How much does it cost to open a Great Clips Franchise? [Updated 2020]
The Great Clips Franchise Review
Are you considering opening a Great Clips Franchise? If so, it will be essential to understand the costs & fees and how you will pay for those expenses. This article highlights some key expenses listed in the 2019 Franchise Disclosure Document. It also describes how you can fund those expenses using an SBA Business Loan and/or your retirement funds without paying tax or penalties.
2020 The Great Clips Franchise Cost | The Great Clips Franchise Fee
According to the 2019 Great Clips FDD Franchise Disclosure Document, the cost to start a Great Clips Franchise will include the following:
- Total Investment: The total investment necessary to begin operation of a “Great Clips” franchise ranges from $136,900 – $259,400.
- Initial Fees:
- Initial franchise fee: $20,000
- Veteran Discount: $5,000 rebate on first-store franchise fee
- Royalty Fees: 6%
How can My Solo 401k Financial help me fund a Great Clips Franchise?
My Solo 401k Financial has helped thousands of entrepreneurs with franchise financing. We specialize in helping franchisees use their retirement funds without paying taxes or penalties as well as SBA business loans.
Obtain an SBA Loan for a Great Clips Franchise
- Click HERE to learn more about the SBA Loan Criteria
- Learn how to use your retirement funds as a down payment to obtain an SBA Loan: SBA Loans and 401k Business Financing (ROBS) FAQs
- Take 2 minutes to determine if you are eligible for an SBA loan – for no charge, we will obtain fast and frank feedback from our deep and experienced network of SBA lenders: Click HERE to Pre-Qualify for an SBA Small Business Loan
Use Your 401k to Start a Great Clips Franchise
If you an aspiring entrepreneur looking for financing to open a Great Clips franchise, you may want to consider using our ROBS 401K Business Financing plan which allows you to invest your retirement funds in your business without paying taxes or penalties.
Benefits of Using Your 401k to Start a Business
- You can invest all of your retirement funds in the business without paying taxes or penalties. If you were to withdraw the funds from your retirement account, you will have to pay a 10% penalty (if you are under 59 ½) and income tax which often leaves only 60% or less of the amount withdrawn available to fund your business.
- The funds invested in your business do not have to be paid back to your retirement account (i.e., it is not a loan). With no repayment obligation, the business is able to keep more of the income in the business which can be very important to a growing startup business. Moreover, by investing your own funds you are able to independently fund your business and retain ownership and control.
- There is no credit check required to access your retirement funds.
- The funds are typically available for business financing in approximately 15 business days.
- Other than Roth IRA accounts, funds in virtually all types of retirement accounts are eligible including 401k, Traditional IRA, pension plans, government plans, etc.
Using Your 401k to Start a Business – Process
Step 1: File Articles of Incorporation with the Secretary of State.
Step 2: Obtain Corporation and 401k employer identification numbers (EIN).
Step 3: Open business bank account for the C-corporation.
Step 4: The C-corporation adopts new 401k plan.
Step 5: Transfer funds from your existing 401k, IRA or other retirement account to the new 401k.
Step 6: Fund the Corporation with the new 401k proceeds.
Using Your 401k to Start a Business – Resources