Sport Clips franchise
A franchisee operates a leased-space hair salon, typically 1,000 to 1,500 square feet in a strip centre, selling haircuts and hair care products primarily to men and boys in a sports-themed environment with televisions showing sports programming.
Manager-run permitted Disclosed
- Source
- 2026 Franchise Disclosure Document — Sport Clips, Inc.
- Document
- FDD 2026, issued 2026-04-01
- Item
- Item 15
- Page
- PDF p. 47
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640673
The Company does not require that you personally supervise the franchised business, but we recommend that you do
The franchisor does not require the owner to supervise personally, though it recommends it and holds the owner ultimately responsible. The store must be supervised on-premises by a manager who has completed the franchisor's training program and been approved by the franchisor. The manager need not hold an ownership interest but must sign a confidentiality agreement. Every individual owning 5% or more of the franchisee entity, and that person's spouse, must sign an agreement personally assuming all franchisee obligations.
What stands out
- Estimated initial investment for one store is $236,800 to $580,500 per the Item 7 total, excluding real estate purchase and lease payments. The cover page states a low of $226,800 and the Item 7 rows sum to $229,000, so the document's own totals disagree.
- The initial franchise fee is $30,000 for a single store, $54,500 for a two-store development addendum and $69,500 for a three-store addendum. Item 1 states single-store agreements are awarded only in specified circumstances. Honourably discharged veterans with a year of active service receive a 20% reduction.
- Weekly fees stack on Net Sales: 6% royalty, the greater of $300 per week or 5% to the advertising fund, $25 per week plus the greater of $60 or 1% for training, 1% stylist recruitment and 1% technology, plus $165 per month for software maintenance. Current dollar caps on four of these are policy, not contract.
7 more observations
- Item 19 reports average 2025 gross sales of $419,485 and a median of $416,189 for 1,645 mature franchised stores open more than two years. Stores open two years or less are excluded and no franchisee cost or profit data is given.
- The Item 19 expense and operating profit tables describe 73 company-owned stores, not franchised stores, and the FDD states their operating profit excludes royalties and weekly training fees that a franchisee would pay.
- Franchised outlets declined from 1,781 at the start of 2023 to 1,702 at the end of 2025, a net loss of 79, while company-owned outlets grew from 74 to 86. New franchised openings fell from 28 in 2023 to 14 in 2025.
- No litigation is disclosed in Item 3 and no bankruptcy in Item 4.
- The exclusive territory, the lesser of a one-mile radius or a radius covering 25,000 people, applies only during the initial five-year term; after that only a first right of refusal remains.
- Every owner of 5% or more of the franchisee entity, and that person's spouse, must sign an agreement personally assuming all obligations under the Franchise Agreement.
- No minimum liquid capital or net worth requirement is disclosed anywhere in the reviewed document.
Things to verify
- Ask the franchisor to reconcile the three different low-end investment figures: $236,800 in the Item 7 total, $226,800 on the cover page and $229,000 from summing the Item 7 rows.
- Ask why the Item 19 sales bands total 1,745 stores and the above and below average counts total 1,717 when the stated population is 1,645, and which figure the average of $419,485 was computed over.
- Ask what average gross sales look like when stores open two years or less are included, since the disclosed figure covers mature stores only.
7 more questions
- Work out what operating profit would be for a franchised store after the 6% royalty and the weekly training fees that the company-owned expense tables exclude, and after rent at your own site, debt service and owner compensation.
- Ask about the drivers behind 18 non-renewals in 2025 and 124 outlets ceasing operations for other reasons across 2023 to 2025, and why new openings fell from 28 to 14.
- Confirm whether a single-store franchise agreement is available to you, given the stated policy of granting these only in specified circumstances, and what the development schedule and $5,000 extension fee mean if a site takes longer than expected.
- Confirm the current dollar caps on the advertising, training, stylist recruitment and technology fees in writing, and model the cost if the franchisor lifts them to the uncapped percentages the agreement permits.
- Ask what happens to your protected area after year five, when territory exclusivity ends and only a first right of refusal remains.
- Price real estate and lease costs separately, since Item 7 excludes them; the FDD cites rent typically $30 to $50 per square foot per year, up to $60 or higher, plus $4 to $15 in operating expenses.
- Ask about the cross-default provision, which lets the franchisor terminate one franchise for a default under any other agreement with it, if you are buying more than one store.
Category cost placeholders, not a forecast. This snapshot uses the default inputs; the calculator below updates when you edit them.
Evidence confidence: High. This describes source support, not investment quality. AI-extracted and machine-verified where stated; no human line-by-line review. Source and review record.
Read the full research overview
A Sport Clips franchisee runs a leased hair salon of roughly 1,000 to 1,500 square feet, usually in a strip centre, cutting hair for men and boys in a sports-themed room with televisions at each station. Sport Clips, Inc. has operated stores of this type since 1993 and franchised since November 1995, and discloses no parent or predecessor. Item 7 estimates the initial investment for one store at $236,800 to $580,500 excluding any real estate purchase and lease payments, and reports a median cost of $399,757 to open one store in the prior calendar year. Those totals should be treated with care: the cover page gives a low of $226,800 and the Item 7 line items themselves sum to $229,000.
The initial franchise fee is $30,000 for a single store, but Item 1 says single-store agreements are awarded only in specified circumstances; the normal route is a multi-unit development addendum at $54,500 for two stores or $69,500 for three, paid in one lump sum at signing. Honourably discharged veterans with at least a year of active service receive a 20% reduction. Continuing fees are weekly and cumulative on Net Sales: a 6% royalty, an advertising fund contribution of the greater of $300 per week or 5%, a training fee of $25 per week plus the greater of $60 or 1%, a 1% stylist recruitment fee and a 1% technology fee. The franchisor currently caps several of these in dollars but states it may change that policy. A $30,000 grand opening advertising deposit, a $5,000 supplemental services fee and a $1,000 point-of-sale licence are also payable before opening.
Item 19 discloses actual results, but for two different populations. For franchised outlets it gives 2025 gross sales only: an average of $419,485 and a median of $416,189 across 1,645 mature stores, those open more than two years and operating at year end, with 198 stores below $250,000 and 5 above $1,000,000. No franchisee costs or profit are disclosed. Expense data instead comes from 73 company-owned stores in Central Texas, Southern Nevada, Oklahoma, Arkansas and New York, markets where the franchisor says it does not sell franchises, showing average net sales of $528,535 and average operating profit of $139,920, or 26%. The FDD states that operating profit excludes royalties and weekly training fees, so it is not what a franchisee would keep. Several counts inside Item 19 also fail to reconcile: the eight sales bands sum to 1,745 stores against a stated 1,645, and the stores above and below the average sum to 1,717.
Item 20 shows a contracting franchised system. Franchised outlets fell from 1,781 at the start of 2023 to 1,702 at the end of 2025, a net loss of 79, while company-owned outlets rose from 74 to 86. Openings dropped from 28 to 27 to 14 across the three years, no terminations were recorded in any year, 18 outlets were not renewed in 2025, and 124 ceased operations for other reasons over the period, 22 of them attributed to the extended impact of the COVID-19 pandemic. Transfers to new owners ran 98, 123 and 51. The franchisor projects 37 new franchised stores next fiscal year with 54 agreements signed but not yet open. Items 3 and 4 disclose no litigation and no bankruptcy. Owners of 5% or more and their spouses must personally assume all franchisee obligations, territory exclusivity ends with the initial five-year term, and disputes go to non-binding mediation and then litigation in Williamson County, Texas under Texas law. No minimum liquid capital or net worth requirement is disclosed in the reviewed source.
View ratings and their supporting evidence
Transparent ratings
How these are computedEach dimension is scored 1–5 from published formulas. Missing data yields “Not enough evidence to rate”, never a low score. There is no composite score by design.
How the system has performed, computed from the disclosed Items 7, 19 and 20. Figures a documented material source inconsistency puts in doubt are excluded, and the dimension shows “Not rated”.
Inputs
- Franchised outlets 1781 → 1702 (Item 20, Table 3)
- Thresholds: ≥15% → 5; 5–15% → 4; 0–5% → 3; −5–0% → 2; below −5% → 1
Inputs
- Attrition = (terminations + non-renewals + reacquisitions + ceased-other) ÷ start-of-year franchised units, averaged over 3 fiscal years
- Thresholds: <2% → 5; 2–4% → 4; 4–6% → 3; 6–10% → 2; >10% → 1
Inputs
- AUV $419,485 (disclosed) ÷ midpoint investment $408,650 = 1.03×
- Thresholds: ≥2.0 → 5; 1.5–2.0 → 4; 1.0–1.5 → 3; 0.7–1.0 → 2; <0.7 → 1
How much this brand’s FDD discloses, and how well-supported our data on it is. This measures transparency, not business performance — a strong business that discloses little scores low here and stays unrated above.
