Sports Franchising is Taking Off (And It's Just Getting Started)
Sports Franchising is Taking Off (And It's Just Getting Started)
In 2023, there were ~806,000 franchise establishments in the United States.
Typically we see this in the restaurant space…
But it’s starting to drip over to sports.
Let’s Dive In 👇
Franchising
A franchise is a business whereby the owner licenses its operations and products, branding, and knowledge in exchange for a franchise fee.
Ongoing royalties paid to franchisors vary by industry and can range between 4.6% and 12.5%
Some popular niches:
Shipping (UPS)
Tutoring (Kumon)
Hotel (Hampton Inn)
Convenience (Sheetz)
Pizza/Italian (Domino’s)
Arcade (Chuck E. Cheese)
Desserts (ex. Dairy Queen)
Steakhouse (Capital Grille)
Chicken/Burgers (ex. Popeyes)
Beverages (ex. Smoothie King)
Casual Dining (ex. Applebee’s)
Baked Goods (ex. Crumbl Cookies)
As you can see, most of the franchising world revolves around food/drink.
Sportainment has begun the evolution combining the two with a social activity.
And now it’s starting to drip into sports complexes…
Pickleball Franchising
The franchising of pickleball is a gold rush:
❶ The Picklr just raised a Series B at a $59M valuation:
• sold over 300 franchises
• 92 locations under contract
• by early 2025, will have locations in more than 32 states
❷ PickleRage just announced a massive new project in Maryland:
• 25,550-square-foot facility
• 10 indoor CushionX courts
• Situated along Interstate 97, connects Baltimore & Annapolis
❸ Pickleball Kingdom announced 15 new locations in Florida:
• over 300 franchises awarded
• signed a partnership with pickleball outlet The Kitchen
Even more interesting — all of these pickleball franchises were founded after 2021…
The next evolution combines various racquet sports: padel, pickleball, tennis, and ping pong.
It will be interesting to see how these franchises play out (especially as many are building new facilities and not just adding to malls).
The data so far: 📊
1,500 indoor Pickleball complexes planned
10,000 Padel Courts projected in the US by 2035
Compared to tennis 250,000 municipal courts it's just the beginning
Add in money flowing downstream thanks to NIL, and every parent has their eyes on making sure their kid “gets the bag”….
Athletic Training Franchises
Founded in 2001 by former NFL player Will Bartholomew…
D1 Training is a fitness enrichment concept utilizing Division I style training to help people of all ages achieve their sport and fitness goals.
D1 Training began franchising in 2017:
have over 115 open locations
with over 250 in development
sold 59 new territories this year
Last year they served about 25,000 athletes across the country.
D1 Training is starting to add additional revenue streams — including a nationwide partnership with beverage brand Prime.
And they’ve begun adding athlete partners to their franchises including NBA great Chris Paul and former NFL QB Tim Tebow.
Looking Ahead
The sports industry is buzzing!
You know this is true by looking at the franchise models gripping the United States (from youth athletes up to seniors).
I expect to see many more concepts — especially as community, food/beverage, and social activity are prioritized.
Even better, the growth hitting sports (and ancillary verticals) is just getting started!
Are you building in the sports industry?
We’ve built the cheat code for you with the Profluence+ Community.
Profluence+ Community 🌐
It’s amazing to see community members continue to gain traction!
Updates:
250+ members currently
Resources, investor lists, networking, and more
Top founders, CEOs, & investors from industry-leading firms.
Utilize Profluence+ to get ahead (or risk getting left behind)!
Podcasts 🎙
Insightful guests this past week:
CiCi Bellis - Founding Partner, Cartan Capital (listen here)
We dive deep into her journey from 35th-ranked tennis player to managing a $10M VC fund and what they’re looking for in sports/health.
Ben Nichols - Founder, Padel 22 (listen here)
We explore the global growth of padel, trends in the space, and how Ben has built a successful PR firm within it.
Appreciate you reading today!
The Wild West of sports franchising is fun to watch (especially from the sidelines).
Onwards & upwards,
Andrew 👋