Sport Clips Franchise Cost, Revenue & Review 2026
- Investment
- $237K – $581K
- Disclosed sales
- $419K
- gross sales, not profit
- SBA charge-off
- 6.1%
- on 748 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Sport Clips is a men's and boys' haircut franchise built around a sports-themed experience of cuts, styling, and grooming. Franchisees run salons staffing 5 to 15 stylists, typically as manager-owners.
FranchiseVerdict summary · 2026
A Sport Clips franchise requires a total initial investment of $237K – $581K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $419K[2]. SBA 7(a) loans show a 6.1% charge-off rate across 748 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 7 headline figures on this page cite a page of the filing.
Overview
- Investment
- $237K – $581K
- 28th pct Personal Care…
- Avg gross sales
- $419K
- 9th pct Personal Care…
- Royalty
- 6.0%
- 12th pct Personal Care…
- Units
- 1,788
- 61st pct Personal Care…
- SBA charge-off
- 6.1%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = favorable by >10% vs Personal Care & Beauty median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $237K – $581K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $419K/year (median $416K). Note: this is gross profit, not take-home income.
- RISKVerdict A (Strongest tier), verdict score 71/100 (higher is better). SBA loan charge-off rate of 6.1% across 748 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -30 franchised outlets in the latest year (14 opened, 44 closed); 54 signed but not yet open (Item 20).
- SCALEEstablished system with 1,788 units across 31 years of franchising. Strong brand recognition and operational playbook.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Sport Clips, Inc.
- CEO title
- President and Chief Executive Officer
- Gordon Edward Logan
- Incorporated in
- Texas
- HQ
- 110 Sport Clips Way, Georgetown, Texas 78628
- Auditor
- BDO USA, P.C.
- Audited financials
- Franchisor revenue
- $141.8M
- vs $143.4M prior year
Overview
About
- CEO
- Gordon Edward Logan
- Headquarters
- TX
- Founded
- 1995
- FDD year
- 2026
- States available
- 50
Can you afford it, and what does the money buy?
Entry cost is about typical for a personal care & beauty franchise (near the category median).
Source: FDD 2026 · Items 5–7
The filing's Item 7 TOTAL row prints $236,800 to $580,500. Its own line items add to $229,000 to $575,000. The total is shown as the franchisor printed it; the lines are listed as printed. FILING ARITHMETIC DOES NOT FOOT. The single Item 7 table (pp.25-26, FDD pp.16-17) has 14 priced lines plus a blank 'Real Estate' row; verified against the rendered page images, nothing is lost in the text layer.
Full Item 7 breakdown15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $30K | $70K | |
| Travel and living expenses while attending initial training | $1K | $2K | |
| Real Estate | — | — | |
| Opening Inventory | $4K | $8K | |
| Fixtures and Equipment (including computer equipment) | $20K | $55K | |
| Leasehold Improvements | $108K | $290K | |
| Supplemental Services Fee | $3K | $5K | |
| Professional Fees | $3K | $8K | |
| Permits and Licenses | $3K | $10K | |
| Lease Deposit | $0 | $6K | |
| Signage | $4K | $13K | |
| Miscellaneous Opening Costs | $0 | $15K | |
| Insurance | $700 | $4K | |
| Grand Opening Advertising | $30K | $30K | |
| Additional Funds - 3 Months | $23K | $60K | |
| Total initial investment | $229K | $575K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $237K – $581K
- Top 40% of category vs category
- Liquid capital req'd
- $23K – $60K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 5.0%
- typical 3–5%
- Total fee load
- 12.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 5.0% of net sales |
| Technology fee | $1 |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Inventory (initial) | $4K – $8K |
| Total fee load | 12.0% of rev |
What do units actually make?
Average unit sales run 20% below the personal care & beauty norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Sport Clips until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$450K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Sport Clips unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $419K
- Per unit, per year
- Median gross sales
- $416K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 1,645 outlets
- vs category median 38 · large
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 8 / 10
- vs category median 4 / 10 · above
Compared against 177 Personal Care & Beauty brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $419K/year in gross sales. Revenue-to-investment ratio: 1.0x.
Fee burden
Total ongoing fee load of 12.0% — above the Personal Care & Beauty median of 7.9%.
Disclosure
Transparency score 8/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -4.6% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Personal Care & Beauty medians
How Sport Clips Compares
Category median of published Personal Care & Beauty brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,788
- Opened
- 14
- Last reporting year
- Closed
- 44
- Non-renewed
- 18
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.5%
- Company-owned
- 86
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (3-yr)
- -4.6%
- Net unit change over 3 years
- 3-yr CAGR
- -4.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Not renewed
- 18
- Signed, not yet open
- 54
- 0.03 per open outlet · Item 20 Table 5
- Projected new
- 43
- Franchisor's next-year forecast
- Termination rate
- 0.2%
- Franchisor-initiated terminations
- Ceased ops
- 4.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Illinois
- Indiana
- Michigan
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
98 current owners across 10 states; 19 former (terminated, transferred or not renewed) listed separately.
