Play It Again Sports Franchise Costs, Fees & FDD

Year Business Began: 1983

Franchising Since: 1988

Headquarters: Minneapolis, Minnesota

Estimated Number of Units: 305

Franchise Description: Winmark Corporation is the franchisor. 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.
Training Overview: The franchisor conducts its three part training program at its training center in Minneapolis and at the local store level. The first session of the training program, “Resale University 101 Training,” covers several aspects of the set up and opening of a privately-owned retail business. The first session will take place over a period of four days. At Resale University 101 Training, franchisees will be required to participate in an online financial management course conducted by Winmark’s third party vendor. The second session of the Play It Again Sports training program, “Resale University 201 Training” is attended after securing financing, executing a lease for a retail site and completing the online financial management training program. It is conducted over a period of at least five days. The third session of training will take place after franchisees complete Resale University 201 Training and will include at least two days of in-store training at a Play It Again Sports store of the franchisor’s choosing. The franchisor will not allow franchisees to open their store unless they successfully complete all three sessions of the training program to its satisfaction. As a new store owner, franchisees will be provided with periodic training visits during their first year of operation. The franchisor provides additional training programs when it considers it beneficial to a significant number of franchisees. The franchisor currently recommends, but does not require, that franchisees attend these additional training programs.

Territory Granted: 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 three to five mile radius around the store. The franchisor will designate a development area within the exclusive territory. Franchisees can select a site for the store within this development area, subject to the franchisor’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. The franchisor will not establish another franchised or company-owned Play It Again Sports store at a physical location in the exclusive territory.

Obligations and Restrictions: If franchisees are individuals, 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. The franchisor requires store managers for franchisees operating multiple stores to attend the second session of the new store training program. Although the franchisor 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 the franchisor has approved. Franchisees also must offer all goods and services that the franchisor designates as required for all franchisees. Unless specifically authorized by the franchisor, 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.

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 periods.

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. Except as stated, the franchisor does not offer direct or indirect financing. The franchisor does not guaranty a franchisee’s note, lease or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$25,000	$25,000
Fixtures and Supplies	$40,000	$52,000
Signs	$11,000	$16,000
Security System and/or Cameras	$1,500	$4,000
Point-of-Sale (POS) System	$18,050	$22,000
Leasehold Improvements	$7,000	$12,000
Build-Out	$35,000	$55,000
Deposits and Business Licenses	$8,000	$18,000
Letter of Credit	$0	$5,000
Opening Inventory	$100,000	$120,000
Miscellaneous Pre-Opening Expenses	$40,000	$50,000
Rent – First 3 Months	$17,500	$27,500
Additional Funds – 3 Months	$40,000	$50,000
ESTIMATED TOTAL	$343,050	$456,500

Other Fees

Type of Fee	Amount
Continuing Fee	5% of gross sales.
Marketing Fee	$1,500 per year.
Cooperative Advertising	Maximum amount is 5% of gross sales.
Local Marketing Expenses	Minimum amount, when combined with cooperative advertising expenses, is 5% of gross sales.
Advertising Fee	If Winmark imposes this fee, franchisees will pay up to 2% of gross sales.
Transfer Fee	$10,000
Audit Expenses	Cost and expenses related to audit.
Renewal Fee	$10,000
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	Will vary under circumstances.
Insurance	Will vary under certain circumstances.
Inventory	Will vary under certain circumstances.
Interest Expenses	Lesser of 18% per year or maximum rate permitted by law.
Costs and Attorneys’ Fees	Will vary under circumstances.

The above information has been compiled from the FDD of Play It Again Sports. Year of FDD: 2025.
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