In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Soccer Shots franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Soccer Shots franchise, based on Item 7 of the company’s 2021 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Soccer Shots franchise, based on Items 5 and 6 of the company’s 2021 FDD
- Section IV – Number of franchised and company-owned Soccer Shots outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD
- Section V – Presentation and analysis of Soccer Shots’ financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:
2019, 2020, and 2021 Q1 average gross sales for the Soccer Shots franchisees (with one, two, three, and four or more territories, respectively) who were open for at least 75% of each of the years ended December 31, 2019 and 2020, and the entirety of the quarter ended March 31, 2021 (“Reporting Franchisees”)
- 2019, 2020, and 2021 Q1 average single territory and multi-territory gross sales per Reporting Franchisee
- 2019, 2020, and 2021 Q1 average gross sales per territory
- 2019, 2020, and 2021 Q1 average single territory and multi-territory gross sales of early-stage Reporting Franchisees
- 2019, 2020, and 2021 Q1 average total registrations per single territory and multi-territory Reporting Franchisee
- 2019, 2020, and 2021 Q1 average owner’s discretionary profit/EBITDA per single territory and multi-territory Reporting Franchisee
- 2020 average income statement (gross sales, variable expenses, fixed expenses, net income, add backs, and owner’s discretionary profit/EBITDA) per single territory and multi-territory Reporting Franchisee
Section I – Background Information
16 Things You Need to Know About the Soccer Shots Franchise
Receives Investment from Susquehanna Private Capital
1. In mid-January 2022, Susquehanna Private Capital (SPC), a middle market private equity firm, announced an investment in Soccer Shots, a founder owned and operated youth soccer franchisor that provides quality and engaging training programs in partnership with childcare centers, schools, and other public locations. Terms of the transaction were not disclosed.
2. Founded in 1997 by college soccer teammates Jeremy Sorzano and Jason Webb, Soccer Shots provides children ages two through eight with developmentally appropriate soccer and character growth experiences under the guidance of childhood education specialists, professional soccer players, and certified soccer coaches.
3. Headquartered in Harrisburg, PA, Soccer Shots’ program focuses on creating premier coaching, communication, and curriculum for both children and their families. Amid heightened awareness of the benefits of exercise and enrichment experiences for children, Soccer Shots has grown to include over 140 franchise partners operating in more than 250 territories across nearly 40 states and Canada.
4. Following the transaction, Soccer Shots will continue to be led by its veteran management team, including CEO Justin Bredeman, VP of Strategic Partnerships Jason Webb, and President Kevin Stumpf. Jeremy Sorzano will serve as a senior advisor and board member.
5. Kyle Squillario, managing director at SPC, said, “Justin, Jason, and Jeremy have translated their passion for sports and mentorship to build a best-in-class franchisor that will continue to enrich and support the next generation of youth athletes, and we are thrilled to support the ongoing execution of this mission. We look forward to working with the leadership team as we expand the Company’s presence in its core areas of focus, while scaling Soccer Shots across new growth avenues and enrichment concepts.”
6. Justin Bredeman and Jason Webb commented, “We are thrilled to be partnering with SPC given their deep experience in franchising and differentiated investment approach. We are eager to leverage their substantial resources to further our mission of providing a beloved growth experience for every child and a remarkable experience for every family. Partnering with a like-minded, and local partner in SPC will help us serve over one million children by 2025 for Soccer Shots alone and many more through the launch of Stronger Youth Brands.”
7. Ken Parsons, investor at SPC, added, “Soccer Shots has established itself as a premier youth-focused franchisor with an exceptional reputation among kids, parents, educators, and coaches alike. As publicly funded youth enrichment activities continue to decline, we believe Soccer Shots is well-positioned to serve as the platform to help scale other complementary, youth concepts across the globe.”
Washington Spirit Announces Partnership with Soccer Shots
8. In late April 2021, The Washington Spirit and Soccer Shots announced the renewal of their partnership for the 2021 season as part of the Alliance Partnership Program. As part of the program, the two sides have formed the “Washington Spirit Soccer Shots Scholarship Program” to help underserved children participate in the Soccer Shots program. Between the summer and fall, 25 total scholarships were awarded.
