Play It Again Sports Sell Gear

In this FDD Talk postal service, you lot'll acquire the following:

• Section I – Background information on the Play It Over again Sports franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Play It Again Sports franchise, based on Particular 7 of the company's 2021 FDD

• Section Three – Initial franchise fee, royalty fee, marketing fee, and other fees for a Play It Again Sports franchise, based on Items 5 and six of the visitor'south 2021 FDD

• Department 4 – Number of franchised and company-owned Play It Once again Sports outlets at the start of the year and the cease of the year for 2018, 2019, and 2020, based on Item 20 of the company's 2021 FDD

• Section V – Presentation and analysis of Play It Again Sports' financial functioning representations, based on Item 19 of the company's 2021 FDD, including information on the:

• 2020 boilerplate, median, high, and low gross sales and average and median gross profit for the 265 franchised Play Information technology Once more Sports Stores in the U.s.a. and Canada that had been in functioning by the aforementioned franchisee or owners for the 12-month period ended December 26, 2020, grouped by year opened (2019, 2018, 2017, 2016, 2015, and 2014 and prior)

• 2020 average, median, high, and low gross sales and average and median gross profit for the first, second, third, and fourth quartiles of the 265 franchised Play Information technology Again Sports Stores in the United States and Canada that had been in performance past the same franchisee or owners for the 12-month period concluded Dec 26, 2020

• number and percentage of franchised Play It Again Sports Stores in the United States and Canada that had been in operation by the same franchisee or owners for the 12-month menstruation ended December 26, 2020, grouped by range of gross sales ($0 to $250,000; $250,001 to $500,000; $500,001 to $1,000,000; $ane,000,001 to $ii,000,000; $2,000,001 to $3,000,000; and greater than $3,000,000)

Section I – Background Information

15 Things You Need to Know About the Play It Again Sports Franchise

Helped People Stay Active at Home During Lockdown

i.  In late April 2020, about a month after many states implemented COVID-nineteen lockdown restrictions, Winmark, parent visitor of Play It Once again Sports, reported that Play It Again Sports franchisees were thriving equally they helped keep customers active at home. Winmark said that a number of Play It Again Sports franchisees saw their business organisation increase as consumers brought exercise equipment into their own homes.

ii.  Initially, Newport News-based franchisee Bob Harrell was concerned about the future of his Play It Again Sports location similar so many of his fellow small business owners. While local sports teams canceled their events – cutting into a regular revenue stream – consumers seeking in-abode fitness equipment helped pick up the slack.

iii.  John Acheson, an owner in Bozeman, Montana, likewise saw demand for fettle equipment increase as stay-at-domicile orders and social distancing took effect. Acheson mentioned in an interview with MontanaSports.com that virtually of the customers that came into his shop were looking for free weights and do machines.

4.  A silver lining around the health and economic crunch for Hal and Laura Gaston, franchisees of Play It Again Sports in Cary, Due north Carolina, and Matt Sawyer, their general manager, was the fact that their store was able to get their customers the items they wanted at a price they could afford. While other retailers used the crisis as an opportunity to increase their prices, Play Information technology Again Sports franchisees held true to the brand promise of offering discounts of between 40 and 90 percent off the retail price for quality used sports and fitness gear.

5.  To accommodate social distancing standards, many owners offered both curbside pickup and delivery. For example, Oregon-based Play It Again Sports owner Jay DeKalb took phone orders and requests through social media. DeKalb sold nigh 90 percent of his free weights inventory by the end of March.

vi.  As a franchise brand, Play It Again Sports is thankful that information technology had an opportunity to aid people bargain with the unprecedented situation with COVID-19. With a sporting goods resale franchise similar Play Information technology Once again Sports, consumers are able to find a more than convenient and economical fashion to make skilful on their fettle routines. Customers can purchase fitness equipment at substantial discounts compared to the retail cost, in addition to picking upwards inexpensive items like fit balls, dumbbells, and exercise bands. At a fourth dimension when budgets are getting tighter and the need to stay active and good for you remains constant, Play It Again Sports considers it important that information technology remain a reliable resource for consumers across the country.

