Sport Clips

ARIZONA

Source: Sport Clips, Inc.

Former Intel duo Jared Lee and Val Hill, Sport Clips owners for 10 years, now own 18 locations in the Phoenix metro area.

Description: Men and boys haircuts

Owners: Val Hill and Jared Lee

Years in business: 11

No. of franchises owned: 18

Start-up costs: $168,300 to $326,500

Franchisor fees: $59,500 for 3 licenses; $12,500 for each additional license; royalties: 6% of net sales, paid monthly

2015 revenues, 2016 projection: $6.9 million; $8.4 million

2016 projected annual growth rate: 22%

Val Hill and Jared Lee first met while getting their MBAs at Brigham Young University in Utah back in the 1990s. The two became fast friends and vowed one day to go into business together. Before that would happen, both would spend more than 15 years at Intel — Hill in supply-chain management and Lee in software development. Then one day in 2005, Hill said they decided to revisit their business-school dream. At first they thought about buying and developing land. Then they began investigating whether they wanted to purchase a Subway or Quiznos franchise. Hill says nothing grabbed them — that is, until he came across Sport Clips.

The haircutting franchise caters to men and boys and offers what Hill calls "a little guy pampering."

"I liked the fact that they weren't looking for experienced hairstylists as franchisees," Hill said. "They wanted people with business experience, and that's what Jared and I had."

Additional resources for franchisees

The pair was also impressed with the Sport Clips business model, which Hill describes as disciplined and systems-driven. "All the vendor relationships were already established, including those for store equipment, point-of-sale (POS) systems and training programs for stylists," he said. "When we hire a new stylist, we have an area director that trains them in the Sport Clips way. Jared and I aren't training them."

The duo now own 18 Sport Clips locations in the Phoenix metro area and couldn't be happier. "I enjoyed my career with Intel, but I love this business," said Hill. "We have clients that write us letters saying how much they enjoy the time and attention our stylists show them when they come in. You don't get that kind of feedback with most jobs."