Sport Clips
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The haircutting industry is worth nearly $50 billion, but the majority of hair salon franchises are tailored towards women. Sport Clips is designed to fill a niche in the hair industry by providing great haircutting experiences for men, including an exciting sports-themed environment where customers can watch sports while getting their hair cut. This innovative concept has made Sport Clips a highly successful, fast growing franchise opportunity, with more than 820 locations in 38 states.
Since 1993, the Sport Clips team of experts has refined every aspect of the franchise, and it has paid off—Sport Clips is consistently awarded accolades as one of the top franchise opportunities, including Entrepreneur magazine’s Top 50 fastest growing franchises and The Wall Street Journal Start Up’s Top 25 Performers.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
610 |
650 |
729 |
| | % Change | -- |
6.6% |
12.2% |
| | Company-Owned | 13 |
19 |
21 |
| | % Change | -- |
46.2% |
10.5% |
| | Total |
623 |
669 |
750 |
| | % Change | -- |
7.4% |
12.1% |
| | Franchised as % of Total |
97.9% |
97.2% |
97.2% |
Investment Required
The fee for a Sport Clips franchise is $25,000.
Sport Clips provides the following range of investments required to open your initial license. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item | Established Low Range | Established High Range |
| |
Initial Franchise Fee | $25,000 | $25,000 |
| |
Expenses While Training | $1,000 | $2,000 |
| | Opening Inventory | $4,000 | $6,000 |
| | Fixtures and Equipment | $35,000 | $45,000 |
| | Leasehold Improvements | $35,000 | $100,000 |
| | Supplemental Services Fee | $3,000 | $5,000 |
| | Professional Fees | $1,000 | $5,000 |
| | Permits and Licenses | $1,000 | $3,500 |
| | Lease Deposit | $0 | $5,000 |
| | Signage | $4,000 | $8,000 |
| | Miscellaneous Opening Costs | $3,000 | $5,000 |
| | Insurance | $1,200 | $2,400 |
| | Opening Advertising | $15,000 | $15,000 |
| |
Additional Funds (3 Months) | $25,000 | $50,000 |
| |
Total Initial Investment | $153,200 | $276,900 |
Ongoing Expenses
Sport Clips franchisees pay royalty fees equal to 6% of net sales, weekly advertising fees equal to the greater of 5% of net sales or $300, and a weekly local advertising co-op fee of up to $300. Other fees payable by the franchisee include a training fee equal to the greater of 1% of net sales or $55 per week, a monthly computer software maintenance fee of $30, and meeting registration fees not to exceed $1,000 during the term of the franchise agreement.
What You Get—Training and Support
Initial training begins with five days of comprehensive classroom and on-the-job instruction at corporate headquarters in Georgetown, TX, and covers all facets of running a Sport Clips business: business operations, team development, marketing and Sport Clips standards. Franchisees also receive one week of hands-on training at their store location.
Sport Clips continues to support franchisees after store opening with ongoing training and responsive phone support. Sport Clips provides local, regional and national advertising programs, and partners with national and local sports teams and NASCAR to promote individual store locations.
Territory
Sport Clips grants exclusive territories only for the initial five-year term of the franchise agreement.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2012 Edition of Bond’s Hottest New Franchises publication.
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