FDD Talk: Soccer Shots Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

In this FDD Talk 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 2019 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 2019 FDD

• Section IV – Number of franchised and company-owned Soccer Shots outlets at the start of the year and the end of the year for 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD

• Section V – Presentation and analysis of Soccer Shots’ financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:

• 2018 average, median, high, and low revenue for the 51 single territory franchise owners, 24 franchise owners with two territories, 17 franchise owners with three territories, and 15 franchise owners with four or more territories operating for the full 2018 reporting period

• 2018 average, median, high, and low revenue per franchise owner for the 115 franchise owners operating for the full 2018 reporting period, regardless of the number of territories that the franchise owner holds

• 2018 average, median, high, and low revenue for each of the 237 territories operated by 115 franchise owners operating for the full 2018 reporting period

• 2018 average, median, high, and low revenue for the 8 first year franchise owners operating 10 first year territory units for the full 2018 reporting period

• 2018 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 115 franchise owners operating for the full 2018 reporting period and submitted expense figures to the franchisor

Section I – Background Information

25 Things You Need to Know About the Soccer Shots Franchise

Sets Stage for Aggressive Growth

1.  In early February 2019, Soccer Shots announced a game plan that sets the stage for aggressive growth across North America. The brand aimed to launch 32 new territories in 2019, with a specific focus on the Midwest, including Detroit, Milwaukee, Chicago, and Kansas City.

2.  At the time of the announcement, Soccer Shots had 117 franchise partners, adding 20 new territories in 2018. Approximately 330,000 children participate in Soccer Shots programming each year and, with its growth, the brand aspires for one million children to participate in its programs each year by 2022.

3.  Justin Bredeman, CEO of Soccer Shots, said, “Our talented soccer coaches, professional franchisees and unique programs offer sessions that are unmatched in the industry, building confidence, character and skill throughout each age group. We’re delighted to bring our passion and our program for positively impacting children into new communities across the nation.”

4.  Bredeman continued, “By supporting and growing our franchise community, we’re able to provide a fun, growth experience for thousands of boys and girls. Over the next several years our objective is to strategically grow the brand in every viable market in the U.S. and Canada; we’re eager to explore these opportunities with folks who have the passion, character and skillset to operate a successful Soccer Shots franchise.”

Celebrates Growth and 15th Anniversary at 2019 Annual Franchisee Conference

5.  At the end of July 2019, Soccer Shots commemorated its 15th anniversary during a spirited four-day system-wide convention, celebrating the evolution of the brand and all the ways the best is yet to come for Soccer Shots. Centered around a homecoming theme, the convention took place July 24-27 on Soccer Shots’ “home turf” near its headquarters in Harrisburg.

6.  The convention showcased how its growth has paved a path for continued success and momentum
for franchisees and the children it serves alike. The annual event brought the entire franchise network together to celebrate Soccer Shots’ 15th anniversary of franchising, highlighting its commitment to positively impacting children’s lives through soccer and overall system-wide growth.

7.  Individual franchisees from across North America were also recognized for their commitment to their communities, sales growth, revenue milestones, and positive impacts they’ve had on children through their local Soccer Shots programs.

8.  According to Justin Bredeman, CEO of Soccer Shots Franchising, “This year was a major milestone for us to celebrate as a brand. Soccer Shots hosted its first convention at [co-founder] Jason Webb’s house and, today, we’ve grown to more than 216 franchise locations across North America. Our growth as a system has created the momentous opportunity for us to inspire and empower young children every day through soccer. I’m humbled by the organization we’ve become today and we didn’t get to this point without working together. As we continue to add more dedicated individuals to our team to serve even more children, the possibilities and opportunities for impact are endless and I cannot wait to see what’s next for Soccer Shots.”

9.  In addition to highlighting the brand’s progress over the past 15 years, the convention provided several networking events and learning opportunities, including breakout sessions and roundtables, to discuss business strategies and solutions as well as best practices that will propel the youth soccer brand to new heights in 2020, setting the stage for even further growth.

10.  Points of discussion included enhanced local marketing support through the introduction of a marketing playbook, multiple vendor partnerships, and the significant role that strong culture has and will continue to play in the brand’s growth.

11.  The annual conference also served as an opportunity for its leadership team to reflect on the concept’s history and transformation to the well-oiled machine it is today, prompting founders Jeremy Sorzano and Jason Webb to nostalgically share the brand’s old training videos as well as highlight some of the best franchise partner stories from over the past 15 years.

12.  Leora Hanser, chief development officer of the U.S. Soccer Foundation, also joined the conference as a speaker, discussing the importance of availability and accessibility to quality youth soccer programming for all children, especially following the wave of excitement from the USWNT World Cup win.

13.  True to the mission of positively impacting children’s lives through its soccer programming, Soccer Shots also partnered with the local United Way chapter, a trusted community partner, to host a coaching clinic during the convention. Local children and families joined coaches from across the Soccer Shots community on City Island for a morning of free soccer sessions that focused on new coach evaluation, training techniques, and common on-field challenges.

14.  In addition to the informative educational sessions and coaching clinic, Soccer Shots celebrated those across the system in true “homecoming” fashion with an awards reception and homecoming after party. Franchisees gathered in their finest throwback homecoming attire and celebrated each other’s accomplishments. Soccer Shots homecoming royalty, Trey Alexander, owner of Soccer Shots Raleigh-Durham, and Mandy Webb, co-owner of Soccer Shots Harrisburg/York, were crowned the event’s king and queen.

