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How a kids sports franchise could be a healthy investment

Sarah Stowe

Your investment could make a difference to the next generation.

Ready Steady Go Kids

Ready Steady Go Kids is multi-sport and exercise program for preschoolers from two years old.

“While metro areas can have the advantage of population density, many regional areas have the advantage of lower costs and less competition,” says director Sherrie Boulter.

“In many areas it is hard to find programs suitable for pre-schoolers, which means a lot of our regional areas are very well attended.”

The two major overheads are venue hire and staff wages.

“Because our child-to-instructor ratio is only 6:1, most classes are run with two staff members. All classes are run indoors so as to maximise the experience and provide consistency. This means that halls, schools and community centres need to be hired.”

Boulter says it is a high-volume/low-margin business. “The greater the awareness of the program and its standing within the territory will give franchisees the best possible chance to maintain profitability.”

The initial investment is about $30,000 for a greenfield site. Franchisees receive head-office support and benefit from a customer-service centre that takes bookings and payments from clients, allowing franchisees to concentrate on the business. Franchisees need a level-one coaching certificate or equivalent.

Little Kickers/Little Rugby

Little Kickers/Little Rugby operations manager Andrew Gow says its franchisees receive exclusive territories. Social media, local marketing, SEO from strong brand awareness in the sector, and engaging the local community is key to customer growth.

While it is not necessary to have a business background, Gow says there needs to be a passion for getting young children involved in sport and gaining healthy habits for life.

“Some of the overheads include staffing/recruitment, equipment maintenance, venue hire and stock,” he says.

“As sessions run year round, customers can enrol at any point in time, providing franchisees with maximum profit throughout the year.”

However, Gow says that convincing some parents that 18-month-old children can engage and learn soccer skills is sometimes a hurdle.

“But once parents attend the classes and see what we have to offer, they are always pleasantly surprised with what their children can achieve.”

Investment required is between $20,000 and $50,000 for a five-year term, with an option to renew. Franchisees receive initial training, marketing and administrative support.