Franchise Directory

Play It Again Sports

Retail - Sporting Goods

82

Excellent

For franchise investors navigating the dynamic retail landscape, the challenge often lies in identifying a brand that not only addresses a significant consumer problem but also offers a robust, proven business model with strong financial performance. Play It Again Sports, a prominent retail franchise specializing in the buying, selling, and trading of new and gently used sporting goods and fitness equipment across North America, directly solves the consumer dilemma of high equipment costs and the rapid outgrowing of gear, particularly for children. The brand's compelling journey began in 1983, when Martha Morris founded the initial concept in Minneapolis, Minnesota, establishing it as a consignment store for used sports equipment, a revolutionary approach at the time. This innovative concept quickly gained substantial traction, leading Morris to commence franchising the business in 1988, just five years after its inception. A pivotal moment occurred in 1990 when K. Jeffrey Dalhberg and Ronal G. Olson acquired Play It Again Sports from Morris, an acquisition that subsequently led to the formation of what is now known as Winmark Corporation, officially renamed from Grow Biz in 2001. Today, Play It Again Sports operates as a cornerstone brand under the umbrella of Winmark Corporation, a recognized leader in the "ultra-high-value" retailing niche, with its headquarters centrally located at 605 Hwy. 169 N., #400, Minneapolis, MN 55441, and Shannon Hoppe serving as the VP of Franchise Development. The brand has established a significant and expanding footprint across North America, currently boasting 326 total franchised units, with no company-owned stores, signifying a fully franchised operational model. This expansive network includes over 290 locations across the U.S. and Canada, with specific reports indicating nearly 300 locations across both countries, including 294 U.S. franchises and a projection of 302 total franchised units by 2025. The brand's growth trajectory is underscored by its early expansion, with 134 franchise stores open in 41 states and Canada by 1991, further escalating to 410 stores by 2005, positioning Play It Again Sports among the largest sporting goods chains in the United States. This substantial scale and established market presence, combined with its unique buy-sell-trade model, positions Play It Again Sports as a critical player in the $45 billion sporting goods retail market and the broader $24+ billion resale industry, offering an accessible and sustainable solution to consumer needs while presenting a compelling franchise opportunity for prospective investors. The industry landscape in which Play It Again Sports operates presents a compelling narrative of both evolution and opportunity, underpinned by significant market valuations and shifting consumer behaviors. The overarching sporting goods retail market commands a substantial valuation of $45 billion, with the U.S. segment alone witnessing sales of sporting goods equipment, fitness equipment, and sporting goods footwear exceeding $92 billion in 2021, demonstrating the sheer scale of consumer engagement in sports and fitness. Complementing this, the broader resale industry, a crucial segment for Play It Again Sports' distinctive model, is valued at over $24 billion and is projected for continued robust growth, reflecting a sustained consumer appetite for value and sustainability. While the Sporting Goods Stores industry in the U.S. experienced an annualized decline of 2.6% between 2015 and 2020, this trend is poised for a reversal, with projections indicating an annualized growth rate of 1.2% through 2025. This anticipated growth is not merely a statistical rebound but is fundamentally driven by powerful secular tailwinds, including increasing disposable income levels among consumers and a burgeoning rise in health-conscious lifestyles across demographic segments. These factors are expected to translate into an estimated 1.5% annual increase in overall sports participation, directly fueling demand for sporting goods. A key consumer trend benefiting Play It Again Sports specifically is the persistent demand for affordable sports equipment, a necessity particularly for families with children who rapidly outgrow their gear, creating a continuous cycle of need for cost-effective solutions. Furthermore, the brand's innovative buy-sell-trade model inherently promotes sustainability through the reuse of quality sports equipment, aligning perfectly with growing environmental consciousness and offering accessible prices in an era of economic prudence. The agility of the market was also demonstrated during Q3 2020, when sales of home workout equipment doubled compared to Q3 2019, with cardio equipment showing a significant uptick, signaling a robust and adaptable market responsive to trends like home fitness, all of which Play It Again Sports is uniquely positioned to capitalize on. Investing in a Play It Again Sports franchise involves a transparent financial commitment, starting with an initial franchise fee of $25,000, a figure that provides access to a well-established brand and proven business system within the retail sector. The total initial investment required to open a Play It Again Sports store demonstrates a considered range, with figures from the database indicating an investment between $343,000 and $457,000. This range is further elaborated by various reports, including $268,300 to $391,300, $251,300 to $378,200 for U.S. locations, and Can$ 317,700 to Can$ 478,200 for Canadian units, alongside other reported ranges of $314,300 to $420,800, $343,050 to $456,500, and $282,900 to $393,900 based on the 2022 FDD. These variations typically account for differences in market conditions, leasehold improvements, and local build-out costs. A detailed breakdown of these costs reveals significant components: fixtures and supplies are estimated between $40,000 and $52,000, while signs range from $11,000 to $16,000. Essential operational systems include a security system costing $1,500 to $4,000 and a Point-of-Sale (POS) system requiring $18,050 to $22,000. Site-specific expenses encompass leasehold improvements from $7,000 to $12,000 and build-out costs ranging