1851

With nearly 2,000 locations across the U.S. and Canada, <a href="http://www.sportclipsfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-sport-clips-avoids-closures-2706053" target="_blank" rel="nofollow" target="_blank">Sport Clips</a> Haircuts is one of the largest haircare franchise systems in the country. For many franchises of that size, regular unit closures are a matter of course, but <a href="https://sportclips.1851franchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-sport-clips-avoids-closures-2706053" target="_blank" rel="nofollow" target="_blank">Sport Clips</a> sees far fewer closures than most comparably sized franchises. In fact, over the past seven years, Sport Clips has avoided closure for 99 percent of its expansive franchise system.

Dave Wells, Sport Clips&rsquo; senior director of franchising, said the franchise&rsquo;s primary defense against unit closures is a careful franchisee selection process.

&ldquo;We thoroughly vet each candidate to make sure they are the right fit for the brand,&rdquo; said Wells. &ldquo;We&rsquo;re not just looking at financial qualifications. We&rsquo;re making sure they can operate our model and relate to stylists and employees in a way that is consistent with both our business model and our values.&rdquo;

That same stringent vetting is applied to real estate selection as well. &ldquo;We look very carefully at each new site,&rdquo; Wells said. &ldquo;It goes all the way up to our leadership team, who are careful to select only locations where the brand is primed to thrive.&rdquo;

Sport Clips also is buoyed by a service model that is uniquely durable to changing market forces like the economy, technology and consumer tastes.

&ldquo;Hair care is a recession-resistant industry,&rdquo; said Earl Blood, Sport Clips&rsquo; senior director of operations. &ldquo;People always need haircuts, regardless of economic conditions. And it&rsquo;s not a profession that is going to be displaced by computers, so, the industry is safe. And Sport Clips is particularly resilient because we focus on men, who return for services more frequently than women do, so it&rsquo;s a very reliable model for securing revenue.&rdquo;

Even the small number of unit closures Sport Clips sees are studied carefully to make sure they do not represent a pattern. According to Blood, one of the first things Sport Clips looks at when a store closes is its age.

&ldquo;The average age of a store that closes is six years old,&rdquo; he said. &ldquo;That&rsquo;s an encouraging sign. That means that the store was able to get on its feet and was likely closed due to external factors.&rdquo;

According to Wells, most of those external factors come down to real estate. &ldquo;A new shopping center may take over the space or a landlord may decide they need to move the store,&rdquo; he said. &ldquo;Typically, that only occurs when an owner chooses a location against the advisement of our development team, but there is still an upside: those closures often come with a buyout.&rdquo;

Closures that occur quickly after a store&rsquo;s opening are the ones that raise alarm bells for Sport Clips, but Blood said even those have a silver lining.

&ldquo;When a store closes quickly, that usually means the owner had the wrong ideology about franchising when they got in,&rdquo; Blood said. &ldquo;It&rsquo;s not what they thought it would be, and they decide to get out. That&rsquo;s why we are so careful about vetting owners, and as a result, we see very few of these closures. The upside to that scenario is that we&rsquo;d rather have a closure than a store that doesn&rsquo;t serve its customers well or poorly represents the brand.&rdquo;

The six-year average for Sport Clips&rsquo; closures offers another reassurance. According to Wells, six years is a timeframe in which most Sport Clips owners are able to achieve substantial multi-unit growth, meaning one store closure is not the end of the owner&rsquo;s business. In fact, Sport Clips requires all new owners to commit to a minimum of three units over a three-to-five-year period. By year six, most Sport Clips owners are able to absorb the loss of a single store and continue to grow with the brand.

Wells said Sport Clips&rsquo; prioritization of multi-unit growth and its uncommonly low closure rate are both reflective of the brand&rsquo;s core commitment to franchise growth through owner growth.

