TGA Sports Franchise Financial Model 2026

When doesthe unit reach profitability?

The unit reaches profitability within the first year, generating an EBITDA of $179,000 by month 12. We calculate this by subtracting the 8% royalty, 1% marketing fee, and labor costs-like the $65,000 GM salary-from total revenue. Profitability is a marathon, not a sprint.

Profitability Drivers

• Maximize school contracts
• Optimize coach FTEs
• Upsell advanced clinics

How muchcash is needed for the launch?

You need a total initial investment that covers the $49,500 franchise fee, $30,000 for equipment kits, and $20,000 for a transport vehicle. The model also accounts for $7,000 in launch marketing to drive early enrollment. Capital is the fuel for your franchise engine.

Major Uses

• Franchise Fee: $49,500
• Equipment Kits: $30,000
• Transport Vehicle: $20,000
• Launch Marketing: $7,000

What arethe expected investment returns?

Investors can expect an Internal Rate of Return (IRR) of 8.8% and a Return on Equity (ROE) of 1.89. The payback period is remarkably fast at just 2 years, meaning you recover your initial outlay quickly. Time is the most expensive currency in franchising.

Key Metrics

• IRR: 8.8%
• Payback: 2 years
• Year 5 EBITDA: $637k

What isthe path to breaking even?

The unit hits its monthly break-even point in August 2026, roughly 8 months after launch. This timing is heavily dependent on the volume of after-school programs, which are projected to bring in $250,000 in the first year. Speed to break-even determines your survival.

Speed to Break-Even

• Secure early contracts
• Control assistant wages
• Minimize travel fuel

Where isthe lowest point for cash flow?

The lowest cash point occurs in July 2026, with a minimum cash requirement of $1,007,000. You need a solid runway to cover the pre-opening costs and the initial months of operation before revenue fully ramps up. Cash is oxygen for a new business.

Cash Protection

• Phase coach hiring
• Monitor fuel spend
• Review insurance terms

How dodifferent scenarios impact results?

Comparing Low, Medium, and High scenarios shows how sensitive the model is to enrollment numbers. A High scenario significantly boosts the 8.8% IRR by leveraging fixed costs like the $900 vehicle lease against higher revenue. Scenarios prepare you for the real world.

High Case Odds

• Aggressive local marketing
• High student retention
• Premium clinic pricing

FullyCustomizable Financial Model 

This franchise unit financial model is built in Excel, allowing you to adjust every assumption to fit your specific territory. You can defintely swap out the pre-filled data for your local labor rates, school district contracts, and facility fees without breaking the logic. It's the difference between a guess and a plan.

• Editable assumptions and formulas
• Revenue and pricing drivers
• Staffing and payroll inputs
• Operating expense categories

Comprehensive5-Year Financial Projections 

Mapping out five years is essential for understanding how a youth sports franchise scales from a single school to a full territory. The model shows revenue growing from $590,000 in year one to $1.39 million by year five as you add more programs and clinics. Growth is great, but cash flow is king.

• 5-year revenue forecasts
• Profit and cash flow projections
• Balance sheet view
• Long-term profitability analysis

FranchiseFee and Royalty Management 

Royalties and brand funds are the 'rent' you pay for the system, and they hit the top line immediately. This model bakes in the 8% royalty and 1% marketing fee to show you exactly how much cash stays in the unit after the $49,500 initial fee. You can't manage what you don't track.

• Initial franchise fee inputs
• Royalty expense calculations
• Marketing fund contributions
• Ongoing franchise cost tracking

StartupCosts and Break-Even Analysis 

Launching a mobile franchise requires specific capital for items like the $20,000 transport vehicle and $30,000 in sports equipment kits. This tool calculates the break-even point-estimated at month 8-so you know exactly when the unit stops burning cash. Knowing your floor is as important as knowing your ceiling.

• Total startup investment
• Fixed and variable cost analysis
• Break-even sales estimates
• Margin and contribution view

Built-InIndustry Benchmarks 

We've integrated benchmarks for an after-school enrichment business to ensure your projections are grounded in reality. For instance, sports equipment supplies should trend toward 2.3% of revenue as you gain scale, while facility access fees stay around 1.4%. Benchmarks keep your ego in check.

• Labor cost benchmarks
• Occupancy cost benchmarks
• Gross margin ranges
• Revenue driver benchmarks