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TGA Sports Franchise ProfileSports Franchises > Sports Coaching |
What is the Initial Investment for a TGA Sports Franchise?
To open a TGA Sports franchise, the initial investment ranges from $77,550 to $265,000. This includes a franchise fee of $49,500, which is a one-time cost to join the franchise network. Additionally, potential franchisees should prepare for ongoing expenses, including an 8% royalty fee on revenue and a 1% marketing fee. It's advisable to have liquid cash available between $10,000 and $20,000 to cover initial operational costs and ensure a smooth launch.
What Are the Financial Performance Metrics for TGA Sports?
TGA Sports franchises have shown promising financial performance, with an average annual revenue per unit of $226,701 and a median annual revenue of $155,504. The highest reported annual revenue is $527,034, while the lowest is $29,783. Franchisees can expect to break even within approximately 30 months and achieve investment payback in about 12 months, making it a potentially lucrative investment for those committed to the business.
How Many Franchise Units Does TGA Sports Operate?
As of 2023, TGA Sports operates a total of 60 units, which includes 59 franchised locations and only 1 corporate unit. The number of franchised units has seen a decline from 76 in 2021 to 62 in 2022, and further down to 59 in 2023. This trend indicates a need for careful consideration regarding market saturation and the potential for growth in specific areas when evaluating franchise opportunities.
What Are the Average Operating Expenses for a TGA Sports Franchise?
Franchisees of TGA Sports should anticipate average annual operating expenses of approximately $836,805. This includes selling, general, and administrative expenses totaling $665,764, along with marketing fund expenses of $159,295 and franchise broker expenses of $11,746. Understanding these costs is crucial for managing profitability and ensuring the long-term success of the franchise.
TGA 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:
TGA 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 | 83 | 71 | 60 |
| Net Change YoY | -12 | -11 | |
| Franchised Units | 76 | 62 | 59 |
| Net Change YoY | -14 | -3 | |
| Corporate Units | 7 | 9 | 1 |
| Net Change YoY | +2 | -8 |
Investment Overview
TGA Sports offers a franchise opportunity with a low initial investment ranging from $77,550 to $265,000. The franchise fee is set at $49,500, while ongoing royalty fees are 8% of gross sales, and a marketing fee of 1% is also required. Prospective franchisees should have a cash reserve of $10,000 to $20,000 and a net worth between $150,000 and $300,000 to qualify for ownership.
Financial Performance
Franchisees can expect an average annual revenue of $226,701 per unit, with a median revenue of $155,504. The range of annual revenue varies significantly, from as low as $29,783 to as high as $527,034. Notably, franchisees can achieve a breakeven point within approximately 30 months and may see a return on their investment in as little as 12 months.
Franchise Growth
TGA Sports has experienced fluctuations in its franchise growth, with 76 franchised units in 2021, which decreased to 62 in 2022 and further to 59 in 2023. The corporate units also saw a decline, with 7 corporate units in 2021, 9 in 2022, and only 1 in 2023. This trend indicates a shift in the company’s operational strategy and market positioning.
Operational Expenses
The average annual operating expenses for TGA Sports franchisees total approximately $836,805. This includes selling, general and administrative expenses of $665,764 and marketing fund expenses of $159,295. Franchisees should be prepared to manage these costs effectively to maintain profitability.
Corporate Structure
TGA Sports operates under a well-defined corporate structure, focusing on franchise development and support. The company emphasizes providing franchisees with the necessary tools and resources to succeed, ensuring that each franchisee aligns with the brand's mission and operational standards.
Franchisee Support
TGA Sports is committed to supporting its franchisees through comprehensive training programs, marketing support, and ongoing operational assistance. This support system is designed to help franchisees navigate challenges and maximize their business potential, fostering a collaborative environment to drive success.
Frequently Asked Questions
The initial investment for a TGA Sports franchise ranges from $77,550 to $265,000, which includes the franchise fee of $49,500 and other startup costs.