Merle Norman Cosmetics vs Great Clips Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Merle Norman Cosmetics vs Great Clips including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
	Merle Norman Cosmetics Franchise	Great Clips Franchise
Investment	$39,471 - $180,888	$146,900 - $282,400
Franchise Fee	N/A	$20,000
Royalty Fee	0	6%
Advertising Fee	-	5%
Year Founded	1931	1982
Year Franchised	1989	1983
Term Of Agreement	Open-ended	10 years
Term Of Agreement	Open-ended	10 years
Renewal Fee	-	$1.75K
Business Experience Requirements
	Merle Norman Cosmetics Franchise	Great Clips Franchise
Experience	-	Marketing skills Strong management & leadership skills
Financing Options
	Merle Norman Cosmetics Franchise	Great Clips Franchise
	In-House/3rd Party	In-House/3rd Party
Franchise Fees	No/No	No/Yes
Start-up Costs	No/Yes	No/Yes
Equipment	Yes/No	No/Yes
Inventory	Yes/No	No/Yes
Receivables	No/No	No/Yes
Payroll	No/No	No/Yes
Training & Support
	Merle Norman Cosmetics Franchise	Great Clips Franchise
Training	Field training classes, field visits, advanced home office training and point-of-sale software training Classroom Training: 40 hours Additional Training: Online training	-
Support	Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Proprietary Software Franchisee Intranet Platform	Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
Marketing	Co-op Advertising Ad Templates National Media Regional Advertising Social media Email marketing	Co-op advertising
Operations	Number of employees needed to run franchised unit: 2 Absentee ownership of franchisee is allowed.	Number of employees needed to run franchised unit: 8 - 10 Absentee ownership of franchise is allowed. (95% of current franchisees are owner/operators)
Expansion Plans
	Merle Norman Cosmetics Franchise	Great Clips Franchise
US Expansion	Yes	Yes
Canada Expansion	No	No
International Expansion	Yes	Yes

Company Overviews

About Merle Norman Cosmetics

Even before she opened her first studio in Santa Monica in 1931, Merle Norman's philosophy of "Try Before You Buy" was being carried out as she offered free samples of her products to neighbors, hoping they'd discover the benefits and return as paying customers. And return they did. Many even opened their own studios and the company now has studios throughout the United States and Canada. Carrying on the Merle Norman tradition, franchisees now offer skin care, from cleansers and toners to sun defense, and a full line of cosmetics.

Veteran Incentives $5,000 in inventory

#366 in Franchise 500 for 2020.

About Great Clips

Established in 1982, Great Clips started franchising in 1983 and now has locations throughout the United States and Canada. Usually located in strip malls,

Great Clips hair salons are open evenings and weekends and do not require appointments. On average, franchisees operate three units. Great Clips sponsors NASCAR Busch Series driver Kasey Kahne. The company has also partnered with General Mills, Sprint, Best Buy, Blockbuster, Coca-Cola, Hasbro and DreamWorks.

The total investment necessary to begin operation of a Great Clips franchise is from $146,900 to $282,400. This includes $25,250 to $30,000 that must be paid to Great Clips or an affiliate for a single franchise agreement, and $40,250 to $45,000 that must be paid to Great Clips or an affiliate for the first salon you develop under a Three Star Program Agreement.

If you sign a Master Development Agreement, you also must pay to Great Clips or an affiliate a Development Fee of $4,000 for each salon you agree to develop, which would amount to $8,000 to $40,000 if you were granted the right to develop between two and 10 salons.