&ldquo;We are not interested in opening up as many stores as possible in as many locations as possible and then seeing which ones last,&rdquo; Wells said. &ldquo;We are dedicated to finding the best owners&mdash;the ones who understand our system and are eager to apply it&mdash;and setting them up in the best possible circumstances to succeed. That allows our owners to grow quickly and effectively, which in turn extends our brand to more customers. That&rsquo;s how we&rsquo;ve reached so many markets without suffering any damage to our brand.&rdquo;

How Sport Clips Avoids Closures

1851 Franchise

The hair salon franchise sees far fewer unit closures than most franchises of its size

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

how-sport-clips-avoids-closures

Children's Lighthouse

Children's Lighthouse - How Children's Lighthouse Stands Out - Early Education Franchise - 1851

How Children's Lighthouse Is Pioneering Top Notch Curriculum in the Early Education Segment

how-childrens-lighthouse-is-pioneering-top-notch-curriculum-in-the-early-education-segment

How This Children’s Lighthouse Leadership Team Member Applies Her Background in Franchising To Help Franchisees Succeed

how-this-childrens-lighthouse-leadership-team-member-applies-her-background-in-franchising-to-help-franchisees-succeed

Biscuit Belly Franchising

How Biscuit Belly's "Damn Good" Biscuits Are Proving Breakfast Is Big Business 

how-biscuit-bellys-damn-good-biscuits-are-proving-breakfast-is-big-business

Paris Baguette

Paris Baguette's Culinary Creativity Drives Guest Affinity and Franchisee Success

paris-baguettes-culinary-creativity-drives-guest-affinity-and-franchisee-success

Seniors Helping Seniors®

Seniors Helping Seniors® In-Home Care Services Expands in Napa Valley, California

seniors-helping-seniors-in-home-care-services-expands-in-napa-valley-california

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

Login

facebook

instagram

twitter

linkedin

youtube

Fast Company: KFC Introduces Spin Off Restaurant, Saucy

fast-company-kfc-introduces-spin-off-restaurant-saucy

Subway Seals the Deal: PepsiCo Beverages Coming to U.S. Locations in 2025

subway-seals-the-deal-pepsico-beverages-coming-to-us-locations-in-2025

Malaysian Franchise Association (MFA) - AFC and FIM 2025 - 1851 Franchise News

Malaysia Focuses on Franchise Growth Through AFC and FIM 2025

malaysia-focuses-on-franchise-growth-through-afc-and-fim-2025

Hilton and Grubhub Expand Mobile Delivery Services to Over 2,600 Hotels

hilton-and-grubhub-expand-mobile-delivery-services-to-over-2600-hotels

Taco Bell Joins the Beverage Boom With New Live Más Café Concept

taco-bell-joins-the-beverage-boom-with-new-live-mas-cafe-concept

Tiam Behdarvandan’s Let’s Get Moving Offers a Franchise Opportunity Rooted in Growth and Support

tiam-behdarvandans-lets-get-moving-offers-a-franchise-opportunity-rooted-in-growth-and-support

How Bella Ballerina Is Redefining Dance Studio Franchising With a Community-Focused and Scalable Business Model

how-bella-ballerina-is-redefining-dance-studio-franchising-with-a-community-focused-and-scalable-business-model

Dennis Cieri Shares How Fitness Factory Health Clubs Blends Strategic Growth with Franchisee-Centric Support

dennis-cieri-shares-how-fitness-factory-health-clubs-blends-strategic-growth-with-franchisee-centric-support

The Ace Up Their Sleeve: How Ace Handyman Services Matters Found the Perfect Partner in Ace Hardware

the-ace-up-their-sleeve-how-ace-handyman-services-matters-found-the-perfect-partner-in-ace-hardware

How To Set up Digital Marketing for Your Franchise Brand

how-to-set-up-digital-marketing-for-your-franchise-brand

Air Force Veteran and Family Find Perfect Fit with TruBlue Franchise in Fort Collins, Colorado

air-force-veteran-and-family-find-perfect-fit-with-trublue-franchise-in-fort-collins-colorado

What Are the Best Burger Franchises To Invest In?

What Are the Best Burger Franchises For Entrepreneurs Invest In?

what-are-the-best-burger-franchises-to-invest-in

How Sport Clips Avoids Closures

MORE STORIES LIKE THIS