Inputs
- Item 19 present (+1)
- Average plus median or a distribution (+1)
- Population 97% of franchised units, clearly described (+1)
- Cost or profit data disclosed (+1)
- Multi-year or cohort data (+1)
- Franchisor Track Record
- Franchising 31 years (since 1995) · 1,788 outlets · Item 3: no litigation disclosed · Item 4: none disclosed
- Multi-Unit Scalability
- Multi-unit development is the franchisor's normal route. Under a Multi-Unit Development Addendum the franchisee commits to open two or more stores within a s… · Manager-run permitted
- Operational Intensity
- Manager-run permitted
Initial investment
FDD Items 5 and 7Format shown: One Sport Clips store in leased space, typically 1,000–1,500 square feet (the single Item 7 table in this FDD).
$236,800–$580,500 total initial investment. Excludes real estate purchase. Includes 3 months of additional funds.
View full investment breakdown — Items 5 & 7
| Initial franchise fee (the named Item 5 fee only) | $30,000 Disclosed
Disclosed as 'franchise fee (single-store Franchise Agreement)'. VetFran gives eligible veterans a 20% reduction on all initial franchise fees; the default multi-store MUDA fee is $69,500 (3 stores) or $54,500 (2 stores), and additional-store pricing differs further. None of these are the standard single-store rate. |
|---|---|
| Other required initial payments to the franchisor (Item 5) |
|
| Total Item 5 payments to franchisor/affiliates | $69,500 Disclosed
Cover page (one-store scenario): total investment 'includes $69,500 to $95,500 that must be paid to the franchisor or affiliate,' built around the default $69,500 3-store MUDA fee (not the $30,000 single-store exception) plus the other Item 5 payments. $95,500 Disclosed
Cover page (one-store scenario): total investment 'includes $69,500 to $95,500 that must be paid to the franchisor or affiliate,' built around the default $69,500 3-store MUDA fee (not the $30,000 single-store exception) plus the other Item 5 payments. |
| Total initial investment — low | $236,800 Disclosed
As printed in the Item 7 TOTAL row. The cover page states a low of $226,800 for the same investment, and the individual Item 7 rows sum to $229,000 at the low end, so the three figures in the document do not agree. |
| Total initial investment — high | $580,500 Disclosed
As printed in the Item 7 TOTAL row; the cover page states the same high figure. The individual Item 7 rows sum to $575,000 at the high end. |
| Midpoint of range | $408,650 Derived
|
| Real estate purchase included? | No — assumes a leased site |
| Additional funds assumed | 3 months |
| Required liquid capital | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Sport Clips, Inc.; we do not fill gaps with estimates or third-party figures. No minimum liquid capital requirement is stated on the cover pages or in Items 1, 5, 7 or 15 of the reviewed document. |
| Required net worth | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Sport Clips, Inc.; we do not fill gaps with estimates or third-party figures. No minimum net worth requirement is stated in the reviewed document. |
Item 7 states the total excludes real estate costs, royalties and marketing fund contributions, and assumes a leased site of about 1,000–1,500 square feet. Three months of additional funds are included. Item 7 also states that the median investment to open one Sport Clips store during the previous calendar year was $399,757. Three totals in the document conflict: the Item 7 TOTAL row reads $236,800–$580,500, the cover page reads $226,800–$580,500, and the sum of the individual Item 7 rows is $229,000–$575,000. The figures recorded here are the Item 7 TOTAL row as printed. Item 5 also requires a $1,000 point-of-sale software licence purchased from the franchisor before opening, which does not appear as its own row in the Item 7 table.
Item 7 line items (15)
| Expenditure | Low | High |
|---|---|---|
| Initial franchise fee — Low is a single store; high is a three-store MUDA. See Note 2. | $30,000 | $69,500 |
| Travel and living expenses during initial training | $1,000 | $2,000 |
| Real estate — No amount given. Note 3 states rent typically runs $30–$50 per square foot per year (range $20–$60 or higher), plus $4–$15 per square foot of operating expenses. | — | — |
| Opening inventory — Approved hair care products for retail sale and in-store use. | $4,000 | $8,000 |
| Fixtures and equipment (including computer equipment) — Stated to include a typical deduction for landlord allowance. | $20,000 | $55,000 |
| Leasehold improvements — Based on franchisees who opened during the previous calendar year for 1,000–1,500 square feet. | $108,000 | $290,000 |
| Supplemental services fee — $5,000 first store, $4,000 second, $3,000 third and additional. Currently offered, and mandatory, in all areas. | $3,000 | $5,000 |
| Professional fees — Legal, accounting and architectural services. | $3,000 | $8,000 |
| Permits and licences | $3,000 | $10,000 |
| Lease deposit | $0 | $6,000 |
| Signage — Installation cost is carried in leasehold improvements. | $3,800 | $13,000 |
| Miscellaneous opening costs — Utility deposits, miscellaneous business licences and permits. | $0 | $15,000 |
| Insurance | $700 | $3,500 |
| Grand opening advertising — Paid to the franchisor and spent by the Ad Fund on the local market. | $30,000 | $30,000 |
| Additional funds — 3 months — Start-up expenses including payroll. | $22,500 | $60,000 |
Source for every row: the Item 7 estimated-initial-investment table of 2026 Franchise Disclosure Document — Sport Clips, Inc. (table begins PDF p. 26) — rows inherit the table's citation rather than carrying fifteen identical ones.
Ongoing fees
FDD Item 6Royalty
6% of net sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Sport Clips, Inc.
- Document
- FDD 2026, issued 2026-04-01
- Item
- Item 6 — Weekly Fees — Royalty
- Page
- PDF p. 19
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640673
6% of Net Sales
Payable weekly by ACH on Monday. Net Sales are defined as all revenue from the franchise location excluding sales tax.
Brand advertising fund
5% of net sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Sport Clips, Inc.
- Document
- FDD 2026, issued 2026-04-01
- Item
- Item 6 — Weekly Fees — Advertising; Note 2
- Page
- PDF p. 19
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640673
The Franchise Agreement requires the greater of $300 per week or 5% of Net Sales. Current franchisor policy is to charge 5% of sales with no weekly minimum and a cap of $650 per week; the franchisor states it may change this policy at any time and reviews it each December. Older franchise agreements may currently pay a lower advertising contribution until renewal.
Local marketing
Not disclosed in the reviewed source Not disclosed
Not disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Sport Clips, Inc.; we do not fill gaps with estimates or third-party figures.
Item 6 states no separate ongoing required local advertising spend. A one-time $30,000 grand opening advertising deposit is paid to the franchisor before opening and spent by the Ad Fund in the franchisee's local market. Item 6 Note 2 adds that a franchisee's premises lease may impose additional advertising obligations whose extent the franchisor may not know.
Core requirements shown separately; caps, credits and conditions may overlap. Check the full schedule for technology, cooperative, transfer and other charges.
