Sports Clips are a sports-themed hairdressing chain that caters exclusively to men and boys. Haircuts, shaves, and male grooming are what they are about – with sports memorabilia, wide screen TVs carrying the big game, and jazzy sports décor included in the salon experience.
Headquartered in Georgetown, Texas, Sports Clips was established in 1993, and now operates approximately 1900 salons across North America. The first hairdressing chain to focus on the male market, and offering something they call a ‘Championship Haircut Experience’, they claim to be the nation’s largest provider of hair grooming services targeted to men and boys.
Sports Clips at a glance:
You’ll need a minimum net worth of $400,000 and liquid assets of at least $200,000 to qualify for a Sports Clips franchise. However, unlike the majority of major franchise opportunities, Sports Clips do not demand that you are on-site and managing the day-to-day operation of the salon. In fact, they actively request that you keep your regular day job and run the business with a light touch, spending only 10 – 15 hours per week on-site, and hiring a general manager to oversee the store. Couple this flexibility with the relatively modest price tag required to start a new Sports Clips location, and you have the makings of a good passive investment opportunity.
Depending on location, size of your salon, the amount of inventory you carry at opening, the size of your salon team, and many other variable cost factors, opening a new Sports Clips franchise can cost from $266,000 up to $440,000.
After opening, you can expect to pay the usual range of ongoing fees and charges, including:
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| Key Costs Guide | Low | High |
|---|---|---|
| Franchise fee | $30,000 | $69,500 |
| Opening inventory | $4,000 | $6,000 |
| Training costs – travel and living expenses | $1,000 | $2,000 |
| Store lease | $Variable | $Variable |
| Store build-out and improvements | $90,000 | $150,000 |
| Furniture and equipment | $58,000 | $68,000 |
| Supplemental services fee | $3,000 | $5,000 |
| Signage | $4,000 | $6,000 |
Yes. Veterans can receive a 20% discount on their initial franchise fee.
Yes. According to external research, the average ‘buy in’ to own a Sports Clips franchise is $353,000, (almost $100,000 less than most general hair salon franchises), and the average revenue is $379,000, delivering a net profit margin of 23% ($86,000) per year, before taxes and depreciation. This is a strong result for any type of franchise and is well above the average profit margin of 8.2% for general hair salons. Based on these figures, it will take approximately 4 years to recoup the average initial Sports Clips investment.
The Sports Clips franchise failure rate has been 6% over the past three years, and 2% over the past year.
Modest initial investment, stellar profit margins, the possibility of ‘hands-off’ ownership, and less onerous monthly fees make buying a Sports Clips franchise an attractive proposition. Additionally, with typical salon prices of $18 to $21 per haircut, making them highly affordable, the business is less vulnerable to economic downturns. Lastly, the hair salon industry has little fear of being overtaken by automation or remote working. You can’t get a haircut from a robot or via the internet – at least not yet.
Franchisees receive an exclusive territory during the initial five-year term of their contract. The territory is the lesser of a one-mile radius around the franchisee’s salon or a radius around the location that encompasses a population of at least 25,000 people.
Sports Clips provide comprehensive support to their franchisees. Available resources include:
It starts with an application. You can begin the process today. After qualification, and assuming you have completed your financial homework and you still like what you see, you will be required to make an initial investment and then begin the Sports Clips training program.
Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can turn funding your new salon into a very bad hair day. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across Canada. Just tell us what you need and leave the rest to us.
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Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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