|
Play It Again Sports Franchise ProfileSports Franchises > Sports Equipment Retail |
What is the Initial Investment for a Play It Again Sports Franchise?
To open a Play It Again Sports franchise, you will need an initial investment ranging from $314,300 to $420,800. This includes a franchise fee of $25,000, which is part of the startup costs. Additionally, you should have cash reserves between $60,000 and $120,000 to cover initial operating expenses. It's important to be aware of ongoing costs, such as a 5% royalty fee on gross sales and a 2% marketing fee.
What Are the Financial Performance Metrics for Play It Again Sports?
On average, a Play It Again Sports franchise generates annual revenue of approximately $1,186,546. The lowest reported annual revenue per unit is $234,952, while the highest can reach $6,454,370. The average gross profit margin stands at 53.05%, indicating a healthy profitability potential. Franchisees can expect to break even within about 18 months and may see a return on their investment in as little as 12 months.
What Are the Growth Trends for Play It Again Sports?
Play It Again Sports has shown consistent growth in the number of franchised units. In 2021, there were 273 units, which increased to 281 in 2022, and further to 294 in 2023. This upward trend reflects the brand's popularity and market demand, making it an appealing option for prospective franchisees looking to enter a growing industry.
What Should You Know About Operating Costs for Play It Again Sports?
Operating costs for a Play It Again Sports franchise can vary, but rent typically ranges from $60,000 to $100,000 annually. Other expenses, such as management salaries and initial wages, also contribute to the overall operating budget. Although some costs are not specified, understanding these financial obligations is crucial for maintaining profitability and ensuring smooth operations from the outset.
Play It Again Sports Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Play It Again Sports Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 273 | 281 | 294 |
| Net Change YoY | N/A | 8 | 13 |
| Franchised Units | 273 | 281 | 294 |
| Net Change YoY | N/A | 8 | 13 |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | N/A | N/A | N/A |
Initial Investment
The initial investment for a Play It Again Sports franchise ranges from $314,300 to $420,800. This includes the franchise fee of $25,000, which grants you access to the brand and its operational support. It's essential to have adequate cash reserves between $60,000 and $120,000 to cover initial expenses and ensure a smooth launch.
Revenue Potential
Play It Again Sports franchises have demonstrated strong revenue potential, with an average annual revenue of $1,186,546 per unit. The median annual revenue stands at $1,030,387, showcasing a robust market for sporting goods and equipment. However, revenues can vary significantly, with the lowest reported at $234,952 and the highest reaching $6,454,370.
Financial Requirements
To qualify for a Play It Again Sports franchise, a net worth of $300,000 to $500,000 is required. This financial baseline ensures that franchisees have the necessary resources to invest in their business and manage operational costs effectively. Understanding these financial requirements is crucial for aspiring franchise owners.
Ongoing Fees
Franchisees are subject to a royalty fee of 5% on gross sales, along with a marketing fee of 2%. These ongoing fees contribute to the overall operational support and national marketing efforts of the brand, helping to drive sales and brand recognition in local markets.
Breakeven and Payback
The breakeven period for a Play It Again Sports franchise is approximately 18 months, indicating a relatively quick return on investment compared to many other franchises. Moreover, franchisees can expect to recover their initial investment within about 12 months, making it an attractive option for those looking to enter the franchise world.
Franchise Growth
The Play It Again Sports franchise has shown consistent growth, increasing from 273 franchised units in 2021 to 294 units in 2023. This upward trend reflects the brand's expanding market presence and the increasing demand for sporting goods, indicating a promising opportunity for new franchisees to join a growing network.
Frequently Asked Questions
The initial investment for a Play It Again Sports franchise ranges from $314,300 to $420,800, which includes the franchise fee and other startup costs.