View all recurring fees and conditions
| Royalty | 6% of net sales Disclosed
Payable weekly by ACH on Monday. Net Sales are defined as all revenue from the franchise location excluding sales tax. Payable weekly by ACH on Monday. Net Sales are defined as all revenue from the franchise location excluding sales tax. |
|---|---|
| Advertising / brand fund | 5% of net sales Disclosed
The Franchise Agreement requires the greater of $300 per week or 5% of Net Sales. Current franchisor policy is to charge 5% of sales with no weekly minimum and a cap of $650 per week; the franchisor states it may change this policy at any time and reviews it each December. Older franchise agreements may currently pay a lower advertising contribution until renewal. The Franchise Agreement requires the greater of $300 per week or 5% of Net Sales. Current franchisor policy is to charge 5% of sales with no weekly minimum and a cap of $650 per week; the franchisor states it may change this policy at any time and reviews it each December. Older franchise agreements may currently pay a lower advertising contribution until renewal. |
| Required local marketing | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Sport Clips, Inc.; we do not fill gaps with estimates or third-party figures. Item 6 states no separate ongoing required local advertising spend. A one-time $30,000 grand opening advertising deposit is paid to the franchisor before opening and spent by the Ad Fund in the franchisee's local market. Item 6 Note 2 adds that a franchisee's premises lease may impose additional advertising obligations whose extent the franchisor may not know. |
| Technology / software | 1% of net sales Disclosed
Technology Fee of 1% of Net Sales weekly; current policy caps it at $70 per week, and the franchisor states it may change this at any time. Separate from this are a computer software monthly maintenance fee of $165 per month paid to a third-party vendor, an IT security firewall fee of currently $33–$65 per month paid to a third-party vendor, and a one-time $1,000 point-of-sale software licence bought from the franchisor before opening. Technology Fee of 1% of Net Sales weekly; current policy caps it at $70 per week, and the franchisor states it may change this at any time. Separate from this are a computer software monthly maintenance fee of $165 per month paid to a third-party vendor, an IT security firewall fee of currently $33–$65 per month paid to a third-party vendor, and a one-time $1,000 point-of-sale software licence bought from the franchisor before opening. |
| Advertising cooperative | $0–$300/week Disclosed
Payable only where franchisees owning 75% or more of the stores in the market area vote to establish a local advertising cooperative, which may then assess up to $300 per week by member vote. The FDD states there are currently no active advertising cooperatives, so the current amount is zero. Payable only where franchisees owning 75% or more of the stores in the market area vote to establish a local advertising cooperative, which may then assess up to $300 per week by member vote. The FDD states there are currently no active advertising cooperatives, so the current amount is zero. |
| Transfer fee | $5,000 one-time Disclosed
$5,000 for the first store transferred plus $1,000 for each additional store or licence transferred in one transaction. Reduced to $2,500 for the first store where the buyer is an existing Sport Clips franchisee. No charge for a transfer to a corporation the franchisee controls. Item 11 notes a separate POS licence transfer fee of currently $1,000 per store. $5,000 for the first store transferred plus $1,000 for each additional store or licence transferred in one transaction. Reduced to $2,500 for the first store where the buyer is an existing Sport Clips franchisee. No charge for a transfer to a corporation the franchisee controls. Item 11 notes a separate POS licence transfer fee of currently $1,000 per store. |
| Renewal fee | $5,000 one-time Disclosed
$5,000 if the franchisee owns fewer than three open franchised Sport Clips stores; $3,500 if the franchisee owns three or more. $5,000 if the franchisee owns fewer than three open franchised Sport Clips stores; $3,500 if the franchisee owns three or more. |
| Royalty + ad fund (% of sales) | 11% Derived
|
Fee schedule (30 fees; 18 verified against the source, 12 single-pass)
Every recurring, conditional and one-time fee found in this FDD's Item 6 table (plus mandatory recurring costs disclosed in Items 7/11), each cited to its page and carrying its verification status: verified means two independent readings agreed or a tie-break re-inspection of the page decided it; single-pass means one reading captured it and it has not been independently confirmed (permitted only for fees that cannot move modeled economics — see the materiality rule). Amounts marked “not stated” are charged at then-current rates the FDD does not quantify and are never modeled as $0.
| Fee | Amount | Frequency | Mandatory | Verification | Cite | Notes |
|---|---|---|---|---|---|---|
| Royalty | 6% of net sales | weekly | Yes | verified (2-pass) | Item 6, p. 19 | Net Sales excludes sales tax. |
| Advertising | 5% of net sales | weekly | Yes | verified (2-pass) | Item 6, p. 19 | Contractual floor is $300/week or 5% whichever is more; current (revocable) policy is flat 5% with no weekly minimum and a $650/week cap. |
| Training Fee - Base | $25 | weekly | Yes | verified (tie-break) | Item 6, p. 19 | Pass B's split is adopted over Pass A's single combined entry. Note 3 (p.22) defines two components with different mechanics, and Pass A's combined object recorded a $25 weekly minimum when the contractual floor is $85 ($25 base + the $60 minimum Percentage Training Fee). |
| Stylist Recruitment Fee | 1% of net sales | weekly | Yes | verified (2-pass) | Item 6, p. 19 | |
| Technology Fee | 1% of net sales | weekly | Yes | verified (2-pass) | Item 6, p. 19 | |
| Local Advertising Coop Fee | $0–$300 | weekly | No | verified (tie-break) | Item 6, p. 19 | Payable only where franchisees owning 75% or more of the stores in the market area vote to establish a local advertising cooperative, after which membership is compulsory. The FDD states there are currently no active advertising cooperatives. Note 6 (p.23): the cooperative 'can assess each member store a fee of up to $300 per week. The amount of the fee is decided by a vote of the cooperative's members.' Not credited against the Advertising Fund, so overlaps_with is null. |
| Local Stylist Recruiting Coop Fee | $0 (min $100/weekly) | weekly | No | verified (tie-break) | Item 6, p. 19 | Payable only where franchisees owning 75% or more of the stores in the market area vote to establish a local Stylist Recruitment Cooperative, after which membership is compulsory. The FDD states none are currently active. Item 6's table (greater of $100/week or 1% of Net Sales) and Note 7 ('a fee not to exceed 1% of Net Sales and ... a minimum fee not to exceed $100 per week') do not agree on whether $100 is a floor or a ceiling on the floor. Recorded as conditional at 0 because no cooperative exists. |
| Sport Clips Eric Gozur - Wayne McGlone Memorial Relief Fund Contribution | $10 | weekly | Yes | verified (2-pass) | Item 6, p. 19 | |
| Computer Software Monthly Maintenance Fee | $165 | monthly | Yes | verified (2-pass) | Item 6, p. 19 | |
| Accounting Software Maintenance Fee | Not stated | monthly | No | verified (tie-break) | Item 6, p. 19 | Paid to the franchisor or directly to a third-party supplier 'if such a program is established'. The FDD does not say a program exists today. Category set to software_pos so it sits with the other software-maintenance fees; audit_accounting (Pass B) is for audit and accounting-service fees. amount_type is variable, not fixed: $75 is a ceiling, not a set amount. |
| Supplemental Services Fee | Tiered (base $5,000) | one time | Yes | single-pass | Item 6, p. 20 | [Listed by one verification pass only (A); not independently confirmed.] |
| Meeting Registration Fees | $850–$1,000 | annual | Yes | verified (2-pass) | Item 6, p. 20 | |
| Renewal Fee | Tiered (base $5,000) | one time | Yes | single-pass | Item 6, p. 20 | [Listed by one verification pass only (A); not independently confirmed.] |
| Audit | Not stated | per event | No | single-pass | Item 6, p. 20 | Payable only if an audit shows an understatement of gross sales of at least 2% for any month. [Listed by one verification pass only (A); not independently confirmed.] |
| Transfer Fee | Tiered (base $5,000) | one time | Yes | single-pass | Item 6, p. 20 | [Listed by one verification pass only (A); not independently confirmed.] |
| IT Security Solution Firewall System | $33–$65 | monthly | Yes | verified (2-pass) | Item 6, p. 20 | |
| Fee for Failure to Maintain POS Computer System Communication | $100 | varies | No | single-pass | Item 6, p. 20 | Penalty fee, applies only while the required POS/Internet connection is not maintained; not a routine operating cost. [Listed by one verification pass only (A); not independently confirmed.] |
| Fee for Failure to Timely Submit Financial Statements and Reports | $100 | varies | No | single-pass | Item 6, p. 21 | Penalty fee, applies only on late/missing required reporting. [Listed by one verification pass only (A); not independently confirmed.] |
