Pickleball is one of the fastest-growing sports—and potentially the fastest-growing sport—in the United States. According to a report the Sports Business Journal published last year, “In terms of overall growth, 13.6 million people played pickleball in 2023, which contributed to a survey-leading 223.5% growth rate over the past three years.” As pickleball continues to grow in popularity, pickleball franchises are popping up with increasing frequency as well. What do you need to know about buying a pickleball franchise? New York franchise attorney Jeffrey M. Goldstein explains.
7 Important Facts About Buying a Pickleball Franchise
While pickleball is a unique sport that is enjoying a surge in popularity across a wide range of age groups, buying a pickleball franchise is fundamentally no different from investing in any other franchise opportunity. Informed decision-making is crucial, and before committing to moving forward, you must ensure that you are confident in your ability to build a sustainable business over the next two to three years. This is the typical length of a franchise’s “term,” and if your franchise is struggling at the end of the initial term (or if you don’t make it this far), you may not be able to recoup your investment.
With this in mind, here are seven important facts about buying a pickleball franchise:
1. Not All Pickleball Franchises (or Franchisors) Are Alike
Every pickleball franchise will have unique aspects. While the game may never change, each franchisor’s branding, system, and overall value proposition will be unique. Each franchisor’s experience—both within franchising and in the pickleball space—will be unique as well. As a prospective franchisee, you need to conduct thorough research and make an informed decision about which specific concept (or concepts) you wish to investigate further.
2. Comprehensive Due Diligence is Key
With this in mind, comprehensive due diligence is key. Once you have a short list of potential franchise opportunities, you need to thoroughly research each one to determine whether it is viable for you. You should not be emotionally committed to a particular brand or concept at this stage. You need to make an unbiased decision based on your prospects for success, and if a particular brand or concept doesn’t offer everything you need, you should write it off.
How can you conduct comprehensive due diligence for a pickleball franchise? Talking to current and former franchisees is a good first step. As discussed below, you will want to attend a discovery day as well. Buying a franchise is a major investment, so it is well worth putting in the time and effort to ensure that you are not overlooking any pertinent considerations.
3. You Need to Set Aside Time to Read the FDD and Franchise Agreement
If you express interest in a pickleball franchise opportunity and the franchisor considers you to be a viable candidate, it will provide you with a copy of its Franchise Disclosure Document (FDD) and franchise agreement—at which point you should be asked to sign the receipt page of the FDD. Once you receive these documents, you need to set aside some time to read both of them in detail.
You should have them reviewed by a New York franchise attorney as well, as an experienced attorney will be able to glean insights that you won’t be able to identify on your own. But you will be able to obtain a lot of important information from both of these documents, and if you decide to move forward, the franchise agreement will govern all aspects of your franchise opportunity.
4. You Need to Attend a Discovery Day
Once you get closer to making a final decision, you will want to schedule a discovery day with your chosen franchisor. This is a day—or couple of days—that you will spend on-site at the franchisor’s headquarters. You will have the opportunity to meet with the franchisor’s executives, learn more about the system, and potentially visit a local franchised or company-owned location. Meeting with the franchisor’s personnel in person and having the opportunity to ask as many questions as you want to ask is critical for ensuring that you are making an informed investment decision.
5. You May Need to Negotiate Your Franchise Agreement
If you decide to move forward, you will need to sign the franchise agreement. But, before you sign, you may also need to negotiate. Franchise agreements are almost always heavily one-sided in favor of the franchisor. While franchise salespeople often claim that the franchise agreement is offered on a take-it-or-leave-it basis, good franchisors will be willing to consider reasonable concessions.
6. It Is Up to You to Build a Sustainable Business
When doing your due diligence, it is important not to lose sight of the fact that it is up to you to build a sustainable business. While you should be able to rely on the franchisor’s support when it comes to basic operational matters, you are responsible for your own success. If you are not confident in your ability to build a sustainable business under the brand for any reason, you should carefully consider whether moving forward is the right choice for you.
7. Once You Sign a Franchise Agreement, You’re Committed
Finally, while you may be excited about moving forward (and while the franchisor’s salespeople may pressure you to “lock in” your franchise), it is important to keep in mind that once you sign a franchise agreement, you are committed. From the moment you sign, you are obligated to comply with your franchise agreement—including paying all fees and opening by the stipulated deadline. If you don’t open on time, you could lose not only your franchise opportunity but also your initial investment.
Request a Free Consultation with New York Franchise Attorney Jeffrey M. Goldstein
Are you thinking about buying a pickleball franchise? If so, we invite you to get in touch. To discuss your franchise opportunity with New York franchise attorney Jeffrey M. Goldstein in confidence, please call 202-293-3947 or request a free consultation online today.
