The Financial Side of Franchising

So you’re considering purchasing a franchise? While the idea of running your own football business is exciting, it’s crucial to understand the financial side of franchising before you dive in. From initial investments to ongoing costs and potential revenue streams, this article will guide you through the key financial aspects of franchising with Leisure Leagues. Whether you’re assessing your budget, exploring financing options, or looking at the return on investment, this guide will help you make informed decisions and set you on the path to success.

The Initial Investment

When purchasing any franchise, the first thing to look at is the initial purchase fee. This can range from a few thousand pounds to hundreds of thousands of pounds. That is what makes the financial side of franchising with the Leisure Leagues model so unique – our franchises are available at the bottom end of the purchase chart, but can soon be turning over seven-digit figures in a 12 month period.

The initial investment for your own Leisure Leagues franchise is £5,995 plus VAT. This one off fee covers you for a five year term, with no hidden costs throughout that time. You and you alone have the exclusive rights to run Leisure Leagues football competition in the area you have chosen.

Included within this fee you will also receive the ‘New Partner Package’, an equipment package that includes everything you could need to run a successful football league. This doesn’t only cover the league itself with your footballs, bibs and cones, but also provides you with all of the promotional materials needed to let the locals know about the brand new league coming to town! From large banners to put up at the league, to flyers and posters to put up in the local chippy, we’ve got you covered.

Ongoing Fees & Costs

Once you’ve purchased your franchise, you next need to look at what other costs come from running a business of your own. Most new business set ups need to consider the cost of building and running a website, the cost of premises and to ensure they and their customers are insured when using their product/service.

The beauty of owning a Leisure Leagues franchise is that you don’t need to purchase your own facilities – in fact we are the largest hirer of sports facilities in the UK! You hire out the pitch for the time you need for your league, meaning if a bigger and better venue is being built across the road, you can move your league there and always provide the best playing experience for you teams. 

With Leisure Leagues, we take care of everything else for you through our management fees. Paying £4 per team per week, this covers you for your website (both front end and back end), hosting your player, referee and venue database, covering you with our public liability insurance worth up to £5 million at any site that you run at, and the support of our industry leading experts at Head Office.

The only other cost to consider is paying your match night staff. This is your referees and your match night supervisors, who oversee the night to ensure your league runs smoothly and all players have a fantastic night of football.

Making Money

So let’s get to the most important part – making you money. When purchasing a franchise, you need to ensure it has a proven track record, is scalable and will work around the lifestyle that you want to make you the money that you want.

You make money from your Leisure Leagues franchise by charging teams match fees – the average UK match fee in 2024 is £35 per team per week. The more teams you have playing across your leagues, the more money you make.

That means if you have ten teams playing in your league each week, you will be making £350 gross profit every week. From that, deduct your pitch hire cost, referee staff costs and management fees and you have a weekly profit of £170. Run that every week for fifty weeks of the year and you will make a profit of £8,500.

Remember – with a Leisure Leagues franchise there is no limit to the amount of teams you can have, the amount of nights you can run or the amount of leagues that you operate – it really is limitless earning potential.

Break Even Analysis

The average time it takes to break even from a franchise created in the UK is widely believed to be between 18 months to two years. Well at this point it’s worth mentioning that 98% of Leisure Leagues franchisees break even within their first 12 months of trading, with many breaking even well before then.

The healthy mixture of low investment, excellent training and support, and an industry that is deep rooted into a sport that we as a nation adore, means that you can expect to make a return on your initial investment within the first year of your business operating.  

So when it comes to the financial side of franchising, we are confident we have all of tools, resources and support to make your business work for you, around you. 

Want to find out where your nearest available area is? Visit https://leisureleaguesfranchise.net/

See what our franchisees say about franchising with Leisure Leagues! Visit https://www.facebook.com/profile.php?id=61561140621606&sk=reviews 

Categorised in: News

This post was written by Jon D'Arcy