| Indemnification | Not stated | varies | No | single-pass | Item 6, p. 21 | [Listed by one verification pass only (A); not independently confirmed.] Calculator audit 2026-09-03: Indemnification is triggered only when SCI incurs a loss from the franchisee's acts, not a cost every franchisee pays in ordinary operation - model_treatment is already not_applicable so this doesn't change the calculator, but mandatory:true misstates the FDD's conditional language. (p. 21; "All losses and expenses incurred ... Upon being incurred by SCI") |
| Interest | Not stated | varies | No | single-pass | Item 6, p. 21 | Applies only to late royalty/advertising payments. [Listed by one verification pass only (A); not independently confirmed.] |
| Store Opening Extension Fee | $5,000 | one time | No | single-pass | Item 6, p. 21 | Optional, at SCI's discretion, only if a franchisee requests a one-year extension to open. [Listed by one verification pass only (A); not independently confirmed.] |
| Store Resale Assistance Fee | 5% of other (min $5,000) | one time | No | single-pass | Item 6, p. 21 | Payable only if the franchisee executes a Resale Assistance Agreement. [Listed by one verification pass only (A); not independently confirmed.] |
| Store Resale Broker Fee | $22,500 | one time | No | single-pass | Item 6, p. 21 | Only if the store is sold to a buyer referred by a broker with an ongoing relationship with SCI; paid directly to the broker, not SCI. [Listed by one verification pass only (A); not independently confirmed.] |
| Product Review Fee | Not stated | per event | No | single-pass | Item 6, p. 21 | Only upon a franchisee's request for SCI to approve a product. [Listed by one verification pass only (A); not independently confirmed.] |
| Training Fee - Percentage | 1% of net sales | weekly | Yes | verified (tie-break) | Item 6, p. 19 | Additive to training-fee-base, not a component credited against it, so overlaps_with stays null; only this entry carries model_treatment percent_of_revenue. |
| Additional fees for PCI DSS compliance and computer security | Not stated | monthly | Conditional | verified (tie-break) | Item 11, p. 40 | 'May also be mandated to ensure compliance with current credit card security standards.' The FDD does not say the fee is in force today. |
| Support fee for POS equipment older than 5 years | Not stated | monthly | No | verified (tie-break) | Item 11, p. 41 | Applies only where store hardware or software is more than 5 years old. The franchisee is separately obliged to update or upgrade within a maximum of 5 years, so the fee is effectively a charge for deferring the refresh. |
| Obligation to honor discounts and redeem Company coupons | Not stated | annual | Yes | verified (tie-break) | Item 11, p. 39 | Applies to any local, regional or national marketing program or promotion sponsored or approved by the franchisor or the Advertising Fund; full participation is compulsory, as is participation in any designated gift card program. Not listed in Item 6; disclosed in Item 11's advertising section. |
| Insurance (required coverages) | Not stated | annual | Yes | verified (tie-break) | Item 7, p. 26 | Item 7 Note 11 (p.27) requires $2,000,000 comprehensive general liability, $2,000,000 commercial general liability, $1,000,000 professional liability, $200,000 business interruption and $500,000 employment practices liability cover, plus workers' compensation as state law requires. Life and cyber cover are recommended, not required. |
| Mannequin heads for virtual haircutting classes | $46 | varies | Yes | verified (tie-break) | Item 11, p. 43 | Recurs with franchisor-sponsored virtual haircutting classes. The franchisor otherwise bears the instruction and materials cost for managers, coordinators and stylists; the franchisee also pays for a mannequin tripod. |
The weekly percentage fees stack on Net Sales: 6% royalty, 5% advertising fund, 1% percentage training fee (plus a $25 base), 1% stylist recruitment and 1% technology, before the fixed $10 relief fund contribution and monthly software charges. Several of these are subject to current franchisor dollar caps ($650 ad fund, $130 training, $35 stylist recruitment, $70 technology per week) that the franchisor states it reviews each December and may change; the contractual entitlement remains the uncapped percentage. Item 6 also discloses an audit fee (cost of audit plus 10% interest, payable if an audit shows an understatement of at least 2% of gross sales for any month), $100 per week penalties for failing to maintain POS system communication or to submit financial statements and reports, a $5,000 per agreement store opening extension fee, a store resale assistance fee of 5% of the sale price with a $5,000 minimum and $10,000 maximum, and a currently $22,500 store resale broker fee payable directly to a broker referred by the franchisor.
Financial performance (Item 19)
What the franchisor actually disclosedWho is represented: Two separate populations. The gross sales table covers 1,645 mature franchised stores, defined as stores with more than two years in operation that were operational at December 31, 2025; the franchisor states this excludes its company-owned stores. Franchised stores open two years or less are not represented. The expense tables cover a different population: 73 company-owned stores in Central Texas, Southern Nevada, Oklahoma, Arkansas and New York, being the 86 company-owned stores less 6 non-mature stores opened since Q4 2024, 2 temporarily closed stores and 5 New York stores. The franchisor states it is not offering franchises in the company-owned markets. No cost or profit data is given for any franchised outlet.
Qualifications: The franchised sales figures cover only mature stores, defined as those with more than two years in operation and operating at December 31, 2025. Stores open two years or less, and the franchisor's own stores, are excluded, so the average and median do not describe a new outlet's first two years. All figures are stated to be unaudited. No costs, expenses or profit are disclosed for any franchised outlet. The expense and operating profit tables are for 73 company-owned stores in Central Texas, Southern Nevada, Oklahoma, Arkansas and New York, markets in which the franchisor says it is not offering franchises; the tables exclude 6 non-mature company-owned stores opened since Q4 2024, 2 temporarily closed stores and 5 stores in New York. The FDD expressly states that operating profit in those tables excludes royalties and weekly training fees, so it overstates what a franchisee paying a 6% royalty and the weekly training fees would retain; it also excludes debt service, depreciation, amortisation, income taxes and any owner compensation beyond the on-site manager payroll. Several counts in Item 19 do not reconcile: the eight sales bands sum to 1,745 stores against a stated total of 1,645; the stores above (726) and below (991) the average sum to 1,717; Item 19 states 1,732 franchised stores at the end of 2025 where Item 20 Table No. 1 states 1,702; and Item 19 refers to both 83 and 86 company-owned stores in adjacent paragraphs.
View full Item 19 disclosure and tables
Sport Clips makes a financial performance representation covering two different populations. For franchised outlets it discloses 2025 gross sales only: an average of $419,485 and a median of $416,189 across 1,645 mature stores, together with a distribution showing 198 stores below $250,000 and 5 above $1,000,000. The tight gap between mean and median suggests a fairly symmetric distribution around roughly $420,000, though the franchisor's own count of stores above and below the average does not add to the stated population. For costs it switches to its own 73 company-owned stores in five markets where it does not sell franchises, reporting average net sales of $528,535 and average operating profit of $139,920. That profit figure is explicitly before royalties and weekly training fees, which a franchisee would owe, and before debt service, depreciation and taxes. The document therefore shows what mature franchised stores sell, and separately what company-owned stores spend, but it does not show what a franchised Sport Clips store earns.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Gross sales — mature franchised stores open more than 2 years Gross sales as reported to the franchisor; unaudited. | Mature franchised stores (more than 2 years in operation) Average | $419,485 | 1,645 | CY2025 | FDD p.53 |
| Gross sales — mature franchised stores open more than 2 years | Mature franchised stores (more than 2 years in operation) Median | $416,189 | 1,645 | CY2025 | FDD p.53 |
| Stores with gross sales above the $419,485 average The FDD states 726 stores were above and 991 below the average; those two counts sum to 1,717, not the stated population of 1,645. | Mature franchised stores (more than 2 years in operation) Count | 726 | 1,645 | CY2025 | FDD p.53 |
| Stores with gross sales below the $419,485 average | Mature franchised stores (more than 2 years in operation) Count | 991 | 1,645 | CY2025 | FDD p.53 |
| Stores with gross sales over $1,000,000 1% of units met or exceeded FDD shows this band as under 1% of stores, with a cumulative 1% at this level or higher. | Mature franchised stores — sales band Count | 5 | 1,645 | CY2025 | FDD p.53 |
| Stores with gross sales of $800,001 to $1,000,000 2% of units met or exceeded Cumulative 2% of stores at this level or higher, per the FDD. | Mature franchised stores — sales band Count | 32 | 1,645 | CY2025 | FDD p.53 |
| Stores with gross sales of $600,001 to $800,000 11% of units met or exceeded Cumulative 11% of stores at this level or higher, per the FDD. | Mature franchised stores — sales band Count | 168 | 1,645 | CY2025 | FDD p.53 |
