You must purchase the Sport Clips point-of-sale computer software system for your store from the Company, because we are the only supplier of this system. We purchase the point-of- sale software from OpenSpend, Inc., dba Salon Ultimate (“OSI”) in bulk, and mark up the price when we sell it to franchisees in order to cover our costs, for licenses and hosting other technology platforms. In the calendar year ending December 31, 2024, our revenue from the sale of the point- of-sale system to franchisees was $24,500, which was less than 1% of our total revenue for the year 2024. Our cost during the year of 2024 to distribute the system and related supplies was $13,500. The cost of the point-of-sale software system from SCI is less than 1% of your total purchases in connection with establishment of your store. SCI’s subsidiary, SCOS Investments, LLC, holds warrants in and a convertible note from OSI, but does not provide any services or products to franchisees. See Item 11 for more information on the computer software you are required to purchase.
From the filings
Sport Clips
Personal servicesSport Clips franchises 1,754 of its 1,837 US salons from a Texas HQ, and requires every store to run the Sport Clips point-of-sale software - sold only by the company itself - installed on hardware bought through CDW. Franchised outlets fell 1.737% year over year, and Item 19 discloses a $419,485 average for stores mature enough to have operated more than two years as of December 31, 2024.
For software vendors selling into US franchise brands.
Live signals
Ordinary royalty terms
6% component; full terms unconfirmed
Complete royalty terms are not confirmed for the selected filing.
Recorded percentage components
These are recorded percentage components. Each has its own base and conditions; the chart does not state the total payment or confirm ad-fund completeness.
1recorded components (FY2025)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
Franchisor behaviours
What the franchisor requires
27 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 5 questions the text does not settle, which is not a no.
Accounting
Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesFranchise agreement
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.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We have independent access to the sales, information and reports generated on this computer system, and we will poll your computer system at least daily to collect this information.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
The Franchisee shall provide to the Franchisor, on a quarterly basis, unaudited profit and loss statements for the Franchised Business, in the format prescribed in the Manuals, within thirty (30) days of the end of each calendar quarter.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
You must purchase the Sport Clips point-of-sale computer software system for your store from the Company, because we are the only supplier of this system.
Is there a franchisee advisory council, association or committee?
YesItem 11
Currently, the Company consults with the Team Leader Advisory Council (“TLAC”) and the Area Developer Advisory Council (“ADAC”) to provide advice and counsel to the Company in preparation and execution of marketing programs.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 16
The Company has the right to change the brands and type of hair care products and accessories you sell in your store.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
24500Item 8
In the calendar year 2024, our total revenue from the sale of supplies, including the point-of-sale software, to franchisees was $24,500, which was less than 1% of our total revenue.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
70Item 8
Your purchases from SCI or our designated or approved sources or under our specifications will be approximately 70% of your total initial investment (not including the initial franchise fee) and approximately 7% of your ongoing expenses (not including royalties, training and advertising fees) in the operation of the…
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you wish to purchase inventory or equipment not previously approved by the Company, or from an unapproved vendor, you must submit to us a written request.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
The Franchisee acknowledges that as between the Franchisor and the Franchisee, the Franchisor has the sole right to and interest in all telephone numbers and directory listings associated with any Proprietary Marks.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
The Franchisee shall adhere to the then-current Payment Card Industry Standards (“PCI-DSS”) or any equivalent security system required by the Franchisor.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
Provide periodic inspections of your business and evaluate the products and services which you sell.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
The Company may modify this Manual at any time, but the modifications will not alter your status and rights under the Franchise Agreement.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
The Franchisee shall, within one year after executing this Agreement, have obtained the Franchisor’s approval for the Location, executed Attachment A to this Agreement; signed a lease for the Location that has been approved by the Franchisor, and opened a Sport Clips business at the approved Location.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
P. The Franchisee shall not advertise any goods or services offered by the Franchised Business through the Word Wide Web except as specifically approved in writing by the Franchisor.
Is a minimum grand opening advertising spend required?
