Great Clips vs McDonald’s
Franchise Comparison 2026
Great Clips is a personal care & beauty franchise, while McDonald’s operates in quick-service restaurants. Great Clips requires an investment of $188K – $420K while McDonald’s requires $1.5M – $2.6M. In terms of revenue, McDonald’s reports higher average unit revenue at $4.0M. On SBA loan performance, Great Clips has a lower charge-off rate (5.3%) compared to McDonald’s (16.7%). FranchiseVerdict rates Great Clips A (Top Quintile) and McDonald’s A (Top Quintile).
| Metric | Great Clips | McDonald’s |
|---|---|---|
| Verdict Grade | ATop QuintileTop Quintile | ATop QuintileTop Quintile |
| Investment Range | $188K – $420K | $1.5M – $2.6M |
| Franchise Fee | $20K | $45K |
| Royalty Rate | 6.0% | 4.0% |
| Average Revenue (Item 19) | $411K | $4.0M |
| SBA Charge-Off Rate | 5.3% (604 loans) | 16.7% (24 loans) |
| Total Units | 4,441 | 13,457 |
| Unit Growth (YoY) | N/A | N/A |
| Year Began Franchising | 1983 | 2005 |
| FDD Year | 2025 | 2024 |
Investment Range
$188K – $420K
$1.5M – $2.6M
Franchise Fee
$20K
$45K
Royalty Rate
6.0%
4.0%
Average Revenue (Item 19)
$411K
$4.0M
SBA Charge-Off Rate
5.3% (604 loans)
16.7% (24 loans)
Total Units
4,441
13,457
Unit Growth (YoY)
N/A
N/A
Year Began Franchising
1983
2005
FDD Year
2025
2024