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 2020 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 2020 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 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD

• Section V – Presentation and analysis of Soccer Shots’ financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:

• 2019 average, median, high, and low revenue for the 44 single territory unit franchise owners, 34 franchise owners with two territory units, 15 franchise owners with three territory units, and 18 franchise owners with four or more territory units operating for the full 2019 reporting period

• 2019 average, median, high, and low revenue per franchise owner for the 111 franchise owners operating for the full 2019 reporting period, regardless of the number of territory units that the franchise owner holds

• 2019 average, median, high, and low revenue for each of the 251 territory units operated by 111 franchise owners operating for the full 2019 reporting period

• 2019 average, median, high, and low revenue for the 9 first year franchise owners operating 11 first year territory units for the full 2019 reporting period

• 2019 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 111 franchise owners operating for the full 2019 reporting period and submitted expense figures to the franchisor

Section I – Background Information

15 Things You Need to Know About the Soccer Shots Franchise

Launches New At-Home Program

1.  In April 2020, just a few weeks after the COVID-19 pandemic shut down much of the United States, Soccer Shots worked to create and execute a brand-new program offering – Soccer Shots On The Go – a digital delivery of its expert-approved curriculum to help families get moving and have some fun at home. Soccer Shots created the program because it was important to provide franchisees with resources and tools they need to stay up and running in order to keep children active and engaged.

2.  Through a combination of videos, which are packed with soccer skills, character development and creative ways to stay active, and engaging activities and resources for the whole family that are delivered each week, franchise owners are able to continue to lead their own businesses, generate revenue, and pursue their passion for making a positive impact on children through soccer.

3.  Although no business is truly “recession-proof,” the children’s fitness category has proven to be necessary no matter the economic climate, making Soccer Shots a recession-resistant franchise opportunity for savvy business owners. Looking ahead, Soccer Shots franchisees will not have to be concerned with the typical real estate costs associated with a brick-and-mortar franchise, as Soccer Shots programs normally take place in a variety of environments, including schools and outdoor parks.

Making Adjustments to Keep Everyone Safe as Programs Reopen

4.  In mid-May 2020, as some parts of the United States began reopening businesses, Justin Bredeman, CEO of Soccer Shots, released a statement on the brand’s franchising website regarding how the company planned to keep everyone safe. Bredeman said, “As organizations across North America begin reopening, our Franchise Support Team has been working hard to prepare our franchise partners for the return to on-field programming. The safety and well-being of children participating in Soccer Shots and our coaches across North America is our number one priority.”

5.  “To that end, we’re taking measures to ensure that our coaches are equipped to keep our players and themselves safe. Additionally, it’s our commitment to continue to provide quality, educational and fun experiences, which is what youth sports should always be. We’re excited to return to play and business in a responsible way, and I’d like to share the ways we’re doing that,” said Bredeman.

6.  Bredeman continued, “Our Product Development Team has thoroughly modified our curriculum and operating procedures to best accommodate the practices endorsed by public health officials. We’ve also created a health and safety course, specific to our current situation, that all Soccer Shots coaches will be required to complete prior to returning to on-field coaching.”

7.  During sessions, Soccer Shots coaches will:

• Avoid high-fives, fist bumps, and unnecessary physical contact;
• Wear a face covering if their state/province and/or local jurisdiction requires or recommends doing so;
• Use rings, spots, or orange cones as “home base” to keep children spread out when possible;
• Be the only one to clean up and put away equipment, like cones and goals;
• Remind children about the importance of keeping safe distances when practicing skills;
• Avoid the use of pinnies;
• Sanitize all equipment before and after each session and monitor their body temperatures daily.
• When possible, Soccer Shots encourages smaller group sizes and/or larger field setups to allow for the distancing of participants and observers.

8.  Soccer Shots is requesting families that observe sessions to follow these guidelines for the health and safety of other families and the coaches:

• Wash or sanitize hands before entering Soccer Island;
• Adhere to state and/or local jurisdiction regarding face covering requirements;
• Practice social distancing by staying 6 feet away from others that do not live in your household;
• Stay home when sick and keep children home from soccer if they are sick;
• If participating in a Mini session (ages 2-3), Soccer Shots asks that only one family member per child be present on Soccer Island.

