Soccer Stars: $1.43M Average Sales Per Territory vs. $72.8K-$105K Franchise Cost

In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Soccer Stars franchise, based on Item 7 of the company’s 2023 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Soccer Stars franchise, based on Items 5 and 6 of the company’s 2023 FDD

Section III – Number of franchised and company-owned Soccer Stars outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD

Section IV – News updates on the Soccer Stars franchise opportunity

Section V – Presentation and analysis of Soccer Stars’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:

• 2022 average revenue, direct expenses, gross margin, personnel expenses, general and administrative expenses, marketing expenses, royalty and franchise fees, and estimated profit before owner’s draw for the 13 franchisor-owned Soccer Stars outlets that have been operating for at least 1 year

• 2022 total revenue by regional territory, average and median revenue per class location, class locations operating in the territory, and total regional territory gross margin for the 14 franchisor-owned Soccer Stars outlets

Section VI – Key ratios, comparables, computations, and analyses for the Soccer Stars franchise opportunity (exclusive content for Platinum subscribers)

Section I – Soccer Stars Franchise Costs

• Soccer Stars franchise costs, based on Item 7 of the company’s 2023 FDD:

• Initial Franchise Fee:  $49,500
• Training Expenses:  $0 to $2,000
• Enhanced Business Coaching and Training Fee:  $5,000
• Furniture, Fixtures, and Equipment:  $0 to $500
• Starter Kit and Initial Uniforms and Marketing Materials:  $2,300 to $4,300
• Computer System:  $0 to $1,000
• Insurance and Professional Services:  $1,000 to $2,500
• Permits, Licenses, and Certifications:  $0 to $1,000
• Grand Opening Marketing:  $5,000
• Funds – 3 Months:  $10,000 to $20,000
• Territory Overage Fee:  $0 to $0.13 per person
• Plus Program (optional):  $0 to $15,000
• Total Estimated Soccer Stars Franchise Costs:  $72,800 to $105,800

Section II – Soccer Stars’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Soccer Stars’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:

• Initial Franchise Fee:  $49,500

• Royalty:  the greater of 8% of Gross Revenues or the “Minimum.” For the Core Program, the Minimum is $700 per month. For the Plus Program, the Minimum is $800 per month. The Minimum will start on the seventh month following the opening of your Franchised Business.

• Franchisee National Advertising Fee:  the greater of 1% of Gross Revenues or $200 per month

• Local Advertising Expenditures:  up to 3% of Gross Revenues, but currently 1% of Gross Revenues

• Regional Advertising Cooperative Fee:  currently none. Soccer Stars may require you to contribute up to 3% of your Gross Revenues to the cooperative.

Section III – Number of Franchised and Company-Owned Soccer Stars Outlets

Franchised

2020

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

2021

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

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  3
• Net Change:  +3

Company-Owned

2020

• Outlets at the Start of the Year:  13
• Outlets at the End of the Year:  13
• Net Change:  0

2021

• Outlets at the Start of the Year:  13
• Outlets at the End of the Year:  13
• Net Change:  0

2022

• Outlets at the Start of the Year:  13
• Outlets at the End of the Year:  13
• Net Change:  0

Section IV – News Updates on the Soccer Stars Franchise

• Soccer Stars Coach Takes Next Shot With Growing Franchise

• Soccer Stars Is Bringing Its Educational Youth Soccer Program to Greater Loudoun, VA

• Soccer Stars Is Bringing Innovative Youth Athletic Programs to Pennsylvania

• Youth Athletes United Achieves Unprecedented Growth Throughout the First Half of 2023

• Youth Athletes United Continues to Deliver National Growth with Additional Franchisees and Programs in First Quarter of 2023

• Youth Athletes United Just One of 100 Companies Named a 2023 Top Low-Cost Franchise by Franchise Business Review

• Soccer Stars Did Not Rank on Entrepreneur’s 2024 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Soccer Stars Franchise (Item 19, 2023 FDD)

• The following information represents the “Gross Revenues” of 13 franchisor-owned Soccer Stars outlets, for the time period of January 1, 2022 to December 31, 2022. This information includes only outlets that have been operating for at least 1 year (the “Reporting Soccer Stars Outlets”).

• “Gross Revenues” is defined as the gross revenue generated by the Reporting Soccer Stars Outlets for all of the products and services provided. Gross Revenues does not account for any deduction of fees and costs paid to Soccer Stars, of wages, fees, taxes, or costs paid to any employee or independent contractor, for the payment of taxes, or for any other operating expenses, fees, costs, or deductions that the outlet staff may decide to subtract from Gross Revenues.

