90 of Franchiees Would Do It Again

In this FDD Talk post, you lot'll learn the following:

• Section I – Background information on the Play It Again Sports franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Play It Again Sports franchise, based on Particular 7 of the company's 2022 FDD

• Department Three – Initial franchise fee, royalty fee, marketing fee, and other fees for a Play It Again Sports franchise, based on Items 5 and vi of the company's 2022 FDD

• Department IV – Number of franchised and company-owned Play Information technology Once more Sports outlets at the showtime of the year and the end of the year for 2017, 2018, and 2019, based on Particular 20 of the company's 2022 FDD

• Section V – Presentation and assay of Play Information technology Again Sports' financial operation representations, based on Item 19 of the visitor's 2022 FDD, including data on the:

• 2019 boilerplate, median, loftier, and depression gross sales and average and median gross profit for the 257 franchised Play It Once again Sports Stores in the United States and Canada that had been in operation by the same franchisee or owners for the 12-month flow concluded December 28, 2019, grouped by year opened (2018, 2017, 2016, 2015, 2014, and 2013 and prior)

• 2019 average, median, high, and low gross sales and boilerplate and median gross profit for the first, second, 3rd, and fourth quartiles of the 257 franchised Play It Over again Sports Stores in the United States and Canada that had been in operation by the same franchisee or owners for the 12-month period ended December 28, 2019

• number and percentage of franchised Play It Once again Sports Stores in the U.s. and Canada that had been in functioning by the same franchisee or owners for the 12-month period ended December 28, 2019, grouped by range of gross sales ($0 to $250,000; $250,001 to $500,000; $500,001 to $1,000,000; $i,000,001 to $2,000,000; $2,000,001 to $three,000,000; and greater than $3,000,000)

Section I – Groundwork Information

21 Things You Demand to Know About the Play It Once more Sports Franchise

Launches Online Store

1.  Later on a test run of Play It Once again Sports' ecommerce site in 2017, Winmark Corporation launched the visitor'southward full service website in May 2019. The service allows franchisees to determine what items they allow for sale online, and whether or not those products are available for shipping or have to be picked upwardly in-store.

two.  Since the launch, there's been a noticeable increase in how chop-chop higher-priced retail items take sold compared to in-store, with golf, hockey, and baseball game equipment leading the sales. With the launch of Play It Once more Sports' ecommerce market, Winmark is continuing its goal to meet customers where they want to buy: online.

3.  The digital consumer trend is growing. Nigh ii billion people made a purchase online in 2019. By 2021, over ii.14 billion people are expected to make an online purchase. 1 of the driving factors backside the booming digital market place is the value consumers run across in finding exactly what they are looking for afterward just a few clicks. Sixty-two percent of shoppers cite this benefit as a reason they shop online.

4.  Play It Again Sports stores are stacked to the brim with quality used and new sporting equipment. Since each store's inventory depends on what equipment the customs sells to the store, the stock tin can vary. By allowing customers to shop from all Play It Once again Sports stores online at in one case, the ecommerce site is the perfect way to give more customers more admission to more inventory.

5.  The introduction of online shopping for Play It Again Sports increases the brand's visibility and credibility past letting consumers shop how they want, when they want. Offer an ecommerce site for Play It Again Sports allows franchisees to widen their reach and concenter customers from all over the state. The service provides an additional revenue stream for franchisees and a universal shopping cart for their customers.

Longtime Multi-Unit Franchisees Sell Last Store

half-dozen.  In late November 2019, The Ledger'due south online news site covered the story of Sandy and Judy Fortin, owners of S&J Sports Inc., once the franchise holder of 31 Florida stores in the Play It Again Sports chain. The Fortins were in the news because they sold one of their last stores to Mike and Shannon Johnson, who had both previously worked for S&J Sports.

7.  Earlier in 2019, the Johnsons had purchased the Lakeland, Florida Play Information technology Again Sports franchise from the Fortins. The negotiation wasn't difficult considering Shannon Johnson calls the Fortins "mom and dad" in other contexts, and she sat on the Southward&J board for many years while working in existent estate.

8.  Mike Johnson had worked equally vice president of operations for S&J for 5 years until 2008. Before purchasing the Lakeland Play It Once again Sports, he had worked as the publisher of an alternative newspaper in Orlando and for a local function supply company.

ix.  According to Sandy Fortin, the divestiture began "when Judy told me I needed to go a 'T' job." That stands for working "Tuesday to Th, 10 AM to 2 PM." After 26 years in the sporting goods business, it was time to retire, he said. "I wasn't going to practice this forever," Fortin added. "I was involved in other things."

10.  The decision to buy was easy not considering it was standing a family unit legacy, Mike said, but considering he was fully invested in the Play Information technology Again Sports concept. The national concatenation, owned by Winmark Corp. in Minneapolis, sells new and used sporting goods. It gets the latter ordinarily on trade-ins from previous customers upgrading to new equipment. "I never would take bought this store if information technology didn't have a used component," Mike said. "I've always loved this concept. I've e'er loved sports."

11.  After purchasing the Lakeland Play It Again Sports, the Johnsons decided they were going to build on the family legacy, not simply rest on the Fortins' laurels. And then far, they've invested more than than $50,000 on an interior remodel, including new carpet, displays, and a new improver – a netted batting cage on the mezzanine above the brandish floor, where kids tin endeavor out the latest baseball gear.

12.  That'due south an important addition as some top-finish new baseball bats sell for $500, the Johnsons said. Baseball equipment is one of the Lakeland store's top lines, running neck and neck with fitness equipment, such equally treadmills, ellipticals, weights, and do balls, he said. Golf equipment runs third.