Franchisee Saw Increase in Sales equally Sports Practices Resumed

seven.  In late June 2020, Play Information technology Once again Sports in Duluth, Minnesota was by and large back to business organisation every bit usual, a month after the store fully reopened to the public. Steven Holappa, full general manager of the Play It Again Sports in Duluth, said, "We airtight down on March 27th and then offered curbside delivery/outdoor service and then reopened fully to the public the week after."

8.  Play It Once more Sports said that when the pandemic first hit, dumbbells were popular and they've been low on them since. At present, outdoor sports are pop. "Two hobbies that anyone can exit and practise, and y'all can space yourself out pretty well," Holappa said.

9.  And it's been a bit of a claiming to keep up with the demand for items similar inlines and golf equipment. "The inline globe is crazy correct now. Those two companies are having a hard fourth dimension keeping up, information technology's probably their biggest demand since early on 2000s, late 90s when information technology really started picking up. Golf stuff'southward a different world. In that location's so many unlike companies that finding stuff we're able to do, merely we're opening up doors with different companies just to make sure nosotros have production for everybody," Holappa added.

10.  As the store welcomed customers back in, they implemented many of the normal cleaning procedures as other businesses. According to Holappa, "We're asking people to try to maintain their 6 feet social distancing. We do ask that masks and gloves, they're recommended, we're non going to force people to practice that. And our employees have masks and gloves to make sure that people are comfy besides."

11.  But they likewise allowed customers to sell their old gear, and initially asked for it to merely be summer equipment and to make clean it first. "As long equally they're looking at repurchasing something that they're bringing in, we have no trouble taking it in. We just take to brand sure nosotros're going through the correct disinfectant stages and keeping it off the floor for a couple of days," Holappa added.

12.  As practices resumed and the conditions got warmer, Play Information technology Over again Sports was happy to get their athletes out and active again. Holappa added, "The kids are so used to going to hockey or going to baseball, that sitting at home has been a struggle. So at present that all of these places are opening up, we accept the ability to offering the products that they might need or want and get the kids back out and enjoying the sports and some of the structure that they're used to."

Company History

13.  Play It Once again Sports was founded in 1983 by Martha Morris in Uptown, Minneapolis. Morris recognized that there was a need to resell used sporting goods as most equipment lasts much longer than its participants, especially in youth sports. Over the next few years, Morris opened upward a few more stores and in 1988, she sold Play It Again Sports to the Winmark Corporation – this was Winmark'south first resale make.

fourteen.  Winmark began franchising Play Information technology Again Sports and information technology is now the brand's third largest chain in N America, later on Plato's Closet and One time Upon A Kid. Although Play It Again Sports does resell used sporting equipment, most 70% of its inventory is make new.

Entrepreneur's Franchise 500

15.  Play It Over again Sports ranked No. 431 on Entrepreneur'due south 2021 Franchise 500 list.

Section II – Estimated Costs

• Please click hither for detailed estimates of Play It Over again Sports franchise costs, based on Item 7 of the company's 2021 FDD.

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

• Delight click here for detailed information on Play It Once more Sports' initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company's 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2017

• Outlets at the Start of the Year:  281
• Outlets at the Cease of the Yr:  281
• Net Alter:  0

2018

• Outlets at the Start of the Yr:  281
• Outlets at the Stop of the Year:  280
• Net Change:  -1

2019

• Outlets at the Start of the Yr:  280
• Outlets at the End of the Year:  274
• Net Change:  -six

Visitor-Owned

2017

• Outlets at the Showtime of the Year:  0
• Outlets at the End of the Year:  0
• Cyberspace Change:  0

2018

• Outlets at the Commencement of the Year:  0
• Outlets at the End of the Year:  0
• Net Alter:  0

2019

• Outlets at the Starting time of the Yr:  0
• Outlets at the End of the Yr:  0
• Cyberspace Change:  0

Section 5 – Fiscal Performance Representations (Item nineteen, 2021 FDD) and Analysis

• The following is a financial functioning representation entitled "Unaudited Argument of Boilerplate Almanac Sales and Gross Turn a profit." The gross turn a profit figures practise reflect the toll of sales just do not reverberate the operating expenses that must be deducted from the gross turn a profit figures to obtain your net income or profit.

• The following statement of average almanac gross sales and gross profit includes boilerplate gross sales and gross turn a profit during the 12-calendar month period ended Dec 26, 2020 (Winmark's fiscal year) every bit reported by 265 of the 266 franchised Play It Over again Sports Stores in the United States and Canada that commenced operations during the years 1988 through 2019.

