From the filed FDD — automated extraction, check the source
2017 FDD · 8+ years old — too old to rate
SBA-eligible · directory code S2521 since 2018
Sport Clips
Hair salons · parent company: not identified
Sport Clips is a hair care franchise offering haircuts for men and boys in a sports-themed setting with televised games at every station. A franchisee owns one or more salons run by hired managers and licensed stylists, serving walk-in and check-in clients, with the owner typically managing the business semi-absentee.
Sport Clips net unit count grew 21.5% over 2014–2016 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. Most numbers on this page come from that document; others come from federal SBA loan records and labor and census data, each labelled with its source:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened, transferred and left the system, the main basis for our verdict, which rates how strong the disclosed record is, or says when the system is too new, the filing too old, or the disclosure too thin to judge.
Our rating · opinion
Filing too old to rate
The newest FDD we hold for this brand is from 2017, more than two years old. Franchise systems change a lot in that time, so we don't rate it until we have a current filing. For context, SBA loans to its franchisees approved FY1999–2020 charged off far less often than franchise loans of the same years (48 vs about 116 expected, 0.4×).
Exit rate · fiscal 2016
0.1%
vs 4.2% median across 7 comparable systems (hair salons)
Cost to open
$189K–$355K
Item 7 total investment range
SBA loan losses · vs same-year loans
0.4×
48 of 781 charged off vs ~116 expected
Market density · Texas
Thin market
25% thinner than the national average
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Data as of 2026-10-29. Figures come from Sport Clips's public FDD filings (latest: MN 2017, extracted 2026-07-23) and SBA FOIA loan records (through FY2026), extracted by us and possibly containing errors. The rating is our opinion, not investment, legal, or tax advice. Franchisor or owner and see something wrong? Report a correction — we review every request.
Buying an existing Sport Clips? Transfer fee $5,000, resale record and asking-price check →
What each source says
FDD record · SBA loans · model · auditor
We don't rate on an FDD more than two years old; the loan record and model are shown as context until a current filing arrives.
FDD record · Item 20
Filing too old
Latest FDD we hold is from 2017.
SBA loans · vs same-year loans
Far fewer defaults than expected (0.4×)
48 charge-offs among 781 resolved loans approved FY1999–2020; about 116 expected.
Modeled risk
Lower risk
The brand's own loan record contradicts this prediction; the record leads.
Auditor opinion · Item 21
Clean opinion
Unqualified audit, 2017 FDD. Says nothing about franchisee results.
Behind the verdict
the record, factor by factor · Item 20
latest consecutive years · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness · shown, not counted in the verdict
Systemwide units
2014–2016
Survival record
FDD Item 20 · outlet status by year
In fiscal 2016, 2 of 1,423 franchised outlets left the system — an exit rate of 0.1% (fiscal 2016), vs a 4.2% median across 7 comparable systems (hair salons). An exit is not a failure: this counts terminations, non-renewals and "ceased — other reasons" as reported, and excludes transfers to new owners.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2014 | 2015 | 2016 |
|---|---|---|---|
| Outlets at start | 1,151 | 1,304 | 1,455 |
| Opened | 151 | 152 | 131 |
| Transfers | 42 | 83 | 77 |
| Terminations | 0 | 0 | 0 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 1 | 0 | 0 |
| Ceased — other reasons | 1 | 1 | 2 |
| Outlets at end | 1,304 | 1,455 | 1,584 |
| Net change | +153 | +151 | +129 |
The franchisor's own finances
FDD ITEM 21 · AUDITED STATEMENTS · 2017 FDD
Brown, Graham & Company, P.C. gave an unmodified (clean) opinion on the statements in the 2017 FDD; revenue rose 27% from FY2014 to FY2016.
This is the company selling the franchise, not any franchisee. A clean opinion means the statements are fairly presented — not that the business is healthy.
Audit opinion
Unmodified (clean) opinion
Brown, Graham & Company, P.C.
