Entrepreneur: Start & Grow Your Business

Sport Clips

Sports-themed barbershop targeting men and boys

Year began: 1993 Franchising since: 1995 Gordon Logan, president of Sport Clips, conceived the Sport Clips idea in 1993 and opened its first franchised store in Houston two years later. Designed to target a previously underserved market, Sport Clips caters to men and boys by providing hassle-free hairstyling in a sports-themed environment. The company began franchising in 1995.
P.O. Box 3000-266 Georgetown, TX 78627-3000 Phone: (512)869-1201 Fax: (512)868-4699	Franchisor is a privately-held company with 40 employee(s); 6 employee(s) in franchise department.

Franchise Growth

Year

2007
2006
2005
2004

U.S. Franchises

440
341
263
219

Canadian Franchises

0
0
0
0

Foreign Franchises

0
0
0
0

Company
Owned

14
12
10
7

Where Seeking Franchisees

In the U.S.

Exclusive territories available.
Territory size: Varies (major cities, regions or entire states)

Special Programs

Sport Clips sponsors numerous local sports teams, including Little League, Pop Warner football and soccer. Franchisees are encouraged to get involved with the community through avenues like Partners in Education and other programs.

Costs & Fees

Total investment: $165K
Franchise fee: $49.5K
Ongoing royalty fee: 6%
Term of agreement: 5 years, renewable
Renewal fee: $3.5K

Type of Financing Available
	In-House	Third Party
Franchise Fee	No	Yes
Startup Costs	No	Yes
Equipment	No	Yes
Inventory	No	Yes
Accounts Receivable	No	No
Payroll	No	Yes

Third-party financing source(s): the SBA, banks & equipment leasing companies

Qualifications

Net worth requirement: $300K
Cash liquidity requirement: $100K
Business Experience:

General business experience
Marketing skills
People skills

Operations

98% of all franchisees own more than one unit
Number of employees needed to run franchised unit: 6 - 12
Absentee ownership of franchise is allowed. (32% of current franchisees are owner/operators)

Training & Support

TRAINING

Available at headquarters: 5 days
At franchisee's location: 5 days
At existing locations: 5 days

ONGOING SUPPORT

Newsletter
Meetings
Toll-free phone line
Grand opening
Internet
Security/safety procedures
Field operations/evaluations
Purchasing cooperatives

MARKETING SUPPORT

Co-op advertising
Ad slicks
National media
Regional advertising
Other marketing support: Ad fund, local radio & TV, celebrity fees

Rankings in Entrepreneur magazine 2004-2008

Franchise 500® rank:
#74 (2008); #72 (2007); #81 (2006); #83 (2005); #138 (2004);

Fastest-Growing Franchises:
#39 (2008); #49 (2007); #50 (2006); #45 (2005); #82 (2004);

Last Updated: 8/4/2008 12:00:00 AM