Backed by More Than Two Decades of Success, Sport Clips Has Positioned Itself as a Premier Investment Opportunity for Lenders

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Backed by More Than Two Decades of Success, Sport Clips Has Positioned Itself as a Premier Investment Opportunity for Lenders

There aren’t too many brands that can boast the kind of growth that Sport Clips can.

The company grew from 772 franchise units in 2011 to 1,167 by 2013. Today, there are more than 1,530 units. They have a presence in all 50 states. And since 2010, they’ve only had six store closings. Because of Sport Clips’ tremendous 23-year history and second-to-none track record, the fast-growing brand has positioned itself to provide unparalleled access to financing for new franchise candidates.

Nate Greenberg, the co-founder of Franchise America Finance, a full service, small-to-middle market commercial franchise finance firm, has been working with Sport Clips for 10 years. With a core focus on franchising and SBA lending, Greenberg, alongside Franchise America Finance, has helped dozens of franchisees of all sizes secure the finances needed to fulfill a lasting career with Sport Clips. Greenberg believes that the reason for their decade-long history with Sport Clips is multi-faceted. This starts with the brand’s semi-absentee model, which many banks look at as a positive when considering loans.

“One of the reasons we love working with Sport Clips is that they allow first-time franchisees to keep their current employment. This means that they maintain a steady income stream as they get their business off the ground,” Greenberg said. “Banks generally gravitate toward that kind of ownership model because it ensures that the franchisee isn’t diving into a new business venture without the initial guarantee of a paycheck. It’s a smoother—and less risky—transition.”

Greenberg added that Sport Clips’ multi-unit offerings positions them well in front of banks, too.

“When you’re not dealing with single-unit operators, there’s a much larger opportunity for profit. Having more than one location insulates the operator from the risk associated with opening a single franchise. If one fails, you still have at least one other that has the potential to succeed and provide the needed income,” Greenberg said.

The fact that Sport Clips has strong unit-level economics doesn’t hurt either. Having so few store closures shows that the brand is focused on bottom-line profit. And from the corporate headquarters and thirty-two company owned stores to regional developers, the entire Sport Clips systems has their finger on the pulse of what makes the company tick. Ultimately, all of these factors have helped to make Sport Clips a lender-friendly company and an unbeatable opportunity for franchisees.

“Their unit success rate is 99.9 percent—Sport Clips is in the one percent of the one percent in all of business. It’s truly incredible,” Greenberg said. “The fact that the founder, Gordon Logan, knows the story of every store that has closed in the last few years off the top of his head really tells you how much it bothers him when a store closes. You can’t buy that kind of pride.”


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