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Description
Investment Icon

What is the Initial Investment for a Sport Clips Franchise?

To open a Sport Clips franchise, you should expect an initial investment ranging from $276,800 to $463,000. This includes a franchise fee of $30,000, which grants you access to the brand and its support. Additionally, you’ll need to have cash available between $100,500 and $165,000 to cover startup costs. Be prepared for ongoing costs as well, including a royalty fee of 6% of your revenue and a marketing fee of 5%.

Fees Icon

What Are the Financial Performance Metrics for Sport Clips?

Sport Clips franchises show promising financial performance. The average annual revenue per unit is approximately $423,055, with a median of $406,876. Revenue can vary significantly, with the lowest annual revenue reported at $313,662 and the highest reaching $1,000,000. The breakeven time is typically around 12 months, and investment payback is expected within 18 months, making it an attractive opportunity for aspiring franchisees.

Revenue Icon

What Operational Costs Should You Expect as a Sport Clips Franchisee?

Operating a Sport Clips franchise involves several key expenses. Payroll is the largest cost, averaging $247,016 annually. Other significant expenses include occupancy costs at $74,987 and advertising expenses at $25,392. Overall, the total operating expenses are approximately $360,629, which is about 58% of the average annual revenue. Understanding these costs is crucial for effective financial management and profitability.

Breakeven Icon

How Many Sport Clips Units Are Currently Operating?

As of 2023, Sport Clips has a total of 1,860 units, with 1,785 of those being franchised locations. The franchise has shown consistent growth, increasing from 1,768 franchised units in 2021 to 1,785 in 2023. Corporate-owned units have also grown slightly, indicating a stable expansion strategy. This growth trend reflects the brand's popularity and market presence in the competitive hair care industry.

Sport Clips Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$500,000 - $1,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

18 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$30,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

6%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

5%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$276,800 - $463,000
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$100,500 - $165,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$423,055
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$406,876
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,000,000
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$313,662
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Health & Beauty Franchises
Category icon A more specific division within the broader industry.

i Category:

Hair Salons
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Gordon Logan
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

110 Briarwood Dr., Georgetown, Texas 78628
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

1995
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Sport Clips, Inc.

Sport Clips Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

1860
The number of locations owned by independent franchisees.

Franchised Units i

1785
The number of locations owned and run by the franchisor.

Corporate Units i

75
Units 2021 2022 2023
Total Units 1,840 1,852 1,860
Net Change YoY 12 8
Franchised Units 1,768 1,778 1,785
Net Change YoY 10 7
Corporate Units 72 74 75
Net Change YoY 2 1
Investment About

Initial Investment

The Sport Clips franchise requires a low initial investment ranging from $276,800 to $463,000. This investment includes the franchise fee of $30,000, which is essential for securing your franchise rights. It's important for potential franchisees to evaluate their financial readiness, as the cash required to start can range from $100,500 to $165,000, depending on various factors such as location and build-out costs.

Potential About

Financial Performance

The average annual revenue per Sport Clips unit is approximately $423,055, with a median revenue of $406,876. The revenue can vary considerably, with the lowest reported at $313,662 and the highest reaching $1,000,000. These figures highlight the potential profitability of the franchise, making it an attractive option for aspiring entrepreneurs.

Metrics About

Ongoing Fees

Sport Clips franchisees are subject to ongoing fees, including a royalty fee of 6% of gross sales and a marketing fee of 5%. These fees contribute to the overall support provided by the franchisor, including national advertising and brand development, which can help drive customer traffic to individual locations.

Fees About

Breakeven and Payback

Franchisees can expect to reach breakeven within approximately 12 months of operation. Additionally, the investment payback period is around 18 months, which indicates a relatively quick return on investment compared to other franchise opportunities. This timeline is crucial for new franchisees as they plan their financial strategies.

Breakeven About

Franchise Growth

As of 2023, Sport Clips has shown consistent growth, with a total of 1,785 franchised units, up from 1,768 in 2021. This steady increase in franchised locations reflects the brand's popularity and market demand, providing potential franchisees with confidence in the brand's stability and growth trajectory.

Units About

Corporate Support

Sport Clips offers extensive support to its franchisees, including training programs, operational guidance, and marketing assistance. With a corporate structure that includes 75 company-owned units as of 2023, the franchise provides a robust support network that helps franchisees navigate the challenges of running a successful hair care business.

Frequently Asked Questions

The initial investment for a Sport Clips franchise ranges from $276,800 to $463,000. This includes the franchise fee, equipment, leasehold improvements, and other startup costs.