Play It Again Sports Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$343,050 - $456,500
Franchise Fee
$15,000
Total US Locations
265
Business Summary
Play It Again Sports operates retail stores that sell quality used and new sporting goods equipment and accessories. The business model emphasizes offering consumer value by providing quality used merchandise at significant savings compared to new items, and by purchasing used goods directly from customers. Play It Again Sports stores also supplement their inventory with new merchandise.
Corporate History
Winmark Corporation was originally incorporated in Minnesota on July 20, 1988, under the name Play It Again Sports Franchise Corporation. In July 1993, the company changed its corporate name to Grow Biz International, Inc., and then again to Winmark Corporation in November 2001. Play It Again Sports has been offering franchises since August 1988. Winmark also operates four other franchise systems: Once Upon A Child®, Music Go Round®, Plato's Closet®, and Style Encore®.
Financial Overview
Investment Range
$343,050 - $456,500
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$25,000
Royalty %
5%
Equipment Costs (Low)
$112,550
Equipment Costs (High)
$161,000
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Winmark's financial condition, as shown in its financial statements, raises questions about its ability to provide services and support to Play It Again Sports franchisees. Despite this, the independent auditor, Grant Thornton LLP, issued an unqualified opinion on the consolidated financial statements and reported no critical audit matters.
Financing Details
Play It Again Sports offers limited financing for Store inventory purchases through its Buying Group. Winmark pays suppliers for inventory ordered and then invoices franchisees, charging a 4% administrative fee on these purchases. To ensure payment, franchisees must provide a letter of credit from their bank or a cash deposit, typically ranging from $0 to $5,000, when placing orders. Other than this inventory-specific arrangement, Winmark does not offer direct or indirect financing and does not guarantee franchisee notes, leases, or obligations.
Performance Metrics
Total US Locations
265
Franchised Units
265
Corporate Units
0
Avg Square Footage
3,750
Franchising Since
1988
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Play It Again Sports has no litigation to report in Item 3 of its FDD. Winmark Corporation and its management have not been involved in any material litigation proceedings that require disclosure in this document.
Bankruptcy History
Play It Again Sports has no bankruptcy information to report in Item 4 of its FDD. Neither Winmark Corporation nor its management have been involved in any bankruptcy proceedings that require disclosure.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Play It Again Sports franchisees must provide written notice to Winmark at least 180 days before their current agreement ends. They must be in compliance with all material provisions of their current Franchise Agreement, including paying all financial obligations, and meet all current brand standards. Franchisees are also required to make reasonable capital expenditures to remodel, modernize, and redecorate their store to reflect the current physical appearance of new Play It Again Sports locations. A renewal fee of $10,000 must be paid 30 days before the agreement expires. Franchisees will also be required to sign Winmark's then-current Franchise Agreement, which may have different terms, including royalty rates, advertising contributions, and an altered exclusive territory, and might not include further renewal rights. Finally, they must secure a renewal or extension of their current lease or an approved new location within their development area.
Training & Support Program
Franchisor Assistance
Play It Again Sports provides its franchisees with comprehensive assistance both before and after their store opens. Before opening, Winmark helps with site evaluation and leasing, provides specifications for store layout and design, and offers lists of standard fixtures, equipment, and initial inventory. Franchisees receive mandatory training and assistance in developing a business plan, along with confidential operations manuals. Winmark also provides pre-opening and initial store opening assistance. After the store is open, Winmark offers ongoing support through field consultants who conduct periodic evaluations and provide written reports. Franchisees can request advisory services related to store operations and receive updates to the Business System and manuals. Winmark also develops advertising and marketing materials for the brand.
Initial Training Hours
77
Training Location
Minneapolis, MN, with online and in-store components
Ongoing Support
Play It Again Sports provides ongoing support to its franchisees through various channels. This includes field consultants who conduct periodic store evaluations and provide written operational reports. Franchisees can also request advisory services related to store operations. Winmark regularly shares updates and additions to the Business System and furnishes updated materials for the confidential operations manuals, which are also available on the brand extranet site. Winmark also develops advertising and marketing materials. New store owners specifically receive periodic training visits during their first year, including pre-opening, opening week, and post-opening visits.
Franchise Requirements
Ideal Candidate Profile
The ideal candidate for Play It Again Sports is an individual who is willing to personally manage and operate their franchised business. If the franchisee is a corporate entity or partnership, one individual must hold at least 50% of the equity and voting interest and be responsible for personal management. While Winmark allows other employment, the primary job responsibility for the franchisee must be the operation of the Play It Again Sports business. This indicates a preference for hands-on, dedicated owner-operators.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Exclusive
Territory Size Requirements
Play It Again Sports territories are typically defined by computer modeling, considering population density, average household income, and consumer traffic patterns. These exclusive territories are usually a 3 to 5 mile radius around the store. For stores in urban areas with populations over 250,000, the territory generally has a minimum population of 75,000 to 100,000 people. For stores in all other areas, the minimum population for the exclusive territory is generally 50,000 people.
Staffing Notes
Play It Again Sports requires franchisees to have a designated management person on duty at all times when the store is open for business, responsible for daily operations. Franchisees must also employ a sufficient number of adequately trained and competent employees to ensure efficient customer service. Winmark emphasizes that franchisees are solely responsible for all aspects of employee management, including hiring, firing, training, setting hours, and supervising staff. Play It Again Sports does not consider franchisee employees as its own.