• Report: #366684

Complaint Review: Sport Clips Haircuts

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  • Submitted: Mon, August 25, 2008
  • Updated: Mon, December 12, 2011

  • Reported By:anywhere Texas
Sport Clips Haircuts
110 Briarwood Dr., Georgetown Texas 78628-2490 Nationwide U.S.A.

Sport ClipsSport Clips Haircuts Misrepresentation of profit potential, time and capital required, poor business model, lack of support, lack of sophistication Nationwide

*Consumer Comment: SportClips is NOT a Barbershop

*Consumer Comment: Sport Clips is NOT a Barbershop

*General Comment: Why spend so much for a barbershop anyways?

*General Comment: You own nothing....

*Consumer Comment: Just a thought...

*Consumer Comment: SPORTS CLIPS IS A BAD BUSINESS MODEL!

*REBUTTAL Owner of company: The List of Lies Keeps Growing. DON'T fall for them!!!

*REBUTTAL Owner of company: To Ca and dying

*Consumer Comment: to FreeAtLast TarHeelTown, North Carolina U.S.A.

*REBUTTAL Owner of company: Broke but Celebrating!!!

*Consumer Comment: Gordon Logan is Delusional and Sport Clips is a Bankrupt Concept

*UPDATE Employee: Answers to the question

*UPDATE Employee: Some Facts and Figures

*Consumer Suggestion: a question

*UPDATE Employee: Ripped Off by Gordon and Sport Clips

*UPDATE Employee: Ripped Off by Gordon and Sport Clips

*UPDATE Employee: Ripped Off by Gordon and Sport Clips

*REBUTTAL Owner of company: Sport Clips - Responds

*UPDATE Employee: That's not the 1/2 of it

*UPDATE Employee: I'll second that!!!

*UPDATE Employee: I'll second that!!!

*UPDATE Employee: I'll second that!!!

*UPDATE Employee: I'll second that!!!

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Buyer be very aware!

Before becomming involved with these people talk to a lot of franchise owners, till you find ones that will share their numbers, and be honest with you. Most people that have made a bad decision won't admit how bad they are doing to a stranger.

In Texas you have a reasonable chance of making a FEW dollars with this concept because they have a lot of stores there and good brand recognition.

Outside of Texas, most stores are not profitable.
$200,000 to open a barber shop if way too much money to invest initially.
The franchise fees are high.
The franchisore does not spend the money well they force the franchisees to give them for advertizing.

They tell you that it's 5-10 hours a week. It's probably much more for most owners.
They tell you breakeven at 350 haircuts a week, and you will be there in 5 months.
Breakeven is considerably higher for many, and the time to breakeven can be years and years, or never, with losses building up the whole time.

The overheads and costs are too high for most owners to be able to hit breakeven.

Call franchise owners in California and Florida if you want to hear how bad it can be. Lots and lots of stores with high overheads and low client counts. The Florida guys have been loosing money for years and many will be closing once their leases and franchise agreements run out. The California stores are about a year old and setting records on how much money you can lose in this concept. People are going broke fast out there.

Many stores are losing $5000 a month.

Once you are in you can't get out. Noone will buy a business loosing that kind of money.

The franchise owner, Gordon Logan, and staff are not up to the task of building this chain. Almost all the employees with talent and ethics leave within a year once they see how the company is run. Those that are left are inadequate. The owner rules heavy handed, by fear, and makes decisions based on his desires, not based on facts, research, or analysis of data. Every bad decision they make gets funded with the franchisee's money.

This model is the quickest way I know to lose money, work yourself to death, ruin your family life, and wish you had never heard of these people.

And, the franchise owners that lose their stores due to running out of money because of losses and lack of preparation for how expensive this model really is, Sport Clips does nothing for them, other than sieze their store if it is one of the few worth taking over.

Many of these issues exist with many franchisee concepts.
Be aware when getting involved with any franchise. In many cases, the only people making money on a franchise concept is the franchisor. They get their money off the top, whether or not their franchises ever make money. That's the major flaw in franchising.

Again, do a LOT of due diligence before investing. Failure to do so could cost you everything yopu own.

gottook
anywhere, Texas
U.S.A.

