Analysis
Sport Clips Franchise Cost: vs. Great Clips Data
Sport Clips costs $237K-$581K with 69% higher net income than Great Clips but a declining unit count and 5-year term. Full side-by-side comparison using FDD and SBA data.
Sport Clips positions itself as the premium alternative to Great Clips. Where Great Clips targets everyone, Sport Clips targets men and boys with a sports-themed atmosphere and the “MVP Experience” (haircut, shampoo, hot steamed towel, neck and shoulder massage). The question is whether that positioning translates to better franchise economics, or just higher costs.
What it costs
A Sport Clips franchise requires $236,800 to $580,500 in total investment per the 2026 FDD. The franchise fee is $30,000, which is $10K higher than Great Clips. The midpoint investment of approximately $409K is 35% higher than Great Clips' $304K midpoint.
Head-to-head: Sport Clips vs. Great Clips
| Metric | Sport Clips | Great Clips | Category Avg |
|---|---|---|---|
| Investment range | $237K-$581K | $188K-$420K | $324K-$652K |
| Franchise fee | $30,000 | $20,000 | -- |
| Avg. gross sales | $419,485 | $399,179 | $680,305 |
| Avg. net income | $139,920 | $82,637 | -- |
| Net margin | 33.4% | 20.7% | -- |
| Royalty | 6.0% | 6.0% | 6.0% |
| Ad fund | 5.0% | 5.0% | -- |
| Unit count | 1,788 | 4,439 | -- |
| Unit growth (YoY) | -1.7% | +0.3% | -- |
| SBA default rate | 6.1% | 5.3% | 9.3% |
| Term length | 5 yrs | 10 yrs | -- |
Where Sport Clips wins
The net income comparison is decisive. Sport Clips averages $139,920 in net income versus Great Clips' $82,637. That is 69% more in absolute dollars and a 33.4% net margin versus 20.7%. On only 5% more revenue ($419K vs $399K), Sport Clips converts significantly more to the bottom line.
The higher average ticket price for the MVP Experience (typically $25-$35 versus $18-$22 at Great Clips) means Sport Clips needs fewer customers per day to hit the same revenue. Fewer customers with higher spend is generally a better labor model for a service business.
The payback math works out well: $139,920 net income on a $409K midpoint investment equals a 2.9-year payback with a 34.2% cash-on-cash return. That beats Great Clips (3.7-year payback, 27.2% return) on both metrics.
Where Sport Clips loses
The system is shrinking. Sport Clips went from 1,785 to 1,702 to 1,788 units over three years, ending up roughly flat but with a -1.7% year-over-year contraction in the most recent reporting period. Great Clips, while stagnant at +0.3%, is at least not net-negative.
The 5-year initial term is the other concern. Great Clips offers 10 years. A 5-year term means you have less runway to amortize your investment before renewal, and renewal terms can change. For a $409K investment with a 2.9-year payback, that leaves only about 2 years of pure profit before you are renegotiating.
The SBA default rate of 6.1% across 748 loans is slightly worse than Great Clips (5.3%) but well below the Personal Care & Beauty average of 9.3%. Both brands are in the safer half of their category.
The demographic bet
Sport Clips is making a concentrated bet on one demographic: men who want a better-than-budget haircut but do not want a traditional barbershop or salon. That is a real segment, and the sports-themed experience differentiates the brand. But it also limits the addressable market. Great Clips serves everyone. Sport Clips serves roughly half the population.
The trade-off is intentional. A narrower market with higher spend per visit and better margins is a valid strategy. But it means location selection is even more critical. A Sport Clips in a suburban strip mall near a gym and a sports bar will outperform one in a location without that demographic concentration.
The FDD transparency gap
The 2026 FDD notes that Sport Clips does not provide Item 19 financial performance representations. The revenue and net income figures in our database are estimated from available data, not direct FDD disclosures. This is a transparency shortcoming. When a franchise system chooses not to disclose financial performance, it typically means the distribution of outcomes is wide enough that the averages would not look favorable for marketing purposes.
The bottom line
Sport Clips offers better unit economics than Great Clips: higher net income, better margins, and faster payback. The trade-offs are a declining unit count, a short 5-year term, and a narrower demographic focus. If you are choosing between the two salon franchise brands, Sport Clips is the better financial bet on current data, but the 5-year term and system contraction add risk that Great Clips avoids.
See the full comparison on our Sport Clips profile and Great Clips profile.
Related franchise research
Continue your research with our Great Clips franchise breakdown, best non-food franchises ranking, and cheapest franchises analysis.
Research Sport Clips further
- 📄 Download the Sport Clips FDD summary — $5 per brand
- 📞 Get Sport Clips's verified franchisee contacts — $49 per brand. Call real owners before you sign.
- 📊 Category profitability report — $99. See how Sport Clips ranks against every competitor.
Frequently Asked Questions
- How much does a Sport Clips franchise cost?
- A Sport Clips franchise costs $236,800 to $580,500 in total investment, per the 2026 FDD. The franchise fee is $30,000. The midpoint investment of approximately $409,000 is about 35% higher than Great Clips.
- How much does a Sport Clips franchise owner make?
- Sport Clips locations average an estimated net income of $139,920 on $419,485 in gross sales, a 33.4% net margin. At a midpoint investment of $409,000, that represents a 34.2% cash-on-cash return with a payback period of approximately 2.9 years.
- How many Sport Clips locations closed last year?
- Sport Clips has experienced a declining unit count, with closures beginning to outpace new openings. The 5-year franchise term (vs. Great Clips' 10-year term) creates more frequent decision points where underperforming operators may exit the system.
- Does Sport Clips require owner-operators?
- Sport Clips allows multi-unit ownership but expects franchisees to be involved in the business. The brand's positioning around men's haircuts and the sports-themed experience requires active brand management at the local level.