| Stores with gross sales of $500,001 to $600,000 27% of units met or exceeded Cumulative 27% of stores at this level or higher, per the FDD. | Mature franchised stores — sales band Count | 270 | 1,645 | CY2025 | FDD p.53 |
| Stores with gross sales of $400,001 to $500,000 52% of units met or exceeded Cumulative 52% of stores at this level or higher, per the FDD. | Mature franchised stores — sales band Count | 439 | 1,645 | CY2025 | FDD p.53 |
| Stores with gross sales of $300,001 to $400,000 80% of units met or exceeded Cumulative 80% of stores at this level or higher, per the FDD. This is the largest single band. | Mature franchised stores — sales band Count | 456 | 1,645 | CY2025 | FDD p.53 |
| Stores with gross sales of $250,001 to $300,000 89% of units met or exceeded Cumulative 89% of stores at this level or higher, per the FDD. | Mature franchised stores — sales band Count | 177 | 1,645 | CY2025 | FDD p.53 |
| Stores with gross sales of less than $250,000 Lowest band, shown as 10% of stores. The eight band counts sum to 1,745, which does not equal the stated total of 1,645. | Mature franchised stores — sales band Count | 198 | 1,645 | CY2025 | FDD p.53 |
| Net sales — company-owned stores (not franchised) These are franchisor-owned stores in markets where the franchisor states it is not offering franchises; they are not franchisee results. | Company-owned stores in the expense report Average | $528,535 | 73 | CY2025 | FDD p.54 |
| Variable costs — company-owned stores 6% of net sales. Includes operating supplies, cost of goods sold, bank service charges, credit card discounts and stylist recruitment advertising. | Company-owned stores in the expense report Average | $31,070 | 73 | CY2025 | FDD p.54 |
| Payroll — company-owned stores 46% of net sales. Includes direct payroll with an on-site full-time manager, payroll taxes, payroll processing and fringe benefits, but excludes 401(k), disability and medical insurance. | Company-owned stores in the expense report Average | $242,564 | 73 | CY2025 | FDD p.54 |
| Occupancy — company-owned stores 14% of net sales. Includes rent, landlord pass-throughs, utilities, phone and repairs and maintenance. | Company-owned stores in the expense report Average | $75,892 | 73 | CY2025 | FDD p.54 |
| Advertising — company-owned stores 5% of net sales. Weekly Ad Fund payments plus other store advertising and marketing. | Company-owned stores in the expense report Average | $26,685 | 73 | CY2025 | FDD p.54 |
| Miscellaneous expense — company-owned stores 2% of net sales. Includes store insurance, awards, and contributions to the technology, recruitment and relief funds. | Company-owned stores in the expense report Average | $12,404 | 73 | CY2025 | FDD p.54 |
| Net sales — company-owned stores (median methodology) | Company-owned stores in the expense report Median | $473,197 | 73 | CY2025 | FDD p.55 |
Disclosed cost and profit figures
These figures are disclosed by the franchisor for the population stated in each row — often a subset (company-owned units, or franchisees who chose to report). They frequently exclude owner compensation, rent, debt service, taxes or royalties. They are not a prediction of your results.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Operating profit — company-owned stores, before royalties and training fees The FDD states operating profit does not include any amount paid for royalties or weekly training fees. A franchisee would pay a 6% royalty plus training fees on top of these expenses. The figure also excludes debt service, depreciation, amortisation and income taxes, and it is for franchisor-owned stores. | Company-owned stores in the expense report Average | $139,920 | 73 | CY2025 | FDD p.54 |
| Operating profit margin — company-owned stores, before royalties and training fees As printed in the FDD. Excludes royalties and weekly training fees. | Company-owned stores in the expense report Average | 26% | 73 | CY2025 | FDD p.54 |
| Operating profit — company-owned stores (median), before royalties and training fees 27% of median net sales. Excludes royalties and weekly training fees; franchisor-owned stores only. | Company-owned stores in the expense report Median | $126,281 | 73 | CY2025 | FDD p.55 |
System health (Item 20)
Outlets, openings, exits and transfers by fiscal year · U.S. onlyView detailed Item 20 tables and source notes
| Fiscal year | Start | Opened | Terminated | Not renewed | Reacquired | Ceased — other | End | Transfers | Company-owned (end) |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 1,781 | 28 | 0 | 0 | 0 | 23 | 1,785 | 98 | 75 |
| 2024 | 1,785 | 27 | 0 | 0 | 5 | 75 | 1,732 | 123 | 83 |
| 2025 | 1,732 | 14 | 0 | 18 | 0 | 26 | 1,702 | 51 | 86 |
Disclosed 2026 Franchise Disclosure Document — Sport Clips, Inc., Item 20, Tables 1–3 (PDF p. 57). Counts are U.S. only; every state row in Tables No. 2 to No. 5 is a U.S. state. Table No. 1 foots in all three years (franchised plus company-owned equals the total). Table No. 3 foots for 2024 and 2025 but not for 2023, where 1,781 at start plus 28 opened less 23 ceased gives 1,786 against a stated year-end of 1,785. No terminations were recorded in any of the three years. In 2024 the franchisor reacquired 5 franchised outlets, all in New York, and 75 franchised outlets ceased operations for other reasons, of which the FDD states 22 failed to reopen due to the extended impact of the COVID-19 pandemic. In 2025 the FDD records 18 non-renewals and 26 outlets ceasing operations for other reasons. Several individual 2025 state rows in Table No. 3 open with a count different from that state's 2024 year-end (for example California 137 against 138, Texas 250 against 251, Alabama 28 against 27), although the Totals rows for 2024 and 2025 are internally consistent. Transfers to new owners fell sharply from 123 in 2024 to 51 in 2025. Item 20 lists 33 former or non-communicating franchisees, of whom the FDD marks 27 as still franchisees in the system as of December 31, 2025.
Source data notes (12) — inconsistencies found in the FDD itself during verification
Our verification re-reads every table. Where the FDD's own printed tables disagree, we document the discrepancy rather than silently "fixing" it. Classes: B = arithmetic error in the source's derived column; C = the printed tables genuinely disagree; D = a legitimate definitional difference (e.g., transfers netted, explained by a footnote); E = unresolved ambiguity. Figures a material C/E issue puts in doubt are excluded from our derived metrics, scores and rankings.
- [C/minor] Table No. 3 2023: Validator warning and both passes: the 2023 Total row prints 1,781 start + 28 opened - 23 ceased-other = 1,785, where the arithmetic gives 1,786. Re-summing all 51 state rows gives start 1,781, opened 28, ceased-other 23 and end 1,786, and every individual state row foots in all three years - the 2023 Total is the only non-footing row in the table. The same one-unit surplus reappears in the 2024 Total start (state rows sum to 1,786 against a printed 1,785) and clears by 2025 (state rows and Total both 1,732 start, 1,702 end). — Keep the printed totals: Table No. 3 Total 2023 '1,781 28 0 0 0 23 1,785' (p.65) against Table No. 1 'Franchised 2023 1,781 1,785 4' and '2024 1,785 1,732' (p.57). The printed 1,785 is corroborated twice by Table No. 1, so the surplus unit sits in the 2023 state detail, not in the totals the site uses. One outlet is 0.06% of the 1,781 start-of-year franchised units.
- [C/minor] Table No. 3 2025: Twelve state rows do not carry 2024 year end into 2025 year start (verified by re-parsing every row): Alabama 27->28, California 138->137, Florida 106->102, Illinois 105->106, Louisiana 22->21, New Jersey 30->29, Oklahoma 4->3, Oregon 18->19, Pennsylvania 63->62, Tennessee 47->54, Texas 251->250, Utah 39->38. Tennessee (+7) is the largest single break. The state columns sum to 1,733 at 2024 year end and 1,732 at 2025 year start. — The printed Total row carries 1,732 to 1,732 and the 2025 Total row foots exactly (1,732 + 14 - 18 - 26 = 1,702), matching Table No. 1 and Item 1 (p.10). The offsetting signs (Tennessee +7 against Florida -4, and eight single-unit moves) are consistent with outlets being re-assigned between state rows rather than with lost data. Use the Total rows; do not publish state-level counts.
- [D/minor] Table No. 3: Terminations are reported as zero in every state in all three years. All franchised attrition is booked as non-renewals (18, in 2025 only) or 'ceased operations for other reasons' (23 / 75 / 26), a loss of 142 outlets over three years with no terminations. — A classification choice by the franchisor rather than an arithmetic defect, and partly explained by the table's own footnote that 22 of the 75 outlets in the 2024 'ceased operations for other reasons' column 'failed to reopen due to the extended impact of the COVID-19 pandemic' (p.65). Total attrition and the Total rows are unaffected; the zero should not be read as zero involuntary exits, so report attrition in total rather than by cause.
- [C/minor] Item 19 vs Table No. 1 2025: Item 19 (p.53) states 'At the end of calendar year 2025, there were 1,732 franchised Sport Clips stores', while Table No. 1 (p.57) prints '2025 1,732 1702 -30' for franchised outlets. 1,732 is Table No. 1's 2024 year-end figure. — Use 1,702. Item 1 (p.10) states 'As of December 31, 2025, the Company had 1,702 franchised stores and 86' company-owned, and Table No. 3's 2025 Total row foots independently to 1,702. Item 19's narrative is a year stale; Table No. 1 is not in doubt.