- AZ 54
- AL 28
- TX 4
- WA 3
- AK 2
- OH 2
- WI 2
- NC 1
- SC 1
- VA 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 748
- Loan volume
- $142.7M
- Median loan
- $177K
- 50th percentile
- Charge-off rate
- 6.1%
- on 748 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 93.9%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 83
- Defaults
- 44
- Typical loan rate
- 5.9%
- avg rate to borrowers
- Franchised industry avg
- 6.0%
- brand above franchise avg ↑
- Jobs supported
- 8,867
- 6.2 per loan
- Lender concentration
- 44%
- top lender's share
Borrower mix: 60% went to startups / new businesses, 40% to established operators
Franchise vs independent — in barber shops, franchised businesses charge off at 6.0% vs 18.7% for independents — franchising is associated with 68% lower SBA default risk in this category.
Vintage analysis
Sport Clips charge-off rate by loan vintage
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Top lenders financing Sport Clips franchisees
Showing 3 of 83 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Sport Clips from SBA 7(a) FOIA data.
- Principal loss rate
- 4.0%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 5.86%
- Avg chargeoff amount
- $130K
- Lender concentration
- 44.1%
- Job velocity
- 6.2 per $100K
- Startup risk premium
- +8.3pp
- NAICS benchmark
- 6.3%
- NAICS 812111
- Jobs supported
- 8,867
Top SBA lendersTop lender holds 44% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Simmons Bank | 330 | $66.8M | 6.0% |
| 2 | First Bank | 52 | $8.4M | 7.7% |
| 3 | Wells Fargo Bank National Association | 50 | $11.2M | 6.7% |
| 4 | Trustmark Bank | 40 | $5.2M | 5.0% |
| 5 | Comerica Bank | 26 | $3.0M | 3.8% |
| 6 | Readycap Lending, LLC | 18 | $2.9M | 27.8% |
| 7 | The Bancorp Bank National Association | 17 | $3.8M | 11.8% |
| 8 | JPMorgan Chase Bank, National Association | 15 | $2.4M | 0.0% |
| 9 | PNC Bank, National Association | 12 | $1.4M | 8.3% |
| 10 | Wilmington Savings Fund Society FSB | 12 | $2.6M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 131 | 3 | 2.3% |
| ILIllinois | 63 | 0 | 0.0% |
| OHOhio | 53 | 2 | 4.0% |
| CACalifornia | 49 | 5 | 10.4% |
| FLFlorida | 35 | 3 | 9.1% |
| AZArizona | 29 | 2 | 7.4% |
| MOMissouri | 29 | 0 | 0.0% |
| TNTennessee | 29 | 0 | 0.0% |
| GAGeorgia | 24 | 0 | 0.0% |
| INIndiana | 24 | 4 | 17.4% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 6.1% — 62% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Clean, mature franchisor: positive net worth $63.4M, net income $10.09M on $141.8M revenue, franchising since 1995 across 1,788 units. No litigation, no bankruptcy, no going-concern, audited, Item 19 disclosed.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · BDO USA, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 71 / 100 verdict
- 01MINORPositive net worth $63,404,000
- 02MINORNet income $10,086,000 on revenue $141,838,000
- 03MINOR1,788-unit mature system
- 04MINORNo litigation, no going-concern, no bankruptcy
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 12.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 1 mi |
| Territory population | 25,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 6 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Arbitration location | Williamson County, Texas, or U.S. District Court for the Central/Western District of Texas (non-binding mediation required before litigation; Texas venue) |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 65 hrs
- On-the-job training
- 42 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Field support
- 42 hrs/yr
- On-site visits per year
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- Salon Ultimate
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Salon Ultimate
Item 20 · call current owners
Franchisee Contacts
117 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Sport Clips franchise?
The total investment to open a Sport Clips franchise ranges from $237K – $581K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Sport Clips franchise owners earn?
According to Item 19 of the Sport Clips FDD, the average gross sales per unit is $419K. The median is $416K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Sport Clips?
Sport Clips is franchised by Sport Clips, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Sport Clips FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Sport Clips FDD and qualifies whose outlets they describe.
What is Sport Clips's franchise failure rate?
Based on SBA 7(a) loan data, Sport Clips has a charge-off rate of 6.1% across 748 loans, meaning 6.1% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Sport Clips franchise locations are there?
As of their most recent FDD filing, Sport Clips has 1,788 total units in the United States, including 1,702 franchised units and 86 company-owned units. 14 new units were opened in the latest reporting year.
Is Sport Clips a good franchise to buy?
FranchiseVerdict rates Sport Clips as a A-grade franchise with a verdict score of 71 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.