13.  Sandy Fortin purchased his first Play It Again Sports in Lakeland in December 1993 after a career in the Belk department shop chain, which he joined right after graduation from Lakeland Loftier School in 1964. That beginning store, initially in the nearby Southgate Shopping Center, was an immediate hit, selling more than $one million in its beginning year, he said. That was unheard of in the Play Information technology Again Sports concatenation for a kickoff-year store, Fortin added.

fourteen.  That led to a subsequent agreement with the chain for an exclusive franchise in Florida. Fortin used the opportunity to open up 31 stores across Florida by 2006. The growth stopped the following yr with the onset of the Corking Recession.

15.  Fortin began selling off those stores in 2011 in anticipation of his retirement. He also became busy with other business ventures, including condign a founding member on the lath of directors of the former Customs Southern Bank in 2006 and holding various leadership posts for the Florida Retail Federation in Tallahassee, the industry's trade group.

16.  He sold virtually of his Play Information technology Again Sports stores to local and regional managers who had worked at S&J Sports. In addition to selling the Lakeland store in March, he completed his divestiture earlier in 2022 past selling the Gainesville, Ocala, and Vero Beach stores to former managers. Although he'll help the Johnsons and former managers when asked – not ofttimes – he is completely out of Play Information technology Again Sports and his other business interests.

17.  The Johnsons said their first goal is to render the Lakeland shop to $one million in annual sales, which they expect to do by the stop of 2020. In addition to the owners, who are very much working managers, the Lakeland Play Information technology Again Sports employs three other total-time employees and one function-time employee.

18.  Beyond that, the Johnsons said they would consider buying other Play It Again Sports stores in Key Florida, but probably not as many as 31 properties. "I'yard excited near owning a family business," Shannon said. "I'm excited about where we can take this store, the opportunity it presents."

Company History

19.  Play It Once again Sports was founded in 1983 by Martha Morris in Uptown, Minneapolis. Morris decided to resell used sporting goods because many sports require equipment that tin can easily outlast participants. After growing Play It Again Sports for a few years, Morris sold the company to the Winmark Corporation in 1988. Later on the acquisition, Winmark started franchising the Play It Once again Sports concept. This was the commencement franchise for Winmark.

20.  Over the next few decades, Play It Again Sports grew effectually the United states of america, and later expanded into Canada. Play It Again Sports is now the biggest franchise in the Winmark family, which too includes Style Encore, Plato's Closet, Once Upon A Child, and Music Go Round. While Play It Once more Sports sells used goods, near 70% of the products that come up in are almost make new.

Entrepreneur'south Franchise 500

21.  Play Information technology Over again Sports ranked No. 269 on Entrepreneur's 2022 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Play It Over again Sports franchise costs, based on Item vii of the company's 2022 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click hither for detailed information on Play It Once again Sports' initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the visitor's 2022 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2017

• Outlets at the Start of the Twelvemonth:  283
• Outlets at the End of the Year:  281
• Cyberspace Alter:  -2

2018

• Outlets at the Start of the Twelvemonth:  281
• Outlets at the End of the Year:  281
• Internet Change:  0

2019

• Outlets at the Start of the Twelvemonth:  281
• Outlets at the Finish of the Year:  280
• Internet Change:  -i

Company-Endemic

2017

• Outlets at the Start of the Twelvemonth:  0
• Outlets at the Stop of the Year:  0
• Net Change:  0

2018

• Outlets at the Start of the Year:  0
• Outlets at the End of the Twelvemonth:  0
• Net Modify:  0

2019

• Outlets at the Start of the Year:  0
• Outlets at the Stop of the Year:  0
• Net Alter:  0

Section V – Financial Performance Representations (Item 19, 2022 FDD) and Analysis

• The following is a fiscal performance representation entitled "Unaudited Statement of Average Annual Sales and Gross Profit." The gross profit figures do reflect the cost of sales but do not reflect the operating expenses that must be deducted from the gross profit figures to obtain your net income or profit.

• The following statement of average annual gross sales and gross turn a profit includes boilerplate gross sales and gross profit during the 12-calendar month menses ended December 28, 2022 (Winmark's fiscal year) as reported by 257 of the 258 franchised Play It Again Sports Stores in the United States and Canada that commenced operations during the years 1988 through 2018.

• This statement includes information from only those Play It Once again Sports Stores located in the The states and Canada that had been in operation by the aforementioned franchisee or owners for the 12-calendar month period ended December 28, 2019.

• There are no material financial and operational characteristics of the U South. Stores that differ materially from the Canadian Stores included in this financial performance representation.

• No other Play It Once more Sports Stores are included in this statement due to insufficient history of operations (non in operation for the 12-calendar month catamenia concluded December 28, 2022 or transferred during this flow).

• The fiscal statements Winmark receives from franchisees for these stores are unaudited, and Winmark does non audit or independently verify, or express an opinion regarding, these statements.

• At that place were 258 franchised Play Information technology Again Sports Stores which had been in performance by the aforementioned franchisee or owners for the 12-month menstruum ended December 28, 2019. Only 257 of the 258 Stores are reflected in the boilerplate, however, considering ane Store was temporarily closed for several months.

• This fiscal performance representation does not include information for the 22 Play Information technology Once more Sports Stores that opened or transferred in 2019. No Stores closed in 2022 later on existence opened less than 12 months.

Office 1 – Statement of Average Gross Sales and Gross Turn a profit of 257 of the 258 Franchised Play It Again Sports Stores for the Financial Year Concluded December 28, 2019

Year Opened – 2018

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Source: https://www.franchisechatter.com/2020/05/26/fdd-talk-2020-play-it-again-sports-franchise-review-financial-performance-analysis-costs-fees-and-more/

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