9.  Soccer Shots will continue to closely monitor all communication from the CDC and WHO, as well as local authorities, for safety updates. As Soccer Shots learns more, and if needed, the brand will adjust its operations accordingly. Soccer Shots’ goal is to provide an opportunity for children to enjoy Soccer Shots, with friends, in a safe environment.

10.  Bredeman concluded by saying, “Additionally, our team knows how important it is to provide the proper support for our franchise partners to relaunch their businesses as a strong, unified community. In addition to the safety precautions and training we are providing, we have been providing enhanced marketing support, business planning and coaching, resources on how to utilize and manage CARES Act funds and prepare for launch. We have created a second internal website specific to all things relaunch to house all support and training materials with real-time updates. Our Franchise Support Team is in constant communication with our franchise partners via video calls, community-wide webinars, email and text.”

11.  “We’re excited to get back to business on Soccer Island in both our existing territories, as well as new territories with candidates interested in launching their own Soccer Shots businesses. As the world starts to open back up, we appreciate your continued interest in the Soccer Shots franchise opportunity and look forward to continued growth and success,” said Bredeman.

Company History

12.  Soccer Shots was founded in 1997 by Jeremy Sorzano and Jason Webb in Charlotte, North Carolina. Sorzano and Webb had played soccer together in college and both went on to play professionally for years. When they realized that there was a lack of quality soccer programs for children under eight, they developed the Soccer Shots program based on their deep love of soccer and their desire to help children live fit and healthy lives.

13.  Soccer Shots was a success and eventually, Sorzano’s and Webb’s friends became interested in starting their own Soccer Shots program. In 2005, Sorzano and Webb started franchising Soccer Shots and the first four franchised locations were opened in Ohio, Delaware, Florida, and Pennsylvania.

14.  Over the next few years, Soccer Shots continued to grow around the United States and also expanded into Canada. In 2009, Justin Bredeman, another former college soccer teammate, became the third Soccer Shots partner. Bredeman brought with him eight years of experience from Auntie Anne’s. His franchising knowledge helped fuel Soccer Shots’ growth. Today, there are Soccer Shots locations in more than 37 states and Canada.

Entrepreneur’s Franchise 500

15.  Soccer Shots ranked No. 244 on Entrepreneur’s 2021 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 2020 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 2020 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2017

• Outlets at the Start of the Year:  175
• Outlets at the End of the Year:  188
• Net Change:  +13

2018

• Outlets at the Start of the Year:  188
• Outlets at the End of the Year:  201
• Net Change:  +13

2019

• Outlets at the Start of the Year:  201
• Outlets at the End of the Year:  229
• Net Change:  +28

Company-Owned

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

2019

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

Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis

Definitions

• Territory Unit – a franchised territory consisting of a population size of approximately 500,000.

• Franchise Owner – a Soccer Shots franchisee based in the United States that operated during the entirety of 2019.

• This Item 19 includes revenue information for those franchisees with single territories and franchisees with multiple territories who were open for the entire 2019 reporting period (January 1 to December 31, 2019).

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

• For the full 2019 reporting period, there were 111 active franchise owners that operated a total of 251 territory units.

• Schedules 1-7 provide 2019 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 unit territory franchise owners. Schedule 2 includes franchise owners with two territory units. Schedule 3 includes franchise owners with three territory units. Schedule 4 includes franchise owners with four or more territory units. Schedule 5 includes revenue information per franchise owner regardless of the number of territory units that the franchise owner holds. Schedule 6 includes revenue information for each of the territories. Schedule 7 includes revenue for the 10 franchise owners who were first year franchise owners in 2019 and were open the entire 2019 reporting period.

Schedule 1 – Franchise Owners Operating One Territory Unit

• In 2019, there were 44 franchise owners operating a single territory unit. Of the 44 franchisees, 19 (43%) exceeded the average.

Franchise Owner Revenue