from $35,000 to $55,000. Administrative and initial operational outlays include deposits and business licenses at $8,000 to $18,000, a substantial opening inventory investment of $100,000 to $120,000, and miscellaneous pre-opening expenses from $40,000 to $50,000. Additionally, franchisees must allocate $17,500 to $27,500 for the first three months' rent and account for $40,000 to $50,000 in additional funds to cover initial operating expenses during this critical period. Beyond the initial investment, franchisees are subject to ongoing fees, including a consistent royalty rate of 5.00% of gross sales. An advertising or national brand fund fee is also in place, structured as $1,500 per year plus 5% to 7% of gross sales, with another source indicating an ad royalty fee of $1,000 per year, capped at 5% of gross sales or a minimum of 5% when combined with cooperative advertising expenses. Should Winmark impose an audit, franchisees may incur an audit fee of up to 2% of gross sales. The liquid capital required for a Play It Again Sports franchise is $105,000, with other reports suggesting $75,000 or $150,000-$200,000, and a net-worth requirement of $400,000, though some reports indicate $350,000, positioning this as a mid-tier franchise investment backed by the stability and expertise of Winmark Corporation. The operating model for a Play It Again Sports franchisee is centered around the efficient execution of the buy, sell, and trade process for new and gently used sporting goods and fitness equipment, requiring a hands-on approach to inventory management and customer engagement. Franchisees are expected to manage daily store operations, ensuring a consistent supply of quality used equipment while also stocking new items to meet diverse consumer demands. The staffing requirements are designed to support this hybrid retail model, focusing on knowledgeable personnel who can assess equipment value, provide excellent customer service, and manage sales transactions effectively. While specific format options like drive-thru or kiosk are not applicable to this traditional retail model, the emphasis is on optimizing the in-store experience. New Play It Again Sports franchisees undergo a comprehensive three-part training program, meticulously designed to equip them with all necessary skills. The initial phase, "Resale University 101 Training," is a four-day session conducted at the Minneapolis headquarters, covering the foundational aspects of setting up and opening a retail business, and includes an online financial management course delivered by a third-party vendor. Following this, and after securing financing and executing a lease, franchisees attend "Resale University 201 Training," an intensive session lasting at least five days, which delves deeper into critical operational areas such as sales strategies, customer service excellence, effective marketing and advertising techniques, computer system operation, detailed store inventory management, and robust staff and financial management. The final phase, "In-store Training," provides at least two days of practical, hands-on experience at an operational Play It Again Sports store selected by the franchisor, allowing new owners to apply their learned knowledge in a real-world setting. Successful completion of all three training sessions is a mandatory prerequisite before a franchisee is permitted to open their store, ensuring a consistent standard of operational readiness. Beyond the initial training, new store owners benefit from periodic training visits during their crucial first year, and additional training programs are strategically provided when beneficial to a significant number of franchisees, ensuring continuous development and adaptation. The franchisor provides robust ongoing support, encompassing advanced inventory management systems, proven marketing strategies, and operational best practices, all designed to maximize franchisee success. Franchisees also benefit significantly from Winmark Corporation's decades of retail expertise and a proven business system, which underpins the brand's consistent performance. Territory protection is a fundamental aspect of the Play It Again Sports franchise model, recognized as crucial for optimal performance, with ideal markets identified as those boasting active sports communities and sufficient population density to sustain the business, suggesting an owner-operator model is central to success. The financial performance of Play It Again Sports franchises is robust and transparently disclosed, with Item 19 data available in the Franchise Disclosure Document, providing prospective investors with critical insights into potential unit-level economics. The average revenue for a Play It Again Sports franchise is $991,890, indicating a strong baseline performance across the network. Further analysis from 2022 data highlights the significant earning potential, with the top quartile of stores achieving an impressive average gross sales of $1,186,825 and an average gross profit of $632,089. Another source corroborates this strong performance, citing an average gross revenue of $1,186,546 for the top quartile. The network's growth trajectory is also evident in its average unit volume (AUV), which in 2020 grew by a substantial 13% over 2019 figures, reaching $921,510, demonstrating resilience and market demand even during challenging periods. Franchisees within the top quartile experienced an even more significant increase, with their average gross sales rising by 18% in 2020, reaching $1,701,930, underscoring the potential for high-performing units. Based on the 2025 FDD, which utilized data from 276 stores in operation for at least one year as of December 30, 2024, 39% of stores met or exceeded the average gross sales, and 38% met or exceeded the average gross profit, indicating a significant portion of the network is performing at or above the system average. This consistency suggests that the Play It Again Sports model is replicable and offers substantial earning potential when executed effectively. Historical average gross sales further illustrate a steady upward trend, from $581,590 in 2002 to $685,672 in 2006, $733,299 in 2010, and $769,008 in 2014, reflecting consistent growth over more than a decade. Company-wide, the