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The Lowdown on The Play It Again Sports Franchise Cost
As more pursue an active lifestyle or enjoy doing sports activities, a sporting goods store will become a necessity for certain consumers. Starting a sports goods store may become a challenge considering the competition. Instead, it’s best to find a franchise that might fit your needs. And you can consider Play It Again Sports as one of them.
Learn more about Play It Again Sports and how much a franchise costs.
Play It Again Sports Franchise Overview
Play It Again Sports started its operations in 1983 and has been one of the leading brands for Winmark, the franchise group. Their company of brands includes:
- Plato’s Closet
- Once Upon A Child
- Music Go Round
- Style Encore
They sell sports gear and even buy used sports gear from customers. Other than they also offer other services such as:
- Bike maintenance and repair
- Relacing, regripping, and restringing
- Sharpening, stretching, and baking of skates
- Steaming, sanitizing, and shaping
- Equipment maintenance and repair
- Ski and snowboard repair, adjusting, and waxing
So far, Play It Again Sports has locations in different states in the United States and provinces in Canada.
Training
The franchisee undergoes three training phases, and the franchisor conducts it in the headquarters, Minneapolis, and at the local level. The duration of the first training phase is five days.
The first phase is called the New Franchisee Orientation Training. Here, the franchisee will learn about management and operations. Plus, there’s also:
- Real estate matters
- Product knowledge
- Business planning
- Used products
Aside from this, the franchisor also requires the franchisee to attend an online financial management class with the third-party vendor.
The second training phase is called Concept Training. This one will take at least five days to complete. This training session covers the following topics:
- Sales and marketing
- Used product buying philosophy
- Buying and selling
- Inventory
- Store management
- Computer operation
The final training phase is the in-store session, and the location will take place in one of their stores. It will take at least three days to complete.
Other training sessions include periodic training visits during the first year of the store’s opening. Plus, there would be recommended training sessions conducted by the franchisor.
Territory
All franchisees will receive an exclusive territory. This is done through computer-modeled mapping. Through that, they can identify the boundaries of the exclusive territory, which has a three to five mile radius from the store. Since there’s an exclusive territory, the franchisor will not approve a company-owned or franchised store in the territory. Aside from that, there’s also the development area, which franchisees are free to choose, but with the franchisor’s approval.
Most metropolitan Play It Again Sports franchisees should have a population of at least 75,000 to 100,000. Meanwhile, other stores may have a minimum of at least 50,000.
Obligations and Contract Terms
If the franchisee is an individual, they must operate the store. They’re not prohibited from running the store while employed by another company.
Those with multiple franchisees may assign a designated manager to run their stores. In any case there’s a designated manager, the managers should also attend the second session of the training.
Meanwhile, if the franchisee is an entity, one individual should have at least 50% equity and voting interest. In this case, they must personally oversee the store.
The franchisor requires only approved goods and services to be sold at stores. In cases of delivery, the franchisee can only deliver items within the exclusive territory or in nearby areas. The franchisor also prohibits the sale of weapons and other stolen goods. Plus, the franchisees should only use promotional materials that the franchisor approved.
An initial franchise term lasts ten years. But franchisees may renew their franchise for another ten years, provided they meet the requirements.
Play It Again Sports Franchise Cost
The Play It Again Sports initial franchise cost may be at a minimum of $282,900 and up to $393,900. As for financing options, the franchisor may offer limited options or assistance. A franchisee may take part in Winnark’s Buying Group by buying store inventory.
Those who have good credit, the franchise could lease equipment to the franchise through the Wirth Business Credit. Aside from that, the franchisor may sell or discount notes or obligations. However, the franchisor will not finance a part of the initial franchise fee.
Here’s a breakdown of the Play It Again Sports Franchise Cost.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Fixtures and Supplies | $26,000 | $38,000 |
| Signs | $8,000 | $12,000 |
| Security System and/or Cameras | $1,000 | $4,000 |
| POS (Point-of-Sale) System | $17,900 | $20,800 |
| Leasehold Improvements | $5,000 | $9,000 |
| Build-Out | $35,000 | $50,000 |
| Deposits and Business Licenses | $5,000 | $10,000 |
| Letter or Credit | $0 | $5,000 |
| Opening Inventory | $90,000 | $120,000 |
| Miscellaneous Pre-Opening Expenses | $30,000 | $50,000 |
| Rent – First 3 Months | $10,000 | $15,000 |
| Additional Funds – 3 months | $30,000 | $35,000 |
| ESTIMATED TOTAL | $282,900 | $393,900 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Continuing Fee | 5% of gross sales. |
| Marketing Fee | $1,500 per year. |
| Cooperative Advertising | Maximum amount is 5% of gross sales. |
| Local Marketing Expenses | Minimum amount, when combined with cooperative advertising expenses, is 5% of gross sales. |
| Advertising Fee | If Winmark imposes this fee, franchisees will pay up to 2% of gross sales. |
| Transfer Fee | $10,000 |
| Audit Expenses | Cost and expenses related to audit. |
| Renewal Fee | $5,000 |
| DRS Maintenance Fee | The fee for the term of this Franchise Agreement is $1,000. Upon renewal the then-current rate for the fee will be applied. |
| Technology Fee | Currently $0. |
| Remodeling Expenses | Will vary under circumstances. |
| Insurance | Will vary under certain circumstances. |
| Inventory | Will vary under certain circumstances. |
| Interest Expenses | Lesser of 18% per year or maximum rate permitted by law. |
| Lease Payment | Will vary under certain circumstances. |
| Costs and Attorneys’ Fees | Will vary under circumstances. |
Did You Know?
- Play It Again Sports has been featured in local media outlets such as ABC, CW, and NBC. They were even featured in Good Morning America.
- Their average quartile sales are $1,701,390.
- In 2019, they were part of Entrepreneur’s Franchise 500. Plus, they were in the Franchise Times Top 200+. Forbes even hailed them as one of the Best Small Companies in 2014.
For other franchise information, check out other franchise resources here on Franchise How!