in a walk-in atmosphere. The company began franchising in 1983, and today, 2,700 Great Clips salons operate in more than 130 markets across the U.S. and Canada. Great Clips salons are open evenings and weekends. For additional franchising information, please visit http://www.greatclipsfranchise.com/or call 1-800-947-1143.