Sport ClipsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $237K – $581K
- 25th pct Personal Care…
- Avg gross sales
- $419K
- 9th pct Personal Care…
- Royalty
- 6.0%
- 9th pct Personal Care…
- Units
- 1,788
- 48th pct Personal Care…
- SBA default
- 6.1%
- system-wide median varies by category
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = >15% above Personal Care & Beauty avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1995. Systems this mature have refined operations and brand recognition.
Franchised units fell from 1785 to 1702 over 3 years. Investigate why operators are leaving.
34% cash-on-cash return (based on Operating Income). Above the 20% threshold most investors target.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $237K – $581K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $419K/year (median $416K), with an estimated 34% cash-on-cash return (based on Operating Income).
- Verdict A (Top Quintile) with a risk score of 34/100. 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, 2010–2024).
- Established 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
- Legal entity
- Sport Clips, Inc.
- Incorporated in
- TX
- 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
Sport Clips franchisees operate men's hair salon locations offering haircuts, styling, and grooming services targeting male clientele. Day-to-day operations include managing 5-15 stylists, scheduling appointments, inventory management for products, maintaining clean/branded facilities, and driving customer acquisition through local marketing while adhering to corporate brand standards and service protocols.
- CEO
- Gordon Edward Logan
- Headquarters
- TX
- Founded
- 1993
- FDD year
- 2026
- States available
- 50
FDD Item 7 · 2026 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $30K | $70K | |
| Travel and Living Expenses While Attending Initial Trainingnot refundable | $1K | $2K | |
| Real Estate / Rentnot refundable | — | — | |
| Opening Inventorynot refundable | $4K | $8K | |
| Fixtures and Equipment (including computer equipment)not refundable | $20K | $55K | |
| Leasehold Improvementsnot refundable | $108K | $290K | |
| Supplemental Services Feenot refundable | $3K | $5K | |
| Professional Feesnot refundable | $3K | $8K | |
| Permits and Licensesnot refundable | $3K | $10K | |
| Lease Depositnot refundable | $0 | $6K | |
| Signagenot refundable | $4K | $13K | |
| Miscellaneous Opening Costsnot refundable | $0 | $15K | |
| Insurancenot refundable | $700 | $4K | |
| Grand Opening Advertisingnot refundable | $30K | $30K | |
| Additional Funds - 3 Monthsnot refundable | $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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$80K
19.0% margin
Unlevered ROIC
18%
EBITDA / total invested capital
Payback
5.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $237K – $581K
- Better than avg vs category
- Liquid capital req'd
- $23K – $60K
- Better than avg vs category
- Franchise fee
- $30K – $70K
- Better than avg vs category
- Royalty
- 6.0%
- Net Sales · typical 6–8%
- Ad fund
- 5.0%
- typical 3–5%
- Total fee load
- 12.0%
- vs 9–13% typical
- Payback period
- 2.9 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 5.0% of gross sales |
| Technology fee | $1 |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Inventory (initial) | $4K – $8K |
| Total fee load | 12.0% of rev |
Financial Performance
- Avg gross sales
- $419K
- Per unit, per year
- Median gross sales
- $416K
- Avg operating income
- $140K
- Reported as Operating Income in FDD Item 19
- Cash-on-cash
- 34.2%
- Based on Operating Income / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 1645 units
- vs category median 35 · large
- Range (low → high)
- $250K→$1.0M
- Cohort dispersion (min → max)
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 8 / 5
- vs category median 4 / 5 · above
Compared against 186 Personal Care & Beauty brands
vs Personal Care & Beauty averages
How Sport Clips Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,788
- Opened
- 14
- Last reporting year
- Closed
- 26
- Turnover rate
- 1.5%
- Company-owned
- 86
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (yr3)
- -1.7%
- Net unit change last year
- 3-yr CAGR
- -4.6%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 83
- Terminated (3yr)
- 5
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 51
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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 · 27 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).
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%
- 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
Vintage analysis
Sport Clips charge-off rate by loan vintage
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Sport Clips's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 20-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Sport Clips presents moderate-to-cautious risk due to declining unit economics, lack of financial disclosure standards, and whether franchisee returns justify the substantial capital investment in a contracting system.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $69,500
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
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 34 / 100 rating
- 01MINORUnit count declining 1.7% YoY suggests system contraction and potential market saturation
- 02MINORNo Item 19 financial performance representation limits transparency on actual franchisee profitability claims
- 03MINORHigh initial investment range ($236.8K-$580.5K) with modest average net income ($139.9K) yields concerning 1.7-4.1 year payback period
- 04MINOR6% royalty on $419.5K average revenue extracts ~$25.2K annually, reducing already-thin margins in service business
- 05MINOR5-year term is relatively short for franchise model requiring consistent customer base development
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Radius |
| Protected territory | Yes |
| 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 |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 65 hrs
- On-the-job training
- 42 hrs
- Training location
- On-site and corporate
- 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
132 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Sport Clips · FDD (2026) PDF
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.
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 1,785 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 risk score of 34 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.