Ambrosio’s Take
Sport Clips has carved out a distinct identity in the value haircut category by focusing exclusively on men and boys, which gives it a cleaner customer proposition than full-service salons competing for a broader audience. The outlet count has contracted over the past two years, down 83 franchised outlets since the start of 2024, and the brand has publicly acknowledged the need to revamp its growth strategy. The financial data offers a more constructive picture: the estimated average operating profit for franchised stores improved 18.7% in 2025 to $79,702, and the expense data from company-owned stores shows that stores generating over $600,000 in sales achieved a 34% operating margin before royalties, which tells you the economics improve meaningfully as volume increases.
Ambrosio’s Take is a new feature on all Franchise Chatter FDD Talk posts based on the 2026 FDD.
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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.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 2026 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 2026 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 2023, 2024, and 2025, based on Item 20 of the company’s 2026 FDD
Section IV – News updates on the Sport Clips franchise opportunity
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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.Section V – Presentation and analysis of Sport Clips’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2026 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, 2025 that achieved certain levels of 2025 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)
- 2025 average net sales, variable costs, payroll, occupancy, advertising expenses, miscellaneous expenses, and operating profit for the 73 company-owned Sport Clips stores across the Central Texas, Southern Nevada, Oklahoma, and Arkansas markets, all open as of Q4 2024 or earlier
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 2026 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: $4,000 to $8,000
- Fixtures and Equipment (Including Computer Equipment): $20,000 to $55,000
- Leasehold Improvements: $108,000 to $290,000
- Supplemental Services Fee: $3,000 to $5,000
- Professional Fees: $3,000 to $8,000
- Permits and Licenses: $3,000 to $10,000
- Lease Deposit: $0 to $6,000
- Signage: $3,800 to $13,000
- Miscellaneous Opening Costs: $0 to $15,000
- Insurance: $700 to $3,500
- Grand Opening Advertising: $30,000
- Additional Funds – 3 Months: $22,500 to $60,000
- Total Estimated Sport Clips Franchise Costs: $236,800 to $580,500
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 2026 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
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: 1,732
- Net Change: -53
2025
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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.📈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.- Outlets at the Start of the Year: 1,732
- Outlets at the End of the Year: 1,702
- Net Change: -30
Company-Owned
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
2025
- Outlets at the Start of the Year: 83
- Outlets at the End of the Year: 86
- Net Change: +3
Section IV – News Updates on the Sport Clips Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Sport Clips Franchise (Item 19, 2026 FDD)
Part 1 – Statement of Gross Sales – Year 2025 Gross Sales as Reported to the Company (1,645 Mature Stores (With More Than 2 Years in Operations) That Were Operational at December 31, 2025)
- At the end of calendar year 2025, there were 1,732 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: 5
- Percentage of Stores: <1%
- Cumulative Percentage of Stores at Each Level or Higher: 1%
$800,001 to $1,000,000
- Number of Stores: 32
- Percentage of Stores: 2%
- Cumulative Percentage of Stores at Each Level or Higher: 2%
$600,001 to $800,000
- Number of Stores: 168
- Percentage of Stores: 9%
- Cumulative Percentage of Stores at Each Level or Higher: 11%
$500,001 to $600,000
- Number of Stores: 270
- Percentage of Stores: 15%
- Cumulative Percentage of Stores at Each Level or Higher: 27%
$400,001 to $500,000
- Number of Stores: 439
- Percentage of Stores: 26%
- Cumulative Percentage of Stores at Each Level or Higher: 52%
$300,001 to $400,000
- Number of Stores: 456
- Percentage of Stores: 28%
- Cumulative Percentage of Stores at Each Level or Higher: 80%
$250,001 to $300,000
- Number of Stores: 177
- Percentage of Stores: 10%
- Cumulative Percentage of Stores at Each Level or Higher: 89%
Less Than $250,000
- Number of Stores: 198
- Percentage of Stores: 10%
- Cumulative Percentage of Stores at Each Level or Higher: 100%
Total
- Number of Stores: 1,645
- Percentage of Stores: 100%
- These 1,645 stores had average sales of $419,485 for the entire year of 2025. 726 stores had sales above this average, and 991 stores had sales lower than the average. The median sales for these 1,645 were $416,189 for the entire year of 2025.
Part 2 – Expense Report for Company-Owned Stores for the Year 2025
- Sport Clips owned and operated 86 stores in Central Texas, Southern Nevada, Oklahoma, Arkansas, and New York markets during 2025. Sport Clips is not offering franchises in these markets. The table below does not include 6 non-mature Company-owned stores that have opened since Q4 2024. Two Company-owned stores have temporarily closed and are 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: 22
- Net Sales: $351,468 (100%)
- Variable Costs: $22,379 (6%)
- Payroll: $179,654 (51%)
- Occupancy: $79,083 (23%)
- Advertising: $18,770 (5%)
- Miscellaneous: $12,047 (3%)
- Operating Profit: $39,535 (11%)
Sales $400,001 to $500,000
- Number of Stores: 14
- Net Sales: $471,676 (100%)
- Variable Costs: $26,082 (6%)
- Payroll: $205,414 (45%)
- Occupancy: $71,546 (16%)
- Advertising: $24,383 (5%)
- Miscellaneous: $12,445 (3%)
- Operating Profit: $111,796 (25%)
Sales $500,001 to $600,000
- Number of Stores: 15
- Net Sales: $537,090 (100%)
- Variable Costs: $30,527 (6%)
- Payroll: $241,909 (45%)
- Occupancy: $75,663 (14%)
- Advertising: $28,713 (5%)
- Miscellaneous: $12,207 (2%)
- Operating Profit: $148,071 (28%)
Sales Greater Than $600,000
- Number of Stores: 22
- Net Sales: $748,679 (100%)
- Variable Costs: $43,305 (6%)
- Payroll: $329,561 (44%)
- Occupancy: $75,623 (10%)
- Advertising: $34,683 (5%)
- Miscellaneous: $12,862 (2%)
- Operating Profit: $252,646 (34%)
Average of All Stores
- Number of Stores: 73
- Net Sales: $528,535 (100%)
- Variable Costs: $31,070 (6%)
- Payroll: $242,564 (46%)
- Occupancy: $75,892 (14%)
- Advertising: $26,685 (5%)
- Miscellaneous: $12,404 (2%)
- Operating Profit: $139,920 (26%)
- 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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