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.
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