• This statement includes information from only those Play It Again Sports Stores located in the U.s.a. and Canada that had been in operation by the same franchisee or owners for the 12-month menstruum concluded December 26, 2020, with the understanding that some of the Stores had temporary closures as a result of COVID-19, as further described beneath.

• In that location are no cloth financial and operational characteristics of the U Due south. Stores that differ materially from the Canadian Stores included in this financial performance representation.

• No other Play It Over again Sports Stores are included in this statement due to insufficient history of operations (non in operation for the 12-month period ended Dec 26, 2020 or transferred during this catamenia).

• The financial statements Winmark receives from franchisees for these stores are unaudited, and Winmark does non audit or independently verify, or express an opinion regarding, these statements.

• In that location were 266 franchised Play Information technology Again Sports Stores which had been in operation past the same franchisee or owners for the 12-calendar month period concluded December 26, 2020. Only 265 of the 266 Stores are reflected in the boilerplate, even so, because one Store was temporarily airtight for several months due to vandalism.

• This financial performance representation does non include information for the 8 Play Information technology Again Sports Stores that opened or transferred in 2020. No Stores closed in 2020 after being opened less than 12 months.

• Due to governmental regulations and other restrictions related to COVID-19 in many jurisdictions during 2020, many of the Play It Over again Sports Stores were forced to temporarily close for extended periods of time during the yr. The temporary closures and COVID-19 regulations and restrictions impacted the Stores' sales, as reflected beneath.

• During the temporary in-shop closures, some Stores continued to operate past offering curbside and/or online sales.

• Despite these temporary closures, as of the date of the 2021 Disclosure Document, Play It Once again Sports does not anticipate that COVID-nineteen has or will significantly modify its business model or the way its Business concern System operates.

• For purposes of clarification, the 265 Stores includes all Stores that were temporarily closed as a outcome of COVID-19.

Part ane – Argument of Average Gross Sales and Gross Profit of 265 Franchised Play It Again Sports Stores for the Fiscal Year Concluded Dec 26, 2020

Yr Opened – 2019

• Number of Stores Reported:  21
• Number and Percentage of Stores Attaining or Exceeding Average Gross Sales:  8/38%
• Number and Percent of Stores Attaining or Exceeding Average Gross Profit:  8/38%
• 2020 Average Gross Sales:  $898,709
• 2020 Median Gross Sales:  $661,923
• 2020 Average Gross Profit:  $476,645
• 2020 Median Gross Profit:  $368,002
• Average Gross Profit Percentage:  53.04%
• Sales Range:  $175,714 to $2,801,830

Twelvemonth Opened – 2018

• Number of Stores Reported:  29
• Number and Per centum of Stores Attaining or Exceeding Boilerplate Gross Sales:  10/34%
• Number and Percent of Stores Attaining or Exceeding Average Gross Profit:  10/34%
• 2020 Boilerplate Gross Sales:  $794,531
• 2020 Median Gross Sales:  $698,051
• 2020 Boilerplate Gross Profit:  $413,483
• 2020 Median Gross Profit:  $389,722
• Boilerplate Gross Profit Percent:  52.04%
• Sales Range:  $319,903 to $1,656,570

Year Opened – 2017

• Number of Stores Reported:  12
• Number and Pct of Stores Attaining or Exceeding Boilerplate Gross Sales:  4/33%
• Number and Percentage of Stores Attaining or Exceeding Boilerplate Gross Profit:  4/33%
• 2020 Average Gross Sales:  $761,433
• 2020 Median Gross Sales:  $722,525
• 2020 Average Gross Turn a profit:  $410,778
• 2020 Median Gross Turn a profit:  $380,133
• Average Gross Profit Percentage:  53.95%
• Sales Range:  $379,716 to $1,244,264

Yr Opened – 2016

• Number of Stores Reported:  7
• Number and Percentage of Stores Attaining or Exceeding Average Gross Sales:  1/fourteen%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Turn a profit:  2/29%
• 2020 Average Gross Sales:  $634,355
• 2020 Median Gross Sales:  $647,142
• 2020 Average Gross Profit:  $332,870
• 2020 Median Gross Profit:  $310,305
• Boilerplate Gross Profit Pct:  52.47%
• Sales Range:  $235,036 to $975,769

