PickleRage is a relatively new franchise in the rapidly expanding pickleball industry, having been founded and started franchising in 2023. Here’s a review based on available information:
Key Aspects of the PickleRage Franchise:
- Focus on Indoor Pickleball: PickleRage specializes in indoor pickleball facilities, offering state-of-the-art courts with features like superior flooring (CushionX courts, similar to those used in the U.S. Open), excellent lighting, and professional-grade amenities. This allows for year-round play, regardless of weather.
- Membership Model: They primarily operate on a membership model, offering flexible options and perks like free court reservations, guest passes, tournaments, leagues, clinics, and lessons. This aims to create recurring revenue and foster a strong community.
- Community Building: PickleRage emphasizes creating an inclusive and welcoming environment for players of all skill levels, with a focus on professional instruction, introductory courses, and regular social events.
- Technology Integration: They leverage advanced reservation systems and even offer built-in video recording and live-streaming capabilities on their courts. Their automated operational model is designed to minimize staffing needs and labor costs for franchisees.
- Strong Leadership & Support: The company highlights its leadership team, which comprises professionals with extensive experience in commercial real estate, operations, marketing, and franchising. They offer comprehensive support to franchisees, including real estate assistance, training, marketing guidance, and ongoing operational support.
- Growth Potential: Pickleball is widely recognized as the fastest-growing sport in the US, and PickleRage is actively expanding, with plans for hundreds of new locations in the coming years.
Financial Aspects (Estimates – always verify with the FDD): - Initial Investment: The estimated initial investment for a single-unit PickleRage franchise generally ranges from $600,000 to $1,803,200, depending on factors like location, facility size, and customization.
- Franchise Fee: The initial franchise fee for a single-unit agreement is around $55,000.
- Ongoing Fees:
- Royalty Fee: Typically 7% of gross revenues.
- Local Marketing Expenditure: 2% of gross revenues or $2,000/month (whichever is greater).
- Brand Marketing Fund Contribution: 1% of gross revenues.
- Average Gross Revenue: One source suggests an average gross revenue of $451,891, though individual results will vary.
- Potential Income: While specific income guarantees are not provided, some projections from the franchisor suggest a targeted Internal Rate of Return (IRR) of 21% to 25% within a 3-5 year hold period for corporate-owned stores.
Potential Positives for Franchisees: - Booming Industry: Capitalizing on the explosive growth of pickleball.
- Turnkey Solution: Comprehensive training, support, and a proven business model aim to simplify the process for new owners.
- Experienced Leadership: The backing of professionals with real estate and franchising expertise can be a significant advantage, especially in site selection and negotiation.
- Automated Operations: Designed to streamline management and potentially reduce labor costs.
- Protected Territory: Franchisees are typically granted a protected territory to grow their business.
Considerations and Potential Concerns: - Newer Franchise: As a relatively young franchise (founded in 2023), there might be less historical data and fewer long-term franchisee testimonials compared to more established brands. One older Reddit thread from March 2024 (referencing the 2024 FDD) noted that the corporate entity appeared “undercapitalized” and was “burning through limited cash,” suggesting that, like many early-stage franchises, it relies on funds from investors or franchisees to grow. This is not uncommon, but prospective franchisees should perform thorough due diligence.
- High Initial Investment: The investment range is substantial, requiring significant capital.
- Competitive Market: While pickleball is growing, competition from other indoor pickleball clubs and recreational facilities is also increasing.
- Profitability Varies: As with any business, profitability is not guaranteed and depends on various factors, including location, management, and market conditions. The “average gross revenue” is just an average, and individual results can differ greatly.
Overall:
PickleRage appears to be a well-positioned franchise looking to capitalize on the pickleball craze. They offer a comprehensive support system, state-of-the-art facilities, and a membership-driven model. However, as a newer franchise, thorough due diligence is crucial. Prospective franchisees should carefully review the Franchise Disclosure Document (FDD), speak with existing franchisees (if possible), and conduct their own market research to assess the viability and potential return on investment. - let’s see
