HOW MUCH DOES A PREMIER FLOORBALL FRANCHISE COST?
A Premier Floorball Inc. franchise varies in price depending on the number of Area rights purchased. A Premier Floorball Inc. Area is defined as one or more municipal communities that comprise of a Hockey Canada sanctioned minor hockey association. To determine the size of an Area, Premier Floorball Inc.takes into account community criteria based on: player registrations from the minor hockey association(s), government census data on population and youth counts between ages 4 and 14 (where data is available).
The initial price for a single Premier Floorball Inc. franchise Area is $25,000* ($10,000* franchise fee plus $15,000* for initial start up costs).
In the case where an Area exceeds the size based on the aforementioned criteria and/or the franchisee applicant wishes to extend the initial Area to include extra adjacent communities and multiple minor hockey associations, the franchisee applicant will be required to pay an additional franchise fee is $10,000* per Area plus any additional products or services needed to support this additional Areas.
Franchisee have the option to purchase additional products and services from Premier Floorball Inc. over and above what is included in the initial franchise price. Franchisees will also require working capital to initially start their business so they can expect that the initial investment will be more than initial franchise price.
*applicable taxes are additional
WHAT ARE THERE ANNUAL COSTS ASSOCIATED WITH OWNING A PREMIER FLOORBALL FRANCHISE?
Franchisees are required to grow their club player registrations (i.e. Enrollments) each year to ensure the franchise is better positioned to sustain business growth and offset the annual fees for products/ services that are needed to operate their franchise. Mandatory annual costs such as software licensing fee, subscriptions (web hosting, domain renewals etc.) and annual training/certification fees are collected and passed through to the suppliers who provide these products & services.
The annual Floorball Canada memberships dues for players, coaches, administrators and officials are a requirement for franchisees and are dependent on the number of participants that register each year. These dues are essential for the National Sports Organization to create better training programs, update certifications and continue to develop and maintain a national teams pathway/structure for players, coaches and officials .
ARE THERE ANY ROYALTIES?
Yes. Although Premier Floorball franchises are not required to pay a percentage of their overall revenues, like conventional franchise systems, they are required to pay a preset fee on player Enrollments into clubs, tournaments, camps, ongoing floorball events as well as an administration fee for one time floorball events (clinics, workshops, parties etc.).
These Support Service fees are used by Premier Floorball Inc to help support franchisees in marketing, operations, business development as well as investing to improve the overall franchise system (See WHAT CAN I EXPECT FROM PREMIER FLOORBALL INC.?)
Additionally, an annual flat fee of $5 per player is required from each franchisee to be used towards a fund for national advertising campaigns or program developments. This is a one-time fee each year regardless of the number of times a player participates in floorball activities/games or tournaments during that year. An Advertising Committee, comprising of Premier Floorball Inc. representative and elected franchisees decide on the best use for this fund.
ARE THERE ANY ONGOING COST THAT A PREMIER FLOORBALL FRANCHISEE SHOULD BE AWARE OF?
Yes. Like any business a franchise will incur expenses to operate their clubs, tournaments, camps and other floorball activities. These expenses can be in the form of space rental fees (i.e. gym or lease rentals), equipment purchases, referee wages, convener commissions, advertising costs, general marketing campaigns, insurance, vehicle expenses, uniforms, office expenses etc. Depending on each franchisee needs, additional expenses may be needed to operate their business. Franchisee determines their own operational expenses however, in some cases, Premier Floorball Inc. may be able to negotiate bulk buying agreements with Approved Suppliers to help franchisee lower these expenses.
IS A PREMIER FLOORBALL FRANCHISEE REQUIRED TO WORK IN THE BUSINESS FULL TIME?
Yes. Each franchisee is required to grow their business annually to meet, or exceed, minimum player Enrollments (i.e. registrations into clubs). Being actively involved in a franchise increases the likelihood that the business will deliver superior quality service for players, coaches, officials as well as sustain growth.
If the franchisee can demonstrate that they can meet their performance requirements and sustain quality expectations of their volunteers or hired staff, then Premier Floorball Inc. may make an exception and permit the franchise to work part time or partake at arms length of the operations, particularly if they have multiple franchises. If, however, Enrollments are below acceptable minimums and/or the quality of operation is under performing or worse, deteriorating to the point of damaging the brand or risking closure, then the franchisee will be required to renter the daily business operations to curtail any shortfalls or issues that may jeopardize the success of their franchise.
CAN A PREMIER FLOORBALL FRANCHISE EARN EXTRA REVENUES FROM THIS BUSINESS?
While the primary source and focus of revenues for a Premier Floorball franchise is on player registration fees into club leagues, tournaments, camps etc. (i.e. Enrollments), there are a number of other floorball activities that can generate additional revenues and serve to build interest in floorball.
Floorball activities such as school programs, birthday parties, minor hockey cross training clinics and team building events are quick to set up, easy to deliver and can generate residual income to help with cash flow in between floorball club seasons. These activities also serve as a opportunity to promote floorball and direct participants to join clubs, tournaments and camps.