9. Ana Mayoral, Washington Spirit adult and youth program director, said, “We are very excited about this partnership with a great program like Soccer Shots. To be able to give back to the community with this scholarship program will help grow the game in the Washington, D.C. area and is something we can be proud of.”
10. Soccer Shots has been running programs across 16 counties in the District of Columbia, Maryland, and Northern Virginia markets for more than 10 years, serving over 120,000 children and 1,600+ school partners over those years. The foundation of Soccer Shots is a relentless commitment to providing best-in-class coaching, communication, and curriculum for children ages 2-8 years old.
11. Chris Janush, vice president of operations for Soccer Shots DC/MD/VA/Nashville, added, “It’s great to have a partner like the Washington Spirit who understands the importance of providing opportunities for all children to participate in soccer. We look forward to working with the Spirit this season and are excited about our partnership.”
12. Soccer Shots was founded in 1997 by Jeremy Sorzano and Jason Webb in Charlotte, North Carolina. Sorzano and Webb were soccer teammates in college and also professionally. They developed the idea for Soccer Shots after realizing that there wasn’t a quality soccer program in the U.S. for kids under eight.
13. The first Soccer Shots was a success and Sorzano’s and Webb’s friends began asking about opening their own Soccer Shots. After a few years, Sorzano and Webb decided to start franchising Soccer Shots to meet the growing demand for the program. The first four Soccer Shots franchises were opened by Sorzano’s and Webb’s friends in Ohio, Delaware, Florida, and Pennsylvania.
14. After a few more years of growth, in 2009, Justin Bredeman, another former college soccer teammate, became the third Soccer Shots partner. Bredeman brought franchise experience with him from Auntie Anne’s, where he led a team that supported nearly 800 franchise units. His experience helped fuel Soccer Shots’ growth.
15. Today, there are Soccer Shots locations in more than 37 U.S. states and Canada.
Entrepreneur’s Franchise 500
16. Soccer Shots ranked No. 444 on Entrepreneur’s 2022 Franchise 500 list.
Section II – Estimated Costs
- Detailed estimates of Soccer Shots franchise costs, based on Item 7 of the company’s 2021 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Detailed information on Soccer Shots’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 186
- Outlets at the End of the Year: 203
- Net Change: +17
- Outlets at the Start of the Year: 203
- Outlets at the End of the Year: 243
- Net Change: +40
- Outlets at the Start of the Year: 243
- Outlets at the End of the Year: 235
- Net Change: -8
- Outlets at the Start of the Year: 9
- Outlets at the End of the Year: 9
- Net Change: 0
- Outlets at the Start of the Year: 9
- Outlets at the End of the Year: 0
- Net Change: -9
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis
- This Item 19 includes revenue information for those franchisees with one Territory (“Single Territory Franchisees”) and franchisees with more than one Franchise (“Multi-Territory Franchisees”) who were open for at least 75% of each of the years ended December 31, 2019 and 2020, and the entirety of the quarter ended March 31, 2021.
- Soccer Shots is including the financial information for:
- (a) 65 Single Territory Franchisees and 65 Multi-Territory Franchisees that operated in a total of 256 Territories during the entire 2021 First Quarter (the “2021 Reporting Franchisees”) presenting financial data in the 2021 First Quarter;
- (b) 65 Single Territory Franchisees and 68 Multi-Territory Franchisees that operated in a total of 257 Territories during the entire 2020 Calendar Year (the “2020 Reporting Franchisees”) presenting financial data in the 2020 Calendar Year; and
- (c) 49 Single Territory Franchisees and 69 Multi-Territory Franchisees that operated in a total of 245 Territories during the entire 2019 Calendar Year (the “2019 Reporting Franchisees”) presenting financial data in the 2019 Calendar Year.
- Each “Territory” described in this Item 19 consists of a population size of approximately 500,000. Some of the older Soccer Shots franchisees have single territories in excess of 500,000 people. For those franchisees, Soccer Shots has broken down their “single territory” into Territories of approximately 500,000 people making the number of Territories in this Item 19 different from the number of franchised outlets in Item 20.
Part 1 – Average Gross Sales of Reporting Franchisees with a Single Territory
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