In this FDD Talk 2015 post, you’ll learn the following:
- Section I – Background information on the Play It Again Sports franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Play It Again Sports franchise, based on Item 7 of the company’s 2015 FDD
- Section III – Presentation and analysis of Play It Again Sports’ financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
- 2014 average, high, and low gross sales and average gross profit for franchised Play It Again Sports stores that opened in 2013, 2012, 2011, 2010, 2009, and 2008 and prior, respectively, and had been in operation for the 12-month period ended December 27, 2014
- 2014 average gross sales for the first, second, third, and fourth quartiles of franchised Play It Again Sports stores that had been in operation for the 12-month period ended December 27, 2014
Section I – Background Information
Play it Again Sports has been in the used sporting and fitness equipment business since 1983, and started franchising in 1988. The number of locations was in decline from 2011, when it had 340 units in the U.S. and Canada, through 2014, when it had 288. So far in 2015 it has bounced back up a bit and currently consists of 296 locations.
As any family with growing children knows, kids outgrow sporting equipment very quickly, sometimes requiring mid-season switch-outs. In addition, many kids bounce around between sports, trying out new ones each year to find their niche. Rather than having an ever-accumulating pile of gently-used sporting gear in your garage or basement, customers can bring those items in to Play it Again Sports to resell them.
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The chain is owned and backed by Winmark Corporation (formerly Grow Biz), a company that has become a leader in reselling high-quality used items. In addition to Play it Again Sports, Winmark operates a number of other used-item retail franchises, including Once Upon a Child, Plato’s Closet, Music Go Round, and Style Encore.
Offloading Options Abound
If you’re looking to get rid of your used sports equipment and gear, Play it Again Sports offers a range of options.
You can choose to simply sell your items to the store, in which case you’ll get cash on the spot. In this option, the store tends to resell these items for 40-60% of what they would cost new. You can expect to receive 30-50% of that amount, although it does depend on condition and what the store needs and doesn’t need.
But you can also decide to trade your items for stuff already in the store. This option tends to get you 20-30% more than outright selling.
The store will also accept consignments on certain items (higher-end stuff). If you can wait to receive the cash, this option nets you the most.
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If the money’s not important, you can just recycle your items by giving them to the store, in which case you know your items will get back into use instead of going to a landfill or incinerator.
Sports Enthusiast Heaven
What could be better than getting the great-quality sports gear you want without paying full retail value for it? Play it Again Sports has you covered. Basically, if a sport is played in your community, the store will carry its gear.
In many locations, this means a huge variety of sports are covered, including Baseball and Softball, Disc Golf, Figure Skates, Exercise and Fitness, Football, Golf, Hockey, Lacrosse, Snow Sports, Soccer, Water Sports, Wheeled Sports, and more.
And the store always has an eye out for the top brand-names people trust.
Play it Again Sports makes sure its franchisees are well-equipped, so to speak, to be successful in their new business. It puts newbies through more than 75 hours of classroom and in-store training, covering such topics as business planning, employee management, store operations, merchandising, and customer service.
They’ll help you with developing a solid 3-year business plan, site selection, field operations, marketing, and advertising.
Section II – Estimated Costs
- Please click here for detailed estimates of Play It Again Sports franchise costs, based on Item 7 of the company’s 2015 FDD (updated).