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FDD Talk 2017: What You Need to Know About the Sport Clips Franchise Opportunity (Financial Performance Analysis, Costs and Fees)

by Franchise Chatter on August 30, 2017

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



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In this FDD Talk 2017 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 2017 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Sport Clips franchise, based on Items 5 and 6 of the company’s 2017 FDD
  • Section IV – Presentation and analysis of Sport Clips’ financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
  • 2016 average gross sales for the 1,105 Sport Clips franchise stores that were in continual operation for the entire calendar years 2014, 2015, and 2016
  • 2016 average gross sales for the 1,256 Sport Clips franchise stores that were in continual operation for the entire calendar years 2015 and 2016
  • 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 (2012 to 2016)
  • 2016 average gross sales, variable costs, payroll, occupancy, advertising expenses, miscellaneous expenses, and operating profit for the 30 Sport Clips stores in Austin, Texas and Las Vegas, Nevada owned and operated by the company for the entire year of 2016

Section I – Background Information

11 Things You Need to Know About the Sport Clips Haircuts Franchise

Summer 2017 “Instant Replay” Promotion



1.  At the beginning of July, Sport Clips Haircuts rolled out its summer promotion dubbed “Instant
Replay,” which gave clients double the signature MVP experience for the price of a single. The promotion included a haircut, “double header” of a massaging shampoo, twice the hot steamed towel or chilled towel, and double the neck and shoulder treatment.

2.  The chilled towels were a new summer special option for the MVP experience and the Instant Replay promotion ran throughout the entire month of July.

Multi-Unit Franchisee Receives Most Valuable Performer Award

3.  In early May, multi-unit Sport Clips Haircuts franchisee Johnny Weber received Multi-Unit Franchisee Magazine’s 2017 Most Valuable Performer Award for a single brand. Weber, who opened his first Sport Clips franchise in 2008 in the Nashville, Tennessee area, has built an empire of 50 stores in seven states in less than nine years.

4.  Weber owns Sport Clips hair salons in Alabama, Florida, Georgia, Indiana, Kentucky, North Carolina, and Tennessee; and also serves as area developer for four states, supporting other franchisees and helping them grow their businesses.

5.  Gordon Logan, founder and CEO of Sport Clips Haircuts, congratulated Weber on the award and thanked him for “his continued work in paving the way to success for Sport Clips franchisees and stylists.”



6.  At the time of his receipt of the award, Weber and his team had opened their 54th store and Weber announced plans to have 61 stores open by the end of 2017.

Donates $25,000 to Helping Children of Fallen Military Members

7.  At the end of May, Sport Clips Haircuts gave a $25,000 donation to Gratitude Initiative, a non-profit that provides essential education programs and college scholarships to children of active duty military, veterans, disabled vets, and those killed in defense of the country.

8.  Logan said that the donation to Gratitude Initiative has a special place in his heart as he served as an aircraft commander in the U.S. Air Force prior to starting Sport Clips. Logan also said, “Sport Clips is focused on providing ‘haircuts with heart’ and one of the key ways we meet that objective is through on-going support of our nation’s military.”

Company History

9.  The first Sport Clips Haircuts was opened in 1993 by Gordon Logan in Austin, Texas. Logan opened Sport Clips Haircuts after realizing that there was space in the market for a “just-for-guys” hair salon. Sport Clips’ original mission to provide a “championship haircut experience in an exciting sports-themed environment” is still alive today.



10.  After opening the first location in Austin, Logan opened Sport Clips Haircuts salons in Houston and Dallas, Texas and started franchising the brand in 1995. Sport Clips Haircuts opened its first international location in Canada in 2012 and today, there are over 1,600 Sport Clips Haircuts salons in the U.S. and Canada.

Entrepreneur’s Franchise 500

11.  Sport Clips Haircuts has appeared on Entrepreneur’s annual Franchise 500 list every year in the past decade. The company’s highest rank was No. 9 in 2017, while its lowest rank was No. 160 in 2011. Sport Clips also ranked on Entrepreneur’s Fastest Growing Franchises lists in 2008, 2010, and 2012 at No. 39, No. 34, and No. 18, respectively.

Section II – Estimated Costs

  • Please click here for detailed estimates of Sport Clips franchise costs, based on Item 7 of the company’s 2017 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Please click here for detailed information on Sport Clips’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.

Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis

Part 1 – Statement of 2016 Gross Sales

  • At the end of calendar year 2016, there were 1,552 franchised Sport Clips stores.
  • The 2 Statements of Gross Sales below do not include 4 stores in Rochester, New York, which are not typical Sport Clips stores and operate under a special limited services license agreement that is not offered to new franchisees. The franchisor knows that the gross sales of the stores in Rochester, New York are, on average, less than other stores in the System.
  • The 2 Statements of Gross Sales below also do not include 32 Company-owned stores located in Austin, Texas and Las Vegas, Nevada.
  • All stores included in the Statements of Gross Sales did not receive any services that were not generally available to other Sport Clips stores, and each store offered similar products and services as would generally be offered by a typical Sport Clips store.

Table 1A – Statement of Gross Sales – Year 2016 Gross Sales (1,105 Stores in Continual Operation During 2014, 2015, and 2016)

  • The gross sales figures included in the first Statement of Gross Sales below are based upon all 1,105 Sport Clips franchise stores that were in continual operation for the entire calendar years 2014, 2015, and 2016. The gross sales figures are taken directly from gross sales reports made by the stores to the company.

Over $600,000



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