Franchising Since: 2006
Headquarters: Budd Lake, New Jersey
Estimated Number of Units: 60
Franchise Description: TGA Franchise Systems, LLC is the franchisor. The parent company is TGA Sports, LLC. The franchise offered is for the operation of a business that provides sport instruction for golf, tennis, and pickleball as well as optional sports such as flag-football, cheerleading, lacrosse, volleyball, floor hockey and ultimate in school and in after school sports programs, sports clinics, camps, tournaments, parent/child events, clinics for pre-teen and teen-age students, youth, adolescents, young adults and adults.
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Territory Granted: The franchise is granted for a geographic area that must be approved by the franchisor. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. The geographic boundaries of the territory will be defined by us by identifying a sufficient number of zip codes or by identifying political boundaries such as cities or counties, natural boundaries such as rivers or mountains, man-made boundaries such as highways or streets, or otherwise as we deem appropriate in order to describe an area that contains approximately 100 qualified locations, but in no event containing a population of more than 400,000 people.
Obligations and Restrictions: Franchisees, or their operating principal, will be required to personally participate in the operation of the franchised business. Franchisees may employ a manager to personally participate in the day-to-day activities of the franchised business. Franchisees must sell only those services and products that the franchisor periodically requires, as described in the FDD, in the Franchise Agreement, in the Confidential Operating Manual and as may be supplemented. Franchisees must notify the franchisor immediately if any of the TGA products or services are prohibited, restricted by law or regulation or are adverse to local community standards. Franchisees are required to provide assistance to the franchisor, upon request, if government or other local approval is required for the offer and sale of any TGA product or service. Franchisees may not offer and sell any products and/or services that the franchisor has not specifically authorized.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. The franchise may be renewed for two additional consecutive five year terms if requirements are met.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee any note(s), lease(s), or other obligation(s). If franchisees are an honorably discharged veteran and/or educator, the franchisor will reduce the initial franchise fee for the core program (but not the plus program fee) by $4,950.
Estimated Initial Investment
Name of Fee | Low | High |
Initial Franchise Fee | $49,500 | $49,500 |
Training Expenses | $1,000 | $3,000 |
Enhanced Business Coaching and Training Fee | $5,750 | $5,750 |
Furniture, Fixtures, and Equipment | $0 | $500 |
Starter Kit and Initial Uniforms and Marketing Materials (Core) | $5,000 | $7,000 |
Starter Kit and Initial Uniforms and Marketing Materials (Plus) | $0 | $10,000 |
Computer System | $0 | $1,000 |
Insurance and Professional Services | $1,500 | $3,500 |
Permits, Licenses and Certifications | $0 | $1,000 |
Territory Overage Fee | $0 | $0.13 per person |
Plus Program (Optional) | $0 | $10,000 |
Additional Funds - 3 months | $10,000 | $20,000 |
ESTIMATED TOTAL (basic program) | $72,750 | $111,250 |
Other Fees
Type of Fee | Amount |
Royalty Fee | The greater of 8% of gross revenues or the minimum royalty amount. |
Franchisee National Advertising Fee | The greater of 1% of gross revenue or $200 per month. |
Local Advertising Expenditures | Up to 3% of gross revenues, but currently 1% of gross revenues. |
Regional Advertising Cooperative Fee | Currently none. The franchisor may require franchisees to contribute up to 3% of the gross revenues to the cooperative. |
Initial Training Program for Additional Individuals | $500 prior to initial training program. |
Enhanced Business Coaching and Training Fee | $5,750 due at signing of the Franchise Agreement against which the franchisor applies a cost of (i) $550 per day per staff member plus travel reimbursement, and (ii) $80 per hour for each enhanced business coaching and training phone call or video conference. |
Post-Opening Enhanced Business Coaching and Training Fee | $550 per day per staff member, if provided in person, or $80 per hour if provided by phone or video conference. |
Transfer Fee | $8,750 |
Successor Franchise Rights Fee | $7,500 |
Annual Conference Fee | $600 per owner; regardless of units owned; Spouses: $0; $400 for the second attendee, and $350 for each additional attendee over and above the second attendee. |
Annual Conference Travel Expenses | $1,000 to $2,000 per person attending. |
Mandatory Fee for Not Attending an Annual Conference (Mandatory Non-Attendance Fee) | $1,000 per owner. |
Late Fee (Monthly Fees) | $50 for the first month and will increase by $50 for each month thereafter from the date payment was due until paid in full (but not to exceed the maximum amount allowed by law. |
Insufficient Funds Charge | $50 per occurrence. |
Default Notice Fee | $50 |
Legal Fees and Expenses | All costs and expenses, including but not limited to attorneys’ fees for any failure to pay amounts when due or failure to comply in any way with the Franchise Agreement. |
Indemnification | The amount of any claim, liability or loss the franchisor incurs from the franchised business. |
Replacement/Additional Inventory of Marketing Materials, Uniforms and Equipment | Will vary. |
Audit Costs | In the event of an underreporting of more than 2% of gross revenues, franchisees will be required to pay the franchisor the underreported amount plus interest along with the cost of the audit, including travel, lodging, meals, wages, expenses and accounting and legal fees. |
Interest | 1.5% per month or highest rate allowed by law. |
New Line of Goods or Services and Technology Update and Fees | Will vary. |
Technology Fee | $200 for the first TGA franchised business; $150 for the second YAU brand business; $100 for each YAU brand business thereafter. |
In-Term and Post-Term Deficiency Costs and Expenses | Costs and expenses. |
Test Marketing Expenses | Costs and expenses of test marketing new services or products. |
Transferee Lead Generation Fee | 2.5% of the sales price. |
Liquidated Damages | The lesser of (i) the number of months remaining in the term of your Franchise Agreement, or (ii) 36 months, multiplied by the average royalties, franchisee national advertising fees and other fees owed by the franchisee during the last 12 months. |
Default Reimbursement | The franchisor’s costs and expenses arising from the franchisee’s default. |
Operation upon Death or Disability Fee | If the franchisor or a third-party assumes the operation of the franchised business upon the franchisee’s death of disability, the franchisor may charge a per diem fee (currently $250), plus direct out-of-pocket costs and expenses. |
Data Security Safeguards | Varies. |
Document Preparation Fee | $1,500 if the franchisor prepares the documents. $500 per draft, if the franchisee prepares the documents for the franchisor’s review and approval. |
Recruiting Services and Applicant Tracking System Software | Currently $20 per month, but may vary subject to third party vendor’s costs. |
Sales CRM | Currently $10 per month, but may vary subject to third party vendor’s costs. |
Learning Management System | Currently $50 on an annual basis, but may vary subject to third party vendor’s costs. |
Bookkeeping | Currently $150 per month, but may vary subject to third party vendor’s costs. |
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