IS SPORTS CLIPS A GREAT FRANCHISE?

Sports Clips is a sports themed hair cuttery for men and boys.  It’s also a franchise chain that’s been growing at a rapid clip.

In January, 2009 Sports Clips opened their 600th salon and are reportedly up to 630.  According to Sports Clips founder and CEO Gordon Logan, “Sport Clips opened almost half of all hair care concept franchises in the U.S. last year.”

Logan is proud of the industry accolades heaped on Sports Clips, stating:

Several highly respected sources have showcased the success we have in working with our team and those we serve. The Wall Street Journal reported in July ‘08 that Sport Clips has one of the 25 BEST records with the SBA, based on its report of successful loans. Entrepreneur magazine has placed Sport Clips in its top 500 franchises since 1999, and, for the past five years, in its top 100 Overall and 50 Fastest Growing. This prestigious ranking is based on factual data, including failure rates, to quantitatively rank franchise businesses based on official Franchise Disclosure Documents (FDDs.) And, Dun & Bradstreet’s AllBusiness.com released its new franchise ranking last week placing Sport Clips sixth in the “Top 10 Franchises for Veterans” and 21st in its Top 300 “2009 AllBusiness All-Star Franchises“.

Yet comments from many who claim to be Sports Clips franchisees paint a different picture.  Read the comments on the Sports Clips franchise post at UnhappyFranchisee.com.  According to several franchisees, the basic concept is unsound and franchisees are struggling to break even.  Complaints include inadequate support, misrepresentation of sales and costs, continuous corporate turnover, and onerous fees.

According to Schoolfishguy, CA:

The overheads and costs are too high for most owners to be able to hit breakeven… Many stores are losing $5000 a month.

Crushed In California, CA characterizes Sports Clips as

…a company that will mercilessly pile on the fees and prey on you till your last dollar is gone, then sieze your store and kick your bankrupt carcass to the curb.

ARE YOU FAMILIAR WITH SPORTS CLIPS?  WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

Logo:  Sports Clips