Revenue · FY2016
$60.2M
p. 151 · matched to statement
Net income · FY2016
$3.5M
p. 151 · matched to statement
Where FY2016 revenue came from
55% royalties
initial-fee share not extracted
Show the statement figures ↓Hide the evidence ↑
| Fiscal year | FY2014 | FY2015 | FY2016 |
|---|---|---|---|
| Total revenue | $47.6Mp. 151 · matched to statement | $53.7Mp. 151 · matched to statement | $60.2Mp. 151 · matched to statement |
| Royalty revenue | $24.9Mp. 151 · matched to statement | $28.9Mp. 151 · matched to statement | $33.3Mp. 151 · matched to statement |
| Net income (loss) | $3.6Mp. 151 · matched to statement | $3.8Mp. 151 · matched to statement | $3.5Mp. 151 · matched to statement |
| Equity (deficit) at year end | $11.6Mp. 150 | $14.7Mp. 150 | $15.5Mp. 150 |
The lender's view
SBA 7(a)/504 loan outcomes · compared with franchise loans of the same years
Banks have made 943 SBA-backed loans to Sport Clips franchisees since 1999. Of the 781 approved FY1999–2020 that have resolved, 48 charged off — where about 116 would be expected for franchise loans made in the same years. That is 0.4× the expected rate: these loans defaulted far less often than comparable franchise loans.
All-time, 48 of 799 resolved loans charged off (6.0%). That raw figure mixes every approval year since 1999 — loans made in 2006–08 failed at several times the rate of loans made in 2010–13 across all franchises — so it is shown as evidence, not as the score.
0.4×
48 of 781 resolved (FY1999–2020) vs ~116 expected
6.0%
48 of 799 resolved, every approval year
63.2%
charged-off $ ÷ approved $, defaulted loans
$504,992
what recent franchisees borrowed
81 mo
approval → charge-off, defaulted loans
23 vs 27
distinct banks still lending
Charge-off rate by loan approval year (%) · dashed line = all franchise loans that year
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO SPORT CLIPS BY SBA FRANCHISE NAME/CODE · RESOLVED = CHARGED-OFF + PAID-IN-FULL · EXPECTED = SAME-YEAR RATE ACROSS ALL SBA FRANCHISE LOANS, LOANS ≥ ~6 YEARS OLD
The owner's side of the deal
FDD × federal loan record
A typical Sport Clips buyer since 2020 borrowed $505K through SBA — about $72K a year in debt service. Against the brand's own disclosed median unit revenue of $386K, that is 18.6% of the revenue the business takes in, before rent, stylist or technician pay, product, and royalty.
This estimate is computed by software from the brand's public filings and any inputs you enter. No CPA prepared it for you and no assurance is provided on it. Actual results will differ, and the differences may be material.
Who finances it
Simmons Bank
40.1% of this brand's loans
That lender charges off 12.2% of its resolved SBA loans to other franchise brands in the FOIA file, vs 14.8% nationally — a read on that lender's portfolio mix, not a finding about the bank.
Who buys it
36.0%
borrowers with no other franchise SBA loan on record
The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators have charged off less often than brands sold mostly to newcomers (see methodology).
Does experience help here?
+0.2pp
multi-unit vs single-unit owners
Owners of multiple units default at 5.6%; single-unit owners at 5.4% (each on 15+ resolved loans, owners identified by borrower-name matching).
Computed from 943 SBA 7(a)/504 loans matched to Sport Clips by SBA franchise code in the SBA FOIA file. Debt service assumes level amortization at the average disclosed term and rate. Owner-level splits rely on borrower-name matching and may misclassify. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $25,000 franchise fee (Item 5) and a total investment of $189K–$355K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$189K–$355K
all-in investment range
Franchise fee (Item 5)
$25,000
upfront, one-time
Royalty (Item 6)
6%
of sales, ongoing
Starts at the Item 19 median of $386K from Sport Clips’ latest FDD. Read which units built that figure, then check it with current and former owners.
Royalty you'd pay / yr
$23K
6% of sales, before profit
Over a 10-yr term
$225K
royalties alone, excl. ad fund
This estimate is computed by software from the brand's public filings and any inputs you enter. No CPA prepared it for you and no assurance is provided on it. Actual results will differ, and the differences may be material.