- [C/minor] Item 19 vs Table No. 4 2025: Item 19's gross sales statement excludes '83 Company-owned stores' (p.53) while the expense report on the next page says 'We owned and operated 86 stores ... during 2025'. Table No. 4 shows 83 at the end of 2024 and 86 at the end of 2025. — Use 86 company-owned outlets at 12/31/2025 (Table No. 1 and Table No. 4, which reconcile: 74+1=75, 75+3+5=83, 83+3=86). The 83 is the same one-year lag as the 1,732 figure above and does not touch the franchised counts.
- [C/material] Item 19 gross sales distribution 2025: The band counts (5 + 32 + 168 + 270 + 439 + 456 + 177 + 198) sum to 1,745 against a stated total of 1,645; the percentage column sums to about 101% and the cumulative column opens 1%, 2% where the first two bands give 3%. The cumulative percentages (11%, 27%, 52%, 89%, 100%) match a population of 1,745, not 1,645 - against 1,645 the final cumulative would be 106%. — Report 1,645 and flag the table as unreconciled. 1,745 cannot be a franchised-only mature population: Table No. 1 puts franchised outlets at 1,702 at 12/31/2025 and a subset restricted to stores with more than two years in operation must be smaller, so only 1,645 is feasible even though the printed percentages were computed on the larger base. The stated average ($419,485) and median ($416,189) are given for 'these 1,645' and are used as printed. This does not touch any Item 20 unit count.
- [C/material] Item 19 gross sales distribution 2025: Item 19 says '726 stores had sales above this average, and 991 stores had sales lower than the average' - 1,717 stores against the 1,645 stated for the same table. Three different counts (1,645, 1,717, 1,745) describe one population. — Same defect as the row above. 1,717 also exceeds the 1,702 franchised outlets in Table No. 1, so neither 1,717 nor 1,745 can describe the mature franchised population; 1,645 is retained as the population and the above/below split should be quoted only with the caveat that it does not foot to it.
- [D/minor] Table No. 2: Table No. 2 omits eight states that carry outlets in Table No. 3 (Connecticut, Hawaii, Maine, Nebraska, Nevada, North Dakota, Vermont, West Virginia). — Verified by summing the listed state rows: 98 (2023), 123 (2024) and 51 (2025), exactly the printed totals. The omitted states are zero-transfer states, a common FDD table convention, not dropped data. Transfer totals stand.
- [D/minor] Table No. 3 2024: The Wyoming 2024 'Outlets Opened' cell is printed blank rather than 0. — Read as zero: the row foots as 3 + 0 = 3, and with Wyoming at 0 the state rows sum to exactly the printed 2024 Total for outlets opened (27). No effect on any figure the site uses.
- [D/minor] Table No. 1 2025: Table No. 1 renders the 2025 franchised year end as '1702' with no thousands separator, unlike every other cell in the table. — Cosmetic typesetting only. The value 1,702 is corroborated by Item 1 (p.10) and by Table No. 3's 2025 Total row, which foots to it.
- [D/minor] Table No. 4: Pass B observation recorded for completeness: Table No. 4 (company-owned outlets) is internally clean and reconciles to Table No. 1 - 74 + 1 = 75; 75 + 3 opened + 5 reacquired = 83; 83 + 3 = 86. The 5 reacquisitions in 2024 are the New York stores, which appear as the 5 'reacquired by franchisor' outlets in Table No. 3. — No discrepancy. Re-checked and confirmed; the company-owned series needs no adjustment.
- [D/minor] Table No. 5: Pass B observation recorded for completeness: Table No. 5 totals foot against their state columns - 54 franchise agreements signed but not open, 37 projected new franchised stores and 6 projected new company-owned stores for the next fiscal year. — No discrepancy; totals verified. Worth carrying as editorial context rather than as a data issue: 37 projected franchised openings sit against 14 actual franchised openings in 2025 and a net loss of 30 franchised outlets.
Company-owned outlets (Table 4)
| Year | Start | Opened | Reacquired from franchisee | Closed | Sold to franchisee | End |
|---|---|---|---|---|---|---|
| 2023 | 74 | 1 | 0 | 0 | 0 | 75 |
| 2024 | 75 | 3 | 5 | 0 | 0 | 83 |
| 2025 | 83 | 3 | 0 | 0 | 0 | 86 |
Read: How to read Item 20.
Ownership and operations
Items 11, 12, 15, 17Manager-run permitted Disclosed
- Source
- 2026 Franchise Disclosure Document — Sport Clips, Inc.
- Document
- FDD 2026, issued 2026-04-01
- Item
- Item 15
- Page
- PDF p. 47
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640673
The Company does not require that you personally supervise the franchised business, but we recommend that you do
The franchisor does not require the owner to supervise personally, though it recommends it and holds the owner ultimately responsible. The store must be supervised on-premises by a manager who has completed the franchisor's training program and been approved by the franchisor. The manager need not hold an ownership interest but must sign a confidentiality agreement. Every individual owning 5% or more of the franchisee entity, and that person's spouse, must sign an agreement personally assuming all franchisee obligations.
View operating requirements, territory and contract term
| Owner involvement (Item 15) | Manager-run permitted Disclosed
The franchisor does not require the owner to supervise personally, though it recommends it and holds the owner ultimately responsible. The store must be supervised on-premises by a manager who has completed the franchisor's training program and been approved by the franchisor. The manager need not hold an ownership interest but must sign a confidentiality agreement. Every individual owning 5% or more of the franchisee entity, and that person's spouse, must sign an agreement personally assuming all franchisee obligations. The franchisor does not require the owner to supervise personally, though it recommends it and holds the owner ultimately responsible. The store must be supervised on-premises by a manager who has completed the franchisor's training program and been approved by the franchisor. The manager need not hold an ownership interest but must sign a confidentiality agreement. Every individual owning 5% or more of the franchisee entity, and that person's spouse, must sign an agreement personally assuming all franchisee obligations. |
|---|---|
| Initial training | The initial training program is mandatory for all new franchisees, is offered roughly once a quarter and is conducted at the franchisor's office in Georgetown, Texas. It must be completed to the franchisor's satisfaction about five months before the store opens. The franchisor makes no charge for the program but the franchisee pays travel and living expenses for themselves and one other person. The program table totals 65.5 hours of classroom training, 70.6 hours of self-paced or e-learning and 42.4 hours of field or on-the-job training, delivered in Georgetown, at area training centres, in the franchisee's own store and virtually, with a further roughly 30 hours of self-paced activities and e-learning modules. The franchisor also trains the store manager within 12 months of signing and before opening, usually over one or two weeks depending on the manager's experience, and provides on-site assistance during the week before opening and for three to five days afterwards. Disclosed
Instructors are stated to have at least 3 years of relevant experience, averaging 20 years. A weekly training fee is charged separately under Item 6 and is not a charge for this program. |
| Multi-unit / development options | Multi-unit development is the franchisor's normal route. Under a Multi-Unit Development Addendum the franchisee commits to open two or more stores within a specified area and time, paying a reduced fee for each additional store: $30,000 for the first, $24,500 for the second and $15,000 for the third, a $69,500 lump sum for three stores or $54,500 for two, all due when the addendum is signed. Licences beyond three cost $15,000 each, falling to $12,500 each once the franchisee has five or more stores open and operating. The franchisor states it awards a two-store addendum in specific circumstances, such as a city of fewer than 100,000 people at least 75 miles from a larger city, or a highly developed area with room for only a few more licences, and that it awards a single-store agreement only in specified circumstances such as an approved Sport Clips store manager becoming a franchisee or a veteran who does not financially qualify for additional licences. Disclosed
See also Item 1, page 11, on the Multi-Unit Development Addendum, and Item 12, page 45, on the non-exclusive MUDA territory that applies until each store opens. |
| Territory (Item 12) | Each Franchise Agreement covers one specific approved location, and relocation needs the franchisor's permission. The franchisee receives an exclusive territory during the initial five-year term only: the lesser of a one-mile radius around the location or a radius encompassing a population of 25,000. During the initial term the franchisor may not sell franchises or open company-owned stores in that territory. After the initial term there is no exclusive territory; the franchisee has only a first right of refusal to open an additional location in it, exercisable by signing a franchise agreement within 30 days of written notice. Exclusivity does not depend on sales volume or market penetration. Under a MUDA the development territory is non-exclusive until each store opens. There are no restrictions on soliciting outside the territory, but the current Confidential Manual does not permit the sale of hair care products by mail order or over the internet. The franchisor is not restricted from soliciting inside the territory by mail order or internet, and is not restricted from operating or franchising competing brands under a different trademark. Disclosed
