May 19, 2010 // Franchising.com // Great Clips, North America's number one hair salon brand franchise, recently introduced its Three Star lease-signing incentive program. The lease signing incentive is a franchisee-inspired change from the previous incentive program.
"Prospective franchisees love our Three Star program because it's a lease-signing incentive, rather than a store-opening requirement," said Rob Goggins, vice president of franchise development for Great Clips, Inc. "Typically, franchisors require expansion-minded franchisees to open those units within a specific timeframe - for example, three salons within three years. In exchange, the franchisor offers them a discounted franchise fee.
"With our new Great Clips Three Star program, franchisees only have to sign three leases within two years," added Goggins. "The slowdown in strip center construction has changed the incentive dynamics. Now, the signed leases qualify even if the centers haven't been built. Great Clips franchisees commit to the program, and we give them the time to secure and open strong locations."
"The Great Clips Three Star incentive program is a bright idea at the right time," said Manisha Mirchandani, who along with her husband and business partner, John Consigli, plan to open three salons in New Jersey. "The Great Clips business model is built on multi-unit franchise success. You don't want to rush into opening sites, it may have long-term consequences. We'll concentrate on leasing top-notch locations and open them in the near future. This is a great program for Great Clips franchisees."
"Our typical franchisees invest in Great Clips in order to transition out of corporate America. The business model allows individuals to keep their day jobs while building their salon businesses on the side. Successful franchisees usually come from the middle- and upper-level executive ranks of industry. They possess strong management, leadership, communications and people skills. And they don't cut hair," says Goggins, "they are CEOs of their Great Clips, managing people and expanding their businesses."
In December, AllBusiness.com, a wholly owned subsidiary of Dun & Bradstreet, released its 2010 Franchise AllStar 300 listing and once again ranked the Great Clips franchise opportunity as the top hair salon business franchise opportunity.
"Even in this recession economy," Goggins remarks, "we are attracting more inquiries to our franchise opportunity due in part to our aggressive marketing campaigns and to our 22 consecutive quarters of same-store sales growth."
Great Clips is North America's largest hair-care brand with more than 2,800 salons conveniently located in high-visibility strip malls in almost 140 markets. Great Clips consistently ranks among Entrepreneur magazine's Franchise 500Ò. Entrepreneur also ranks Great Clips as one of its "Fastest Growing" and one of "America's Top Global Franchises" for 2009. Franchise Times magazine ranked Great Clips 90th in system-wide sales by in its annual Top 200 listing of worldwide franchise chains.