Sport Clips Haircuts has been ranked by Forbes as a top ten best franchise to buy for its investment category. An article detailing this "first-ever critical list of best and worst franchises in America" will be in the publication's June 16 issue.
Research by FRANdata, looking at 3,000 franchise brands to determine the "best" and "worst" franchises to buy, primarily focused on demand for the brand, based on the systems' growth rate between 2008 and 2012; Success rated by the "continuity rate" between 2008 and 2012; and franchisor support. Additional consideration for the ranking was given to franchise transparency, whether a system is self-sufficient without new franchise sales, and average investment. To make it into the top 10, a brand had to meet additional criteria that focused on performance and how supportive the franchisor is with regard to being "lender friendly."
Sport Clips took the number two spot in the $150,001 - $500,000 investment range, according to the hair salon franchise.
Gordon Logan, founder and CEO of Sport Clips, noted that in 20 years, “Sport Clips has grown to more than 1,200 stores across the country with very few closings. Our success rate is truly remarkable for a brand our size, and having only three closures since 2010 while opening over 400 new locations is a record of which we are very proud.
According to Logan, Our same store sales continue to grow each year at a rate unmatched in our category, averaging approximately 9% per year for the past four years." Sport Clips opened 151 stores across the country and in Canada in 2013 and expects to open up to 200 stores in 2014, with special growth emphasis on the Northeast, mid-Atlantic states and the West Coast.
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