This report was posted on Ripoff Report on 08/25/2008 02:44 PM and is a permanent record located here: http://www.ripoffreport.com/r/Sport-Clips-Haircuts/nationwide/Sport-ClipsSport-Clips-Haircuts-Misrepresentation-of-profit-potential-time-and-capital-re-366684. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report.

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Updates & Rebuttals

#1 Consumer Comment

SportClips is NOT a Barbershop

AUTHOR: Buzz - (USA)

SportClips only employs Cosmetologists, which for the majority are women who are Hairdressers who specialize in Women;s cuts and styles, makeup, and Esthetics. When they cut a Guy's hair, they use clippers and numbered guards.

Really? You call THAT a Barbershop?  When you sit in the chair, ask your stylist, "Are you a licensed Barber?" They will tell you NO! Read their license, it's right in front of you at their station. It takes more than a Television to truly cater to Men and Boys. I'm sorry but Guys DON'T win at SportClips. You are a Hair Salon with Cosmetologists trying to pass for a Barbershop.

Go to a REAL Barber! They can give you a straight razor shave, facial, and a precision hair cut with shears and a comb. Clippers are for Finishing work, not for a full cut. Only amateurs cut Men;s hair that way! A REAL, REPUTABLE, SKILLED BARBER can do a Precision Haircut with Shears and a Comb!

Just sayin'!  Businesses try to dupe the public all the time, this is just another case.
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#2 Consumer Comment

Sport Clips is NOT a Barbershop

AUTHOR: Buzz - (United States of America)

It is important to know the difference here. SportClips employs Cosmetologists, NOT Barbers. At no SportClips location can you EVER receive a straight razor shave to the face. That is because Cosmetologists are trained to cut hair, do makeup, and provide Esthetic skin care. Barbers are trained to cut Men's Hair, provide Facials, and do Shaves!

SportClips APPEARS to be a Barbershop, but when you sit down in the chair, ask your "stylist" one simple question. "Are you state licensed to do shaves?" If you ask this in a SportClips, the answer you will get is NO! That is because they are Cosmetologists. So it is important to realize you are simply going to a Hair Salon with Televisions, that's it.

A TRUE Barbershop employs Licensed Barbers who have been trained and are licensed as Barbers, NOT Cosmetologists. This distinction, as a consumer is very important to me. When I went to a SportClips, I was treated just like I am treated in any Hair Salon, BUT, they do not offer Barber Services. Cosmetologists are trained to mostly cut and style hair, meaning mainly Women's cuts. That is why they utilize clippers and guards on Men so frequently. A good, skilled, and reputable Barber is taught how to do a precision haircut with shears and a comb, no clippers or guards, that is for finishing work.

While I have no comment or input regarding being a Team Leader, "pretty ridiculous title if you ask me, Franchisee sounds just fine", I WILL say that I am in total disagreement with the company's CEO about their mission and business model. To TRULY cater to Men and Boys, it takes more than a television set and a hot towel dripping on my face while I wait for a Cosmetologist to rinse my hair as I am reclined in a shampoo chair with a wet head and a wet towel on my face. To cater to Boys and Men, you need a Barber.

We as the buying public have been duped and fooled for far too long by salons who try to pretend to be Barbershops. Even if they have Barbershop in their name, when you sit in the chair, ask! "Are you a Barber or a Cosmetologist?"

THERE IS A HUGE DIFFERENCE!

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#3 General Comment

Why spend so much for a barbershop anyways?

AUTHOR: hahahehihohu - (United States of America)

I own 3 stores, cellphones though. In my opinion I would never spend that kind of money for a barbershop. I live in florida and i have never seen a commercial for them, then why pay them? A barbershop with the same and bigger plasmas will get you the same way, I thought this company was a new barbershop not a franchise anyways. And most people dont even know the name ( at least in florida)

Get 50k and you will open your own barbershop call it "sports cuttery" if you want and you will be better at the begining and at the end. Sport clips is not mcdonalds, if you  have  300k and you want to invest don't do it on this system. Remember you are targeting only males, and  just by having sports clips name means you will make money ( because I dont even know what it was  50 minutes ago.)
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#4 General Comment

You own nothing....

