Recreation franchises can take on many different forms. From sports to music, art and more, there is no shortage of franchises that cater to all of the different ways people of any age entertain and enjoy themselves. Even travel franchises fall under the recreation franchise umbrella. After all, travel franchise owners are helping others get to the place where they want to spend their recreation time.
Below are a few trends currently shaping the industry, along with an overview of franchise investment costs.
Esports Franchises Are Finding Their Footing
An industry segment closer to the beginning of its lifecycle is esports franchising, but it’s poised to make a big impact.
Esports is exactly what it sounds like: Sports where virtually every aspect is electronic. Amateur and professional video game players come together to form teams and play against other teams in competitions and tournaments.
Competitions and tournaments in this area began to grow in earnest around the turn of the century and have only skyrocketed since. However, its online nature was a big help when a pandemic came along.
As you can probably imagine, the COVID-19 pandemic didn’t negatively impact the industry as much as many others were negatively impacted. As traditional sports were largely shutdown, the esports community was more easily able to pivot to keep connections with customers alive while waiting for restrictions to be lifted.
“When the shutdown hit, we did not lose a connection with our customers or people already connected with us,” says Brett Payne, founder of Contender eSports. “Even though our doors were closed, we kept those conversations active, and we were able to shift the gaming experience online where they were still interacting with staff. We were running tournaments, events, nonprofit fundraisers. It’s nothing ideal that we want to do long-term, but in the interim, it kept connections so that when the doors opened up again, everyone wanted to see each other again.”
And now that those doors are open again, expect to see esports center franchises popping up.
Recreation Franchises Help Children Do More Than Have a Good Time
Children’s sports and fitness franchises not only help kids play and maintain physical fitness. Many franchises incorporate educational elements with the knowledge gained over the years of how brain development occurs in children. The curriculum for different franchises is commonly built around a play concept that incorporates teaching motor development, dance, and music in addition to fitness elements like soccer and gymnastics.
And with school budget cuts to physical education programs, there is a steady market demand for anyone wanting to open a children’s fitness franchise coming from parents who want a healthier future for their kids and are able to spend for it.
In another area, art franchises can provide benefits far beyond being somewhere they have a good time in addition to being common places for celebrations like birthday parties.
Many art franchise concepts revolve around providing kids an outlet to express themselves. “Early art education helps them learn to make their mark on the world in ways that people will appreciate,” says Dr. Kerry Freedman, Head of Art and Design Education at Northern Illinois University.
It has been said that art helps children express what they cannot verbally, giving them a constructive outlet for their feelings. It also has been found to aid in children's emotional development, helping them learn about teamwork and consideration for others.
Recreation as Stress Relief for Adults
Adults in the United States are increasingly engaging in craft activities as a way to lessen their stress and find their “happy place.”
Studies have shown that crafting and related activities can reduce the chance of developing “mild cognitive impairments” by up to 50%. This benefit is in addition to the commonly cited benefits of crafting: easing stress and increasing happiness, along with being a coping mechanism for those who suffer from anxiety and depression.
Within franchising, a notable area the adult crafting trend has taken hold is painting classes, sometimes referred to as “paint and sip” franchises.
Friends. Wine. Paint. Creating art has become a social activity for grown-ups. A way to unwind, relax or celebrate in a different (and typically not-too-expensive) way. Traditionally the domain of kids’ birthday parties and summer camps, painting and other crafting class providers are expanding their services to customers of all ages by tweaking their established formulas to accommodate more mature markets.
Why is this franchise industry segment so attractive to franchisees and their customers? “They want to do something for themselves, and something that’s fun,” a marketing manager for Pinot’s Palette once said in a Forbes article. “[The franchisee’s] role is to have a party every night — and that’s attractive to people leaving the corporate sector. And everyone wants to do something new and fun, so for patrons, this is a little different.”
Initial Investment and Opening Costs for Recreation Franchises
The amount necessary to open a franchise varies depending on the unique business system and execution requirements. The initial investment required for a recreation franchise can range from a low in the tens of thousands to a high in the hundreds of thousands of dollars, mostly dependent on real estate costs.
Our franchise profiles will present you with a basic range for the initial investment or minimum cash required to open a franchise. But when it comes to finding out the details of an initial investment, the FDD is the best place to look. Franchisors offer itemized estimates in their FDD based upon their experience establishing, and in some cases operating, units.
Keep in mind these estimates are just that, though—an estimate. Prospective franchisees should review the figures presented with a business advisor, taking into consideration their unique circumstances, before making the decision to enter into a franchise agreement.
Ongoing Costs for Recreation Franchises
Don’t forget about the additional costs required for nearly all franchise businesses. This includes expenses such as royalty fees, marketing fees, software fees, training fees, and more.
The most common is the royalty fee. Royalty fees are assessed for the continued use of the franchisor’s trademarks and patented processes, along with certain types of operational support. In addition to regularly assessed fees, other fees are charged on an “as needed” basis such as audit fees, or costs for additional, non-mandatory, training.
It’s important to note that while many initial and ongoing costs are detailed in the FDD, there are some costs inherent to business ownership, like employee wages or utility costs, that aren’t.
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