• As of the issuance of the Disclosure Document, there are 13 franchisor-owned outlets.

Part 1 – Consolidated Average Profit and Loss for Soccer Stars’ 2022 Fiscal Year

• The following is the consolidated average profit and loss of the Reporting Soccer Stars Outlets for Soccer Stars’ 2022 fiscal year.

Average for 12 Outlets

• The results for the Manhattan, Brooklyn, Queens, and Hoboken Territories were consolidated in one profit and loss statement.

• P&L assumes owner is operating full-time not semi-absent or absent.

Revenue

• Open Enrollment:  $674,722 (47.1%)
• After School:  $344,453 (24.0%)
• Private Classes:  $108,544 (7.6%)
• SSU Travel:  $87,607 (6.1%)
• SSU Development:  $78,359 (5.5%)
• Camps/Clinics:  $24,388 (1.7%)
• Birthday Parties:  $6,677 (0.5%)
• Other Revenue:  $21,289 (1.5%)
• Registration Fee Revenue:  $86,576 (6.0%)
• Total Revenue:  $1,432,614 (100.0%)

Direct Expenses

• Coaching Payroll:  $345,328 (24.1%)
• Coaching Bonus:  $2,515 (0.2%)
• Payroll Taxes – Coaching:  $36,716 (2.6%)
• Clothing Expenses:  $38,612 (2.7%)
• Equipment and Supplies:  $9,823 (0.7%)
• Location Rent/Fees:  $93,865 (6.6%)
• Recruitment/Background Checks:  $9,624 (0.7%)
• Referee Fees:  $2,436 (0.2%)
• Storage:  $3,268 (0.2%)
• Credit Card Processing Fees:  $27,825 (1.9%)
• Other Direct Expenses:  $11,658 (0.8%)
• Total Direct Expenses:  $591,857 (41.3%)

Gross Margin:  $840,757 (58.7%)

Personnel Expenses

• Salaries:  $130,052 (9.1%)
• Salaries – Payroll Taxes:  $16,603 (1.2%)
• Hourly Pay:  $6,877 (0.5%)
• Hourly Pay – Payroll Taxes:  $583 (0.0%)
• Bonuses:  $10,101 (0.7%)
• Payroll Fees:  $4,317 (0.3%)
• Workers Compensation:  $10,021 (0.7%)
• Recruiting Expenses:  $2,507 (0.2%)
• Total Personnel Expenses:  $180,764 (12.6%)

General and Administrative (G&A), Marketing Expenses

• Marketing Expenses:  $8,228 (0.6%)
• Accounting Fees:  $1,127 (0.1%)
• Insurance:  $12,894 (0.9%)
• Other G&A Expenses:  $128 (0.0%)
• Total G&A Expenses:  $22,377 (1.6%)

Total Operating Expenses:  $205,233 (14.3%)

Net Operating Income:  $635,523 (44.4%)

Royalty, Tech, National Advertising Fund (NAF) Fees (These are implied expenses for corporate units.)

• Minimum Royalties:  $18,738 (1.3%)
• Royalty Overages:  $92,777 (6.5%)
• NAF:  $5,354 (0.4%)
• Technology Fees:  $4,015 (0.3%)
• Total:  $120,884 (8.4%)

Estimated Profit Before Owner’s Draw:  $514,639 (35.9%)

Part 2 – Revenue Per Outlet

• The following is a table summary of each market for 2022. The table presents the following unaudited information concerning the Reporting Soccer Stars Outlets: (1) Gross Revenues for the Reporting Soccer Stars Outlets for the 2022 reporting period; (2) the number of Locations per each of the Reporting Soccer Stars Outlets; (3) the average Gross Revenues per Location for the 2022 reporting period; (4) the median Gross Revenues per Location for the 2022 reporting period; and (5) and Gross Margin (Gross Revenues minus labor costs) as a percentage of the Gross Revenues for the 2022 reporting period.

• The reporting period corresponds to the 12-month period from January 1, 2022 to December 31, 2022.

• Gross margin is for owner group markets, some of which were combined by metro area for accounting in 2022.

• For the table below, a “Location” is a school or host facility where classes actually take place.

NYC – Manhattan

• Total Revenue by Regional Territory:  $4,723,674
• Average Revenue Per Class Location:  $21,668
• Median Revenue Per Class Location:  $5,649
• Class Locations Operating in the Territory:  218
• Total Regional Territory Gross Margin:  55.2%
• The New York City/Manhattan outlet’s location count and average excludes figures from its travel program.

