According to IBISWorld’s Sports in Australia industry report the sector is expected to grow at an annualised rate of 2.7 percent to reach $16.9 billion by 2017-18.
So if your looking to invest in a franchise and you’ve got a passion for children, a kids sports franchise could be the perfect fit.
READY STEADY GO KIDS
Stuart and Toni Derbyshire purchased the Ready Steady Go Kids (RSGK) business from its creator, a qualified physiotherapist, in 2010 and adopted the franchising model in 2011.
“She [the program’s creator] established the business in 2004 and had grown it to about 30 company owned locations nationally,” says co-owner Stuart Derbyshire.
“Her experience was on the program side. The business had gotten to a point where she wasn’t able to devote the time or the energy to it, so my wife and I bought the business.”
RSGK is designed for children between the ages of two-and-a-half and seven, and Derbyshire attributes much of the company’s success to the fact that the program delivers on its promise.
“Its science based, it offers variety, its non-competitive, it’s an attractive proposition for parents looking to put very young kids into their first sporting experience and it’s about school readiness – the program teaches a lot of concepts that are useful for kids going into school.”
Derbyshire says he and his wife run the RSGK business in a very professional manner, and have subsequently developed an extensive support network for franchisees.
“We’ve got a solid marketing program and we have a contact centre that handles all inbound calls and payments nationally and it can handle probably three times the volume than what we currently have.
“Franchisees get the backing of a complete support system that removes the ugly side of the business in terms of the bookings and merchant facilities and all that sort of stuff – we provide all of those services so our franchisees can focus on local area marketing and delivering great classes,” he adds.
Initial training is conducted in Adelaide, and it takes between four and seven days to complete.“Its program and business based – our team will run franchisees through the entire program and assess them at the end to ensure they’re confident in delivering it.”
Franchisees are also familiarised with the company’s cloud-based information portal, which Derbyshire says: “allows franchisees to manage their enrolments, see what’s happenings in their classes, access all of their marketing and human resource materials, share ideas with the RSGK network and track their financial performance, in particular their cash flow.”
RSGK franchisees have the freedom to incorporate the program into their lives in myriad different ways – they may choose to devote as much as 50 hours a week to the business or treat is a part-time income.
“Because of that flexibility we attract a really broad range of people, so in terms of a typical franchisee there isn’t one – probably the only thing that is constant among all of them is a passion for teaching young children.”
Forty-six RSGK franchisees are currently in operation across 84 territories within Australia, and the company has master franchisees in Singapore, the UK and India.
“We still want to fill the holes in Australia and I see us expanding to at least another 10 to 15 countries over the course of the next 18 months,” Derbyshire says.
KINDY DANCE TIME
As its name suggests, Kindy Dance Time specialises in the facilitation of dance-based classes for toddlers and pre-school aged children.
“Having been a professional classical ballet dancer and then later a ballet teacher for 10 years, I saw a real need for a preparatory dance program that gives the little ones an enjoyable and strong foundation for dance,” says founder Lara Gandini.
The program operates as an alternative to the traditional dance school, which Gandini believes often deliver classes that are too advanced for young children.
“The instruction [at traditional dance schools] is usually very demanding and requires children to be fully focused on the technical information given to them and to try and remember sequences. These ‘tiny tot’ type ballet classes typically have no real program or syllabus and are often taught by teenage dance students. In some cases technique that is way too advanced for their little bodies is enforced,” Gandini explains.
In contrast, Kindy Dance Time offers a program that is tailored to the needs of young children. “Through its age-specific 30 lesson plan syllabus Kindy Dance Time provides two to five year olds with a fun and solid introduction into the world of dance.”
Franchisees take part in an initial four week training program, and ongoing training is in fact compulsory.
“[The initial traning program covers the] Kindy Dance Time syllabus, program and operations (depending on the franchisee’s experience and background),” says Gandini.
“Ongoing program training is provided once every three months and ongoing training in operations is provided as needed. Full ongoing support is provided by the director, franchise development manager and operations manager.”
Kindy Dance Time operates 120 classes across Victoria and Western Australia each week, and it’s currently seeking franchisees as well as master franchisees for specific states.
“We are planning to recruit more franchisees in Melbourne and also regional areas of Western Australia and Victoria. We have also received interest from people in New South Wales and Queensland, where we are open to looking at master franchisee relationships.”
Gandini says the qualities she looks for in a franchisee will vary according to the model they adopt.
“If it’s the owner operator model then obviously we are looking for someone with experience in dance, music, performance and/or drama, however franchisees need not have a professional dance background.
“This model would suit a parent with children at school as the teaching hours are in the mornings. An aptitude for business is also required; however previous business experience is not necessary. Some customer service experience is desirable,” she explains.
Gandini adds people that are interested in a master franchise agreement would definitely need prior business and/or management experience.
Stay tuned for the third and final part of the kids sports feature, where we look at another two investment options.