estimated annual revenue for Play It Again Sports is a substantial $376.3 million per year, with an estimated revenue per employee of $351,400, showcasing operational efficiency and strong revenue generation at the corporate level. The brand's FPI Score of 82, categorized as "Excellent," further validates its strong financial health and operational performance, positioning Play It Again Sports as a highly attractive franchise opportunity with a proven track record of profitability and robust unit economics. The growth trajectory of Play It Again Sports illustrates a consistent and strategic expansion across North America, cementing its position as a dominant force in the resale sporting goods market. From its initial 134 franchise stores operating in 41 states and Canada by 1991, the brand expanded significantly to 410 stores by 2005, demonstrating a robust scaling capability over a decade. Currently, the brand maintains a strong presence with 326 total franchised units, indicating a stable and mature network, with projections for 302 total franchised units in 2025 further highlighting continued development. The parent company, Winmark Corporation, showcased even broader international ambitions earlier, with 965 stores open by the end of 1995 across all its brands, including 57 in Canada, eight in Europe, and one in Australia, underscoring a foundational expertise in multi-national retail operations that benefits Play It Again Sports. A significant competitive moat for Play It Again Sports is its unique buy-sell-trade model, which not only provides a distinct value proposition to consumers seeking affordable sports equipment but also champions sustainability through reuse, a powerful differentiator in today's environmentally conscious market. This model directly addresses the consumer demand for quality sports equipment at accessible prices, particularly crucial for families with growing children who frequently require new gear. The brand's consistent recognition in Entrepreneur Magazine's top Franchise 500 list since 2013 further solidifies its strong brand recognition and established market authority. Play It Again Sports benefits from Winmark Corporation's deep expertise in the "ultra-high-value" retailing niche, leveraging decades of experience and a proven business system to maintain its competitive edge. The brand is adeptly adapting to current market conditions, as evidenced by its ability to capitalize on the surge in home fitness, with sales of home workout equipment doubling in Q3 2020 compared to Q3 2019, and cardio equipment experiencing a significant uptick. This responsiveness to consumer trends, combined with its established operational framework and strong brand equity, ensures Play It Again Sports remains a resilient and growing franchise opportunity. The ideal Play It Again Sports franchisee is an individual with a strong entrepreneurial spirit, a commitment to community engagement, and a foundational understanding of retail operations, though specific industry knowledge in sporting goods is not explicitly stated as a prerequisite, given the comprehensive training provided. Prospective franchisees should possess strong management skills, as they will be responsible for overseeing daily store operations, inventory management, and staff development within their local market. The intensive three-part training program, which includes Resale University 101, Resale University 201, and practical in-store training, mandates a dedication to learning and applying the brand's proven business system. This structured training, along with ongoing corporate support, implies an owner-operator model where active involvement in the business is expected for optimal performance. While multi-unit ownership is not specifically detailed, the brand's extensive growth and established presence across North America suggest potential opportunities for expansion for successful single-unit operators. Available territories are strategically identified based on local market dynamics, with ideal markets characterized by active sports communities and sufficient population density to ensure a robust customer base for the buy-sell-trade model. The focus on territory protection underscores the importance of a well-defined market for each franchisee, allowing them to cultivate strong local relationships and maximize their operational footprint. The timeline from signing the franchise agreement to the grand opening of a Play It Again Sports store is guided by the structured training and setup process, ensuring that franchisees are fully prepared before launching their business. For discerning investors evaluating a franchise opportunity that combines a proven business model with strong market relevance, Play It Again Sports presents a compelling investment thesis. The brand effectively addresses a persistent consumer need for affordable, sustainable sporting goods and fitness equipment, operating within a $45 billion sporting goods retail market that is projected to grow by 1.2% annually through 2025, driven by increasing disposable income and a 1.5% annual rise in sports participation. With an initial franchise fee of $25,000 and a total initial investment ranging from $343,000 to $457,000, supported by a liquid capital requirement of $105,000 and a net worth requirement of $400,000, the financial entry point is accessible for many qualified entrepreneurs. The robust financial performance, highlighted by an average unit revenue of $991,890 and top-quartile average gross sales of $1,186,825 in 2022, coupled with an "Excellent" FPI Score of 82, demonstrates the strong earning potential and stability of the Play It Again Sports franchise. The comprehensive three-part training program and ongoing support from Winmark Corporation, a leader in "ultra-high-value" retailing, provide franchisees with the tools and expertise needed for success. PeerSense provides exclusive due diligence data including SBA lending history, FPI score, location maps with Google ratings, FDD financial data, and side-by-side comparison tools, offering an unparalleled depth of independent analysis for your investment decision. Explore the complete Play It Again Sports franchise profile on PeerSense to access the full suite of independent franchise intelligence data.