Play It Again Sports Franchise in 2024: Costs, Fee & FDD
Discover how Play It Again Sports combines sustainability with a unique resale business model, offering a compelling franchise opportunity for sports enthusiasts. Explore the costs, support, and growth potential of this established brand today!
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Play It Again Sports is a well-established franchise founded in 1983, offering a unique business model in the resale sports equipment industry. The idea was born when Martha Morris realized that families were constantly outgrowing their sports gear, and the opportunity to buy and sell gently used equipment would not only help them save money but also reduce waste. Today, Play It Again Sports stands as a major player in the sports resale market, pioneering sustainability through the circular economy long before it became a buzzword.
The franchise specializes in buying and selling quality used sports and fitness gear, catering to families, athletes, and fitness enthusiasts looking for affordable yet reliable equipment. Their core products range from bicycles, hockey sticks, and baseball gloves to fitness equipment like treadmills and dumbbells. Additionally, they offer new gear and accessories for sports like hockey, baseball, and soccer. The model is perfect for cost-conscious consumers, from beginner athletes to parents who are tired of overspending on new gear their kids outgrow.
With over 300 stores across the U.S. and Canada, Play It Again Sports has become a leader in the resale sporting goods space, serving thousands of customers daily. Its presence in local communities strengthens its appeal, especially in family-oriented neighborhoods and sports-driven cities. The brand’s community-focused approach makes it a go-to for parents, amateur athletes, and even seasoned pros looking to save on equipment.
In terms of franchise support, Play It Again Sports provides extensive training and ongoing assistance. New franchisees benefit from a well-structured onboarding process that covers store operations, customer service, and inventory management. The brand’s commitment to sustainability, community involvement, and a proven business model make it an attractive franchise for those wanting to combine passion for sports with an eco-friendly mission.
Play It Again Sports Franchise Insights
- Play It Again Sports has over 300 locations across North America, with many stores generating approximately $1 million in annual revenue.
- The franchise’s focus on sustainability allows customers to save between 40-60% on quality, gently used sports gear, contributing to the growing circular economy.
- Play It Again Sports is part of Winmark Corporation, a franchise powerhouse that also owns other resale brands like Once Upon a Child and Plato’s Closet, offering a robust support network and industry expertise.
- On average, Play It Again Sports stores process about 1,200 unique transactions per month, showcasing strong demand for affordable sports equipment in local communities.
Play It Again Sports Franchise Key indicators
Growth YOY (%)
5%
vs industry 0%
Total U.S. Franchised Units
257
3-Year Failure Rate
6%
vs industry 13%
Sales-to-Investment ratio
2.8:1
How much does it cost to open a Play It Again Sports franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Play It Again Sports franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Play It Again Sports franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Play It Again Sports below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Fixtures and Supplies | $32,000 | $45,000 |
| Signs | $10,000 | $14,000 |
| Security System and/or Cameras | $1,000 | $4,000 |
| Point-of-Sale (POS) System | $18,300 | $21,800 |
| Leasehold Improvements | $5,000 | $10,000 |
| Build-Out | $35,000 | $52,000 |
| Deposits and Business Licenses | $8,000 | $15,000 |
| Letter of Credit | $0 | $5,000 |
| Opening Inventory | $100,000 | $120,000 |
| Miscellaneous Pre-Opening Expenses | $35,000 | $50,000 |
| Rent – First 3 Months | $15,000 | $24,000 |
| Additional Funds – 3 Months | $30,000 | $35,000 |
| Total | $314,300 | $420,800 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Play It Again Sports franchise, there are specific financial requirements you need to meet to ensure you’re well-capitalized for both the initial setup and ongoing operations. Here’s a breakdown of the required capital, liquid assets, and net worth:
- Initial Investment The total investment for a Play It Again Sports franchise typically ranges from $314,300 to $421,000, depending on store size, location, and local market conditions. This includes costs for leasehold improvements, inventory, and equipment. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement Franchisees are generally expected to have at least $100,000 to $150,000 in liquid assets (cash or easily accessible funds) to cover initial working capital, inventory purchases, and unexpected expenses. This figure is based on estimates in the resale retail space and can vary slightly.
- Net Worth Requirement Franchisees typically need a minimum net worth of $350,000 to $500,000 to qualify. This ensures that you have the financial stability and assets to sustain the business during the early stages of growth and meet long-term obligations like rent, payroll, and replenishing inventory.
How much does a Play It Again Sports franchise owner make?
Calculating the salary of a Play It Again Sports franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Play It Again Sports franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Play It Again Sports Revenue & Gross Sales
Play It Again Sports has demonstrated robust revenue performance, with median gross sales reaching $1,030,387 across its franchise locations. This strong figure reflects the brand’s ability to attract cost-conscious consumers looking for quality, gently used sports equipment.
Which key factors impact the average revenue performance of Play It Again Sports franchisees?
Several factors likely contributed to the strong performance of U.S. franchisee median gross sales for Play It Again Sports. The increasing consumer demand for sustainable and cost-effective options has positioned the franchise favorably within the growing resale market, attracting budget-conscious families and athletes. Additionally, the brand’s established reputation for quality and variety in used sports equipment fosters customer loyalty and repeat business. Local community involvement through trade-in programs and partnerships with schools and sports leagues further enhances customer engagement and trust. Furthermore, effective marketing strategies and a supportive franchise system provide franchisees with the tools needed to optimize operations and drive sales, contributing to overall financial success.
