Do you want to open a sports equipment store by buying Play It Again Sports franchise? If YES, here is how much it cost to open Play It Again franchise successfully. If you are looking towards opening a Play It Again Sports Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.
Play It Again Sports was founded in 1959 and they began franchising in 1962, about 58 years ago. The current CEO is Brett Heffes and they have their corporate head office at 605 Hwy. 169 N., #400 Minneapolis, MN 55441, USA. Play It Again Sports also provides franchising opportunities and currently, the company operates 295 franchises in the United States and outside the country.
Play It Again Sports is owned by Winmark (formerly Grow Biz) and operates as a sport goods retailer. Under Play It Again Sports brand stores buy, sell, trade, and consign used and new sporting goods, equipment, and accessories for various athletic activities, such as team sports, fitness, ski/snowboard, golf, and others.
Financial Investment Required to Open a Play It Again Sports Franchise
Here are areas where you are expected to spend money and the cost associated with it;
- Initial Franchise Fee: $25,000
- Fixtures and Supplies: $26,000 to $38,000
- Signs: $8,000 to $12,000
- Security System and / or Cameras: $1,000 to $4,000
- POS (Point-of-Sale) System: $17,900 to $20,800
- Leasehold Improvements: $5,000 to $9,000
- Build-Out: $35,000 to $50,000
- Deposits and Business Licenses: $5,000 to $10,000
- Letter or Credit: $0 to $5,000
- Opening Inventory: $90,000 to $120,000
- Miscellaneous Pre-Opening Expenses: $30,000 to $50,000
- Rent – First 3 Months: $10,000 to $15,000
- Additional Funds – 3 months: $30,000 to $35,000
- Continuing Fee: 5 percent of gross sales.
- Marketing Fee: $1,500 per year.
- Cooperative Advertising: Maximum amount is 5 percent of gross sales.
- Local Marketing Expenses: Minimum amount, when combined with cooperative advertising expenses, is 5 percent of gross sales.
- Advertising Fee: If Winmark imposes this fee, franchisees will pay up to 2 percent 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: This fee Will vary under circumstances.
- Insurance: This fee Will vary under certain circumstances.
- Inventory: This fee Will vary under certain circumstances.
- Interest Expenses: Lesser of 18 percent per year or maximum rate permitted by law.
- Lease Payment: This fee Will vary under certain circumstances.
- Costs and Attorneys’ Fees: This fee Will vary under circumstances.
- Veteran Incentives: 25 percent off franchise fee
- Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the Effective Date, unless the franchisor agrees otherwise in a separate writing. Renewal is for the shorter of one additional 10 – year renewal term or the remaining term of the franchisee’s lease (including options), subject to the franchisee meeting the franchisor’s conditions to renew.
- Financial Assistance: The franchisor offers limited financing arrangements or similar assistance to qualified franchisees in purchasing store inventory. Franchisees may participate in Winmark’s Buying Group through which store inventory is purchased.
If franchisees meet the credit standards, the franchisor may, through its Wirth Business Credit, Inc. subsidiary, lease franchisees equipment related to the Play It Again Sports store operations. The franchisor may design a leasing program for certain assets where the structure of the lease is set by the franchisor.
The franchisor may sell, assign or discount to any third party any lease, note or other instrument executed by its franchisees, which third parties may be immune under law to any defenses to payment franchisees may have against the franchisor. The franchisor does not finance any part of the initial franchise fee due under the Franchise Agreement nor guaranty a franchisee’s retail lease.
- Initial Investment: $251,300 – $378,200
- Net-worth Requirement: $350,000
- Liquid Cash Requirement: $105,000
- Ongoing Initial Franchise Fee: $25,000
- Ongoing Royalty Fee: 5 percent
- Ad Royalty Fee: $1K/yr.