Additional income opportunities are also available through the resale of equipment and/or apparel. Premier Floorball Inc. arranges for franchisees to enjoy wholesale prices from Approved Suppliers whereby franchisees can sell these products at retail pricing and enjoy the financial margins.
Sponsorships are also means to extra revenues. Many local and national business are seeking advertising outlets to help build their brand, particularly at a community level where they can have a more intimate connection to their ideal target audience. Premier Floorball Inc. equip franchisees with the tools and training to acquire sponsorship income.
CAN I BE ASSURED TO MAKE AN INCOME FROM A PREMIER FLOORBALL FRANCHISE?
Unfortunately, there are no guarantees. The financial success/ loss of owning any business is primarily dependent on the input and efforts of each franchisee and secondly on the support system behind the business. Economics, community environments, competition, personnel and many other external factors can also dramatically affect any business revenues.
Premier Floorball Inc., however, does help franchisee by providing support with training, software, marketing systems, supply chains and business management tools along with a network of third party Approved Suppliers in the field of sponsorship, social media, accounting, advertising, event planning and floorball training in order to shorten the learning curve, give quick access to expertise and alleviate the personnel burden that many independent entrepreneurs experience with going in alone on a business.
Premier Floorball Inc. believes that its relationship with franchisees is one of a ‘strategic partnership’ whereby each brings their expertise together for a shared responsibility in growing the business and delivering superior quality services/products to our players, coaches, officials and administrators.
It is important that applicants consider their lifestyle needs, family responsibilities, financial resources, time, health and any other influences before committing to purchasing the rights to a Premier Floorball Inc. franchise.
WHAT CAN I EXPECT FROM PREMIER FLOORBALL INC.?
In addition to providing the initial start up (training, equipment and software set up), Premier Floorball Inc. also provides an ongoing suite of Support Services to help franchisee start, build and grow their ‘organized sport business’.
While franchisees operate in their business, Premier Floorball Inc.’s team continuously works on the business. Some of those initiatives include building better technologies, refining systems for efficiency, testing new marketing strategies, building stronger relations with national/ international governing bodies of floorball, forming strategic partnership with other National Sports Organizations, sponsoring major floorball events, developing cross promotional campaigns with community organizations/ schools, seeking out national advertisers for joint sponsorship revenues and forging new alliances with Approved Suppliers to garner better products at lower prices. We also realize that there are many youth who cannot afford to play sports, so we work closely with all our franchisees to partner in ways to give back into their communities in a charitable way.
Premier Floorball Inc. is constantly exploring better ways in serving our franchisees to help them deliver a better “floorball experience” to our players, coaches, officials and administrators. The ultimate goal for both parties is to grow, manage and sustain a viable, health business.
Premier Floorball Inc’s vision is to become the largest and most recognizable floorball organization in North America, so franchisees can expect that we will endeavor to find innovative products, services and grow strong networks that will continue to set the bar and establish new standards in the sport of floorball and in the the field of organized sports.
WHY SHOULD I BUY PREMIER FLOORBALL FRANCHISE VERSUS STARTING MY OWN CLUB?
Floorball aside, purchasing a franchise versus starting an independent business offers far more pros than cons. Buying a franchise consists of two main parts:
1. Purchasing the ready made, proven resources, tools and expertise of a business system (initial franchise fee)
2. Having access to ongoing support and a network to draw from to help mitigate risks, grow and sustain the business
The challenge with starting an independent floorball business, unlike buying a franchise, is that the owners will likely have an extended period of time (and costs) to learn about what works and what does not work in an organized sport business. Most likely, this time will drain personal time and financial resources and slow down the initial period of growth.
In purchasing a Premier Floorball Inc. franchise, business disciplines such as training (floorball, business operations, coach & referee training ), processes (recruitment, event operations), club procedures (games, safety, discipline & risk management), marketing (social media, branding, advertising collateral), software (online registrations, payment collection/ accounting, reporting, database marketing), equipment (inventory, pricing, delivery), to name but a few, all have been established and proven.
It could be possible that the initial franchise fee is less expensive than the lost time and money associated with getting over the ‘inertia’ of starting a floorball club from scratch.
Going in alone, unlike having support and expertise, is a formula for burn out in many entrepreneurs. Trying do everything by oneself to make the business grow and sustain itself is usually limiting by draining resources of time and energy. Not having a network to collaborate with about innovative ideas, new product lines, more effective marketing campaigns or smarter business practices can be harmful and stunting to an independent business.
Premier Floorball Inc. and its franchisees share responsibilities whereby each can spend appropriate time doing what each does best, for the betterment of each other and their customers.
Ongoing franchise fees acts as a means to ‘hire’ expertise/ consultants to handle the components that a franchise does not have time to do but are integral to helping develop a better, less stressful and sustainable business.
Astute entrepreneurs do more than just create a job for themselves that requires long hours. They find ways to utilize others resources and create a business that will eventually rely less on their time, maintain profitability, build brand and create a have lasting value and investment.