AUTHOR: CVolme55 - (United States of America)

As a former TL - I can attest to the other comments here of trying to "get out"...

Forget it...

You own nothing. Read your franchise agreement very closely.

If you've had a successful business career - this concept is NOT for you.

Any talent for good decision making will be rendered useless.

The very things that put you in a position to invest in a Sport Clips are null & void.

Make a good decision & look elsewhere for another investment opportunity.

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#5 Consumer Comment

Just a thought...

AUTHOR: PatrickK - (United States of America)

Many individuals here have expressed the idea that the business model simply "does not work".  I started my first business when I was 20 and have been building them ever since; I also have a degree business, and all that other good stuff.  So, credentials aside, here's my take:

1. The business model:  One of the most important parts of opening a store is site selection.  If you are trying to open a business in a saturated market then it will take years to break even.  Solution:  There are many major metro areas that do not have a haircut franchise that targets males.  You *should* have opened a franchise in one of those areas, with the plans for future expansion then protected your territory in your contract.  If you couldn't get this, then you should not have bought.  (Too late now, but may help next time around). 

2. I have heard a few mention that targeting males is unprofitable, and this is why no one has done it.  If you ever have a chance, look into the concept of "Blue Ocean" Marketing.  It's about finding under-served segments of existing markets.  Only 20% of China can afford to buy a BMW.  Heads up: that's almost 200million people.  I call that an opportunity.  In this case:  No one is targeting males- that's exactly the point.  ~50% of the country is male; by targeting them you can more effectively serve a segment that hasn't been previously targeting which equates to increased volume to make up for the lower price point in this segment.

3. Someone mentioned that sport clips does not provide a better haircut- there's not a whole lot of additional training.  People don't go to sport clips for a great haircut.  I can go to fantastic sam's and get one for $5, but I pay $20 instead because of the experience.  Key concept: Experiential Marketing; look it up.

I believe all 3 points these arguments come from stem from one problem:  Lack of owner information.
This may be the first time many of these franchisees have run or owned a business.  If that's the case then I'm sorry to hear that-- you should have started off with money you could afford to lose.

If I can give one piece of advice to all current, past, and future business owners, it is this:  Due Diligence (ie know what you're getting yourself into).  The first step of this is learning exactly what you need to learn.  Pick up a "franchising for dummies" book or something like that, then research into the topics. 

Also, if you really think you have a strong enough case against them, talk  to a class-action attorney, but  I doubt you do since they have "Iron clad contracts".  Which means you signed something without considering the negative consequences.  This is business-- take what you learned from this experience and use it to make you better in your next venture.

--Patrick

p.s. if any of the "buzz words" in here didn't make sense to you then you need to get more education.
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#6 Consumer Comment

SPORTS CLIPS IS A BAD BUSINESS MODEL!

AUTHOR: Anonymous - (U.S.A.)

If you have never owned a barber shop you won't know why this is a bad business model. Hairstyling salons charge high fees because a lot of time and expertise is used to color and create ladies hairstyles. You won't have that type of income with a shop that is primarily for men. Men's haircuts are a fraction of the price of lady's haircuts. So why would the knowledgeable investor think that with high franchise overhead he or she is going to make any money, no matter how nice the trappings are? Know your business before you buy someone else's!   
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#7 REBUTTAL Owner of company

The List of Lies Keeps Growing. DON'T fall for them!!!

AUTHOR: Broke Cajun - (U.S.A.)

If Coach Holtz knew half of the lies that SCI spreads, he would immediately prohibit them from using his "Heart of a Champion."

If the Coach knew how Logan and Brewer treat the Franchisees, he would immediately prohibit them from using his "Heart of a Champion." They are both bullies.

Apparently SCI is attempting to expand into the Northeast US. Hopefully any potential Franchisees will call LOTS of current and former owners. Hopefully they will ask SCI why the renewal rate is abyssmal for stores ouitside TX. Hopefully they will ask why the vast majority of Franchisees don't open as many stores as they have bought licenses. Hopefully they will ask Franchisees about the required "upgrades", specifically if there is any cost-benefit.

