Prospective owners looking to capitalize on the booming pickleball industry face a pivotal decision: how to choose between a franchise and independent pickleball facility ownership?
This decision is important because pickleball continues to be the fastest-growing sport in America, having grown by more than 223% since 2020. This means there's a big opportunity for new pickleball facilities, but also more competition. How you decide to run your facility–as part of a franchise or on your own–can make a significant difference in how you attract players, respond to what your community wants, and make money in the long run.
At Johns Design & Consulting (JDC), led by professional players and industry experts, Ben and Collin Johns, we've guided numerous clients through this decision-making process. In this comprehensive guide, we'll explore the pros and cons of both options to help you make an informed decision for your pickleball business.
Pickleball Franchises
Franchising offers a ready-made business model. As pickleball's popularity has exploded in recent years, several types of pickleball franchise opportunities have emerged in the market. Popular names in pickleball franchises can be found as standalone facilities, or in multi-sport complexes like gyms or social clubs.
Advantages Of Franchises
Established Brand Recognition: Franchises offer immediate brand awareness, which can be valuable in attracting players and giving new operators a head start in a competitive market.
Standardized Operations and Support: Franchisees benefit from tried-and-tested operational systems and ongoing support.
Marketing and Advertising Assistance: Franchises often provide marketing materials and strategies to help promote your facility.
Programming Support: Franchises will help you identify the best programs to attract players in your area.
Multi-Unit Operations: A franchise model offers an easier path to growth if you want to open multiple facilities.
challenges Of Franchises
High Initial Costs: Typical development fees can reach up to $60,000.
Ongoing Financial Obligations: Franchisees usually pay 8-12% of gross revenue in royalties.
Limited Operational Flexibility: Franchise agreements may restrict your ability to adapt your programming to local market needs. This can create an opportunity cost if you’re unable to capitalize on opportunities that arise.
Less Community Connection: In cases of franchisees owning multiple facilities, they may be more focused on overall operations and have less direct involvement with individual facilities and players.
Lower Overall Profitability: While franchises may generate more revenue due to brand recognition, they’re potentially less profitable due to royalty fees. Successful facilities may pay hundreds of thousands of dollars in royalties each year.
While franchises have the potential of offering an easier route to grand opening and quicker profitability, there's nothing proprietary that any one concept is doing versus another. In the pickleball industry, franchising primarily offers brand recognition and some programming support, but it lacks the comprehensive supply chain benefits seen in other industries like fast food.
Independent Ownership of pickleball facilities
As the sport continues to grow, many passionate pickleball players and savvy business investors are choosing to forge their own path. These independently-owned facilities range from small, community-focused courts to large, multi-purpose pickleball complexes.
Advantages Of Independent Ownership
Full Control Over Operations: As an owner-operator, you have the freedom to make decisions that best suit your facility and community.
Retention of All Profits: Without royalty fees, you keep more of what you earn.
Flexibility to Adapt: You can quickly adjust your programming and events to be specific to what your community wants.
Opportunity to Build a Unique Brand: You also have the ability to build your own unique brand, which ultimately is why so many choose to be entrepreneurs.
Stronger Community Ties: As an independent facility, players are more likely to know who the owner-operator is, especially if you already have strong ties to your local pickleball community.
Potential for Higher Profitability: While an independent facility might do less in revenue, it has the potential to be more profitable due to the lack of royalties.
Challenges of Independent Ownership
Lack of Established Support Systems: You'll need to develop your own operational procedures and support networks.
Full Responsibility for Marketing and Brand Building: Creating a strong, recognizable brand falls entirely on your shoulders.
Higher Initial Learning Curve: Without a franchise playbook, you'll need to quickly become an expert in all aspects of facility management.
Risk of Poor Branding: Whimsical pickleball facility names that don't really add to what your facility and community are about have the potential to fall flat.
Potential for Lower Initial Revenue: While potentially more profitable in the long-run, smaller brands may take longer to ramp up.
Challenges in Initial Months: The first few months can be a challenging time as you work to dial in programming and attract new members.
Independent operators often have a significant advantage in community engagement. As owner-operators, they are typically present in the facility day-to-day, becoming the face of the business. This direct involvement can foster stronger connections with players and the local community, potentially leading to higher customer loyalty and a more responsive business model.
So, What’s The Right Choice For You?
When deciding between franchising and independent ownership, consider these key factors:
Financial Implications - Evaluate the trade-off between initial brand recognition and long-term profitability. Franchises may offer quicker initial growth but at the cost of ongoing royalties.
Operational Control - Assess your desire for flexibility in programming and operations. Independent ownership allows for more adaptability to local market needs.
Support Systems - Consider your experience in the industry and comfort level with developing your own systems versus relying on established franchise support.
Community Connection & Personal Involvement - Reflect on your desired level of personal involvement and the importance of local ties. Independent operators often become the face of their facility and foster stronger community relationships.
Brand Building - Weigh your ability and desire to create a unique brand against the benefits of an established franchise name.
Growth Ambitions - If you're planning to expand, consider how each model aligns with your multi-facility goals.
How JDC Supports Independent Owners
At JDC, we recognize that the right choice depends on your individual circumstances, goals, and expertise. We regularly consult with prospective owners and help them weigh the advantages and challenges of each business model.
For those choosing the independent route, JDC offers comprehensive support to overcome common challenges:
Financial Planning
Our process begins with developing a detailed financial pro forma to ensure your facility starts on solid footing. This key step helps mitigate the risk of unexpected costs and supports long-term profitability.
Site Selection
We work with local real estate experts that specialize in sports facilities to find the perfect balance of cost and location for your pickleball facility. You can read more about our in-depth site selection process here.
Facility Design and Programming
We leverage our expertise to optimize court layout, lighting, and other important design elements that enhance the player experience. Additionally, we help develop coaching and programming that aligns with your community's needs and interests.
Brand Development and Marketing
We assist in creating a strong, locally-relevant brand that resonates with your community. Our team provides tailored marketing strategies to establish your facility's presence and attract and retain members.
Operational Expertise
Drawing from our team's experience as current and former pickleball facility operators, we guide you through the complexities of facility management. This hands-on knowledge helps smooth out the learning curve often faced by new independent owners.
Ongoing Support
Throughout your journey, JDC is your trusted partner and support system. We're here to advise on day-to-day operations, help navigate challenges, and provide insights for growth opportunities.
Your Next Steps With JDC
While both franchising and independent ownership have their place in the pickleball industry, JDC specializes in empowering independent owners to create unique, community-focused facilities. Our expertise helps bridge the gap between the support offered by franchises and the freedom of independent ownership.
Ready to explore if independent ownership is the right path for your pickleball business? Schedule a consultation with JDC today. Our team of experts, including professional players Ben and Collin Johns, will help you assess your goals, evaluate your local market, and develop a strategy for success.
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