Sports Clips franchise

Hassle-free business loans to start your Sports Clips franchise.

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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.

Sports Clips business details

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:

Stores: 1,900+
Required investor net worth: $400,000
Required investor liquid cash: $200,000
Minimum investment: $226,000
Maximum investment: $440,000

Can I start a Sports Clips franchise?

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.

How much does a Sports Clips franchise cost?

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:

Royalty fee: 6% of net sales
Advertising fee: $300 per week, or 5% of net sales, whichever is higher
Training fee: Base training fee of $25 per week, plus a percentage training fee of $60 per week or 1% of net sales, which is higher
Stylist recruitment fee: 1% of net sales
Technology fee: 1% of net sales
Local advertising cooperative fee: Up to $300 per week
Computer software maintenance fee: $165 per month

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Estimated key costs to open a Sports Clips franchise (new salon):

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

Do Sports Clips offer discounted franchises for veterans?

Yes. Veterans can receive a 20% discount on their initial franchise fee.

Are Sports Clips franchises profitable?

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 US 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.

What is the failure rate for a Sports Clips franchise?

The Sports Clips franchise failure rate has been 6% over the past three years, and 2% over the past year.

Why should you start a Sports Clips franchise?

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.

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What are the franchise territory policies for Sports Clips?

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.

What franchise resources do Sports Clips offer?

Sports Clips provide comprehensive support to their franchisees. Available resources include:

Pre-opening training: Sports Clips offers its franchisees an on-the-job and classroom training program. This trains them in the business system, including launching their salons, operations, equipment use and hiring the right staff.
Site selection and build-out: The franchisor provides the franchisees with site selection assistance to identify a viable salon location in terms of traffic and growth demographics. Also, it helps them in the construction and set-up of the salons.
Stylist recruitment guidance: The brand offers franchisees assistance in hiring, training and retaining the best talents to run their salons.
Marketing plans: Sport Clips has an experienced marketing and advertising team to help its franchisees promote their businesses and public relations. Franchisees can leverage the brand’s popularity and other promotional tools such as national media, social marketing, email marketing and personalized local salon advertising programs.
Third-party financing: Sports Clips provide limited financial support for investors seeking franchise funding to cover costs such as the franchise fee, startup costs, and payroll. Alternatively, you could work with the many independent funders who provide business loans to franchise operators.
Extra support and coaching: Franchisees get ongoing help from professional business directors and a network of successful business partners and field coaches.

What is the process for starting a Sports Clips franchise?

It starts with an application. You can begin the process here. 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.

Secure franchise funding with Swoop

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 the US. Just tell us what you need and leave the rest to us.

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Written by

Chris Godfrey

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 Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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Sports Clips: https://www.sportclips.com

Profitability: https://sharpsheets.io/blog/sport-clips-franchise-costs-profits/

US general hair salons profitability: https://www.salonsdirect.com/blog/what-to-do-to-keep-your-salon-as-profitable-as-possible/

Failure rate: https://www.vettedbiz.com/listing/sport-clips/

Independent funders: https://swoopfunding.com/us/blog/funding-your-franchise-a-guide-for-franchisees/

Application form: https://sportclipsfranchise.com/research/why-sport-clips-franchise/

Franchise funding: https://swoopfunding.com/us/blog/funding-your-franchise-a-guide-for-franchisees/

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