I think czarguy is right it should be realistic, there is only like 20 clans so far in the series and manga anyways, so why have like 300 different clans? The game is based on Naruto, and half the time the game is realistic and half is not, like how we name our own clans, what ever, and how there are so many.
Maybe resetting for a KG could come with a clan, maybe, since you would be born into [Name it] along with your KG, and more clan options, a lot more, will come with more resets, like a Grand Master should have more power in clans then just an Initiate.