At the 2008 Convention Logan predicted 1000 stores by the end of 2010. At the current pace of growth in 2009, it will take many years to get to 1000 stores, and most likely the system will never get to that mark.

Fortunately I didn't fall for the lies, but my brother has lost his life's savings, and he tells me that there are many others in the same situation.
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#8 REBUTTAL Owner of company

To Ca and dying

AUTHOR: FreeAtLast - (U.S.A.)

I'm going to have to be obtuse here, but I will reply.

I don't want to provide specifics due to Gordon Logan's litigious behavior. He will sick a lawyer on a Team Leader or former TL at the drop of a hat. I can't risk him figuring out who I am. I shouldn't have given away what state I was from.

You shouldn't have either. Since there are so many floundering stores in California he should have trouble figuing out who you are.

To answer your question, defranchising is almost impossible to do. Logan will block it at every turn.

Selling the store outside the system only works if you give it away. If you have a decent offer, SC will file an injunction contending that anything above the asset value is because of "the brand." They will say the assets are worth a pittance, and that's what you should get for the store on the open market.

Selling the store as a Sport Clips in most markets will never work, as most stores are worth very little based on cashflow.

In summary, after you get into the system, the only way out for most of us is to lose tons of money and then give the store away because we can't get out of the lease.

FYI, there is a Facebook group called Sport Clips Team Leaders. There isn't any discussion there, but if it's possible for us to figure out who each of us is maybe we can talk.

Good luck in figuring out how to get out from under Gordon Logan. I thank my lucky stars every day that I don't have to wonder what "upgrade" he will impose next, at significant cost but no benefit to the store or the TL.

Hopefully some day a TL with deep pockets will get a significant judgement against Logan, and in the process set a precedent that will allow TLs to be Free at Last!!!
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#9 Consumer Comment

to FreeAtLast TarHeelTown, North Carolina U.S.A.

AUTHOR: Ca And Dying - (U.S.A.)

how did you get "Free" did u de-brand your store or close it altogether?
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#10 REBUTTAL Owner of company

Broke but Celebrating!!!

AUTHOR: FreeAtLast - (U.S.A.)

I finally managed to get free of the death grip that Gordon Logan imposes on those who fall for his misrepsentations.

Going in people are told that this is a 10 hour per week commitment. When things go bad, as they inevitably will, people are told that they need to devote every waking moment to the store. Train and supervise!! Market, market, market!! In the Sport Clips world, "market" means hand out thousands and thousands of coupons every week?!

Gordon has recently fallen in love with the "general release." He is requiring Franchisees to sign one at every turn. These are meant to keep people from suing him. If the owners were happy like he wrote, why would he be insisting on people signing these general releases all the time?

SC does include an "earnings statement" in their UFOC, but it is very misleading. Prospects are told that these are "underperforming stores" when in reality they are some of the best stores in the system. [Although the rumor is that they took over a store in Fla that has gotten even worse since it became a company store.]

Anyone thinking about getting into this system should call at least 100 current and former Franchisees to get the real scoop. They will find that every former Franchisee is thanking their lucky stars that they will never have to hear another lie or be bullied again by Gordon Logan. If Coach Holtz only knew how much damage SC has done and is doing to his Heart of a Champion concept!

Free at Last. Free at Last. Thank God Almighty I am finally Free at Last!
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#11 Consumer Comment

Gordon Logan is Delusional and Sport Clips is a Bankrupt Concept

AUTHOR: Bentoverbygordon - (American Samoa)

Sport Clips' response - authored by CEO Gordon Logan - is nothing short of delusional. I know because I own a Sport Clips franchise. Just so you can interpret his ludicrous claims accurately, here is an objective commentary from the front lines on the statements he makes in his rebuttal to the original article posted here:

1. "As founder and CEO of Sport Clips, we developed a franchise concept that offers men and boys a relaxing hair care experience superior to other alternatives".

SOMEWHAT TRUE; Sport Clips is a decent place to get your hair cut although the "superior" part is arguable. However, the stylists in Sport Clips' stores are from the same pool of people that work at Great Clips, Fantastic Sam's, Supercuts, etc. The training they receive does not translate to a "better haircut" than you would get at any of these competitive stores.

