Great Clips FDD Item 17 is the section of the Franchise Disclosure Document that governs the renewal, termination, transfer, and dispute resolution provisions of the Great Clips franchise relationship. With over 4,400 locations and franchise agreements spanning up to 10 years, understanding what happens at the end of your term, under what conditions Great Clips can terminate the agreement, and what restrictions apply when you want to sell your salon is essential. At Lopes Law LLC, we review these provisions carefully because they determine your long-term flexibility and exit options.

This guide explains what Great Clips discloses in Item 17, identifies the key provisions franchisees should evaluate, and walks through the specific terms that affect your investment from day one through eventual exit.

What Is FDD Item 17 and Why Does It Matter for Great Clips?

Item 17 of any Franchise Disclosure Document is titled “Renewal, Termination, Transfer, and Dispute Resolution.” The FTC Franchise Rule (16 C.F.R. Part 436) requires every franchisor to summarize the contractual provisions that govern how the franchise relationship continues and ends. For Great Clips, with an initial investment of $187,800 to $419,900, these provisions define the lifecycle of your investment.

Item 17 is presented as a summary table that references the actual franchise agreement. The table format makes it appear straightforward, but the underlying contract provisions can be complex. At Lopes Law LLC, we always review Item 17 alongside the full franchise agreement text to identify provisions that the summary may not fully capture.

What Are Great Clips’ Franchise Renewal Terms?

Great Clips franchise agreements have a defined initial term. When that term expires, the franchisee must satisfy specific conditions to renew. Key renewal provisions include:

• Notice requirements: The franchisee must provide written notice of intent to renew within the specified window. Failure to provide timely notice can result in loss of renewal rights.
• Good standing: The franchisee must be in full compliance with the franchise agreement at the time of renewal.
• Facility upgrades: The franchisor may require salon renovations to bring the location up to current design standards. For a Great Clips salon, this could include updated fixtures, signage, technology, and interior design elements.
• Signing the then-current agreement: Renewal typically requires the franchisee to sign the franchise agreement version then being offered to new franchisees, which may contain different terms.
• Renewal fee: A fee is typically required at renewal, separate from any renovation costs.

What Are the Grounds for Termination?

Great Clips’ franchise agreement defines specific events that give the franchisor the right to terminate. These include:

The Post-Termination Non-Compete

One of the most significant provisions in Great Clips’ Item 17 is the post-termination non-compete. Based on publicly available information, franchisees and their spouses are obligated not to engage in or be connected with any competing business for one year after the expiration or termination of the Franchise Agreement at any location within five miles of any Great Clips salon.

This is a broad restriction. “Any Great Clips salon” means the non-compete extends not just around your former location but around every Great Clips salon in the system. In markets where Great Clips has dense coverage, this can effectively prevent you from opening or working at a competing salon anywhere in your metropolitan area for a full year.

What Restrictions Apply When Transferring a Great Clips Franchise?

Transfer provisions define your ability to sell your franchise. Key transfer terms include:

• Franchisor approval: All transfers require Great Clips’ prior written approval. The buyer must meet the franchisor’s qualification standards.
• Right of first refusal: The franchisor may have the right to match any bona fide third-party offer.
• Transfer fee: A fee is typically required upon transfer of the franchise.
• Buyer requirements: The buyer must complete Great Clips’ training program and sign the then-current franchise agreement.
• Seller obligations: The seller may be required to pay all outstanding fees and resolve any defaults before the transfer is approved.

How Does Dispute Resolution Work?

Great Clips’ franchise agreement specifies dispute resolution mechanisms that may include mandatory mediation, binding arbitration, choice of law and venue provisions, and limitations on available damages. Understanding these provisions before signing is essential because they define your remedies if the relationship goes wrong.

At Lopes Law LLC, we review dispute resolution provisions in every FDD we analyze. These clauses can significantly affect your ability to pursue claims against the franchisor. For more on franchise agreement provisions, see franchise agreement red flags to watch for and what to expect from an FDD review. For existing franchisees evaluating options, learn about our franchise exit audit.

Frequently Asked Questions About Great Clips FDD Item 17

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Last updated: March 12, 2026