15.  To close out the four-day event, Soccer Shots hosted a soccer tournament for franchisees and team members to round out the last night of the convention with some friendly competition and fun among the franchise partners.

16.  Jason Webb, co-founder of Soccer Shots, added, “The strong culture and sense of camaraderie among Soccer Shots franchise partners has no doubt made the value proposition of the franchise opportunity much stronger. When you invest in Soccer Shots, you invest in your community and you become part of the family. The excitement and energy across the franchise system was palpable at this year’s convention and I couldn’t be more excited to see what’s in store for Soccer Shots over the next 15 years.”

Adds Vice President of Marketing and Communications

17.  In early March 2019, Soccer Shots announced the appointment of seasoned brand management professional Ashley Mitchell to vice president of marketing and communications. After serving nearly 10 years with some of the most reputable children-service and family-entertainment brands, Mitchell joins Soccer Shots’ leadership team with tremendous industry knowledge and marketing skills.

18.  Building on the momentum of the brand’s franchising growth initiative, her role aims to enhance national branding, local enrollment marketing, and franchise development messaging.

19.  According to Mitchell, “From day one, I’ve been inspired by Soccer Shots’ vision, and there’s an incredible opportunity for me to establish new roots with the brand. We already have a fantastic reputation in the communities we serve, and I’m thrilled to develop our presence in additional markets across the country, while also fine-tuning the overall brand strategy and franchisee communications. Soccer Shots has a phenomenal team in place and I’m honored and humbled to be joining them.”

20.  Prior to Soccer Shots, Mitchell held several positions in which she was responsible for creating and driving marketing strategy, maintaining budgets, executing high-profile events, and upholding company branding, including roles with The Walt Disney Company and Goldfish Swim School Franchising. Based on her experience, she understands the importance of protecting a highly-revered brand while simultaneously translating the larger brand message to a regional and local level.

21.  Justin Bredeman, CEO of Soccer Shots, said, “With rapid growth in our future, now’s the perfect time for Ashley to join Soccer Shots. Her franchise industry experience, mixed with her passion and professionalism, makes her a valued addition to our leadership team. As we continue to reinforce our brand’s reputation in the sports franchising arena and among our customers, Ashley will play a major role in our continued success.”

Company History

22.  Soccer Shots was founded in 1997 by Jeremy Sorzano and Jason Webb in Charlotte, North Carolina. Sorzano and Webb had been friends for many years and played soccer together in college as well as professionally. They both felt that there was a lack of quality soccer programs for children under 8 and came up with the idea for soccer shots. The success of Sorzano and Webb’s first location in Charlotte led to several of their friends and former teammates wanting to get involved.

23.  In 2005, Sorzano and Webb started franchising Soccer Shots and the first four locations were opened in Ohio, Delaware, Florida, and Pennsylvania. Soccer Shots continued to grow over the next few years and in 2009, Justin Bredeman, another former college soccer teammate, became the third Soccer Shots partner. Bredeman brought eight years of experience from Auntie Anne’s, Inc., where he led a team that supported nearly 800 franchise units.

24.  With Bredeman on board, Soccer Shots’ expansion continued in the United States and Canada. By 2018, the company had grown to over 200 territories across North America.

Entrepreneur’s Franchise 500

25.  Soccer Shots ranked No. 253 on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Soccer Shots franchise costs, based on Item 7 of the company’s 2019 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 2019 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2016

• Outlets at the Start of the Year:  164
• Outlets at the End of the Year:  175
• Net Change:  +11

2017

• Outlets at the Start of the Year:  175
• Outlets at the End of the Year:  189
• Net Change:  +14

2018

• Outlets at the Start of the Year:  189
• Outlets at the End of the Year:  206
• Net Change:  +17

Company-Owned

2016

• Outlets at the Start of the Year:  9
• Outlets at the End of the Year:  8
• Net Change:  -1

2017

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  8
• Net Change:  0

2018

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  10
• Net Change:  +2

Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis

• For purposes of this Item 19, (i) territory or territory unit is a franchised territory consisting of a population size of approximately 500,000, and (ii) franchise owner is a Soccer Shots franchisee that operated during the entirety of 2018.

• This Item 19 includes revenue information for those franchisee owners with single territories and franchisee owners with multiple territories who were open for the entire 2018 reporting period (January 1 to December 31, 2018).

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

• For the full 2018 reporting period, there were 115 active franchise owners that operated a total of 237 territory units.

• Soccer Shots has not included franchise territory units that were not open for the full 2018 reporting period, which includes new franchisees who opened a territory unit during the year and franchisees who closed a territory unit during the year, although none of those closed during the year were in operation for less than a twelve-month period.

• A few of Soccer Shots’ older franchisees have territories with significantly larger populations than 500,000, so for purposes of this Item 19, Soccer Shots has separated those territory units into more than one. For example, if one of those franchisees have a territory population of approximately 1,000,000, Soccer Shots has counted that as two territory units for this Item 19.

• Schedules 1-7 provide 2018 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 237 territories. Schedule 7 includes revenue for the 8 franchise owners who were first year franchise owners in 2018 and were open the entire 2018 reporting period.

Schedule 1 – Franchise Owners Operating One Territory Unit

• In 2018, there were 51 franchise owners operating 51 single territory units. Of the 51 franchisees, 24 (45%) exceeded the average.

Franchise Owner Single Unit Revenue