2. "The majority of business owners who join our team are happy with the concept"

MISLEADING; the "guys watch sports while they get their hair cut" concept is fine. But business people don't invest in a franchise in order to be "happy with the concept". They invest to make a profit. It is difficult or impossible to make a profit in this system because they focus on the least profitable half of the market - men's haircut services. SCI brags about owning this market niche. Guess what? NOBODY ELSE WANTS IT BECAUSE IT IS UNPROFITABLE.

3. "The economy can have an impact even on essential goods and services such as providing haircuts."

MISLEADING; this is true for ANY business. The FACT is that the vast majority of Sport Clips stores were not profitable even before the economic downturn. Blaming everything on the economy may be convenient for Gordon, but it is inaccurate

4. "We provide for our Team Leaders what we believe is one of the strongest support systems in the industry. Sport Clips offers a support person for every six open stores."

MISLEADING; Well Grodon, you may "believe" it, but who cares what your headcount is? The fact is these support people have not had ANY meaningful impact at the store level and I have rarely seen them in almost two years of operation. They are essentially ineffectual in impacting same store financial performance. Adding support staff does not compensate for a business model that doesn't work in the first place.

5. "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

TOTAL SELF PROMOTIONAL HOGWASH: This is meaningless and empty self promotion. Entrepreneur Magazine ranks franchises based on how many licenses have been sold and how many new stores open every year. It has nothing to do with whether any of these stores are profitable! Sport Clips forces you to buy 3 licenses at $15,000 apiece to get into the system. In practice, you'll end up spending over $300,000 on your 1st store trying to grow it to profitability before you run our of operating capital. By the time you figure you'll never reach breakeven, you'll have spent way too much money to ever have a decent ROI and will end up going bankrupt. Sport Clips has a huge number of outstanding licenses that will never be used to open new stores because the 1st store never got off the ground. This is a ripoff to line Gordon's pockets without having to deliver any value whatsoever.

6. "The original post to this website was made in November 2008 and references stores in several states including California, alleging that only stores in Texas are successful. This is not true. In recent weeks, our top 25 stores by sales volume have included stores from NINE different states, including California."

OH MY GOD: Let me translate this for you. In Gordon's mind, if a state like CA has one (1) store at breakeven, he calls that a successful state. Let's ignore the fact that the other 60 stores in the state are hemmoraging to death.

FOOTNOTE: Sport Clips does not count debt service expense as an operating cost because it can be different for each franchisee. This is simply ridiculous because virtually any business startup requires financing. Nevertheless - SCI will NOT count the cost of servicing a startup loan (which includes leveraged home equity) as part of P&L pro-formas. This is unrealistic because franchisees still need to write checks every month against that loan.

7. Finally, Gordon seems to think disregarding reality (aka "actual store profitability") is some kind of unique-to-Texas virtue to be admired as opposed to blindly ignoring the actual financial facts of the chain.

Gordon, why don't you just prove all of us wrong and let us know what percentage of the 600+ stores are at breakeven or better - WITH and WITHOUT debt service? Oh I forgot - you can't make any earnings claims, huh? How convenient for you!

WARNING: SPORT CLIPS IS AN UNPROFITABLE FRANCHISE CONCEPT. DO NOT INVEST IN THIS CONCEPT OR YOU WILL LOSE YOUR LIFE SAVINGS. Don't say nobody warned you...
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#12 UPDATE Employee

Answers to the question

AUTHOR: BrokeAndBatterredBullsFan - (U.S.A.)

In most cases the franchise owner does not have to take cosmetology classes or be licensed. This may vary by state, but there are very few owner-operators of Sports Clip, or any other franchised hair cutter for that matter.

It does seem that an owner-operator might have a better chance of making money with this concept. Heaven knows that most absentee owners are having to dig into savings to cover debt payments, or payroll, or both.
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#13 UPDATE Employee

Some Facts and Figures

AUTHOR: BrokeAndBatterredBullsFan - (U.S.A.)

Gordon Logan writes that the majority of business owners who join our team are happy with the concept. He really needs to get out more. He also needs to be a much better listener. If the following question was posed if you had it to do over again, would you be a Sport Clips franchisee the majority of franchisees would say No.