LA/Orange County, CA

• Total Revenue by Regional Territory:  $2,373,887
• Average Revenue Per Class Location:  $14,745
• Median Revenue Per Class Location:  $2,657
• Class Locations Operating in the Territory:  161
• Total Regional Territory Gross Margin:  63.0%

Long Island/Hamptons, NY

• Total Revenue by Regional Territory:  $2,007,252
• Average Revenue Per Class Location:  $22,058
• Median Revenue Per Class Location:  $5,467
• Class Locations Operating in the Territory:  91
• Total Regional Territory Gross Margin:  55.0%

NYC – Brooklyn

• Total Revenue by Regional Territory:  $1,703,925
• Average Revenue Per Class Location:  $29,378
• Median Revenue Per Class Location:  $6,782
• Class Locations Operating in the Territory:  58
• Total Regional Territory Gross Margin:  55.2%

Miami, FL

• Total Revenue by Regional Territory:  $1,321,001
• Average Revenue Per Class Location:  $16,513
• Median Revenue Per Class Location:  $2,675
• Class Locations Operating in the Territory:  80
• Total Regional Territory Gross Margin:  59.0%

NYC SSU– Travel

• Total Revenue by Regional Territory:  $1,097,518
• Average Revenue Per Class Location:  N/A
• Median Revenue Per Class Location:  N/A
• Class Locations Operating in the Territory:  N/A
• Total Regional Territory Gross Margin:  72.8%

Boston, MA

• Total Revenue by Regional Territory:  $1,092,034
• Average Revenue Per Class Location:  $11,143
• Median Revenue Per Class Location:  $2,654
• Class Locations Operating in the Territory:  98
• Total Regional Territory Gross Margin:  69.0%

San Diego, CA

• Total Revenue by Regional Territory:  $884,149
• Average Revenue Per Class Location:  $17,336
• Median Revenue Per Class Location:  $4,098
• Class Locations Operating in the Territory:  51
• Total Regional Territory Gross Margin:  46.8%

Bay Area, CA

• Total Revenue by Regional Territory:  $832,100
• Average Revenue Per Class Location:  $14,103
• Median Revenue Per Class Location:  $3,654
• Class Locations Operating in the Territory:  59
• Total Regional Territory Gross Margin:  67.1%

NYC – Hoboken/Jersey City

• Total Revenue by Regional Territory:  $451,320
• Average Revenue Per Class Location:  $22,566
• Median Revenue Per Class Location:  $8,761
• Class Locations Operating in the Territory:  20
• Total Regional Territory Gross Margin:  55.2%

Westchester, NY

• Total Revenue by Regional Territory:  $663,440
• Average Revenue Per Class Location:  $7,211
• Median Revenue Per Class Location:  $1,873
• Class Locations Operating in the Territory:  92
• Total Regional Territory Gross Margin:  67.9%

Chicago, IL

• Total Revenue by Regional Territory:  $599,233
• Average Revenue Per Class Location:  $15,769
• Median Revenue Per Class Location:  $3,287
• Class Locations Operating in the Territory:  38
• Total Regional Territory Gross Margin:  67.1%

Washington, DC

• Total Revenue by Regional Territory:  $515,396
• Average Revenue Per Class Location:  $14,317
• Median Revenue Per Class Location:  $2,876
• Class Locations Operating in the Territory:  36
• Total Regional Territory Gross Margin:  59.3%

Central/North, NJ

• Total Revenue by Regional Territory:  $359,051
• Average Revenue Per Class Location:  $17,953
• Median Revenue Per Class Location:  $9,876
• Class Locations Operating in the Territory:  20
• Total Regional Territory Gross Margin:  72.6%

Average

• Total Revenue by Territory:  $1,432,614
• Average Revenue Per Class Location:  $18,223
• Class Locations Operating in the Territory:  79
• Total Regional Territory Gross Margin:  58.70%

Median

• Total Revenue by Territory:  $988,092
• Average Revenue Per Class Location:  $16,513
• Class Locations Operating in the Territory:  59
• Total Regional Territory Gross Margin:  61.13%

• All of the figures reported above have been compiled from the annual profit and loss statements of the franchisor-owned outlets. Soccer Stars has not conducted an independent audit of the financial statements delivered by the outlet staff, though it has no information or other reason to believe that the figures are unreliable. No independent auditor or certified public accountant has audited these figures or expressed an opinion concerning their content or form.

• The Reporting Soccer Stars Outlets have generated these amounts. Your individual results may differ. There is no assurance you will generate similar sales.

Section VI – Soccer Stars Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️