Kids Sports Programs Franchise & Business Opportunities
Kids Sports Programs Industry
General Kids Sports Programs Industry
The youth sports industry has exploded in recent years, as more and more parents sign their children up for various athletic programs at a very early age. There is great variety in the intensity of the sports programs offered, from recreational to competitive. However, elite sports programs that promise to train youth to go professional at some level have risen in popularity, leaving behind recreational sports programs in the dust. Since 2010, the children’s sports programs have grown by 55%, making it a $15 billion market.
Children’s Programs Industry Trends
In general, rising interest in early childhood education thanks to studies that have revealed their benefit to childhood development has led to significant growth in the industry. However, the COVID-19 pandemic and government mandated non-essential business shutdowns have led many operations within this industry to close their doors. Some have transitioned to online platforms and have survived this way, but participation in these types of programs have declined either way. As academics become increasingly competitive and more parents seek prestigious higher education for their children, it is likely that this industry will remain a strong contender.
Key Children’s Program Industry Numbers
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Paid-in-Full Rate
The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.
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Charged Off Rate
The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.
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SBA Loan Success Ratio
For every 12 SBA loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
-SBA Loan Data from 2010-2019
-Non-Franchise Businesses taken into account: 11,769
Kids Sports Programs Industry Trends
Although sports programs for children have existed for a while, they were primarily based at the local level. However, increases in disposable income and the growth of the middle class have led to higher participation in some form of competitive sports, paving the way for the privatization of the youth sports industry. Many former professional athletes themselves have invested in this industry. Furthermore, private sports clubs have capitalized on skyrocketing demand by charging hefty fees — families have proven willing to devote tremendous amounts of time and money for athletic programs for their children. Another factor in this rapid growth is increasingly competitive college admissions, as being skilled in a sport can provide an edge to applicants.
Average Children’s Programs Franchise Industry Percentage Fees
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Royalty Fee
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Marketing Fee
Standard Children’s Programs Franchise Industry Investment
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K
This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 65 franchise concept investment breakdowns in order to calculate this figure.
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%
Paid-in-Full Rate
The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.
0
%
Charged Off Rate
The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.
0
:1
SBA Loan Success Ratio
For every 14 SBA franchise loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
-SBA Loan Data from 2010-2019
-Franchise Businesses taken into account: 2,411
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