Should You Buy a Youth Sports Franchise? A Decision Framework

You've seen the ads. "Own your own youth sports business!" "Join the fastest-growing segment in franchising!" "Be your own boss while making a difference!"

i9 Sports. Skyhawks. Soccer Shots. Amazing Athletes. The youth sports franchise industry is booming, with hundreds of operators buying in every year.

Franchise fee: $15k-50k. Startup costs: $30k-100k. Ongoing royalties: 6-10% of revenue.

Is it worth it?

I run an Overtime Athletics franchise. Nine years in. Real revenue. Real lessons. Here's what I wish someone had told me before signing that agreement.

What You Actually Get with a Franchise

Let's start with what's legitimately valuable about the franchise model.

The Good

Proven systems: Someone already figured out the curriculum, pricing, marketing templates, and operational playbook. You don't start from zero.
Brand recognition: Parents may have heard of the brand. In some markets, this matters. In others, it's irrelevant.
Training and onboarding: Good franchisors teach you how to run the business. Not just "here's the manual" but actual coaching and support.
Territory protection: You own your geographic area. No one else can open the same franchise next door.
Peer network: Other franchisees who've solved the problems you're facing. This is often the most valuable part.

The Not-So-Good

Ongoing royalties: 6-10% of gross revenue. Forever. Whether you're profitable or not. This adds up faster than you think.
Restricted operations: You can't just run your business however you want. Pricing changes? Need approval. New programs? Need approval. Marketing materials? Use theirs.
Marketing fund fees: Another 1-3% for "national marketing" that may or may not benefit your territory.
Technology lock-in: Many franchisors mandate specific software. If it's bad, you're stuck with it.
Exit constraints: Selling your franchise isn't as simple as selling a business. The franchisor has approval rights, may take a cut, or could have a buyback clause.

The Real Numbers (What They Don't Tell You)

Franchise disclosure documents (FDDs) contain financial performance representations, but they're often presented in the most flattering light. Here's what to actually look for:

Calculate Your True Costs:

Cost Type	Typical Range
Franchise fee	$15,000-50,000
Equipment/inventory	$5,000-20,000
Insurance	$2,000-5,000/year
Marketing (year 1)	$5,000-15,000
Working capital	$10,000-30,000
Total to launch	$40,000-120,000

Ongoing Costs (Year 2+):

• Royalties: 6-10% of gross (not net) revenue
• Marketing fund: 1-3% of gross revenue
• Required software: $100-500/month
• Annual conference: $1,000-3,000 (often mandatory)
• Insurance renewal: $2,000-5,000/year

The math that matters: If you do $150,000 in annual revenue with an 8% royalty and 2% marketing fund, you're paying $15,000/year to the franchisor. That's real money coming out of your profit.

The Decision Framework

Here's how to evaluate whether a youth sports franchise makes sense for you.

1. Can you build this yourself?

Be honest about your capabilities:

• Sports expertise: Do you know the games you're teaching?
• Curriculum development: Can you build age-appropriate programming?
• Operations: Have you run a business before?
• Marketing: Can you acquire customers without a brand behind you?

If yes to most: You probably don't need a franchise. The systems are learnable. The brand premium may not be worth 10% of your revenue forever.

If no to most: A franchise buys you competence you don't have. That might be worth the cost.

2. Does the brand actually matter in your market?

Ask around. Do parents in your area know Soccer Shots? Would they choose a branded program over a local one?

In many markets, the answer is no. Parents choose based on convenience, word of mouth, and the school partnership, not national brands.

In some urban/suburban markets with lots of competition, brand recognition helps cut through noise.

3. What does the FDD actually say?

The Franchise Disclosure Document contains the truth. Read it. All of it. Especially:

• Item 19 (Financial Performance): What do existing franchisees actually make?
• Item 20 (Outlets): How many franchisees left the system? Why?
• Item 21 (Financial Statements): Is the franchisor financially healthy?
• Item 6-7 (Fees): All the costs, visible and hidden

Red flag: If Item 19 doesn't include financial performance data, be suspicious. Good franchises share this.

4. Talk to existing franchisees (not just the ones they give you)

The FDD lists all franchisees with contact info. Call them. Especially:

• Franchisees who left the system (why did they leave?)
• Franchisees in markets similar to yours
• Franchisees in their 2nd-3rd year (past the honeymoon phase)

Questions to ask:

• "Would you do it again?"
• "What surprised you?"
• "How much support do you actually get?"
• "What's your true profit margin after royalties?"

5. Can you exit?

Most people don't think about the exit when they buy. They should.

• Transfer fees: Does the franchisor take a cut when you sell?
• Approval rights: Can they reject your buyer?
• Non-compete: If you leave, can you start a competing business?
• Buyback clause: Can the franchisor force you to sell back at a set price?

The Honest Pros and Cons

Franchise Works If:

• You're new to business ownership
• The brand has real recognition in your market
• You value support and community
• The specific curriculum/model is hard to replicate
• The FDD shows strong unit economics
• You plan to scale to multiple territories

Build Your Own If:

• You have sports/business experience
• Brand doesn't matter in your market
• You want full control over operations
• You can develop curriculum yourself
• The royalties would significantly cut margins
• You have strong local partnerships already

Red Flags in Franchise Sales Pitches

Watch out for these warning signs:

"Average revenue is $X" — Ask for median, not average. One outlier can skew averages dramatically.
"It sells itself" — Nothing sells itself. You will work harder than you expect.
Pressure to decide quickly — "This territory is about to sell." Real opportunities don't evaporate overnight.
No Item 19 disclosure — If they won't share financial performance data, they're hiding something.
High franchisee turnover — Check Item 20. If lots of people are leaving, find out why.
"You can make it back in the first year" — Year 1 is almost always net negative. Anyone promising otherwise is lying.

My Personal Experience

I've operated an Overtime Athletics franchise since 2017. Here's my honest assessment:

What worked:

• Strong curriculum that parents recognize and trust
• Network of other operators to learn from
• Systems that let me scale faster than starting solo
• Founders who genuinely care about their operators and became real mentors

What I'd tell someone starting out:

• Learn the royalty math inside and out before you sign — no surprises
• Think carefully about territory size from day one
• Build your local brand alongside the franchise brand early
• Invest in the relationship with your franchisor — it pays off

Would I do it again? Without hesitation. The franchise gave me a foundation that would have taken years to build on my own. The founders taught me everything I know about this business, became genuine mentors, and I consider them close friends. That kind of relationship is rare and worth more than any playbook.

The Alternative: Building Your Own

If you decide against franchising, here's what building your own requires:

Curriculum: 6-12 months to develop something solid. Or buy templates and adapt.
Brand: Logo, website, materials. $2,000-10,000 if done professionally.
Systems: Registration software, payment processing, scheduling. Lots of options.
Insurance: Same cost as franchise.
Partnerships: You'll need to build school and facility relationships from scratch.

The advantage: No royalties. Full control. You keep what you earn.

The disadvantage: Every problem is yours to solve. No playbook. More risk.

Bottom Line

Youth sports franchises aren't scams. But they're not magic either.

The right franchise, in the right market, for the right operator, can accelerate your path to a sustainable business. But the costs are real and ongoing.

Do the math. Read the FDD. Talk to operators who left. Then decide.

If you're considering this path, I'm happy to talk through it. No pitch, just perspective from someone who's lived it.

Thinking About Starting a Youth Sports Business?

Whether you go franchise or independent, you'll need operational systems. The Operator Toolkit includes the templates, checklists, and playbooks I wish I'd had when I started.

Learn more about the Operator Toolkit →