Risk Score
Pending analysis
Investment Range
$797,800 - $3,556,400
Franchise Fee
$55,000
Total US Locations
3
Business Summary
PickleRage operates facilities that provide recreational services for customers to play pickleball and other racquet sports. The business also offers related services like instruction, clinics, tournaments, and league play. Additionally, PickleRage facilities sell products such as apparel, equipment, grab-and-go food items, and alcoholic and non-alcoholic beverages.
Corporate History
PickleRage Franchise LLC was formed in Delaware on July 3, 2023, as a subsidiary of its parent company, PickleRage LLC, which was organized on June 20, 2023. The company began offering PickleRage franchises in the United States on November 9, 2023. PickleRage also has affiliates, PickleRage IP LLC, which owns its trademarks, and PickleRage Sports LLC, which handles wholesale and retail pickleball products.
Financial Overview
Investment Range
$797,800 - $3,556,400
Franchise Fee (Low)
$55,000
Franchise Fee (High)
$65,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$60,000
Equipment Costs (High)
$88,000
Working Capital
$40,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
PickleRage's financial condition raises questions about its ability to provide services and support to franchisees. As of December 31, 2024, PickleRage had a negative member's equity (deficit) of $273,035 and very low cash reserves of $1,864. The company reported a net loss of $1,022,345 for the year ended 2024 and a net loss of $217,544 for 2023. It also used $754,710 in cash from operating activities in 2024. This indicates a challenging financial situation for PickleRage.
Financing Details
PickleRage does not offer any direct or indirect financing arrangements to its franchisees. The company also does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
3
Franchised Units
0
Corporate Units
3
Avg Square Footage
30,000
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
PickleRage has no litigation to report, as no litigation information is required to be disclosed in Item 3 of its FDD.
Bankruptcy History
PickleRage has no bankruptcy history to report, as no bankruptcy information is required to be disclosed in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, PickleRage franchisees must provide written notice of their intent to renew between 9 and 12 months before their agreement expires. They must also remodel and refurbish their facility to meet PickleRage's then-current standards for new locations. Franchisees must have complied materially with all terms of their current agreement and all financial obligations throughout the term, including payments to PickleRage, its affiliates, and vendors. They will be required to sign PickleRage's then-current franchise agreement, which may have significantly different terms and higher fees, and pay a renewal fee of $13,750 or 25% of the then-current initial franchise fee, whichever is greater. Additionally, franchisees and their direct and indirect owners must sign a general release and comply with current personnel and training requirements, and demonstrate they have the right to occupy their approved location for the entire renewal term.
Training & Support Program
Franchisor Assistance
PickleRage provides its franchisees with both pre-opening and ongoing assistance. Before opening, franchisees receive site selection guidelines, counseling, and one on-site evaluation. PickleRage reviews proposed sites, leases, and renovation plans, and provides standard layout, design, and image specifications. Franchisees also get access to the Brand Standards Manual, initial training, assistance in developing their grand opening marketing program, and an inspection of their facility before it opens. After opening, PickleRage offers periodic assistance in marketing, management, and operation, including visits from field consultants who provide operational advice. They also provide ongoing training as deemed appropriate.
Initial Training Hours
36
Training Location
Facility Support Center and a Corporate Certified Training Facility in New Jersey or the Broward County (Fla.) metropolitan area.
Ongoing Support
PickleRage provides ongoing support to its franchisees by offering periodic assistance in marketing, management, and operations as determined by the company. This includes regular visits from field consultants who provide advice on store operations. PickleRage also offers ongoing training programs when deemed appropriate.
Franchise Requirements
Ideal Candidate Profile
PickleRage seeks franchisees who will designate an Operating Principal or General Manager to devote full-time efforts to managing and operating the franchise business. The Operating Principal must own at least a 10% voting and ownership interest in the franchisee entity and, along with the General Manager, must successfully complete PickleRage's initial training program. The ideal candidate should be a dedicated and actively involved manager or owner.
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
PickleRage grants a minimum territory size defined by a population of 100,000 people.
Staffing Notes
PickleRage requires franchisees to maintain a competent and conscientious staff in sufficient numbers to serve customers promptly and meet service criteria, including specific positions designated by PickleRage for a quality member experience. Franchisees and their staff must cooperate with PickleRage representatives and operate the business professionally. Franchisees are also responsible for developing and maintaining an employee handbook and risk management policies with their chosen HR advisors.