|
| Initial term | 5 years Disclosed
Article II of the Franchise Agreement. |
| Renewal | The franchisee may add successive five-year terms every five years while in good standing. To renew, the franchisee must notify the franchisor, sign the then-current franchise agreement, which may contain materially different terms and conditions from the original, take part in any required training courses, pay the renewal fee, remodel as required, sign a release, and not be in default with the landlord or the franchisor. The renewal fee is $5,000 for a franchisee with fewer than three open franchised stores and $3,500 for one with three or more. Disclosed
Renewal fee amount from Item 6, page 20. |
| Staffing | Item 15 requires the store to be supervised on-premises by a manager who has completed the franchisor's training and been approved by it. The Item 19 company-owned expense tables include payroll for an on-site full-time manager and show payroll averaging 46% of net sales, the largest single cost line. Item 7 assumes leased space of about 1,000 to 1,500 square feet. The document does not state a required number of stylists, staffing levels or hours of operation. Disclosed
Payroll percentage from Item 19, page 54; square footage from Item 7 Note 3, page 26. |
Risk and legal observations
Items 3, 4, 8, 15, 17 — summarized neutrallyLitigation: None disclosed Disclosed · Bankruptcy: None disclosed Disclosed
View legal disclosures, restrictions and guarantees
| Litigation (Item 3) | None disclosed Disclosed Item 3 states that no litigation information is required to be disclosed. No pending or concluded matters are listed for the franchisor, its predecessors, parents, affiliates or the individuals covered by the item. |
|---|---|
| Bankruptcy (Item 4) | None disclosed Disclosed Item 4 states that no bankruptcy information is required to be disclosed. |
| Personal guaranty | Required Disclosed
Every individual owning 5% or more of the franchisee entity, and that person's spouse, must sign an agreement assuming and agreeing to personally discharge all obligations of the franchisee under the Franchise Agreement (Attachment D). The cover page highlights this as a special risk. Separate lease and loan guaranty agreements are also included as exhibits. |
| Non-compete | During the term the franchisee may have no involvement in a competing business anywhere in the United States (Article XIV.B). After the franchise is terminated or expires, the franchisee may not operate a competing business for two years within ten miles of the franchised location or of any other Sport Clips franchise, and the restriction is stated to apply after an assignment as well (Article XIV.C). Disclosed
The ten-mile radius measured from any other Sport Clips franchise, not just the franchisee's own location, makes the post-term restriction broad in areas with a dense store network. |
| Transfer restrictions | The franchisor must approve all transfers but states it will not unreasonably withhold approval. A store must be open and operating for at least three months before its franchise agreement can be transferred. Conditions include the buyer qualifying, the transfer fee being paid, the purchase agreement being approved, training being arranged, a release signed by the seller, the current form of agreement signed by the buyer, and the buyer renovating the premises to then-current specifications ten days before the transfer. The franchisor holds a right of first refusal to match any offer for the business. On death or disability the franchise must be assigned by the estate to an approved buyer within six months. There is no restriction on the franchisor's own right to assign the agreement. Disclosed
Transfer fee is $5,000 for the first store plus $1,000 per additional store in the same transaction, reduced to $2,500 for the first store where the buyer is an existing franchisee (Item 6, page 20). |
| Termination / non-renewal | The table records no right for the franchisee to terminate and no right for the franchisor to terminate without cause. The franchisor may terminate if the franchisee defaults on any agreement with it, including an Area Developer Agreement. Curable defaults carry a 30-day cure period and include non-payment of fees, non-submission of reports, failure to obtain required approvals, failure to complete training, failure to operate in accordance with the Operating Manual or in an unclean or unsafe manner, sale of unauthorised products or services, and failure to cure a default under any other agreement with the franchisor. Non-curable defaults are conviction of a felony, abandonment, trademark misuse, false sales reports, unauthorised use of the premises, insolvency and unapproved transfers. On termination or non-renewal the franchisee must fully de-identify, pay amounts due, and return records, telephone numbers, manuals and training materials, and must sell fixtures and assign the lease if the franchisor requests. The franchisor also has an option to purchase inventory, furniture, equipment and supplies and to assume the store lease. Disclosed
The cross-default provision means a problem at one store or under an area developer agreement can put another store's franchise at risk. |
| Supplier restrictions (Item 8) | All equipment, supplies and inventory must meet the franchisor's specifications and be bought from approved vendors, and the franchisee must stock a minimum inventory of Paul Mitchell and other brands the franchisor specifies. Unapproved products or vendors require a written request, and the franchisor may charge a fee up to its cost of examination. The point-of-sale software must be bought from the franchisor, which is the sole supplier; the franchisor buys it from OpenSpend, Inc. (Salon Ultimate) and marks it up. CDW, LLC is the only approved supplier of certain required computer hardware, and the franchisor states it derives no income from that. Where offered, Supplemental Services must be bought from the franchisor or its Area Developer. Item 8 states that purchases from the franchisor, its designated or approved sources, or under its specifications will be about 70% of the total initial investment excluding the initial franchise fee, and about 7% of ongoing expenses excluding royalties, training and advertising fees. The franchisor reports 2025 revenue from supply and point-of-sale sales to franchisees of $11,000 against a cost of about $7,000, less than 1% of its total revenue, and $62,000 of supplemental services revenue, of which $13,000 went to Area Developers. It states it does not seek or accept commissions from approved vendors. Disclosed
The premises lease is subject to the franchisor's approval and must let the franchisor enter the premises, obtain lease and sales information from the landlord, and assume the lease on default, termination or expiry. |
| Dispute resolution | All disputes go to non-binding mediation for at least eight hours before any court action. Litigation must be brought in Williamson County, Texas, or in what the FDD calls the U.S. Central District Court of Texas. Texas law applies unless a state addendum provides otherwise. The cover page highlights the out-of-state forum and choice of law as special risks. Disclosed
There is no arbitration clause; the process is mediation followed by litigation. |
- Territory exclusivity lasts only through the initial five-year term. After that the franchisee has no exclusive territory, only a first right of refusal on additional locations within it.
- The protected area is small: the lesser of a one-mile radius or a radius covering 25,000 people.
- The franchisor's stated policy is to award single-store franchise agreements only in specified circumstances, so most buyers commit to two or three stores through a Multi-Unit Development Addendum.
- A cross-default provision lets the franchisor terminate if the franchisee defaults on any other agreement with it, including another franchise agreement or an Area Developer Agreement.
- A $5,000 per agreement store opening extension fee applies if a store is not opened on the development schedule, and the extension is at the franchisor's option.
- Item 7's stated total does not equal the sum of its own line items, and it differs from the cover page total by $10,000 at the low end.
- Several counts in Item 19 do not reconcile with each other or with Item 20, including the population of the gross sales table and the year-end franchised outlet count.
- Franchised outlets fell by 79 over the three years covered by Item 20 while company-owned outlets grew by 12, and new franchised openings fell from 28 in 2023 to 14 in 2025.
- The franchisor states that in some instances current and former franchisees sign provisions restricting their ability to speak openly about their experience with the system, although it signed no confidentiality clauses in the last three fiscal years.
- Current dollar caps on the advertising, training, stylist recruitment and technology fees are stated as policy the franchisor reviews each December and may change; the contractual obligation is the uncapped percentage of Net Sales.
Summaries are neutral paraphrases of the cited document and are not legal advice. Read the full Items in the current FDD and consult a franchise attorney.
