Frequently Asked Questions
Learn How You Can Join the Sport Clips Team
Clients of Sport Clips Haircuts know they can drop in any time without an appointment or check in online to claim a spot in line and then be greeted like an MVP by a friendly, professional Stylist while sports play on television. As a Sport Clips Team Leader, you can bring that one-of-a-kind experience to your Clients, too. To help you learn more about the industry and our haircut franchise opportunity, we’ve compiled a list of answers to the questions we receive most frequently.
Looking for more information?Browse through the rest of our website or contact our recruitment team today at (800) 655-9679
What are the minimum requirements to open a Sport Clips store?
To ensure you are able to obtain the necessary financing you will need to move forward, we require you have a minimum of $200,000 liquid assets (cash and marketable securities) and $400,000 net worth. This requirement may be higher if construction costs are higher than normal in certain areas, or if a candidate wants to sign up for more than three licenses.
What is the initial investment?
Your initial cost will be $59,500, which covers your franchise fees for your first three stores. Should you purchase more than three licenses, each additional license will be $12,500.
Currently, the cost of building out a single store, including the franchise fee and working capital, ranges between $233,800 and $388,300. A full breakdown of the cost is provided in Item 7 of our Franchise Disclosure Document (FDD). The bulk of that cost can usually be financed, but lenders will generally require a cash injection of 20-30%. Team Leaders will need to meet lenders’ qualifications for financing.
Can I buy just one store?
Except under certain circumstances, investors are required to purchase a minimum of three licenses. Qualifying circumstances might include a desire to develop in a market where there is not sufficient opportunity to develop three stores within a reasonable area or for veterans who can verify an honorable discharge. We also have opportunities for Store Managers to become Team Leaders (TLs) of a single store.
What is a multi-unit franchise?
Multi-unit franchising is a franchise model where the typical Team Leader owns more than one location. In our case, we require candidates purchase a minimum of three locations, at a cost of $59,500 for all three licenses.
Do you offer incentives for veterans?
Yes, qualified veterans are eligible for a 20% discount off franchise licensing fees.
What is a manager model?
This means you will hire a store Manager who will manage the stores for you. The Manager will spend time on the cutting floor as a Stylist and assist in the operation of the store. As a Team Leader, you are responsible for the manager and will be expected to spend an average of 10-15 hours a week working on your business and performing tasks such as local marketing, bookkeeping, recruiting, hiring, payroll and store visits.
How does the territory work?
Your initial agreement will include an area of preference in which you will build your stores. You will establish this territory with our franchise development representative. A Team Leader is required to live within an hour drive-radius of their first location.
How many company-owned stores exist?
We have 69 stores in four designated company-owned markets: 20 in the Austin, Texas area, 12 in Las Vegas, Nevada, 19 in Central and Northwest Arkansas, and 18 in the greater Oklahoma City and Tulsa, Oklahoma areas. We feel it’s very important for a franchisor to operate stores, and to do so in markets where we don’t compete with our franchised stores for real estate or Stylists. We operate our own stores, setting the example of how to properly operate Sport Clips stores, both in our home market and one hundreds of miles away. We test ALL of our “bright ideas” about how to enhance our system in our own stores before rolling these enhancements out to the system as a whole. In other words, we spend our money to test and prove our ideas before we ask you to spend your money on them!
How long have you been in business?
Our founder, Gordon Logan, and his wife, Bettye, have been in the salon business for over 40 years, spending the first 15 or so in full-service salons. In the early 1990s, they saw a need for a place where clients could be comfortable getting their haircut (Gordon didn’t enjoy getting his haircut in their own full-service salons!). They opened their first Sport Clips location in 1993. We started franchising the concept in 1995. This year Sport Clips celebrates its 27th anniversary.
What Is the Estimated Initial Franchise Investment?
From FDD Item 7
Type of Expenditure Amount Method of Payment When Due To Whom Payment Is Made Initial Franchise Fee $25,000- $59,500 (Note 2) Lump sum Prior to Execution of Franchise Agreement The Company Travel and living expenses while attending initial training $1,000- $2,000 As Incurred During Initial Training Airlines, Hotels and Restaurants Real Estate (Note 3) Opening Inventory $4,000- $6,000 (Note 4) Lump Sum Prior to Opening Vendors Fixtures and Equipment (including computer equipment) $51,500- $61,800 (Note 5) Lump Sum Prior to Opening Contractors and / or Suppliers Leasehold Improvements $69,000- $115,000 (Note 6) Lump Sum Prior to Opening Contractors and / or Suppliers Supplemental Services Fee $3,000-$5,000 (Note 7) Lump Sum Prior to Opening The Company Professional Fees $1,000- $5,000 (Note 8) As Incurred Prior to Opening Suppliers Permits and Licenses $1,000- $3,500 As Incurred Prior to Opening Local and State Agencies Lease Deposit $0- $10,000 Lump Sum Prior to Opening Landlord Signage $4,000- $8,000 (Note 9) Lump Sum Prior to Opening Suppliers Miscellaneous Opening Costs $3,000- $5,000 (Note 10) As Incurred As Incurred Suppliers, Utilities, etc. Insurance $1,300- $2,500 (Note 11) Lump Sum Prior to Opening Insurance Company Grand Opening Advertising $30,000 (Note 12) Lump Sum Prior to Opening The Company Additional Funds - 6 Months $40,000 - $75,000 (Note 13) As Incurred As Needed Employees, Creditors, and / or Suppliers *TOTAL $233,800 - $388,300
*Does not include real estate costs, royalties, or marketing fund contributions.
** Except for the initial franchise fee-which reflects the cost for up to 3 stores-the amounts in the chart above reflect the estimated cost to open one store.
See our FDD for more complete information, including footnotes explaining some of these costs. It is important for you to know that we are not in the business of selling services or products to our system, other than some minor items where we can save you money by buying these items in bulk. We do not take “kickbacks” or commissions from our suppliers, we negotiate the best service, quality and pricing and pass those savings on to you.
Does Sport Clips do in-house financing?
No, we don’t offer first-party financing, but we can refer you to several preferred lenders we work with who are very comfortable with the Sport Clips model.
How big is a store?
A typical location ranges between 1,000 and 1,400 square feet and houses six-to-ten chairs.
Am I responsible for locating a site/store location by myself?
Although you are responsible for choosing your site, you will work with our real estate team to find a location. The site location has to be approved by you, then approved by our executive team. Our real estate team will scout locations based upon the territory you establish with our development professional. You will have the option to accept or pass on any proposed location.
What kind of training can I expect in the first year and on an ongoing basis?
After signing, Team Leaders begin an orientation process that introduces them to the Sport Clips system and various aspects of the business they need to understand in order to be successful.
Topics include basic lessons on:
- Business foundations
- Real estate
- Stylist recruiting
- Sport Clips operations standards
- Training and team development
Team Leaders receive practice and experience on those topics during four-to-five days of management development training in their market, completing a series of comprehensive online learning modules, and during a five-day Team Leader Training Camp held in Georgetown, Texas, prior to opening their first store. Learning continues at their store’s Grand Opening and afterward, through follow-up management development sessions, leadership days held quarterly in most markets, and at the annual National Huddle Conference.
Do you offer a Financial Performance Representation?
The Federal Trade Commission requires we provide that information in a very specific format as part of our Franchise Disclosure Document (FDD). You will receive that document from your franchise development representative. Item 19 includes gross sales averages for our entire network and a more detailed breakdown of costs and revenues for our corporately owned stores. We believe that the Item 19 representations are very important to your consideration of any franchise investment, and we are proud to share our record with you.