Buying a Great Clips franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 17 7(a) loans to buy an existing Great Clips (classified mostly as Beauty Salons), totaling $24.4M. The median loan was $938,000, 45% higher than the $645,250 median for all SBA-financed acquisitions. 5 of these loans were approved in the last two fiscal years.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Great Clips resale loans landed between $350,000 and $2,430,000.
- Lender experience exists. Live Oak Banking Company alone has financed 5 Great Clips resales.
- Guaranty. The SBA guaranteed 75% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Great Clips resale
The median SBA 7(a) loan for a Great Clips resale was $938,000 across 17 loans (FY2018 to FY2026). Live Oak Banking Company, Happen Bank and The Huntington National Bank have financed the most Great Clips resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
Great Clips acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $1.6M | $780,000 | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 2 | $2.8M | $1,390,000 | |
| FY2021 | 2 | $1.1M | $546,000 | |
| FY2022 | 4 | $10.1M | $2,425,000 | |
| FY2023 | 2 | $3.6M | $1,782,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 1 | $1.4M | $1,380,000 | |
| FY2026 | 4 | $3.9M | $680,000 |
How often do these acquisition loans fail?
Fewer than 20 Great Clips acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
Seller note standby terms and third-party consents are reviewed before closing.
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Lenders financing Great Clips resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 5 | 29.4% | $8.3M | |
| 2 | Happen Bank | 2 | 11.8% | $3.6M | |
| 3 | The Huntington National Bank | 2 | 11.8% | $700K | |
| 4 | Brighton Bank | 1 | 5.9% | $5M | |
| 5 | Bank of Oak Ridge | 1 | 5.9% | $2.5M | |
| 6 | Milestone Bank | 1 | 5.9% | $1.4M | |
| 7 | PNC Bank, National Association | 1 | 5.9% | $1.4M | |
| 8 | The Bancorp Bank National Association | 1 | 5.9% | $842K | |
| 9 | United Community Bank | 1 | 5.9% | $250K | |
| 10 | United Prairie Bank | 1 | 5.9% | $250K |
States where Great Clips units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Michigan | 3 | 17.6% | $2.1M | |
| 2 | North Carolina | 2 | 11.8% | $4.3M | |
| 3 | Washington | 2 | 11.8% | $3.8M | |
| 4 | Indiana | 2 | 11.8% | $3.6M | |
| 5 | Illinois | 2 | 11.8% | $2.8M | |
| 6 | Utah | 1 | 5.9% | $5M | |
| 7 | Texas | 1 | 5.9% | $1.4M | |
| 8 | Pennsylvania | 1 | 5.9% | $842K | |
| 9 | Georgia | 1 | 5.9% | $250K | |
| 10 | Minnesota | 1 | 5.9% | $250K |
The purchase agreement decides what you bought, not the loan approval.
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Questions buyers ask
How much do buyers borrow to buy a Great Clips franchise?
The median SBA 7(a) loan for a Great Clips resale was $938,000 across 17 loans (FY2018 to FY2026). The middle half of loans ran from $350,000 to $2,430,000. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Great Clips acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for Great Clips (5, 29% of the total). Happen Bank, The Huntington National Bank, Brighton Bank follow.
What interest rate and term do Great Clips acquisition loans carry?
The average initial rate at approval was 6.87% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10 years.
Is a Great Clips resale riskier than other SBA-financed acquisitions?
Too few Great Clips acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are Great Clips units being bought with SBA loans?
Michigan (3), North Carolina (2), Washington (2), Indiana (2), Illinois (2). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- All Beauty Salons acquisitions
- Michigan acquisitions
- North Carolina acquisitions
- Washington acquisitions
- Live Oak Banking Company
- Happen Bank
- The Huntington National Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Great Clips" (franchise code S0743). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.