FDD Talk 2017: What You Need to Know About the Soccer Shots Franchise Opportunity (Financial Performance Analysis, Costs and Fees)

In this FDD Talk 2017 post, you’ll learn the following:

• Section I – Background information on the Soccer Shots franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Soccer Shots franchise, based on Item 7 of the company’s 2017 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Soccer Shots franchise, based on Items 5 and 6 of the company’s 2017 FDD

• Section IV – Presentation and analysis of Soccer Shots’ financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:

• 2016 average, median, high, and low revenue for the 49 single territory franchise owners, 23 franchise owners with two territories, 14 franchise owners with three territories, and 14 franchise owners with four or more territories operating for the full 2016 reporting period

• 2016 average, median, high, and low revenue per franchise owner for the 100 franchise owners operating for the full 2016 reporting period, regardless of the number of territories that the franchise owner holds

• 2016 average, median, high, and low revenue for each of the 215 territories operated by 100 franchise owners operating for the full 2016 reporting period

• 2016 average gross sales, cost of goods sold, gross profit/margin, operating expenses, net operating income/margin, add backs, and owner’s discretionary profit/EBITDA for the 99 franchise owners operating for the full 2016 reporting period and submitted expense figures to the franchisor

Section I – Background Information

11 Things You Need to Know About the Soccer Shots Franchise

Top 50 Franchise Opportunity for 2017

1.  In early March, Soccer Shots was recognized as a Top 50 Franchise Opportunity for 2017 by Franchise Business Review. The brand ranked No. 22 overall and came in at No. 6 in its franchise size class (120 to 299 units). Soccer Shots was also named the No. 1 Children’s Fitness Franchise and has ranked as a Top Low Cost Franchise for several years. The company says that it owes its success to the positive feedback provided by its franchisees.

Plans to Build New Headquarters

2.  In March, Soccer Shots co-founder Jason Webb was interviewed by a local Middletown, Pennsylvania news site to discuss the company’s growth and its plans to open a new headquarters in the area. About five years ago, Soccer Shots moved its headquarters from Middletown to the Lower Swatara Township nearby. At the time the article was published, Webb was seeking approval to build a larger headquarters.

3.  The company wants to build a 13,460-square-foot structure, but plans were halted in late 2016 after several variances were not granted by the township’s zoning board. The planning commission did approve Soccer Shots’ revised building plans, which was set to be presented before the full township board of commissioners sometime in April.

4.  Webb said that the company currently has 18 full-time employees working at the headquarters and that there will be 20 to 25 employees once the new headquarters is finished.

Emphasizes Learning and Fun Over Scoring Goals

5.  The Soccer Shots program aims to teach preschoolers the basics of the sport and how to think positively about themselves and others. According to Camilo Beltran, a regional executive director for Soccer Shots, “It’s about having fun, not necessarily producing the next [Cristiano] Ronaldo.”

6.  Beltran also said that Soccer Shots’ coaches’ most important skills are their abilities with children and not their game stats. Additionally, Beltran emphasized that the Soccer Shots program is aligned with early-learning standards for the specific age group, helping children develop their gross motor skills and coordination over a half-hour or so of play.

7.  Pediatricians and sports medicine experts agree with Beltran’s and the company’s assessment that young children (at ages 3, 4, or 5) aren’t mentally or physically ready for competition, and rigid rules can turn young kids off sports. In an interview with The Baltimore Sun, six-year-old Elliott Crandell, who is enrolled in a local Soccer Shots weekly program, said that he likes how Soccer Shots focuses on teamwork.

Company History

8.  Soccer Shots was founded in 1998 by Jeremy Sorzano and Jason Webb, who played soccer together in college and professionally. They started the company after recognizing that there was a need for quality soccer programs for children under 8 years old.

9.  Sorzano and Webb opened the first two Soccer Shot locations in Charlotte, North Carolina and Harrisburg, Pennsylvania. These two initial locations were successful and drew interest from the pair’s friends and former teammates. They started franchising Soccer Shots in 2005 and opened the first four franchise locations in Ohio, Delaware, Florida, and Pennsylvania.

10.  In 2009, Justin Bredeman, a former teammate of Sorzano and Webb, became the third partner of the company. Bredeman brought eight years of franchising experience from Auntie Anne’s, Inc. with him to Soccer Shots, which aided him in helping the brand grow. Today, there are over 170 Soccer Shots locations in the U.S. and one franchise in Canada.

Entrepreneur’s Franchise 500

11.  Soccer Shots has appeared on Entrepreneur’s annual Franchise 500 list almost every year in the last decade, except in 2007, 2008, and 2011. The brand’s highest rank was No. 180 in 2015, while its lowest rank was No. 479 in 2010.

Section II – Estimated Costs

• Please click here for detailed estimates of Soccer Shots franchise costs, based on Item 7 of the company’s 2017 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Soccer Shots’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.

Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis

• This Item 19 includes revenue information for those franchisees with single territories and franchisees with multiple territories who were open for the entire 2016 reporting period (January 1 to December 31, 2016).

• Franchisees with multiple territories operate at least two territories, with their revenue combined for the territories for Item 19 reporting purposes.

• For the full 2016 reporting period, there were 100 active franchise owners that operated a total of 215 territory units.

• Schedules 1-7 provide 2016 revenue information broken down by the number of territories a franchise owner holds. Franchisees with multiple territories still operate their franchised business out of one principal place of business and do not have multiple offices.

• Schedule 1 includes single territory franchise owners. Schedule 2 includes franchise owners with two territories. Schedule 3 includes franchise owners with three territories. Schedule 4 includes franchise owners with four or more territories. Schedule 5 includes revenue information per franchise owner regardless of the number of territories that the franchise owner holds. Schedule 6 includes revenue information for each of the 215 territories. Schedule 7 includes revenue for the 8 franchise owners who were first year franchise owners in 2016 and were open the entire 2016 reporting period.

• “Territory Unit” is a franchised territory consisting of a population size of approximately 500,000.

• “Franchise Owner” is a Soccer Shots franchisee that operated during the entirety of 2016.

Schedule 1 – Franchise Owners Operating One Territory Unit

• In 2016, there were 49 franchise owners operating 49 single territory units. Of the 49 franchisees, 21 (43%) exceeded the average.

Franchise Owner Revenue