Franchise Clique Logo

Sport Clips, Not Your Father???s Barber

Sports Clip a leader in America's $55 billion hair services market


Sport Clips, Not Your Father’s Barber

Sports Clip a leader in America's $55 billion hair services market.

By Anne Field


CEO Gordon Logan

Gor­don Logan

At Sport Clips Hair­cuts, it’s all about the cus­tomer expe­ri­ence. While fran­chisees of the com­pany, based in George­town, Texas, pro­vide men’s hair­cuts, that’s only part of the ser­vice. “Most men don’t know the dif­fer­ence between an okay cut and a great cut, but every­body knows the dif­fer­ence between a mediocre expe­ri­ence and a great expe­ri­ence,” says CEO and founder Gor­don Logan, who formed the com­pany in 1993 and started fran­chis­ing in 1995. To that end, salons pro­vide every­thing from mas­sages to hot face tow­els dur­ing sham­poos, all in a brightly lit space with big-screen TVs.

That approach has helped fuel the company’s growth. For the past two years same-store sales have increased about 10%, a sub­stan­tial record com­pared to the 2% to 3% a year growth of the $55 bil­lion hair-services mar­ket, accord­ing to Logan. The com­pany has 855 loca­tions in 39 states, and Logan expects to add another 150 or so this year.

Fran­chisees come from “all over the world,”

The Com­pany

The ser­vice: Men’s and boys’ hair­cut­ting, with a dif­fer­ence. Fran­chises cre­ate an envi­ron­ment in which cus­tomers feel at home—and are pam­pered. “It really sets us apart,” says Logan.

Train­ing: New fran­chisees can log on to online learn­ing mod­ules as soon as they sign up. A com­pany rep­re­sen­ta­tive also pro­vides a face-to-face ori­en­ta­tion dur­ing that time. After that, there’s a one-week train­ing at head­quar­ters. Com­pany sup­port staffers also spend time with fran­chisees the week before and after a grand open­ing. In addi­tion, 10 weeks ahead of a sched­uled open­ing, fran­chisees hold weekly phone calls with some­one from head­quar­ters to make sure they’re on track. In all, there are about 125 staffers sta­tioned at either the main office or in the field whose job is to pro­vide train­ing and support.

Fran­chisees gen­er­ally don’t per­form hands-on man­age­ment, so there’s also ongo­ing train­ing for man­agers in every­thing from how to set goals to team-building, as well as train­ing for stylists.

Same-store sales have increased about 10%, com­pared to the 2% to 3% a year growth of the hair-services market.

Immigrant-friendly poli­cies: There are no spe­cific immigrant-friendly poli­cies. But, accord­ing to Logan, the company’s inten­sive train­ing pro­grams are help­ful for immi­grants. Fran­chisees come from “all over the world,” although there are no spe­cific numbers.

Fund­ing: The com­pany doesn’t pro­vide financ­ing, but it has solid rela­tion­ships with sev­eral lenders, accord­ing to Logan.

What you’ll need: Using exten­sive research and demo­graphic data to pin­point where poten­tial clients live and the best areas to sit­u­ate fran­chises, the com­pany works with a net­work of com­mer­cial real estate bro­kers to pin­point loca­tions for new stores. If the site seems to have poten­tial, fran­chisees then inves­ti­gate fur­ther. Loca­tions range in area from 180 square feet to 1,800 square feet, but the ideal is about 1,200 square feet. If it seems like a promis­ing site, then fran­chisees have access to attor­neys who can help nego­ti­ate leases.

Once con­struc­tion is fin­ished, “your store actu­ally comes in on a truck,” says Logan. Chairs, sinks, and other equip­ment are orga­nized in such a way that they can be unloaded eas­ily from trucks and installed in salons, allow­ing stores to be opened just four days after delivery.

We’re look­ing for peo­ple with good val­ues and ethics who are will­ing to work hard and stay the course”

Startup costs: Costs range from $150,000-$200,000. That includes the store build-out, equip­ment, inven­tory, work­ing cap­i­tal, fran­chise fee, and grand open­ing expenses. All fran­chisees are required to spend $15,000 on their launch event. Most fran­chisees buy mul­ti­ple loca­tions and hire man­agers to run them day to day.

Return on invest­ment: Logan can’t dis­close specifics. But, the amount of time it takes to turn a profit varies con­sid­er­ably, depend­ing on each franchisee’s abil­ity to execute.

What they’re look­ing for in prospec­tive fran­chisees: Accord­ing to Logan, he looks for peo­ple who “have an entre­pre­neur­ial bent, but they’re not too entre­pre­neur­ial.” That means indi­vid­u­als who want to run their own busi­ness but are will­ing to work within a pre­scribed sys­tem. In addi­tion, fran­chisees should have good peo­ple and super­vi­sory skills and the abil­ity to build a team. Pre­vi­ous expe­ri­ence can be in any­thing from the mil­i­tary to another busi­ness. “We’re look­ing for peo­ple with good val­ues and ethics who are will­ing to work hard and stay the course,” says Logan.

One essen­tial fig­ure is how many stores have been opened. But it’s also impor­tant, advises Logan, to pin­point the num­ber that have closed.

Tips for the Immi­grant Buyer

It’s impor­tant to inves­ti­gate the kind of train­ing and sup­port our fran­chise offers, not only ini­tially, but peri­od­i­cally after­ward, accord­ing to Logan. “At some fran­chises, if you can write a check, you are in. But you want to be with a sys­tem that really has your best inter­est at heart,” he says. “If the fran­chise doesn’t ask as many ques­tions as you think it should, that’s a warn­ing sign.”

Make sure to look at the company’s finan­cial state­ments and per­for­mance his­tory over time, says Logan. One essen­tial fig­ure is how many stores have been opened. But it’s also impor­tant, advises Logan, to pin­point the num­ber that have closed.

Simple Search Tool
What type of franchise would you like?
How much capital would you like to invest?
Where would you like to open your franchise?

Popular Searches

Franchises by Investment

Franchises by Industry