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The Real Cost of A TGA Premier Tennis Franchise
TGA Premier Tennis (TGA) partnered with the United States Tennis Association (USTA) to develop a school-based youth development model for elementary and middle schools. It offers after-school golf and tennis enrichment programs. Here’s all that you need to know on how to get a franchise:
TGA Premier Tennis Franchise Description
Franchisees will be allowed to offer in-school and after-school programs that include instructions for a variety of sports. The franchise also includes sports clinics, tournaments, camps, and events for pre-teen and teenage students, young adults, and adults.
Franchisee Training
Franchisees, supervisors, or managers will undergo a 14-day initial training program before they can open their franchise. The franchisor will provide this training in the franchisees’ headquarters or territories. They also require franchisees, managerial and supervisory staff to attend additional and refresher training when the need arises.
Territory
TGA Premier Tennis requires their franchisees to have sports territories in cities, counties, states, and other areas on streets, highways, and similar boundaries. The franchisor will take into consideration demographics, locations, traffic patterns, and other such factors when establishing the franchisees’ territories.
They require a minimum population of 250,000 for the franchisees’ territories. Franchisees won’t be getting exclusivity in territories as they can be within the same areas as other franchisees.
Obligations
As a franchisee, you are expected to participate in the business’s operations all year round directly. Aside from completing the training programs, franchisees, its managerial and supervisory staff must pass background checks, arrest notifications, fingerprinting, and other legal requirements.
The franchisor also requires franchisees to provide training and refresher programs to all its employees. They must sell and offer services and products endorsed by the franchisor.
Term of Agreement
An initial franchise term is for five years, but franchisees have the option for two five-year extensions of their Franchise Agreement (FA) if they meet the requirements.
Financial Assistance
The franchisor has the option to finance part of the initial franchise fee of over $7,500. This will depend on the franchisee’s creditworthiness and the amount they are requesting for financing.
Did You Know?
Here are a few fun facts you may not know about the TGA Premier Tennis programs:
- It is the first and largest organization to blend academics with sports
- For more than a third of their students, TGA Premier Tennis is the first time they have ever gotten access to a golf club or tennis racquet.
- Golf and tennis are two of the most popular sports but are inaccessible to most youths. The business model solves this problem.
TGA Premiere Tennis: Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee* | $7,500 | $45,000 |
| Office Equipment and Computer TGA Sports System | $0 | $2,250 |
| Initial Equipment Package | $700 | $1,300 |
| Insurance | $1,250 | $1,800 |
| Additional Training | $300 | $900 |
| Additional Initial Expenses | $1,000 | $2,000 |
| Additional Funds – 3 months | $5,000 | $10,000 |
| Real Estate and Improvements | Varies | |
| Legal Fees & Organizational Expenses | $3,000 | $5,000 |
| ESTIMATED TOTAL (single territory) | $18,750 | $68,250 |
*Note: If the franchisee buys any combination of sports, they will get a discount off the initial franchise fee for each sport.
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty Fee | Will be more than 8% of gross revenue or a $300 per month fixed payment for the first year, $450 for the second year, and $600 per month for the next 3-5 years of the Franchise Agreement |
| Advertising Fee | Currently, no advertising fee but the franchisor may ask up to 2% of gross revenue |
| Administrative Transfer Fee | $1,000 |
| Transfer Fee | Franchisor decides but not more than $5,000 |
| Renewal Fee | $1,500 |
| Additional Initial Training | The initial training program for one trainee is free. The franchisor will ask for a $300 daily fee for additional trainees |
| Website Maintenance Fees | $600 per calendar year. |
| Cross TGA Sports Territory Assessment | $250 per class. |
| Additional & Refresher Training Programs | The initial training program for one trainee is free. The franchisor will ask for a $300 daily fee for additional trainees. |
| Gross-Up Fees | Varies with circumstances. |
| Customer Relations Management (CRM) Fee | $110 per month. |
| Audit by Franchisor | Amount due plus costs of audit. |
| Re‐Inspection Fee | $500 per re‐inspection plus expenses |
| Interest on Overdue Payments | Greater of 10% per year or maximum rate permitted by law. |
| Annual Franchise Summit Fee | $250 – $500 to defray the franchisor’s direct costs to hold the annual franchise summit. |
| Supplier Approval Fee | The franchisor’s actual costs and expenses. |
| Marketing Template Fee | $200 per sport per year for 1 to 3 sports and $100 per sport per year for 4 or more sports |
| Interim Management Fee | Varies, will not to exceed $300 per day. |
| Default Reimbursement | The franchisor’s costs and expenses arising from the franchisee’s default. |
| Costs and Attorneys’ Fees | Varies |
| Indemnification | Varies |
| Administrative Assessments | $100 for the first violation, $200 for the second violation and $300 for the third and each subsequent violation. |
| Private Offering Fee (FA and Multiple Development Agreement) | $10,000 or such greater amount |
| Data Security Safeguards | Varies. |
The table below will show you how much a TGA Premier Tennis franchise will cost:
To know more about franchising, go to Franchise How!