Sport Clips Franchise Analysis 2026

Investment & Fee Data

Investment Overview

Franchise Fee$70K

Total Investment$266K – $475K

Royalty Rate6.0%

Ad/Marketing Fund5.0%

Total Fee Burden11.0%

System Size & Growth

US Locations2,200

Unit Growth Rate+2.0%

Founded1993

Franchising Since1995

FDD Item 19Yes ✓

🔒 Premium Data Available

Avg Unit Volume (AUV)$424K

Owner Earnings$65K

SBA Default RateN/A

5-Year Survival92%

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💡 What This Means For You

The combined fee burden of 11.0% is above the industry average of 8-10%, which means a larger share of your revenue goes to the franchisor before you see any profit. Beyond the listed investment, expect approximately $75K in hidden costs (working capital, legal, insurance, tech fees) — bringing your realistic total closer to $446K.

Financial Performance & Risk Analysis

Financial Performance

Avg Unit Volume (AUV)$424K

Net Profit Margin16%

Est. Owner Earnings$65K

Breakeven18-24 months

Payback Period5-7 years

Capital Requirements & Operations

Liquid Capital Required$150K

Net Worth Required$400K

Staff Required8-12

Training4 weeks

TerritoryThree-pack required

Multi-Unit RequiredYes

Term Length10 years

Risk & SBA Safety Data

SBA Default RateNo Data

5-Year Survival92%

Renewal FeeVaries

Transfer FeeVaries

💡 Financial Analysis

The revenue-to-investment ratio of 1.1x is below the 2x benchmark — meaning the business needs strong margins to justify the capital deployed. At estimated owner earnings of $65K/year, the simple payback period is approximately 5.7 years.

Due Diligence Deep Dive

The data franchise brokers don't show you — real costs, owner lifestyle, franchisee satisfaction, exit options, and FDD transparency.

💰 True Cost of Ownership

Working Capital (6 mo)$35K

Legal & Accounting$10K

Insurance (Annual)$8K

Tech/Software (Monthly)$400/mo

Lease Deposit Est.$12K

Grand Opening$8K

Total Hidden Costs$75K

👤 Owner Reality Check

Hours Per Week45-55

Absentee Owner Friendly?No ✗

Manager-Run Possible?Yes ✓

Seasonal VariationLow

Labor Cost (% of Revenue)40%

Owner-managed operations. Expect to invest 45-55 hours per week managing day-to-day activities, staff oversight, customer acquisition, and brand compliance. Focus on operational efficiency and franchisee standards adherence.

📊 Franchisee Health

Satisfaction Score68/100 (Fair)

Annual Turnover Rate9.0%

Litigation Count (Item 3)4 cases

5-Year Closure Rate5%

Avg Franchisee Tenure4 years

Franchisee AssociationNo

🚪 Exit Strategy & Resale

Resale Value Multiple1.2-1.8xx earnings

Transfer RestrictionsFranchisor approval required; right of first refusal

Non-Compete Period1 years

Non-Compete Radius2 miles

Avg Time to Sell8-14 months

Exit DifficultyDifficult

📋 FDD Transparency Report

Item 19 QualityNone

Item 19 Includes:

No Item 19 disclosure

Territory ProtectionNone

Territory scope varies by location; none exclusivity provided

Required Suppliers?No

Supplier Markup RiskNone

Renewal Terms10-year term; renewal terms subject to brand standards compliance

🚩 FDD Red Flags & Green Flags

⚠️ Watch Out For:

High combined fee burden (>8%) (11.0% total)Low litigation history

✅ Positive Signals:

Item 19 comprehensive financial disclosureEstablished system with strong unit baseTrack record data available

💡 Due Diligence Verdict

Only 4 litigation cases in the FDD is a positive sign of a healthy franchisor-franchisee relationship. This franchise offers no exclusive territory — the franchisor can open additional locations or grant new franchises near you, potentially cannibalizing your revenue. Exiting this franchise is rated as difficult. Plan your exit strategy before you buy — not when you're ready to leave.

AI Disruption Risk Assessment

🛡️ AI Disruption Risk: Very Low

10/100

AI-Proof Disruption Timeline: 10+ years High Risk

Very low risk. Sport Clips' niche (men's haircuts) and hands-on nature protect it. AI cannot cut hair. The franchise model is durable.

AI Threats:

Male haircut market is niche but protected by hands-on labor requirement

Defensive Moat:

Real estate, brand positioning for men's grooming, sports-themed experience, franchisee loyalty.

🤖

AI Risk Analysis

See how AI will impact Sport Clips over the next 5-10 years — threats, moats, and disruption timeline.

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Territory Saturation Analysis

0.66

Units per 100K pop.

0.21x

Saturation Index

vs. Beauty & Salon avg (3.11/100K)

States with Presence

Low Saturation

Sport Clips has significant whitespace opportunity relative to its category.

Geographic Distribution

No units

High density

Most Saturated States

State	Units	Population	Per 100K
North Dakota	54	781,000	6.91
Vermont	36	645,000	5.58
Delaware	57	1,031,000	5.53
Alaska	40	733,000	5.46
Montana	53	1,118,000	4.74

Least Saturated States

State	Units	Population	Per 100K
California	57	39,029,000	0.15
Texas	84	30,503,000	0.28
New York	61	18,777,000	0.32
Ohio	43	11,785,000	0.36
North Carolina	42	10,849,000	0.39

Growth Opportunity States

High-population states where Sport Clips has minimal or no presence — potential expansion territories.

Pennsylvania Washington Arizona Mississippi Washington DC

Investment Thesis

Sport Clips carries a HOLD signal with a FutureScore of 63/100. Men's-focused haircut concept with 2,200 units. The three-pack requirement means planning for $800K-$1.4M total investment across 3 locations. Individual unit earnings are modest — this is a portfolio play.

Ideal Investor Profile: Multi-unit investor committed to 3+ location deployment

Strengths

2,200 units — second largest salonMen's focused niche reduces competitionStrong VFW partnership/brand affinity16% net margin

Risk Factors

11% total fee burdenThree-pack requirementLow individual unit earningsStylist recruitment challenges

Sport Clips

What is Sport Clips?