Year Opened – 2015

• Number of Stores Reported:  12
• Number and Pct of Stores Attaining or Exceeding Average Gross Sales:  2/17%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Profit:  ii/17%
• 2020 Average Gross Sales:  $747,795
• 2020 Median Gross Sales:  $675,404
• 2020 Average Gross Profit:  $412,645
• 2020 Median Gross Turn a profit:  $380,208
• Average Gross Profit Per centum:  55.18%
• Sales Range:  $153,593 to $1,877,271

Year Opened – 2014 and Prior

• Number of Stores Reported:  184
• Number and Pct of Stores Attaining or Exceeding Average Gross Sales:  75/41%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Profit:  78/42%
• 2020 Average Gross Sales:  $976,819
• 2020 Median Gross Sales:  $819,508
• 2020 Boilerplate Gross Turn a profit:  $506,786
• 2020 Median Gross Profit:  $416,547
• Average Gross Profit Percentage:  51.88%
• Sales Range:  $87,206 to $four,573,784

Full

• Number of Stores Reported:  265
• Number and Percentage of Stores Attaining or Exceeding Average Gross Sales:  100/38%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Profit:  104/39%
• 2020 Average Gross Sales:  $921,510
• 2020 Median Gross Sales:  $788,629
• 2020 Average Gross Turn a profit:  $480,982
• 2020 Median Gross Profit:  $404,999
• Average Gross Profit Per centum:  52.19%

• "Gross Sales" means all revenues the franchisee receives from the sale of goods and services, whether by cash or past check, credit bill of fare or trade, in connection with the Store, less sales taxation and customer refunds and returns.

• Average Gross Turn a profit equals Gross Sales less Cost of Goods Sold. Average Gross Profit does not reflect any expenses related to the performance of a Play It Again Sports Store other than Cost of Goods Sold.

Part two – Argument of Sales Ranges by Quartile for 265 of the 266 Franchised Play It Again Sports Stores Open up on December 26, 2020 That Had Been in Operation for at Least 12 Months past the Same Franchisee or Owners for the 12-Month Menstruation Ended December 26, 2020

• Quartile refers to that portion of the total number of Stores open up that represents 25%. For case, the showtime quartile identifies those Stores that were in the top 25% of all Stores in gross sales.

• These results relate to specific Play It Once more Sports Stores located in the United states and Canada. Your private results may differ.

1st Quartile

• Number of Stores:  66
• 2020 Gross Sales Range by Quartile:  $1,147,873 to $4,573,784
• 2020 Quartile Average Gross Sales:  $1,701,390
• 2020 Quartile Median Gross Sales:  $one,447,514
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Sales:  21/32%
• 2020 Quartile Boilerplate Gross Turn a profit:  $873,767
• 2020 Quartile Median Gross Profit:  $774,818
• Number and Percent of Stores Attaining or Exceeding Quartile Average Gross Profit:  20/30%
• Quartile Boilerplate Gross Turn a profit Per centum:  51.36%

2nd Quartile

• Number of Stores:  66
• 2020 Gross Sales Range by Quartile:  $791,068 to $ane,138,089
• 2020 Quartile Boilerplate Gross Sales:  $948,768
• 2020 Quartile Median Gross Sales:  $943,850
• Number and Percent of Stores Attaining or Exceeding Quartile Average Gross Sales:  33/50%
• 2020 Quartile Boilerplate Gross Profit:  $496,626
• 2020 Quartile Median Gross Profit:  $489,058
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Profit:  32/48%
• Quartile Average Gross Profit Percent:  52.34%

3rd Quartile

• Number of Stores:  66
• 2020 Gross Sales Range by Quartile:  $538,532 to $788,629
• 2020 Quartile Average Gross Sales:  $670,312
• 2020 Quartile Median Gross Sales:  $654,139
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Sales:  28/42%
• 2020 Quartile Boilerplate Gross Profit:  $358,793
• 2020 Quartile Median Gross Turn a profit:  $356,148
• Number and Percent of Stores Attaining or Exceeding Quartile Average Gross Profit:  31/47%
• Quartile Boilerplate Gross Profit Percent:  53.53%

