How much does it cost to open a Sport Clips franchise?

The total initial investment for a Sport Clips franchise ranges from $288,500 to $475,000. This includes the franchise fee of $69,500, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a Sport Clips franchise?

Sport Clips franchisees pay a 6.0% royalty fee and a 5.0% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a Sport Clips franchise?

Based on Item 19 financial performance data, the median Sport Clips franchise generates $491,547 in annual revenue. Estimated owner profit is approximately $113,056.

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Wellness & Spa 1,754 Units

Sport Clips Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$288,500 – $475,000

Franchise Fee

$69,500

Royalty Rate

6.0%

Initial Investment Range

Low: $288,500 High: $475,000

The total initial investment to open a Sport Clips franchise ranges from $288,500 to $475,000, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $69,500.

Midpoint estimate: $381,750

Franchise Fee

$69,500

One-time initial fee

The Sport Clips franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Sport Clips brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

6.0%

of gross revenue

Ad/Marketing Fund

5.0%

of gross revenue

Total Ongoing Fee Burden: 11.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Royalty	6.0	PCT	Net Sales include all revenue from the franchise location. Net Sales do not include sales tax. Payable on Monday of each week by ACH transfer.
Advertising	5.0	PCT	Greater of $300 per week or 5% of Net Sales. Current policy caps at $650 per week. Policy reviewed annually in December.
Training Fee - Base	25.0	FIXED	Base Training Fee component. Paid same time as royalty fee.
Training Fee - Percentage	1.0	PCT	Greater of $60 per week or 1% of Net Sales. Current policy caps Percentage Training Fee at $130 per week. Policy reviewed annually in December.
Stylist Recruitment Fee	1.0	PCT	1% of Net Sales. Current policy caps at $35 per week. Policy reviewed annually in December.
Technology Fee	1.0	PCT	1% of Net Sales. Current policy caps at $70 per week. Policy reviewed annually in December.
Local Advertising Coop Fee	N/A	VARIABLE	Up to $300 per week. Payable only if you are in an area that votes to establish a local Advertising Coop. Currently no active advertising cooperatives.
Local Stylist Recruiting Coop Fee	1.0	PCT	Greater of $100 per week or 1% of Net Sales. Payable only if you are in an area that has an established local Stylist Recruiting Coop. Currently no active Stylist Recruitment Cooperatives.
Sport Clips Eric Gozur - Wayne McGlone Memorial Relief Fund Contribution	10.0	FIXED	Emergency assistance fund for Sport Clips franchisees and employees. Contributions may be tax deductible. Cannot exceed $10 per week under current Franchise Agreement.
Computer Software Monthly Maintenance Fee	165.0	FIXED	Includes support and updates to required POS computer software. Paid to third-party vendor. Due on first Monday of each month.
Accounting Software Maintenance Fee	75.0	FIXED	Not to exceed $75 per month. Paid to franchisor or directly to third party supplier if program established. Due on first day of each month.
IT Security Solution Firewall System	60.0	FIXED	Paid directly to third-party vendor. Includes PCI-DSS online tools. Due on first day of each month.
Supplemental Services Fee	N/A	VARIABLE	$5,000 for first store, $4,000 for second store, $3,000 for third and additional stores. Due before opening Sport Clips Store.
Meeting Registration Fees	N/A	VARIABLE	Currently between $720 and $845 per person for Annual Meeting. Will not exceed $1,000 during term of Franchise Agreement. Due upon registration for national and area meetings.
Renewal Fee	N/A	VARIABLE	$5,000 if you own fewer than 3 open franchised Sport Clips; $3,500 if you own 3 or more open franchised Sport Clips. Due upon renewal.
Audit	N/A	VARIABLE	Payable only if audit shows an understatement of at least 2% of gross sales for any month. Due 30 days after billing by ACH.
Transfer Fee	N/A	VARIABLE	$5,000 for first store transferred, $1,000 for each additional store or license in one transaction. No charge if transferred to corporation you control. Reduced to $2,500 for first store if sold to existing Sport Clips franchisee. Due prior to consummation of transfer.
Fee for Failure to Maintain POS Computer System Communication	100.0	FIXED	$100 per week or portion of week that POS Computer System is not maintained with current approved software or required Internet connection. Due within 10 days of end of week franchisor cannot access Computer System.
Fee for Failure to Timely Submit Financial Statements and Reports	100.0	FIXED	$100 per week or portion of week that you fail to submit required financial statements or reports. Due same time as royalty fee.
Indemnification	N/A	VARIABLE	Payable only if SCI incurs liability because of your actions. Due upon being incurred by SCI.
Interest	N/A	VARIABLE	Maximum permitted by law on late royalties and advertising fees. Due upon payment of late royalties and advertising fees.
Confidential Operating Manual Replacement Fee	N/A	VARIABLE	$250 per volume or $1,000 per set of volumes. Payable only if Confidential Operating Manual is lost or destroyed. Due upon reissue of Manual.
Extension Fee	5000.0	FIXED	$5,000 per Franchise Agreement to extend time by 1 year to open stores per Development Schedule. Extension at SCI's option. Due within 30 days of date store should be open but is not.
Store Resale Assistance Fee	5.0	PCT	5% of sales price with minimum of $5,000 and maximum of $10,000. Payable only if you execute Resale Assistance Agreement requesting franchisor to assist in identifying buyer. Due upon closing of sale.
Store Resale Broker Fee	22500.0	FIXED	Currently $22,500. Payable only if you sell store to party referred by business broker with ongoing relationship with franchisor. Fee paid directly to Broker. Due upon closing of sale.
Product Review Fee	N/A	VARIABLE	Due upon your request that SCI approve product.

What You Get

Financial Performance (Item 19)

Median Revenue

$491,547

per year, per location

Mean Revenue

$533,445

per year, per location

Profitability Estimate

Estimated Owner Profit

$113,056

per year

Profit Margin

23.0%

of revenue

Estimation method: disclosed

Estimated ROI (Simple Payback): 3.4 years

Based on midpoint investment of $381,750 and estimated annual owner profit of $113,056.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.0%

Low risk — below industry average

Net Unit Growth

-1778 units

From 2022 to 2025

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2022	1778	+46	—	—	1781
2023	1781	+27	—	—	1785
2024	1785	+27	—	—	1754
2025	—	+26	—	—	—

Is a Sport Clips Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Sport Clips franchise opportunity:

Overall Score

76/100

Strong opportunity

Est. Payback Period

3.4 yrs

Average payback

Risk Level

Low

0.0% annual closure rate

Sport Clips scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $491,547 and a combined fee burden of 11.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.