Illustrative unit economics
Model estimateModel estimate — not disclosed by the franchisor, not a forecast. Fee lines below come from this brand's verified FDD fee schedule and are computed exactly as disclosed (each line shows its arithmetic). Operating-cost ratios are category placeholders we chose — every one is editable and labeled assumption. Results are illustrative arithmetic, not expected returns. Every figure here belongs to one of five labeled categories — disclosed inputs, model assumptions, unmodeled mandatory fees, user-editable assumptions, and exclusions — defined in our methodology. This brand's Item 19 also discloses some cost or profit data — see the Item 19 section, which takes precedence over any assumption here.
| Line (annual) | Downside | Base | Upside |
|---|---|---|---|
| Revenue (AUV basis) | $335,588 | $419,485 | $482,408 |
| − Cost of goods / supplies assumption | $26,847 | $33,559 | $38,593 |
| − Payroll (excl. owner) assumption | $151,015 | $188,768 | $217,083 |
| − Occupancy assumption | $40,271 | $50,338 | $57,889 |
| − Other operating expenses assumption | $40,271 | $50,338 | $57,889 |
| − Royalty disclosed 6% of net sales = $25,169 |
$20,135 | $25,169 | $28,944 |
| − Advertising disclosed 5% of net sales = $20,974 |
$16,779 | $20,974 | $24,120 |
| − Training Fee - Base disclosed $25/week × 52 = $1,300 |
$1,300 | $1,300 | $1,300 |
| − Stylist Recruitment Fee disclosed 1% of net sales = $4,195 |
$3,356 | $4,195 | $4,824 |
| − Technology Fee disclosed 1% of net sales = $4,195 |
$3,356 | $4,195 | $4,824 |
| − Sport Clips Eric Gozur - Wayne McGlone Memorial Relief Fund Contribution disclosed $10/week × 52 = $520 |
$520 | $520 | $520 |
| − Computer Software Monthly Maintenance Fee disclosed $165/month × 12 = $1,980 |
$1,980 | $1,980 | $1,980 |
| − Meeting Registration Fees disclosed $850 per year |
$850 | $850 | $850 |
| − IT Security Solution Firewall System disclosed $33/month × 12 = $396 |
$396 | $396 | $396 |
| − Training Fee - Percentage disclosed 1% of net sales = $4,195 |
$3,356 | $4,195 | $4,824 |
| = Modeled operating result before the items below (EBITDA-style) | $25,157 | $32,708 | $38,371 |
| − Manager compensation assumption | $55,000 | $55,000 | $55,000 |
| = Modeled result after manager compensation | −$29,843 | −$22,292 | −$16,629 |
| − Illustrative debt service assumption | $46,319 | $46,319 | $46,319 |
| = Illustrative pre-tax cash flow — before taxes, capital expenditures and unmodeled fees | −$76,162 | −$68,611 | −$62,948 |
| Modeled operating margin | 7.5% | 7.8% | 8% |
This modeled result is not owner income. It excludes: income taxes; capital expenditures and equipment-replacement reserves; working-capital needs; ramp-up losses; owner-specific costs; one-time and per-event fees (transfer, renewal, audit); and 3 mandatory fee(s) whose amounts the FDD does not state (listed below — real outflows are higher by these amounts). It is illustrative arithmetic on stated assumptions, not a promise or forecast of what a franchisee earns.
Mandatory fees disclosed but not quantified — not included in the modeled result: the FDD requires these but states no amount (e.g. billed at "then-current" rates). They are never modeled as $0. If you have a quote or estimate, enter an annual amount to include it as your own assumption:
- Additional fees for PCI DSS compliance and computer security (Item 11, p. 40) — Amount unstated; ceiling $1,200/year, separate from the $33-$65 monthly IT security firewall charge.
- Obligation to honor discounts and redeem Company coupons (Item 11, p. 39) — Not a cash fee and not additive to the Advertising Fund contribution: it is forgone margin of up to $10,000/year, and the FDD discloses only the ceiling. Do not model a fixed amount.
- Insurance (required coverages) (Item 7, p. 26) — Coverage must be carried for the whole term but no ongoing premium is disclosed. The $700-$3,500 in Item 7 is a pre-opening lump sum already carried in the initial investment, so it must not be re-used as an annual premium. Item 7 Note 11 adds that premiums are not uniform.
Every figure in this table is a model estimate built on the disclosed fee schedule plus labeled assumptions. Excluded: income taxes, owner draw, working-capital swings, capital expenditures, ramp-up losses in year one, one-time and per-event fees (transfer, renewal, audit), and the undisclosed-amount fees listed above. Read AUV vs. EBITDA vs. owner income before using this.
Sources and provenance
Primary source: 2026 Franchise Disclosure Document — Sport Clips, Inc. · issued 2026-04-01. Find the FDD at Wisconsin Department of Financial Institutions — Franchise Registration Search. We cite source pages and do not redistribute PDFs.
View all sources, provenance and verification notes
| Document | Obtained from | Dates | Status |
|---|---|---|---|
| 2026 Franchise Disclosure Document — Sport Clips, Inc. Registry file 640673 · 304 pages Registration effective 4/1/2026, status Registered. Issuance date April 1, 2026; document code SCI.4.26. This is the most recent Sport Clips FDD available from the reviewed registry. | Wisconsin Department of Financial Institutions — Franchise Registration Search | Issued 2026-04-01 Retrieved 2026-08-29 | Newest available at retrieval |
AI-assisted extraction from the archived FDD text, independently machine-verified against the cited source (two passes plus tie-break); not human-reviewed. Extracted 2026-08-29. Last updated 2026-09-03. AI-assisted extraction independently machine-verified against the cited source document (2026-09-02): two independent AI reading passes plus tie-break re-inspection of every disagreement; 73 of 77 material fields confirmed (69 with the exact page citation re-confirmed), 0 corrected, 0 unresolved, 4 confirmed not disclosed. No human has reviewed this profile. Fiscal year covered: FY2025 (Dec 31, 2025). See how we use AI and verify data.
Fields flagged as uncertain (9)
- investment.total_low — the Item 7 TOTAL row reads $236,800, the cover page reads $226,800, and the sum of the Item 7 line items is $229,000. The Item 7 TOTAL row was recorded.
- investment.total_high — the Item 7 TOTAL row and the cover page both read $580,500, but the Item 7 line items sum to $575,000.
- investment.franchise_fee_high — $69,500 is the lump sum for a three-store Multi-Unit Development Addendum, not the fee for one store. The single-store fee is $30,000. Item 7 footnotes that this row alone reflects the cost for up to three stores.
- item19.population_count — the FDD states 1,645 mature stores, but the eight sales-band counts sum to 1,745 and the above/below-average counts sum to 1,717. The stated total of 1,645 was recorded.
- item19.population_share_of_system — 96.7 is 1,645 divided by the 1,702 franchised outlets at December 31, 2025 from Item 20 Table No. 1. Item 19 itself states 1,732 franchised outlets at that date, which would give 95.0.
- fees.local_marketing — recorded as not_disclosed because Item 6 imposes no separate ongoing local advertising spend; the only local marketing obligation found is the one-time $30,000 grand opening advertising deposit paid to the Ad Fund.
- fees.cooperative — recorded as a current value of zero with a range high of $300 per week, because the fee applies only where franchisees vote to form a local advertising cooperative and the FDD states none is currently active.
- investment.liquidity_required and investment.net_worth_required — no minimum liquid capital or net worth requirement appears on the cover pages or in Items 1, 5, 7 or 15.
- franchisor.fiscal_year_end — not stated as a fiscal year end in so many words; inferred from Items 8, 19 and 20, which all report on calendar years ending December 31.
Extraction notes (9)
- The validator warns that Item 20 Table No. 3 does not foot for 2023: 1,781 at start plus 28 opened less 23 ceased for other reasons gives 1,786 against a stated year-end of 1,785. The 2024 and 2025 Totals rows foot exactly. The FDD's own figures were recorded without adjustment.
- Item 19 states there were 1,732 franchised Sport Clips stores at the end of calendar year 2025. Item 1 and Item 20 Table No. 1 both give 1,702 at December 31, 2025; 1,732 is the 2024 year-end figure. The units block follows Item 20.
- Item 19 refers to 83 excluded company-owned stores in one paragraph and to 86 company-owned stores operated during 2025 in the next. Item 20 Table No. 4 gives 83 at the start of 2025 and 86 at the end, which explains the two figures.
- Item 8 contains an apparent typographical error, stating 2025 revenue from the sale of supplies to franchisees as '$11.000'; a later paragraph gives point-of-sale revenue for the same year as $11,000, so the figure was read as eleven thousand dollars.
- Item 8 also states that the remaining $49,000 of supplemental services fees 'was less than 1% of our total revenue for the year 2024', while the surrounding sentences are about calendar year 2025.
- Item 1 mixes as-of dates: franchised and company-owned store counts are as of December 31, 2025, while the Area Developer count (7 in 16 states) and the Gambuzza's Barbershop count are as of December 31, 2024, and the Canadian master franchise statement is as of December 31, 2023.
- The franchisor operates a separate barbershop brand, Gambuzza's Barbershop, through affiliates GBS Texas, LLC and GBS Franchising, LLC. The FDD states these do not provide goods or services to Sport Clips franchisees and have never offered franchises. Only the Sport Clips concept is covered by this record.
- No alternative Item 7 tables exist in this FDD; there is a single table for one store, so alternative_formats is empty. The Multi-Unit Development Addendum changes only the initial franchise fee, not the per-store investment.
- Confidence is set to medium because of the unreconciled totals in Item 7 and Item 19 noted above, not because of ambiguity in reading the source. Each recorded value is the figure as printed in the FDD at the cited page.
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