4th Quartile

• Number of Stores:  67
• 2020 Gross Sales Range by Quartile:  $87,206 to $537,716
• 2020 Quartile Average Gross Sales:  $373,867
• 2020 Quartile Median Gross Sales:  $393,478
• Number and Per centum of Stores Attaining or Exceeding Quartile Boilerplate Gross Sales:  41/61%
• 2020 Quartile Average Gross Profit:  $199,015
• 2020 Quartile Median Gross Profit:  $211,101
• Number and Percentage of Stores Attaining or Exceeding Quartile Boilerplate Gross Profit:  38/57%
• Quartile Average Gross Turn a profit Percentage:  53.23%

Part three – Number of Stores, Average and Median Gross Sales, Lowest and Highest Gross Sales Amount in Each Range, and Percentage of Total Number of Stores That Vicious Within Certain Ranges of Gross Sales for 2020

• Based on data reported by 265 of the 266 Play Information technology Once again Sports Stores which had been in operation past the same franchisee or possessor for the 12-month catamenia concluded Dec 26, 2020, the post-obit chart sets forth the number of Stores, average and median Gross Sales, the lowest and highest Gross Sales amount in each range, and the percentage of total number of Stores that roughshod inside certain ranges of Gross Sales for 2020:

2020 Range of Gross Sales:  $0 to $250,000

• Number of Stores Falling Within Range:  12
• Average Gross Sales for Stores Within Range:  $187,917
• Number and Per centum of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range:  seven/58%
• Gross Sales for Lowest Store Within Range:  $87,206
• Gross Sales for Highest Store Within Range:  $237,018
• Median Gross Sales for Stores Within Range:  $204,254
• Percent of Total Number of Stores (265) Within Range:  4.53%

2020 Range of Gross Sales:  $250,001 to $500,000

• Number of Stores Falling Inside Range:  47
• Average Gross Sales for Stores Within Range:  $394,935
• Number and Per centum of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range:  25/53%
• Gross Sales for Lowest Store Within Range:  $255,574
• Gross Sales for Highest Store Inside Range:  $498,490
• Median Gross Sales for Stores Within Range:  $399,706
• Percent of Total Number of Stores (265) Inside Range:  17.74%

2020 Range of Gross Sales:  $500,001 to $1,000,000

• Number of Stores Falling Within Range:  117
• Average Gross Sales for Stores Inside Range:  $737,537
• Number and Percent of Stores Attaining or Exceeding Boilerplate Gross Sales for Stores Within Range:  57/49%
• Gross Sales for Lowest Store Within Range:  $514,982
• Gross Sales for Highest Shop Inside Range:  $998,070
• Median Gross Sales for Stores Inside Range:  $733,448
• Percent of Full Number of Stores (265) Within Range:  44.15%

2020 Range of Gross Sales:  $1,000,001 to $2,000,000

• Number of Stores Falling Within Range:  77
• Average Gross Sales for Stores Within Range:  $ane,330,287
• Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range:  33/43%
• Gross Sales for Everyman Store Within Range:  $1,010,936
• Gross Sales for Highest Store Within Range:  $ane,940,179
• Median Gross Sales for Stores Inside Range:  $1,282,619
• Percent of Total Number of Stores (265) Within Range:  29.06%

2020 Range of Gross Sales:  $2,000,001 to $iii,000,000

• Number of Stores Falling Within Range:  8
• Average Gross Sales for Stores Within Range:  $2,392,469
• Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range:  four/l%
• Gross Sales for Everyman Shop Inside Range:  $2,012,113
• Gross Sales for Highest Shop Within Range:  $2,801,830
• Median Gross Sales for Stores Within Range:  $2,407,044
• Percent of Total Number of Stores (265) Within Range:  three.02%

2020 Range of Gross Sales:  Greater Than $iii,000,000

• Number of Stores Falling Inside Range:  4
• Average Gross Sales for Stores Within Range:  $3,879,889
• Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range:  ii/50%
• Gross Sales for Everyman Shop Within Range:  $3,055,353
• Gross Sales for Highest Store Within Range:  $4,573,784
• Median Gross Sales for Stores Within Range:  $3,945,209
• Percent of Total Number of Stores (265) Within Range:  1.51%

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Source: https://www.franchisechatter.com/2021/05/17/fdd-talk-2021-play-it-again-sports-franchise-review-financial-performance-analysis-costs-fees-and-more/

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