Regarding the strength of the support team, Mr. Logan needs to address the significant level of turnover that has been seen at the executive level in the past several years, specifically at the President and Vice-president levels and at head of marketing. Those positions have been a revolving door. There has also been a significant number of departures from the Area Developer ranks.

With that preamble, let's focus on some specifics to address the misleading information that Mr. Logan provided regarding the top 25 stores. There have indeed been stores from 9 different states on the list recently. Texas has been represented by 22 different stores in the Top 25 during 2009. Stores in TX, which make up less than 25% of the system, have taken over 60% of the spots on the Top 25 sales report.

California, which has almost 50 stores of the 630, has only had one store ever listed on the Top 25 in sales dollars. Florida, with 40 stores, is 6% of the system, and has never been represented on the Top 25.

My state of Illinois has more stores than Fla, and we have one store that has ever made the Top 25 sales report. That store makes the list regularly, but none of the other stores in the state are even close. North Carolina, with over 30 stores, very seldom has had a store on the list. Georgia and Ohio have had stores open for many years, but have never had a store make the Top sales list.

There are 14 stores that have made the Top 25 every week during 2009. Eleven of those are from Texas. Two of the most successful stores are company owned stores. While SC does include company store results in their UFOC, when I was investigating the franchise I was told that the company stores were under-performing. This isn't exactly the truth. The average sales of the company stores in each and every UFOC exceeds the system wide average. Prospective Franchisees are lead to believe otherwise.

All the successful stores in the system are not in Texas, but outside of TX the odds are stacked against anyone in this system. Cost of entry is significantly higher than other chain hair cutters, and ignoring a huge market segment (women) has a significant adverse impact on revenues. The concept is flawed, and a hard look at the numbers, combined with conversations with many current and former Franchisees will confirm this.

Run as fast as you can from SC.
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#14 Consumer Suggestion

a question

AUTHOR: Keahi - (U.S.A.)

I was wondering if the franchise owner has to take courses at a cosmetology school and get licensed as as a salon owner?
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#15 UPDATE Employee

Ripped Off by Gordon and Sport Clips

AUTHOR: Ripped Off - (U.S.A.)

What you read in the company rebuttal here is untrue. All the franchisees I was familiar with in my area were having a hard time. The concept, in my opiniion, was not sound.

Gordon talks about stores having a hard time in bad economic times. My stores had a hard time in good economic times. I don't think the state of the ecomony has anything to do with it, it's the state of the franshise.

The support from the franchisee is non-existent. When you ask for advise the standard answer you get is "you need to do more marketing by handing out more coupons." Some marketing plan.

I asked for some relief from franchise fees because I was losing money and I was told "ask the bank for some relief" and "the landlord might give you some rent relief." When you ask the franchise for relief, you don't get any. They expect their money regardless what happens to you. You follow their guidelines, you work yourself silly, you lose money and they want you to ask everyone else for relief but them. They expect you to pay them. They don't care about you.

The contract is air tight. Once you sign it they own you. You have no way out except to lose a lot of money.

The owner is dictatorial. They wouldn't share any statistics on how the stores are doing even though the franchisees wanted it. I found this funny..as if they had something to hide.

I find it funny that no one will leave their name. I personally found them to be very vindictive.

Of course, this is only my opinion but my advise based upon my experience and the comments made by other franchisees would be...run, run far away from this one.
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#16 UPDATE Employee

Ripped Off by Gordon and Sport Clips

AUTHOR: Ripped Off - (U.S.A.)

What you read in the company rebuttal here is untrue. All the franchisees I was familiar with in my area were having a hard time. The concept, in my opiniion, was not sound.

Gordon talks about stores having a hard time in bad economic times. My stores had a hard time in good economic times. I don't think the state of the ecomony has anything to do with it, it's the state of the franshise.

The support from the franchisee is non-existent. When you ask for advise the standard answer you get is "you need to do more marketing by handing out more coupons." Some marketing plan.