Play It Again Sports Franchise Operational Costs
When considering opening a Play It Again Sports franchise, it’s essential to account for various ongoing operational costs that will impact your overall financial performance. Understanding these expenses will help you effectively budget and manage your cash flow for sustained success in the resale sporting goods market.
- Inventory Costs Regularly purchasing used sports equipment and new merchandise to maintain a diverse selection for customers. This includes replenishing stock based on sales trends and seasonal demand.
- Lease and Utilities Monthly rent for your retail space, which can vary significantly based on location, along with utility costs such as electricity, water, and internet services necessary for operations.
- Insurance Ongoing insurance premiums to protect your business from various liabilities, including property, liability, and worker’s compensation coverage.
- Employee Wages Salaries or hourly wages for staff, which may include full-time employees and part-time associates, along with potential benefits and payroll taxes.
- Maintenance and Repairs Regular maintenance and any necessary repairs to your store’s physical space, equipment, and point-of-sale systems to ensure smooth operations.
By carefully considering these ongoing operational costs, you can better prepare for the financial responsibilities of running a successful Play It Again Sports franchise. Understanding these elements will be crucial as you move forward in your franchise journey.
Play It Again Sports Franchise Fees
When considering the financial aspects of opening a Play It Again Sports franchise, it’s important to recognize the various fees that will impact your overall profitability. These fees are essential to maintaining the franchise’s operational standards and supporting its marketing efforts. Understanding these costs will help you effectively budget and ensure you are well-prepared for the financial commitments associated with running your franchise.
- Continuing Fee Franchisees are required to pay a 5% fee on their gross sales, due weekly. This ongoing fee supports the franchise’s operational infrastructure, including access to a comprehensive support system and established branding.
- Marketing Fee An annual marketing fee of $1,500 contributes to national advertising campaigns and promotional initiatives. This fee ensures that franchisees benefit from the brand’s marketing efforts, enhancing visibility and attracting more customers while sharing the costs among all franchise locations.
- Additional Fees Franchisees may incur additional fees for training programs, technology updates, and other resources provided by Play It Again Sports.
By understanding these fees, you can create a more accurate financial plan and set realistic expectations for your franchise’s financial performance. Properly accounting for these costs will be key to ensuring the long-term success of your Play It Again Sports franchise.
Play It Again Sports Franchise Earnings
The earnings potential for a Play It Again Sports franchise owner can be influenced by several factors, including location, sales performance, and effective management practices. On average, franchise owners can anticipate substantial earnings, with median gross sales reported at approximately $1,030,387. For owner-operators, estimated earnings are around $155,000, reflecting a healthy operating profit margin of 15%.
This profitability underscores the value of hands-on management, where active involvement in daily operations can significantly enhance returns. Owners who are engaged with their customers and adept at optimizing their inventory and staffing can capitalize on the franchise’s strong market presence and customer loyalty. Overall, these figures illustrate a promising financial outlook for dedicated franchisees willing to invest their time and effort into growing their Play It Again Sports business.
How to Open a Play It Again Sports Franchise
Becoming a franchisee with Play It Again Sports involves a structured process that guides prospective owners from initial inquiry through to the launch of their business. Understanding each step can help streamline your journey and ensure you meet all necessary requirements.
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Application Process Submit a formal application, including your financial background, experience, and reasons for wanting to join the franchise. This helps the franchisor assess your suitability as a franchisee.
- Franchise Interview If your application meets the criteria, you’ll be invited for an interview with the franchisor. This is an opportunity to discuss your business plan, vision, and how you can contribute to the franchise’s success.
- Training and Support Once approved, you will undergo initial training, which covers operational procedures, marketing strategies, and customer service practices. You’ll also receive support in site selection and store setup.
- Site Selection and Lease Negotiation Work with the franchisor to identify a suitable location for your store. The franchisor may assist in lease negotiations to ensure favorable terms.
- Launch Preparation Before opening, finalize your inventory, hire staff, and implement the necessary technology systems. Your franchisor will provide guidance to ensure your store meets their standards.
- Opening Day Once everything is in place, you can officially open your Play It Again Sports franchise. Leverage your franchisor’s marketing resources to promote your grand opening and attract customers.
Pros & Cons
Pros
Established Brand: As part of a well-known franchise with a strong reputation in the resale sporting goods market, you benefit from brand recognition and customer loyalty, which can drive sales from day one.
Sustainable Business Model: With increasing consumer demand for sustainable and cost-effective options, Play It Again Sports taps into the growing resale market, offering a unique value proposition that appeals to eco-conscious customers.
Diverse Product Range: The ability to buy and sell a wide variety of used and new sports equipment allows for flexibility in inventory management and the ability to cater to a broad customer base, from families to athletes.
Strong Profit Potential: With median gross sales reported at a high level, there is substantial earning potential for owner-operators, especially those actively involved in managing the store.
Cons
Competition: The sporting goods and resale market is competitive, with numerous players, including online retailers and other resale shops. Standing out in this environment can be challenging.
Operational Responsibilities: As an owner-operator, you will need to be actively involved in the day-to-day management of the business, which can be demanding and time-consuming.
Variable Sales Performance: While there is significant earning potential, actual sales can fluctuate based on location, market conditions, and economic factors, which may impact profitability.
