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Franchise Costs: Detailed Estimates of Lil’ Kickers Franchise Costs (2015 FDD)

by Franchise Chatter on December 1, 2013

in Child-Related Franchises, Franchise Costs

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Lil Kickers at South Coast Soccer City

This post was updated on September 11, 2015 to reflect information from Lil’ Kickers’ 2015 FDD.

Detailed Estimates of Lil’ Kickers Franchise Costs Based on Item 7 (Estimated Initial Investment) of Lil’ Kickers’ 2015 Franchise Disclosure Document

For Traditional Lil’ Kickers Program

1.  Franchise Fee:  $10,000

2.  Initial Training Program:  $0 to $5,000

  • There is no fee for the Initial Training, but you are responsible for transportation and expenses for meals and lodging while attending training. The total cost will vary depending on the number of people attending, how far you travel, and the type of accommodations you choose. These expenses are typically not refundable.

3.  Real Property:  N/A

  • Typically, franchisees already own, lease, or operate an established arena or similar facility before becoming a participant in the Lil’ Kickers System. Under this assumption, you are not required to make an additional investment in land, improvements, furniture, insurance, deposits, prepaid expenses, and the like as a prerequisite to participating in the Lil’ Kickers System.
  • Occasionally, the franchisor may offer a franchise to a person who has yet to build or acquire an arena or who will rent space from an existing facility. Based on the experience of the franchisor’s predecessor, indoor sports arenas typically charge as a rental fee up to 33% of your gross revenues, though some may charge more; community centers or parks may charge a flat fee per hour.
  • Based on the experience of the franchisor’s predecessor, it can cost up to $5,000,000 to build a typical indoor sports arena (possibly much more if your desired location is in a highly valued real estate market).

4.  Equipment, Signs, and Decorating Costs:  $3,000 to $10,000

  • You must purchase many of these items from approved Lil’ Kickers suppliers. The actual amount will depend on the size of your facility. The purchases from the franchisor are not refundable.
  • The high estimate includes the cost of purchasing and installing an automated external defibrillator (AED), which is generally less than $1,000 and is required in some states. Otherwise, there are no costs to install any equipment.

5.  Inventory to Begin Operating:  $1,000 to $2,000

  • You must maintain a minimum level of inventory necessary to operate the Lil’ Kickers Program in the ordinary course of business consistent with past practice. Inventory items include paper products and other collateral materials (e.g. brochures describing features and benefits, etc.), player uniforms, equipment, and other retail items. These are not refundable.

6.  Insurance (Annual Premium):  N/A

  • The franchisor requires that you qualify for minimum insurance coverage, which may or may not be met by your present insurance. The cost of this insurance will vary depending upon the arena, you, the arena location, the replacement value of the arena property, and other factors.

7.  Security Deposits and Other Prepaid Expenses Required to Commence Operations and Working Capital:  $0 to $1,000

8.  Initial Marketing Campaign:  $4,250 to $7,500

  • You must participate in an Initial Marketing Campaign in which you must purchase signs for your facility, execute a direct mail campaign, purchase brochures for on site-distribution, and engage in some public relations.
  • You must purchase some of these items from the franchisor or an approved supplier. The actual amount will depend on the size of your arena. The purchases from the franchisor are not refundable.

9.  Sports IT System (Initial 3 Months):  $0 to $732 ($195/mo. + $49/mo PayPal Fees)

  • The Sports IT System provides you with daily information via a computer/website regarding current and past customers participating in Lil’ Kickers Programs, as well as tracking all sales and scheduled programs.
  • There are no initial fees for using Sports IT services, just an ongoing monthly fee. If, however, you have already purchased the full commercial version of the Sports IT software, DASH, the monthly fee is waived. The average cost of the full commercial version of Sports IT is $695 per month.

10.  Additional Funds (3 Months):  $0 to $10,000

  • The estimate of additional funds for the initial phase of your business is based on your staff salaries and operating expenses for the first three months of operation. The estimate of additional funds does not include an owner’s salary or draw.

11.  Total:  $18,250 to $46,232 (Excluding Real Property)

  • This estimates your initial start-up expenses. These expenses include payroll costs, but not an owner’s salary or personal expenses for you.
  • These figures are just estimates and the franchisor cannot guarantee that you will not have additional expenses starting the Franchised Business, or that you will ever achieve profitability.

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