I asked for some relief from franchise fees because I was losing money and I was told "ask the bank for some relief" and "the landlord might give you some rent relief." When you ask the franchise for relief, you don't get any. They expect their money regardless what happens to you. You follow their guidelines, you work yourself silly, you lose money and they want you to ask everyone else for relief but them. They expect you to pay them. They don't care about you.

The contract is air tight. Once you sign it they own you. You have no way out except to lose a lot of money.

The owner is dictatorial. They wouldn't share any statistics on how the stores are doing even though the franchisees wanted it. I found this funny..as if they had something to hide.

I find it funny that no one will leave their name. I personally found them to be very vindictive.

Of course, this is only my opinion but my advise based upon my experience and the comments made by other franchisees would be...run, run far away from this one.
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#17 UPDATE Employee

Ripped Off by Gordon and Sport Clips

AUTHOR: Ripped Off - (U.S.A.)

What you read in the company rebuttal here is untrue. All the franchisees I was familiar with in my area were having a hard time. The concept, in my opiniion, was not sound.

Gordon talks about stores having a hard time in bad economic times. My stores had a hard time in good economic times. I don't think the state of the ecomony has anything to do with it, it's the state of the franshise.

The support from the franchisee is non-existent. When you ask for advise the standard answer you get is "you need to do more marketing by handing out more coupons." Some marketing plan.

I asked for some relief from franchise fees because I was losing money and I was told "ask the bank for some relief" and "the landlord might give you some rent relief." When you ask the franchise for relief, you don't get any. They expect their money regardless what happens to you. You follow their guidelines, you work yourself silly, you lose money and they want you to ask everyone else for relief but them. They expect you to pay them. They don't care about you.

The contract is air tight. Once you sign it they own you. You have no way out except to lose a lot of money.

The owner is dictatorial. They wouldn't share any statistics on how the stores are doing even though the franchisees wanted it. I found this funny..as if they had something to hide.

I find it funny that no one will leave their name. I personally found them to be very vindictive.

Of course, this is only my opinion but my advise based upon my experience and the comments made by other franchisees would be...run, run far away from this one.
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#18 REBUTTAL Owner of company

Sport Clips - Responds

AUTHOR: On Behalf Of - (U.S.A.)

As founder and CEO of Sport Clips, we developed a franchise concept that offers men and boys a relaxing hair care experience superior to other alternatives. And, the majority of business owners who join our team are happy with the concept. Even though our franchise model is designed for everyone who wants to invest in the Sport Clips concept, we recognize that in areas where home values have declined precipitously, unemployment is high, and local and state governments are having to cut employment and/or services dramatically, the economy can have an impact even on essential goods and services such as providing haircuts.

Whatever the economic climate, we provide for our Team Leaders what we believe is one of the strongest support systems in the industry. Sport Clips offers a support person for every six open stores. We have 60+ people on our Support Team in our headquarters and a strong system of Area Developers across the country with teams in place to provide for local needs.

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.

The original post to this website was made in November 2008 and references stores in several states including California, alleging that only stores in Texas are successful. This is not true. In recent weeks, our top 25 stores by sales volumes have included stores from NINE different states, including California.
Despite imitators popping up across the country, Sport Clips opened almost half of all hair care concept franchises in the U.S. last year. We work to help everyone on our team succeed and do not take it lightly when they don't. That's why we constantly strive to improve and to practice our Values of Do the Right Thing, Do Your best, and Treat People the Way They Want to be Treated. - Gordon Logan, CEO
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#19 UPDATE Employee

That's not the 1/2 of it

AUTHOR: Crushed In California - (U.S.A.)

He's being way too nice.

It's not a matter of being aware....run, run away as fast as you can from this concept.

Outside Texas there are very, very few areas where the average store is profitable.
Yes there are profitable stores in most areas, some very much so, but they are by far the exception, not the rule. Odds are overwhelmingly stacked against you ever seeing a profit.

The franchise concept is highly flawed, but there would be some hope for improvement of the franchisees lot, if only the owner Gordon Logan wasn't a hopelessly clueless egomaniac, who makes all his decisions based on personal preference and for personal gain), rather than work for profitability of the average store, listen to those in the trenches, or take advice from the business professionals around him. Employees of any quality leave or are fired for not being "yes men" within a year. This company cannot retain their quality staff members. That in itself says a lot.

