Sport Clips Franchise Review 2025: Costs, Fees, News, Average Revenues and/or Profits

Sport Clips is a men’s haircutting franchise themed around sports. Designed to make a space where men feel comfortable, it profits off a disconnect that men increasingly feel. The social media age has created more pressure than ever to look good all the time, but men are expected not to know about or engage with the culture of styling and fashion. As a result, they’re often uncomfortable in spaces centered on style and lack the language to talk about it.

Sport Clips works with this by creating a space that’s themed around something traditional men are comfortable with, theming its brand around sports and putting up plenty of screens where customers can watch games in action. Staff can talk as happily about haircuts as about the matches on display and can translate what their customers are looking for into the terminology of styling, or make recommendations for those who don’t know what will look good on them. An app caters to many men’s interest in technological solutions and makes booking easier while providing reminders to keep customers coming in regularly.

Founded in 1993, the franchise expanded fast from the start thanks to a founder with extensive experience of leadership and business. It’s the only hair care franchise with a presence in all 50 states and is still ambitious for growth, so would suit a franchisee with a similarly ambitious mindset.

In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Sport Clips franchise, based on Item 7 of the company’s 2025 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Sport Clips franchise, based on Items 5 and 6 of the company’s 2025 FDD

Section III – Number of franchised and company-owned Sport Clips outlets at the start of the year and the end of the year for 2022, 2023, and 2024, based on Item 20 of the company’s 2025 FDD

Section IV – News updates on the Sport Clips franchise opportunity

Section V – Presentation and analysis of Sport Clips’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2025 FDD, including information on the:

• number and percentage of mature (i.e., with more than 2 years in operations) Sport Clips franchise stores that were operational at December 31, 2024 that achieved certain levels of 2024 sales (over $1,000,000; $800,001 to $1,000,000; $600,001 to $800,000; $500,001 to $600,000; $400,001 to $500,000; $300,001 to $400,000; $250,001 to $300,000; and less than $250,000)

• 2024 average net sales, variable costs, payroll, occupancy, advertising expenses, miscellaneous expenses, and operating profit for the 73 Sport Clips company-owned stores in Central Texas, Southern Nevada, Oklahoma, and Arkansas markets that were open prior to Q4 2023

Section VI – Key ratios, comparables, computations, and analyses for the Sport Clips franchise opportunity (exclusive content for Platinum subscribers)

Section I – Sport Clips Franchise Costs

• Sport Clips franchise costs, based on Item 7 of the company’s 2025 FDD:

• Initial Franchise Fee:  $30,000 to $69,500
• Travel and Living Expenses While Attending Initial Training:  $1,000 to $2,000
• Real Estate:  Amount Not Specified
• Opening Inventory:  $5,000 to $7,000
• Fixtures and Equipment (Including Computer Equipment):  $52,000 to $61,500
• Leasehold Improvements:  $128,000 to $221,000
• Supplemental Services Fee:  $3,000 to $5,000
• Professional Fees:  $3,000 to $8,000
• Permits and Licenses:  $3,000 to $6,000
• Lease Deposit:  $0 to $6,000
• Signage:  $4,000 to $10,000
• Miscellaneous Opening Costs:  $3,000 to $5,000
• Insurance:  $1,500 to $4,000
• Grand Opening Advertising:  $30,000
• Additional Funds – 3 Months:  $25,000 to $40,000
• Total Estimated Sport Clips Franchise Costs:  $288,500 to $475,000

Section II – Sport Clips’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Sport Clips’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2025 FDD:

• Initial Franchise Fee:  $30,000 to $69,500
• Royalty:  6% of Net Sales
• Advertising:  $300 per week, or 5% of Net Sales, whichever is more
• Local Advertising Coop Fee:  up to $300 per week

Section III – Number of Franchised and Company-Owned Sport Clips Outlets

Franchised

2022

• Outlets at the Start of the Year:  1,778
• Outlets at the End of the Year:  1,781
• Net Change:  +3

2023

• Outlets at the Start of the Year:  1,781
• Outlets at the End of the Year:  1,785
• Net Change:  +4

2024

• Outlets at the Start of the Year:  1,785
• Outlets at the End of the Year:  1,754
• Net Change:  -31

Company-Owned

2022

• Outlets at the Start of the Year:  72
• Outlets at the End of the Year:  74
• Net Change:  +2

2023

• Outlets at the Start of the Year:  74
• Outlets at the End of the Year:  75
• Net Change:  +1

2024

• Outlets at the Start of the Year:  75
• Outlets at the End of the Year:  83
• Net Change:  +8

Section IV – News Updates on the Sport Clips Franchise

• Sport Clips Haircuts 2024 National Huddle Is a “Game Changer” for Franchisees, Stylists, and Clients

• Delivering a “Championship Haircut Experience” Is Focus of Sport Clips Haircuts 2025 National Huddle

• Sport Clips Haircuts to Hold National Signing Days October 28 and 29 to Fill Growing Franchise’s Openings for Professional Stylists

• Men’s Hair Salon Sport Clips Haircuts Has Grown from Georgetown Roots Into International Brand

• Sport Clips Haircuts Launches Annual ‘Help A Hero’ Campaign to Raise $1.5 Million for Veteran Scholarships Through Nov. 16

• Sport Clips Haircuts Strengthens Leadership Team with Addition of Vince Burchianti

• Sport Clips Haircuts Ranked No. 52 on Entrepreneur’s 2025 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Sport Clips Franchise (Item 19, 2025 FDD)

Part 1 – Statement of Gross Sales – Year 2024 Gross Sales as Reported to the Company (1,669 Mature Stores (With More Than 2 Years in Operations) That Were Operational at December 31, 2024)

• At the end of calendar year 2024, there were 1,754 franchised Sport Clips stores.

