Pickleball Kingdom logo

Pickleball Kingdom Franchise

Audited Financials
RecreationEst. 2022Gilbert, AZ
www.pickleballkingdom.com

Risk Score

Pending analysis

Investment Range

$940,000 - $2,257,600

Franchise Fee

$54,000

Min Cash Required

$160,000

Total US Locations

4

Business Summary

Pickleball Kingdom Franchising operates indoor pickleball facilities that provide pickleball lessons, leagues, clinics, and pick-up games. These facilities offer multiple membership options for players of all skill levels. Each Pickleball Kingdom location features 10 to 20 pickleball courts with outdoor surfaces, an event area, a pro shop for paddle rentals and gear, a viewing area, a cafe with snacks and beverages (including optional beer and wine), and locker rooms with showers. The business model includes systems for membership sales, court reservations, customer service, and facility management.

Corporate History

Pickleball Kingdom Franchising, LLC was formed in Arizona in October 2022. The company does not have any predecessors. Its parent entity is Pickleball Kingdom National, LLC, which has not offered franchises. Pickleball Kingdom Franchising has never operated a Pickleball Kingdom Business itself, but an affiliate, Pickleball Kingdom Chandler, LLC, opened the first company-owned location in Chandler, Arizona, in May 2022. Pickleball Kingdom Franchising began offering franchises in April 2023 and is not involved in any other businesses or lines of franchising.

Financial Overview

Investment Range

$940,000 - $2,257,600

Franchise Fee (Low)

$54,000

Franchise Fee (High)

$60,000

Minimum Cash Required

$160,000

Royalty %

7%

Marketing %

2%

Equipment Costs (Low)

$534,000

Equipment Costs (High)

$1,325,000

Working Capital

$254,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Pickleball Kingdom Franchising's financial statements show a significant deficit in members' equity, reaching over $5.9 million by the end of 2024, and the company experienced substantial losses from operations in both 2023 and 2024. The franchisor's financial condition, as noted in its FDD, raises concerns about its ability to provide ongoing services and support to franchisees.

Financing Details

Pickleball Kingdom Franchising does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or other financial obligations for its franchisees.

Performance Metrics

Total US Locations

4

Franchised Units

3

Corporate Units

1

Avg Square Footage

35,000

Franchising Since

2023

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew, Pickleball Kingdom Franchising franchisees must provide written notice between six and nine months before their current term ends. They must update the Pickleball Kingdom Business and all required items, ensure they are not in default of their agreements, pay all outstanding money owed, and retain their right to the business location. A renewal fee, equal to 15% of the then-current initial franchise fee, is required, and franchisees must sign a general release. Additionally, they must comply with Pickleball Kingdom Franchising's then-current standards, including remodeling the business to meet current building design, image, décor, qualifications, and training requirements.

Training & Support Program

Franchisor Assistance

Pickleball Kingdom Franchising offers extensive pre-opening and ongoing support. Before opening, the company provides site selection guidelines and assistance, reviews proposed sites and leases, grants access to its operations manual, supplies a list of approved vendors and equipment, conducts initial training, and offers on-site opening assistance. After opening, franchisees receive periodic operational evaluations, administration of the Advertising Fund, access to developed advertising and promotional materials, operational advice, and merchandise/equipment/décor items (at cost). Pickleball Kingdom Franchising also provides updated lists of approved suppliers, offers additional training programs and seminars at its discretion, and provides proprietary software programs on loan.

Initial Training Hours

48

Training Location

Franchisor facilities in Gilbert, Arizona, and on-site

Ongoing Support

After opening, Pickleball Kingdom Franchising franchisees receive periodic evaluations of their operations and administrative support for the Advertising Fund. The franchisor also provides advice and written materials on managing and operating Pickleball Kingdom Businesses, including new developments in the system. Franchisees are given updated lists of approved suppliers and may be offered additional training programs and seminars at the franchisor's option. Proprietary software programs developed by the franchisor are also provided on loan.

Franchise Requirements

Ideal Candidate Profile

Pickleball Kingdom seeks Operating Partners who hold at least a 10% ownership interest in the franchisee entity and are committed to devoting their full efforts to operating the Pickleball Kingdom Business. If a General Manager is designated for day-to-day operations, the Operating Partner must still actively oversee operations on a full-time basis and remain ultimately responsible for the business's performance. Operating Partners are restricted from engaging in any other business without Pickleball Kingdom's written consent. All owners, including their spouses, are required to personally guarantee the financial obligations under the Franchise Agreement and Development Agreement. Each Pickleball Kingdom Business must also have a qualified General Manager (who may be the Operating Partner, but only for one unit at a time) and at least one Assistant Manager. Both the General Manager and Assistant Manager must dedicate their full time and best efforts to the business and meet Pickleball Kingdom's qualifications and training requirements, and they are also restricted from engaging in other business activities.

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

retail

Owner Participation

Full-Time

Territory Type

Protected

Territory Size Requirements

Pickleball Kingdom Franchising defines its Protected Areas as geographic regions based on zip codes, streets, highways, or city/county limits. Each Protected Area is required to include a minimum population of 100,000 people. The specific boundaries are determined on a case-by-case basis considering factors such as population, traffic patterns, proximity to retail centers, residential areas, businesses, and other potential customer sources.

Staffing Notes

Each Pickleball Kingdom Franchising business requires an Operating Partner, who must hold at least a 10% ownership interest and actively oversee operations full-time, without engaging in other businesses without written consent. A General Manager is required for day-to-day supervision and must also devote full-time efforts to the business and not engage in other ventures; the Operating Partner may serve as General Manager for only one location. Each location must have a different General Manager. At least one Assistant Manager is also required per location, responsible for daily operation and management, devoting full-time efforts. If a franchisee operates more than two locations, a Director of Operations may be required to supervise multiple units. All managers and designated employees must be ServSafe certified, and those handling alcohol must complete alcohol awareness or TIPS training.