YesFranchise agreement
Upon the earlier of (i) ten (10) days after the date a construction permit is issued by the local government or (ii) the date construction of the Franchised Business commences, the Franchisee shall pay to the Franchisor a grand opening deposit of thirty thousand dollars ($30,000) to be used by the Franchisor for…
Must the franchisee participate in a regional advertising cooperative when one exists?
YesFranchise agreement
Once such a cooperative is established, membership by all Sport Clips franchisees in the designated media market coverage area shall be mandatory.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must also purchase inventory and equipment from our approved vendors.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must also purchase inventory and equipment from our approved vendors.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
The Franchisee shall make arrangements with its local bank to allow the Franchisor to draw a draft on the Franchisee’s bank account for all fees and payments due the Franchisor on a weekly basis under this Franchise Agreement, and any other fees owed to the Franchisor upon seven (7) days after invoicing, which may be…
Must the franchisee participate in a gift card program?
YesItem 11
You are required to fully participate in any local or national gift card program designated or organized by the Company.
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
At all times during this Agreement, the Franchised Business shall be under the direct, on-premises, and full-time supervision of a full-time Manager.
Must employees wear uniforms specified by the franchisor?
YesFranchise agreement
The Franchisee shall at all times display the Franchisor's Proprietary Marks and logos at the Franchised Business and on uniforms in the manner prescribed by the Franchisor.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesFranchise agreement
The Franchisee shall maintain at the premises of the Franchise Business at least one computerized point-of-sale system approved by the Franchisor.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We have independent access to the sales, information and reports generated on this computer system, and we will poll your computer system at least daily to collect this information.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
The Franchisee and the Franchisee’s Manager shall be required to attend and complete to the Franchisor’s satisfaction any additional training programs that the Franchisor may, from time-to-time, require.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
Attendance at the annual conference is mandatory and failure of the Franchisee and/or Franchisee’s store manager to attend this conference shall be a default under this section.
The filing answers no to 2 questions
- Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?Item 8
- Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Item 6
The vendor opportunity at Sport Clips Sport Clips runs 1,837 units, 1,754 of them franchised, though franchised outlets fell 1.737% year over year. Item 19 discloses a $419,485 average for mature stores open more than two years as of December 31, 2024.
Who controls software purchasing President and CEO Gordon Edward Logan, Chairman and Treasurer Gordon B. Logan, Second in Command Vince Burchianti, CMO Martin Lee, and CTO Neelan Choksi lead Sport Clips from its Texas HQ. With only 28 mapped operators, 10 of them running more than one store, and a POS system the company itself is the sole supplier of, HQ - through its CTO - is the buying center for any point-of-sale or salon-management pitch.
Tech named in the FDD, and what is actually required The Sport Clips point-of-sale computer software system is mandated: franchisees must buy it from the company, which is the system's sole supplier and buys the software from OpenSpend, Inc., dba Salon Ultimate. It runs on a Dell Windows 11 POS computer purchased through CDW, the only approved supplier of certain required computer hardware, alongside two ELO self-check-in kiosks and EMV payment terminals. Franchisees must also buy the mandated managed firewall IT Security solution.
Procurement, renewals, and timing Item 8 runs an approved-supplier list built around the Sport Clips POS system and CDW hardware, with other equipment and supplies purchased from approved vendors under Company specifications; franchisees may propose an alternative supplier for approval. Franchisees in good standing can renew for an additional 5-year term by notifying the company, signing the then-current agreement, completing required training and remodeling, and paying the renewal fee.
How to read the Sport Clips FDD The embedded PDF viewer below carries Sport Clips' 2025 Franchise Disclosure Document in full. Talk to FranCloud for a ranked target list of franchise systems like this one.
Ordinary royalty terms
Complete royalty terms are not confirmed.
Questions vendors ask
Sport Clips, answered from the filing
Read the filing itself
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Operator footprint
Who runs the locations
28 operators run 67 mapped locations. 10 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| WI | 41 |
|---|---|
| WA | 17 |
| WV | 6 |
| WY | 3 |
Related Personal services brands
Primary franchise filings · updated September 2026. Read the original filing for definitions, conditions, and qualifications.