Sport Clips Franchise Costs: Estimated Initial Investment (Item 7, 2026 FDD)
1. Initial Franchise Fee: $30,000 to $69,500
- When you sign a Multi-Unit Development Addendum (MUDA) Agreement, the initial franchise fee is $30,000 for the first store, $24,500 for the second store, and $15,000 for the third store. A total of $69,500 is due in one lump sum when you sign the MUDA Agreement; therefore, there is no additional franchise fee due for the second and third stores.
- When you sign a 2 store MUDA Agreement, the initial franchise fee due is $30,000 for the first store, and $24,500 for the second store. A total of $54,500 is due in one lump sum when you sign the MUDA Agreement; therefore, there is no additional franchise fee due for the second store.
- If you sign a single store Franchise Agreement, the initial franchise fee is $30,000.
- If you purchase more than 3 franchises under an MUDA, the initial franchise fee is $15,000 for each franchise that is in addition to 3 Sport Clips stores if these licenses are purchased at the time the MUDA is executed.
- If additional franchise licenses are purchased after the commencement of the MUDA, the cost is $15,000 per license.
2. Travel and Living Expenses While Attending Initial Training: $1,000 to $2,000
3. Real Estate: Amount Not Specified
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Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Lease payments will vary significantly depending on the geographic location, the lease terms, the total area of your store, and various occupancy fees charged by the lessor.
- The typical space the Company will approve ranges from 1,000 to 1,500 square feet, although smaller or larger spaces may be approved in special situations.
- The rent may range from $20 to $60 (or higher) per square foot per year, depending on several factors. In most areas, rents typically range from $30 to $50 per square foot per year. In addition to base rent, operating expenses could range from $4 to $15 per square foot, depending on the geographical region. This takes into account Common
Area Maintenance, Taxes, Insurance, and other potential administrative fees.
4. Opening Inventory: $4,000 to $8,000
- The cost of initial inventory will vary depending on your store size. The estimated amount is based on the Company’s previous experience with opening Company-owned stores and franchisees. You are required to purchase an initial inventory of approved hair products for retail sale and in-store use.
5. Fixtures and Equipment (Including Computer Equipment): $20,000 to $55,000
- The cost of fixtures and equipment will vary depending on the size, configuration, and location of your store. This amount includes items such as hair cutting furniture and equipment, television sets, merchandise displays, computer equipment, including a laptop for the store manager, and point-of-sale software.
6. Leasehold Improvements: $108,000 to $290,000
- The estimated amount for leasehold improvements is based on the experience of franchisees who opened stores during the previous calendar year for a space of 1,000 to 1,500 square feet, which is the size the Company will typically approve.
- Your cost of construction will depend upon the size of the space, whether the space is new construction or previously occupied, if there is a landlord allowance in the form of either cash or free rent, and your geographical area of the country.
- Depending on raw materials cost (such as steel, flooring, drywall, and other construction materials), construction costs may vary significantly during the course of a year.
- If a landlord allowance is available, it can range from $10 to $40 per square foot, with the average being approximately $25 per square foot range for new construction and approximately $10 per square foot range for existing centers.
7. Supplemental Services Fee: $3,000 to $5,000
- If Sport Clips or an Area Developer in your geographical area offers Supplemental Services, you are required to participate in this service plan. Currently, Sport Clips offers these services in all areas.
- If you sign an MUDA, Sport Clips will charge you a Supplemental Services fee of $5,000 for the first store, $4,000 for the second store, and $3,000 for the third store and any additional stores.
8. Professional Fees: $3,000 to $8,000
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.- This estimate includes the cost of initial legal, accounting, and architectural services. Some cities and/or landlords may require that you use a professional architect or engineer to complete the plans beyond what is provided by Sport Clips’ store designer.
9. Permits and Licenses: $3,000 to $10,000
10. Lease Deposit: $0 to $6,000
11. Signage: $3,800 to $13,000
- The estimated amount for signage includes both store front and in-store signs. Pricing will vary depending on your landlord’s sign criteria. The cost of installing the signage is included in the estimated cost for Leasehold Improvements.
12. Miscellaneous Opening Costs: $0 to $15,000
- This amount includes utility deposits, miscellaneous business licenses, and permits. Some states require a tax deposit, which can be covered by a bond or interest bearing deposit with a bank or with the state.
13. Insurance: $700 to $3,500
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Insurance costs may not be uniform since premiums differ depending upon location, amounts of insurance acquired, the insurance company’s assessment of risk, the location of the insured business and business premises, insurance requirements of the landlord as set forth in the business premises lease, and applicable law.
14. Grand Opening Advertising: $30,000
- The amount of $30,000 is paid to the Sport Clips Ad Fund and is spent by the Ad Fund to promote your store in its local market area using a mix of public relations, promotions, advertisements, direct mail, coupons, and other marketing strategies determined by the company and in its sole discretion.
- You may spend additional amounts on other promotional activities that are arranged by or approved by Sport Clips.
15. Additional Funds – 3 Months: $22,500 to $60,000
- This estimates your initial start-up expenses. These expenses include payroll costs. These figures are estimates and Sport Clips cannot guarantee that you will not have additional expenses starting the business.
16. Total: $236,800 to $580,500
- This does not include Real Estate Costs, Royalties, or Marketing Fund Contributions.
- The median investment of 21 stores to open one Sport Clips store during the previous calendar year was $317,694.
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Why is franchise owner Ms.Debra Sawyer part of the group in Virginia that supports Congress passing the law to Protect Local Business Opportunity Act which clarifies that franchises are not joint employers with their franchisor. Does this suggest that the head Sport Clip franchisors are too much involved with the everyday business of individual Stores? I am interested in investing but not if Mr. Gordon Logan is involved in my business. Ms. Sawyer has been a valuable mentor and I do want to invest my money wisely.