This is not profit. It covers what the FDD fixes: what you put in, and the royalty you owe on sales. Your take-home depends on stylist or technician pay, rent, product, and the months to breakeven, none of which the FDD fixes for your unit (some Item 19s include cost data — read it).
Build a real pro-forma for Sport Clips with a buyer-paid CPAHow the earnings claim is built
FDD ITEM 19 · BASIS · 2017 FDD
This filing makes an Item 19 earnings claim; we have not yet read how it is built. Open Item 19 and check which units it covers, which it leaves out, and whether it shows costs.
Show the basis ↓Hide the evidence ↑
Labor record
US Dept. of Labor enforcement · franchisee-level · FY2005–present
Federal investigators have concluded 9 wage cases against operators of this system, recovering $14K in back wages for 66 workers, including 1 child-labor case. Some of these cases are recent, not ancient history. These cases name franchisee-owned locations, not the franchisor itself.
Concluded cases
9
Back wages owed
$14K
Employees affected
66
Since 2020
2
1 of these cases involved child-labor violations, covering 1 minors across the system's franchised locations.
Read this carefully. The employers in these cases are individual Sport Clips franchisees — separately owned businesses operating under the brand name — not Sport Clips itself. The franchisor is not the respondent and in most cases is not a party. What the record shows is how this system's operators run their payrolls, which is worth knowing before you become one of them. Counts rise with system size and with age: a 20-year-old, 10,000-unit system will out-count a young one regardless of conduct. Cases are matched to the brand by trade name and may include misattributed employers. Source: DOL Wage and Hour Division concluded compliance actions, FY2005–present, most recent finding 2021.
Modeled risk
FDD Risk Score · a prediction from disclosure and loan-file features
This brand's own loan record is better than the model predicts: its franchisees' SBA loans charged off at 0.4× the rate of same-year franchise loans, where the model expects about 0.9×. We lead with the observed record; the model is shown for context.
Observed · vs same-year loans
0.4×
48 of 781 seasoned loans charged off
Risk percentile
22nd
Checkable · higher = riskier
Modeled · vs same-year loans
0.9×
≈ 13.8% at the all-loan vintage mix
Top drivers: System size (log units) (lowers) · Item 20 exit rate (lowers) · Item 3 litigation (log) (raises) · Share of buyers who are first-time operators (raises). The observed record differs from the model, so treat the score as context only. A linear scorecard trained on brands' vintage-adjusted SBA loss records; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Public records
Bankruptcy, closure & federal court records · coverage is selective · dockets are not scored
We have no verified public-record signals published for Sport Clips. This is not evidence that no events exist. Check PACER, the FDD's Item 3 (litigation) and Item 4 (bankruptcy), and recent news yourself.
10 questions to ask a Sport Clips franchisee
Built from this brand's own disclosures · take it to your validation calls
The franchisor will give you a list of owners to call. Most buyers ask whether they like it. These questions come from what Sport Clips has disclosed. Each one carries the number it came from, so you can check the answer against the record.
- 01
Sport Clips’ own Item 20 shows 2 of 1,423 franchised outlets left the system in fiscal 2016 — about 0.1%. Do you know any of those owners, and do you know why they left?
A franchisor will call these “transitions.” An owner three doors down usually knows whether they sold at a profit or handed the keys back.
FDD Item 20 · FY2016
- 02
77 units transferred to new owners in fiscal 2016. When you look at those, were they people cashing out a good business — or getting out of a bad one?
Item 20 counts transfers as neutral, but a transfer can be a good sale or a reluctant exit — the filing does not say which.
FDD Item 20 · FY2016
- 03
SBA loans to Sport Clips franchisees approved 1999–2020 defaulted far less often than franchise loans made in the same years: 48 charge-offs among 781 resolved loans, where about 116 would be expected (0.4×). Did you finance with an SBA loan, and how close did your first two years come to trouble?
This is the lender's view of how these loans ended, from public federal records matched by SBA franchise code — independent of anything the franchisor discloses — compared with franchise loans made in the same years. A charge-off is a loan outcome, not proof the business closed.
