Sport Clips Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$266,000

-

$440,000

LOCATIONS

1855

Jennifer

Updated

April 11, 2024

Is

Sport Clips

a franchise?

Yes,
Sport Clips
currently
accepts
franchise
applications

Sport Clips, founded in 1993 and franchised since 1995, offers a unique haircare experience for men and boys in a sports-themed environment. The franchise is headquartered in Georgetown, Texas. It's known for the MVP Experience, which combines a precision haircut with a hot steamed towel, massaging shampoo, and neck and shoulder treatment, all set against a backdrop of sports programming.

The franchise operates on a semi-absentee, manager-run model, allowing owners to manage their stores while keeping their day jobs. This flexibility, combined with strong franchisee support and training, contributes to the brand's high satisfaction rates among franchise owners. Sport Clips stands out for its community involvement and commitment to giving back, further strengthening its position in the market.

With an emphasis on quality services and a unique customer experience, Sport Clips offers a promising opportunity for potential franchisees, underpinned by comprehensive training and support.

How many

Sport Clips

franchises

are there?

In 2022, there were
1855
outlets in
the United
States, of which
1781
are franchises, and
74
are corporate-owned.

What are the

Sport Clips

franchise

fees?

Advertising fee

5% to 8%

Initial Franchise Fee

The initial franchise fee for starting a Sport Clips franchise is $30,000. This is non-refundable, fully earned upon receipt by the franchisor as consideration for services including screening and consultation.

Royalty Fee

The franchisor requires a royalty fee of 6% of Net Sales. This is a continuing and nonrefundable weekly fee.

Advertising and Promotion Fund Contribution

This is greater than $300, or 5% of net sales per week. The fee is continuing and non-refundable weekly contribution.

Training Fee

Sports Clips charges a base training fee of $25 per week plus a percentage training fee of $60 or 1% of Net Sales per week, whichever is more.  The training fee is paid weekly for training.

Technology Fee

This fee is 1% of net sales per week, capped at $70.  It is a weekly fee, reviewed annually.

Transfer Fee

The transfer fee is $5,000 for the first store, and $1,000 for each additional store if transfers occur in one transaction. This is payable upon the sale of a franchise.

Renewal Fee

The renewal fee is $5,000 if owning fewer than 3 stores; and $3,500 if owning 3 or more. It is payable upon franchise agreement renewal.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Sport Clips

franchise?

It costs between
$266,000
and
$440,000
to start a
Sport Clips
franchise.
Type of Expenditure Amount
Initial Franchise Fee $30,000 to $69,500
Travel and living expenses while attending initial training $1,000 to $2,000
Real Estate (Opening Inventory) $4,000 to $6,000
Fixtures and Equipment (including computer equipment) $58,000 to $68,000
Leasehold Improvements $90,000 to $150,000
Supplemental Services Fee $3,000 to $5,000
Professional Fees $1,000 to $5,000
Permits and Licenses $1,000 to $3,500
Lease Deposit $0 to $10,000
Signage $4,000 to $8,000
Miscellaneous Opening Costs $3,000 to $5,000
Insurance $1,300 to $2,500
Grand Opening Advertising $30,000
Total $266,300 to $439,500

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Sport Clips

provide

training

to its

franchisees?

Yes,
Sport Clips
provides
training

Sport Clips offers its franchisees and their staff a comprehensive training program consisting of:

 Pre-Opening Training

  • This training is provided to up to two people approved by the franchisor, including at least one principal of the franchised business and one manager designated by the franchisee.
  • The franchisor offers on-site, pre-opening, and opening supervision and assistance as deemed advisable.
  • Franchisees receive a set of confidential operating manuals, which may include training programs on videotape or other electronic media, covering standards and specifications for procedures, equipment, supplies, inventory, management, and operation of the franchised business.

Post-Opening Training

  • Ongoing and general advisory assistance is provided for the operation and promotion of the franchised business.
  • The franchisor continues to establish and maintain high standards of quality, cleanliness, safety, customer satisfaction, and service.
  • Periodic training programs for the franchise network may be coordinated and conducted by the franchisor.

Initial Training Program

  • Before the opening of the franchised business, franchisees complete the Team Leader Orientation self-study program and an initial training program in Georgetown, Texas, at no additional charge, excluding travel and living expenses.
  • The franchised business must be under the full-time supervision of a trained and certified manager.

Does

Sport Clips

provides

territory

protection?

The Sport Clips franchise does offer territory protection to its franchisees with specific conditions. During the initial term of the franchise agreement, the franchisee is granted protected territory defined as either a one-mile radius around the location or a radius encompassing a total population of 25,000 people. 

The franchisor agrees not to establish company-owned units or license other Sport Clips franchises within this territory during the initial term. However, after the initial term, the franchisee does not have exclusive territory but is given the first right of refusal for new locations within the territory.

Can a

Sport Clips

franchise

be run as

a passive

investment?

The Sport Clips franchise agreement does not explicitly allow for passive investment. The franchisee is responsible for operating the franchised business in conformity with the franchisor's prescribed uniform methods, standards, specifications, and operating hours.

While the franchisor does not require the franchisee to personally supervise the franchised business, it is recommended, and the franchisee is ultimately responsible for it. The business must be directly supervised on-premises by a manager approved by the franchisor.

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