Franchise Deep Dive: Sport Clips Franchise Costs, Fees, Profit and Data

The sport-centric barbershop concept caters to men and boys in need of a high-quality haircut in a unique environment. With nearly 1,900 locations, Sport Clips continues to be a fan favorite.

By Morgan Wood1851 Franchise Contributor

SPONSORED 4:19 PM • 03/02/23

LAST UPDATED: January 4, 2023

FRANCHISE WEBSITE: https://sportclipsfranchise.com/

NUMBER OF LOCATIONS: 1850

REPORTED COST TO GET IN: $266,300 – $439,500

REPORTED ROI (Item 19): $379,054

Sport Clips is a unique business within the hair salon and barbershop industry. The business was founded in 1993 with a store in Austin, Texas, when Gordon Logan saw an opportunity to capitalize on demand by focusing solely on haircuts for men and boys.

“I’ve been in this industry since 1979,” he said. “In the early 90s, I found that no one was going after the men's & boys’ market, and I like going into a niche where no one else is playing. We felt like there was a real opportunity if we created a concept tailored strictly to men and boys, created an atmosphere where they would feel comfortable, and then trained our stylists on how to execute men’s haircuts. It turns out we were right. It’s been more than 28 years, and we’re just getting started.”

Sport Clips began franchising in 1995 and grew to 50 units in just five years. Now, it continues to be a staple among men seeking a more comfortable, welcoming haircut experience.

How Many Sport Clips Locations Are There?

At the end of 2021, there were 1,778 franchised locations and 72 company-owned locations. The system’s total unit count has been steadily increasing for nearly a decade, likely due to the demand that it serves.

The hair salon industry is a multi-billion dollar one, and it is not one that is positioned to decline in the near future. As the Sport Clips website says, “As long as hair keeps growing, the haircut franchise industry is booming.”

A substantial percentage of men prefer to get their hair cut at a barbershop; for many, the haircut experience is about the ambiance just as much as it is about the haircut itself. Sport Clips provides just that, and clients who return every three to four weeks serve to drive recurring revenue.

What Is the Sport Clips Business Model?

Sport Clips’ primary differentiator is the unique experience it provides. Its website describes the brand as “a place that caters to the sensibilities of men and boys and makes them comfortable.”

With sports on TV, a waiting screen that mimics a scoreboard and floors that are reminiscent of a basketball, the sports theme is present through and through. In addition to the atmosphere, Sport Clips haircuts include a “legendary hot steamed towel,” relaxing shampoo and neck and shoulder treatment, setting the brand a step above other average barbershops.

How Much Can Sport Clips Franchise Owners Make?

According to the brand’s 2022 Franchise Disclosure Document, all sales representations are based on the reporting of “1,439 franchised stores in continual operation during 2019, in continual operation for at least 39 weeks in 2020, and in continual operation for at least 48 weeks in 2021.”

The average sales for all 1,439 stores were $379,054.

Six percent of stores, or 89 units, exceeded $600,000 in sales.
17 percent of stores, or 238 units, reported $350,001 – $400,000 in sales.
71 percent of all stores reported $300,001 or more in sales.

How Much Does It Cost To Open a Sport Clips?

The cost to open a Sport Clips is $266,300 – $439,500, including the following items:

Initial Franchise Fee: $69,500
Travel and Living Expenses While Attending Initial Training: $1,000 – $2,000
Real Estate: not specified
Opening Inventory: $4,000 – $6,000
Fixtures and Equipment, Including Computer Equipment: $58,000 – $68,000
Leasehold Improvements: $90,000 – $150,000
Supplemental Services Fee: $3,000 – $5,000
Professional Fees: $1,000 – $5,000
Permits and Licenses: $1,000 – $3,500
Lease Deposit: up to $10,000
Signage: $4,000 – $8,000
Miscellaneous Opening Costs: $3,000 – $5,000
Insurance: $1,300 – $2,500
Grand Opening Advertising: $30,000
Additional Funds, 6 Months: $40,000 – $75,000

What Is the Franchise Fee for Sport Clips?

The franchise fee is $69,500. This covers the first three licenses, and each additional license carries a $15,000 fee.

Who Is the Leadership of Sport Clips?

What Helpful Articles Can I Read To Learn More?

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