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FDD Talk 2015: The Sport Clips Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on June 3, 2015

in FDD Talk 2017: Salon Franchises, FDD Talk 2017: Service Franchises, Franchise Earnings, Salon Franchise



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Sport Clips Guys-Watching-Sports

In this FDD Talk 2015 post, you’ll learn the following:

  • Section I – Background information on the Sport Clips franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Sport Clips franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of Sport Clips’ financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • 2014 average gross sales for the 820 Sport Clips franchise stores and company-owned stores that were in continual operation for the entire calendar years 2012, 2013, and 2014
  • 2014 average gross sales for the 985 Sport Clips franchise stores and company-owned stores that were in continual operation for the entire calendar years of 2013 and 2014
  • average same-store sales growth over the last 5 years measured by average weekly revenues for all stores open for at least 13 months at the end of the indicated year (2010 to 2014)
  • 2014 average gross sales, variable costs, payroll, occupancy, advertising expenses, miscellaneous expenses, and operating profit for the 17 Sport Clips stores in Austin, Texas owned and operated by the company for all of 2014
  • 2014 average gross sales, variable costs, payroll, occupancy, advertising expenses, miscellaneous expenses, and operating profit for the 10 Sport Clips stores in Las Vegas, Nevada owned and operated by the company for all of 2014

Section I – Background Information

Back in the 1990s, Gordon Logan was not happy about getting a haircut. His choices seemed limited to either going to a women’s salon where he inevitably felt very out of place as a tall Texan usually decked out in a cowboy hat and cowboy boots, or to a traditional barber’s shop. The barbershop was clearly more male-oriented, but as a dying breed it felt not only incredibly dated, but downright boring as well.

With the growing popularity of sports bars, Logan had the idea of establishing a haircut shop geared specifically towards men and boys that catered to their love of sports. He pulled together a top management team to hone the concept and opened the first prototype location in 1993 in Austin, Texas. By 1995 he was ready to start franchising and growing the business at a steady, controlled pace.

Here’s how the nation’s first and only sports-themed haircutting franchise, with 1,300+ locations and headquartered in Georgetown, Texas, keeps the ball moving in the men’s haircut segment:

The Sports Connection

Sport Clips takes its sports-themed approach very seriously. The different packages of services you can get are all named after sports terms: The MVP, the Triple Play, the Varsity, the Jr. Varsity, etc.

What’s interesting about the MVP service package is that it includes a haircut, then a traditional hot steamed towel wrap, then a shampoo, and then (in some locations) a quick neck and shoulder massage, all in just 20 minutes.

But even better is that customers enjoy sports playing on televisions right there in the salon, which explains their tag line, “It’s Good to Be a Guy.” There’s also plenty of sports memorabilia on display and sometimes for sale as well.

The chain even has an annual conference for its franchisees and their employees called the National Huddle.

The Veteran Connection

The Sport Clips demographic is more than just sports fanatics who need haircuts. There’s a strong veteran connection to it as well. This has been placed front-and-center by the founder/CEO Logan. He was in the Air Force as an Aircraft Commander from 1969-1976.

In fact, Sport Clips has become the official haircutters for the VFW (Veterans of Foreign Wars). Its Help A Hero program has raised more than $3 million to help veterans stay in touch with their families as well as provide scholarship support for furthering their education.

In addition, qualified veterans may be able to receive a 20% discount on the franchise fee if they want to become a salon owner themselves through the Veterans Transition Franchise Initiative (VetFran).

The NASCAR Connection

Like Snap Fitness, Sport Clips has gotten heavily involved in NASCAR sponsorships. The chain supports two drivers with Joe Gibbs Racing, including Denny Hamlin in the #11 Toyota and Carl Edwards in the #19 Toyota. In fact, so extensive is the chain’s involvement in NASCAR that it has an entirely different web page devoted just to its NASCAR-related press releases!

Section II – Estimated Costs

  • Please click here for detailed estimates of Sport Clips franchise costs, based on Item 7 of the company’s 2015 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis



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