If you are in the process of falling for all the corporate lies as you go thru the recruitment process, at least do this one thing. Get the operating numbers of the stores in your area, get all of them. It's not hard to do if you make a few calls. Plug the haircuts per hour, average sale amount, amount of customers, and total weekly sales into your pro forma spreadsheet, really work thru the math, do not believe or trust any of their numbers assumptions until you verify them for yourself, include all expenses (they leave out a lot in their projections) and you will see the true picture of the trap you are considering falling into. The numbers they will project for you will never come true in 80% of the stores. And, if you do fall for their pitch, once you open a store you will find it very difficult to disengage yourself from these people once you've see the horrible and clearly evident truth.

Run, run away while you still have a house, spouse, family life, retirement accounts, savings, college funds, and any leisure time. You'll trade them all for a money sucking pit and a relationship with 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.
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#20 UPDATE Employee

I'll second that!!!

AUTHOR: Poorpoorme - (U.S.A.)

Everything he posted is accurate. The flyer says that Sports Clips is looking for people with 100K liquid and 300K net worth, and that these are people who can open three stores. SAY WHAT?

It costs 50K just to sign-up. At least 150K to get a store open. And then the losses begin.

The only people making any money here are the people in TX, and a few isolated stores.

The support from HQ and their field people is abyssmal. They annually require "upgrades" that cost the franchisees significant dollars, but don't increase customer count. At renewal the cost can be 20K to stay in the system.

BUT WHY WOULD ANYONE STAY??!!

On top of it all, the bully founder touts a value system, which neither he nor his crew of incompetents adhere to. The hypocrisy is horrendous.

Run as fast as you can from this organization.
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#21 UPDATE Employee

I'll second that!!!

AUTHOR: Poorpoorme - (U.S.A.)

Everything he posted is accurate. The flyer says that Sports Clips is looking for people with 100K liquid and 300K net worth, and that these are people who can open three stores. SAY WHAT?

It costs 50K just to sign-up. At least 150K to get a store open. And then the losses begin.

The only people making any money here are the people in TX, and a few isolated stores.

The support from HQ and their field people is abyssmal. They annually require "upgrades" that cost the franchisees significant dollars, but don't increase customer count. At renewal the cost can be 20K to stay in the system.

BUT WHY WOULD ANYONE STAY??!!

On top of it all, the bully founder touts a value system, which neither he nor his crew of incompetents adhere to. The hypocrisy is horrendous.

Run as fast as you can from this organization.
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#22 UPDATE Employee

I'll second that!!!

AUTHOR: Poorpoorme - (U.S.A.)

Everything he posted is accurate. The flyer says that Sports Clips is looking for people with 100K liquid and 300K net worth, and that these are people who can open three stores. SAY WHAT?

It costs 50K just to sign-up. At least 150K to get a store open. And then the losses begin.

The only people making any money here are the people in TX, and a few isolated stores.

The support from HQ and their field people is abyssmal. They annually require "upgrades" that cost the franchisees significant dollars, but don't increase customer count. At renewal the cost can be 20K to stay in the system.

BUT WHY WOULD ANYONE STAY??!!

On top of it all, the bully founder touts a value system, which neither he nor his crew of incompetents adhere to. The hypocrisy is horrendous.

Run as fast as you can from this organization.
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#23 UPDATE Employee

I'll second that!!!

AUTHOR: Poorpoorme - (U.S.A.)

Everything he posted is accurate. The flyer says that Sports Clips is looking for people with 100K liquid and 300K net worth, and that these are people who can open three stores. SAY WHAT?

It costs 50K just to sign-up. At least 150K to get a store open. And then the losses begin.

The only people making any money here are the people in TX, and a few isolated stores.

The support from HQ and their field people is abyssmal. They annually require "upgrades" that cost the franchisees significant dollars, but don't increase customer count. At renewal the cost can be 20K to stay in the system.

BUT WHY WOULD ANYONE STAY??!!

On top of it all, the bully founder touts a value system, which neither he nor his crew of incompetents adhere to. The hypocrisy is horrendous.

Run as fast as you can from this organization.
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