From the filings
Great Clips vs Sport Clips
Two franchise brands, side by side, from their filings.
Great Clips is the larger system and is adding franchised locations faster.
At Great Clips, headquarters controls purchasing; at Sport Clips, owners buy from an approved list.
Sport Clips reports more revenue per location.
Locations: 4,441 at Great Clips, 1,837 at Sport Clips.
Franchised location growth: 0% at Great Clips, -1.7% at Sport Clips.
Purchasing: Franchisor controlled at Great Clips, Approved supplier list at Sport Clips.
Who decides, side by side
Great Clips
Headquarters picks the POS, the card processor, supplies and the loyalty program.
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Headquarters designates the POS every location uses.
“Franchisee must install and use the electronic data processing and communications hardware and software, including voice mail systems, computers, salon technology systems, and network and hardware equipment as Great Clips may designate.”
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Payments is required through Global Payments.
“Great Clips’ sole designated supplier for processing electronic payments is currently Global Payments. … You will pay Global Payments a one-time set up fee per salon (currently $15), a processing fee per transaction (currently $.016), and a monthly charge per salon for Global Payments’ Merchant Protection Program (currently $5), which you are automatically enrolled in as a participating merchant.”
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Headquarters designates where supplies come from.
“You must carry GREAT CLIPS® exclusive brand haircare products in your Salon and must purchase these products from suppliers designated by Great Clips.”
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Every location runs headquarters’ loyalty program.
“Franchisee will fully participate in all promotional campaigns, contests, sweepstakes, special offers, customer loyalty program, or other programs, whether international, national, regional, or local in nature (including the introduction of new services or products, or new franchisees or other marketing programs directed or approved by Great Clips), which are prescribed by Great Clips.”
Sport Clips
Headquarters picks the POS. Supplies come from an approved list. Headquarters sets standards for the accounting system.
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Headquarters designates the POS every location uses.
“The Franchisee shall maintain at the premises of the Franchise Business at least one computerized point-of-sale system approved by the Franchisor.”
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Supplies come from suppliers headquarters approves.
“You must also purchase inventory and equipment from our approved vendors.”
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Owners keep books to headquarters’ requirements.
“During the term of this Agreement, the Franchisor requires the Franchisee to use a standardized on-line accounting system provided by a third-party, and as directed by the Franchisor, and the Franchisor shall have the right to access the Franchisee’s accounting records and compile data from those records and reports.”
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