• The Statements of Gross Sales below do not include 83 Company-owned stores located in Central Texas, Southern Nevada, Oklahoma, Arkansas, and New York.

• 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.

Over $1,000,000

• Number of Stores:  4
• Percentage of Stores:  <1%
• Cumulative Percentage of Stores at Each Level or Higher:  1%

$800,001 to $1,000,000

• Number of Stores:  28
• Percentage of Stores:  2%
• Cumulative Percentage of Stores at Each Level or Higher:  2%

$600,001 to $800,000

• Number of Stores:  151
• Percentage of Stores:  9%
• Cumulative Percentage of Stores at Each Level or Higher:  11%

$500,001 to $600,000

• Number of Stores:  257
• Percentage of Stores:  15%
• Cumulative Percentage of Stores at Each Level or Higher:  27%

$400,001 to $500,000

• Number of Stores:  435
• Percentage of Stores:  26%
• Cumulative Percentage of Stores at Each Level or Higher:  52%

$300,001 to $400,000

• Number of Stores:  450
• Percentage of Stores:  28%
• Cumulative Percentage of Stores at Each Level or Higher:  80%

$250,001 to $300,000

• Number of Stores:  171
• Percentage of Stores:  10%
• Cumulative Percentage of Stores at Each Level or Higher:  89%

Less Than $250,000

• Number of Stores:  173
• Percentage of Stores:  10%
• Cumulative Percentage of Stores at Each Level or Higher:  100%

Total

• Number of Stores:  1,669
• Percentage of Stores:  100%

• These 1,669 stores had average sales of $419,485 for the entire year of 2024. 788 stores had sales above this average, and 881 stores had sales lower than the average. The median sales for these 1,669 stores were $409,206 for the entire year of 2024.

Part 2 – Expense Reports for Company-Owned Stores During 2024

• Sport Clips owned and operated 83 stores in Central Texas, Southern Nevada, Oklahoma, Arkansas, and New York markets during 2024. Sport Clips is not offering franchises in these markets. The table below does not include 4 non-mature Company-owned stores that have opened since Q4 2023. 1 Company-owned store has temporarily closed due to weather-related incident and is not included. 5 Company-owned stores in New York are also not included.

• The managers of the Company-owned stores included in the Expense Reports did not receive any services that were not generally available to all other Sport Clips stores.

• Each store offered similar products and services as would generally be offered by a typical Sport Clips store, except for limited tests of procedures, products, and/or services that may or may not be eventually incorporated into the system, depending on the success of the tests.

• The Expense Reports below show the average expenses at each sales level and those expenses as a percentage of total revenue.

Sales Less Than $400,000

• Number of Stores:  19
• Net Sales:  $329,623 (100%)
• Variable Costs:  $23,997 (7%)
• Payroll:  $179,772 (55%)
• Occupancy:  $76,724 (23%)
• Advertising:  $17,686 (5%)
• Miscellaneous:  $11,827 (4%)
• Operating Profit:  $19,617 (6%)

Sales $400,001 to $500,000

• Number of Stores:  16
• Net Sales:  $444,101 (100%)
• Variable Costs:  $29,626 (7%)
• Payroll:  $216,748 (49%)
• Occupancy:  $74,360 (17%)
• Advertising:  $23,953 (5%)
• Miscellaneous:  $12,785 (3%)
• Operating Profit:  $86,628 (20%)

Sales $500,001 to $600,000

• Number of Stores:  16
• Net Sales:  $544,869 (100%)
• Variable Costs:  $33,643 (6%)
• Payroll:  $263,531 (48%)
• Occupancy:  $70,609 (13%)
• Advertising:  $28,807 (5%)
• Miscellaneous:  $13,416 (2%)
• Operating Profit:  $134,863 (25%)

Sales Greater Than $600,000

• Number of Stores:  22
• Net Sales:  $766,141 (100%)
• Variable Costs:  $48,659 (6%)
• Payroll:  $358,439 (47%)
• Occupancy:  $78,379 (10%)
• Advertising:  $32,820 (4%)
• Miscellaneous:  $14,434 (2%)
• Operating Profit:  $233,411 (30%)

Average of All Stores

• Number of Stores:  73
• Net Sales:  $533,445 (100%)
• Variable Costs:  $34,778 (7%)
• Payroll:  $260,079 (49%)
• Occupancy:  $75,364 (14%)
• Advertising:  $26,058 (5%)
• Miscellaneous:  $13,171 (2%)
• Operating Profit:  $123,995 (23%)

• Variable Costs include operating supplies, cost of goods sold, bank service charges, credit card discounts, and advertising to recruit Stylists.

• Payroll includes direct payroll, including payroll for an on-site full-time manager, payroll taxes, payroll processing, and fringe benefits, except for 401K, disability, and medical insurance costs.

• Occupancy includes rent, pass-through expenses from the landlord, utilities, phone charges, and repairs and maintenance.

• Advertising includes the weekly payments to the Ad Fund plus other advertising and marketing expenses for the store.

• Miscellaneous expense includes magazine subscriptions, store insurance, awards, contributions to the Technology Fund, the Recruitment Fund, the Sport Clips Wayne McGlone Memorial Relief Fund, and overages and/or shortages from the cash drawer.

• Operating Profit does not include an amount paid for royalties or weekly training fees. The numbers in the Expense Report are unaudited, but Sport Clips believes that these numbers are substantially correct.

Section VI – Sport Clips Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️

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