The Yellow Balloon vs Great Clips Franchise Comparison

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

Start-Up Costs and Fees

 
The Yellow Balloon Franchise
Great Clips Franchise
Investment $55,000 - $103,500$146,900 - $282,400
Franchise Fee $25,000$20,000
Royalty Fee 4%6%
Advertising Fee -5%
Year Founded 19831982
Year Franchised 20001983
Term Of Agreement 5 years10 years
Term Of Agreement 5 years10 years
Renewal Fee $2.5K$1.75K


Business Experience Requirements

 
The Yellow Balloon Franchise
Great Clips Franchise
Experience
  • General business experience
  • Marketing skills

  • Marketing skills
  • Strong management & leadership skills

  • Financing Options

     
    The Yellow Balloon Franchise
    Great Clips Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees Yes/NoNo/Yes
    Start-up Costs No/NoNo/Yes
    Equipment No/NoNo/Yes
    Inventory No/NoNo/Yes
    Receivables No/NoNo/Yes
    Payroll No/NoNo/Yes

    Training & Support

     
    The Yellow Balloon Franchise
    Great Clips Franchise
    Training --
    Support Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperativesMeetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
    Marketing Co-op advertising, Ad slicks, National media, Regional advertisingCo-op advertising
    Operations

    Number of employees needed to run franchised unit: 6

    Absentee ownership of franchise 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

     
    The Yellow Balloon Franchise
    Great Clips Franchise
    US Expansion -Yes
    Canada Expansion NoNo
    International Expansion NoYes

    Company Overviews

    About The Yellow Balloon

    Nadia Pidgeon opened her first The Yellow Balloon children's hair salon in 1976 near UCLA and a second location five years later near Universal Studios, serving the children of celebrities, like Warren Beatty, and child stars, like the Olsen Twins. The company began franchising in 2000.
    Each The Yellow Balloon salon caters to kids, featuring mini-arcades and toy boxes, and offering young customers balloons, cookies and popcorn. To commemorate a baby's first haircut, parents are given a framed photo, certificate and lock of hair. Adults can also have their hair cut at The Yellow Balloon.

    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.
    Veteran Incentives
    $5,000 rebate on first-store franchise fee

    "Top  ""       "Entrepreneur

    #59 in Canada's Top franchises.

    "franchiserankingscom"
    #35 on Franchise Rankings.com
    #15 in Franchise 500 for 2020.
    #13 in Franchise 500 for 2021.