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Play It Again Sports Franchise Costs & Fees

Date of Incorporation: 1983
Franchising Since: 1988
Headquarters: Minneapolis, Minnesota

Business Description: Winmark Corporation is the franchisor. A Play It Again Sports franchise is a retail store from which franchisees sell quality used and new sporting goods equipment and accessories.

Franchise Offer: The franchisee will own and operate a Play It Again Sports retail store from which the franchisee will sell quality used and new sporting goods equipment and accessories.

Financial Assistance: Winmark 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. Winmark 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. Winmark does not finance any part of the Initial Franchise Fee due under the Franchise Agreement nor guaranty a franchisee’s retail lease.

Training and Assistance: Winmark conducts its 3 part training program at Winmark’s training center in Minneapolis and at the local store level. The first session of the training program, New Franchisee Orientation Training (NFOT), covers several aspects of management and operation of a privately-owned retail business, including real estate matters, business plan development, product knowledge, buying used products, Winmark’s preferred vendor program and other topics Winmark may select. The first session will take place over a period of 5 days. The second session of the Play It Again Sports training program, Concept Training, is conducted over a period of at least 5 days and will include instruction on sales and marketing, buying new products, the used product buying philosophy and procedure, computer operation, store management, inventory management and other topics Winmark may select. The third session of training will take place after you complete Concept Training and will include at least 3 days of in-store training at a Play It Again Sports Store of Winmark’s choosing. Winmark provides additional training programs when it considers it beneficial to a significant number of franchisees. Winmark currently recommends, but does not require, that franchisees attend these additional training programs.

Territory: Franchisees will receive an “Exclusive Territory” surrounding the location of the store when granted a Play It Again Sports franchise. Computer modeled mapping which factors in population density and average household income, and consumer traffic patterns will determine the boundaries of the Exclusive Territory, which is typically a 3 to 5 mile radius around the store. Winmark will designate a development area within the Exclusive Territory. Franchisees can select a site for the store within this development area, subject to Winmark’s consent to that site. The Exclusive Territory for Stores located in urban areas (metropolitan areas with a population in excess of 250,000 persons) generally will have a minimum population of 75,000 to 100,000 persons. The Exclusive Territory for Stores located in all other areas generally will have a minimum population of 50,000 persons. Winmark will not establish another franchised or company-owned Play It Again Sports Store at a physical location in the Exclusive Territory.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees meet the renewal requirements set forth in the Franchise Agreement, they can renew the Franchise Agreement for additional 10 year period(s).

Obligations and Restrictions: If franchisees are an individual, they must personally manage the franchised business. If franchisees operate more than one store, they may delegate their management duties for additional stores to one or more managers. Winmark requires Store Managers for franchisees operating multiple stores to attend the second session of the new store training program. Although Winmark does not prohibit franchisees from being employed by a company other than the Play It Again Sports business, their primary job responsibility must be the operation of the franchised business. If franchisees are a corporate entity or a partnership, one individual must retain at least 50% of the equity and voting interest in the corporation entity or partnership and will be obligated to personally manage the franchised business. Franchisees must offer and sell only those goods and services that Winmark has approved. Franchisees also must offer all goods and services that Winmark designates as required for all franchisees. Franchisees may only deliver merchandise or offer services at a site other than the store location to customers residing in the Exclusive Territory or to locations within the Exclusive Territory. Franchisees may not sell or accept in trade firearms, knives, baseball or other sports trading cards or any sporting goods that they believe may be stolen. Franchisees may use only approved advertising and promotional materials.

Estimated Number of Units: 295

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $25,000 $25,000
Fixtures and Supplies $16,000 $30,000
Signs $6,500 $10,000
Security System and/or Cameras $500 $1,500
Skate Sharpener $0 $10,000
POS (Point-of-Sale) System $18,000 $20,700
Leasehold Improvements $5,000 $10,000
Build-Out $10,000 $35,000
Deposits and Business Licenses $5,000 $11,000
Letter or Credit $0 $5,000
Opening Inventory $90,000 $130,000
Miscellaneous Pre-Opening Expenses $24,300 $59,000
Additional Funds - 3 months $40,000 $50,000
ESTIMATED TOTAL $240,300 $397,200
Other Fees
Type of Fee Amount
Continuing Fee 5% of Gross Sales.
Cooperative Advertising Maximum amount is 5% of Gross Sales.
Advertising Fee/td> If Winmark imposes this fee, franchisees will pay up to 2% of Gross Sales.
Local Marketing Expenses Minimum amount, when combined with cooperative advertising expenses, is 5% of Gross Sales.
Transfer Fee $5,000
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.
Remodeling Expenses Will vary under circumstances.
Insurance Will vary under circumstances.
Inventory Will vary under circumstances.
Interest Expenses Lesser of 18% per year or maximum rate permitted by law.
Lease Payment Will vary under circumstances.
Costs and Attorneys’ Fees Will vary under circumstances.

The above information has been taken from the FDD of Play It Again Sports. Year of FDD: 2016

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