SBA 7(a)/504 loan record, seasoned loans FY1999–FY2020 · 0.4× of same-vintage franchise loans
- 04
Item 7 puts the cost to open at $189K–$355K, yet the average recent SBA loan to Sport Clips franchisees was $505K — above the whole range. What did those loans pay for: new units, resales, real estate, several units at once? And what did you actually spend to open, all in?
A loan above the disclosed range can mean buyers routinely overspend Item 7, or that SBA money in this system funds resales, property or multi-unit deals. The filing doesn't say which; an owner can.
FDD Item 7 vs SBA approvals FY2020+
- 05
You pay 6.0% royalty on gross sales, plus the ad fund, before any of your own costs. On your actual revenue last year, what did you take home as the owner — not revenue, take-home?
Royalty is charged on sales, not profit. This is the number the brochure never shows and the one your life actually runs on.
FDD Item 6
- 06
Sport Clips makes an earnings claim in Item 19. Does your unit look like that number — and do you know which units they included to build it?
Item 19 is legal to build from a flattering subset. Ask whether they excluded new units, closed units, or company stores.
FDD Item 19 · 2017
- 07
How many months did it take to cover your own costs, and how much cash did you burn getting there?
Ramp-to-breakeven working capital is the most underestimated line in any franchise purchase, and the most common reason otherwise-good units fail.
Not disclosed in any FDD — ask an owner
- 08
What does the franchisor charge for that you didn't expect — required tech fees, mandatory remodels, approved-supplier pricing?
Required spending appears across Items 6, 8 and 11 rather than in one place, so buyers routinely miss the total.
FDD Items 6, 8, 11
- 09
If your agreement came up for renewal tomorrow at current terms, would you sign again?
The single most predictive question you can ask. A hesitation is the answer.
Ask every owner you speak to
- 10
Who else should I call — including someone who left?
The franchisor's list is curated by definition. Former franchisees are where the unflattering truth lives, and current owners usually know how to reach them.
Ask every owner you speak to
Want this as a checklist you can take to the calls?
I'll email you the printable version, and tell you if Sport Clips’ numbers move — a new filing, a rising exit rate, a distress signal. Unsubscribe in one click.
A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing Sport Clips’ numbers, including talking you out of a bad deal.
This page is what buyers see before they call you for validation. If the record above is wrong — or right in a way the numbers can't show — say so. Franchisors: send corrections with the page reference and we will review them against the filing and update or annotate the page. Corrections are checked against the filings; nothing you write is published with your name unless you agree to it.
Sport Clips franchise questions, answered from the filings
How many Sport Clips franchised outlets left the system last year?
In Sport Clips's latest FDD Item 20 (fiscal 2016), 2 of 1,423 franchised outlets left the system — an exit rate of 0.1% — compared with a 4.2% median across 7 comparable systems (hair salons) tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons" as the franchisor reported them; it excludes transfers to new owners. The FDD does not say why each outlet left, and an exit is not the same as a failure.
How much does a Sport Clips franchise cost?
Per Sport Clips's 2017 FDD, buying in requires an initial franchise fee of $25,000 (Item 5) and a total initial investment of $189K–$355K (Item 7).
What royalty does Sport Clips charge?
Sport Clips charges an ongoing royalty of 6.0% of gross sales, per Item 6 of its 2017 FDD.
Does Sport Clips disclose earnings (Item 19)?
Yes — Sport Clips makes a financial performance representation in Item 19 of its 2017 FDD, reporting a median unit volume of $386K. Read it closely: franchisors choose which units and which metrics to include.
How often do SBA loans for Sport Clips franchises default?
SBA loans to Sport Clips franchisees approved 1999–2020 defaulted far less often than franchise loans made in the same years: 48 charge-offs among 781 resolved loans, where about 116 would be expected (0.4×). All-time, 48 of 799 resolved loans since 1999 charged off (6.0%); that raw figure mixes every approval year, so we compare with same-year loans instead. A charge-off is a loan loss, not proof the business closed. Source: public SBA 7(a)/504 FOIA data.