None of the expenses listed in the above chart are refundable, except any security deposits you must make may be refundable.  We do not finance any portion of your initial investment. 

Note 1 - Lease and Security Deposit.  The ideal size of your Club to include 8 to 16 courts should range between 25,000 and 40,000 square feet.  In most cases, the landlord will require a security and/or rental deposit.  Usually, the landlord will require you to pay the equivalent of at least one month's rent.  Rental rates or deposits on an unknown location cannot be predicted in advance.  However, the deposit will most likely depend on the size and location of the Club.  These costs will vary greatly depending on the area where the Club will be located.  This line item in the table represents a range from one month's rent to three month’s rent as a security deposit plus your first month's rent.  The low range in this table represents the least expensive deposit for the Club  and the high range represents the most expensive deposit for the Club.  In most cases, franchisees rent rather than purchase property.  This estimate assumes you will rent. If you purchase the property, your initial expenses will dramatically increase.

Note 2 - Leasehold Improvements and Architect Fees.   Leasehold Improvements and Architect Fees. When you select a site and we approve it in writing, you will contract with an architect we have approved..  The approved architect will provide you with a full set of architectural and engineering design plans that will be submitted to the city for building permits.  

The cost of construction, improvements, or building varies widely by the size of the space, the existing improvements, and local construction rates.   For example, if the electrical outlets, bathrooms, or heating/cooling have not been completed already, your costs for leasehold improvements will increase. The low end of your estimated initial investment range assumes you will receive a tenant improvement allowance from the landlord. A tenant improvement allowance is common but not guaranteed and can range between $1 and $55 per square foot. The high end of your estimated initial investment range assumes no tenant improvement allowance from the landlord.

The cost of leasehold improvements in the above table does not include expenses related to other line items in the table like "Furniture/Fixtures", "Pickleball Courts and Installation," or "Equipment and Supplies."  .  Until a specific site is located and evaluated, a reliable estimate of costs cannot be projected.  However, we strongly suggest that the leasehold improvements and architect fees fall within this range.  In some cases they may be significantly higher or lower depending on lease negotiations with local landlords. 

Note 3 – Pickleball Court Design & Installation.  The low range includes the cost of eight pickleball courts and the high range includes the cost of 16 pickleball courts including materials, installation labor, shipping and handling, insurance, engineering, and tax for the court surfacing, netting system, fencing, padding and windscreens.  These costs can fluctuate based on the square footage of each pickleball court.  You must purchase the courts and the installation from our affiliate or designated contractor.  . 

Note 4 - Furniture/Fixtures.  This range includes furniture, storage racks, lockers, kiosk, displays, slat wall,  line dividers, etc.  You must purchase these items from approved suppliers. 

Note 5 - Computer Equipment/Hardware/IT/AV.  The POS System you must purchase is described in Item 11.  You are required to purchase and install the approved POS system and audio / visual / IT system, TV monitor displays and video surveillance system. Additional computer stations and certain additional extra low voltage equipment will determine the amount of this line item, which will be based on the overall square footage of the club and number of courts. You must purchase the hardware and the installation from our affiliate or designated contractor. 

Note 6 - Equipment and Supplies. These amounts represent clocks, concession equipment and supplies, cleaning supplies and equipment, first aid equipment, filming and photography equipment, telephone system, radios and uniforms.  All of the costs assume these items are new and include any installation which is required. 

Note 7 - Grand Opening Advertising & Local Advertising.  As explained in Item 11, you must spend a minimum of $35,000 (depending on the area where your Club is located) for grand opening advertising and sales promotions around the opening of your Club.  You must spend a minimum of 50% of this expenditure before you open your Club and the remainder in the first month of your Club’s operations.  In your Club’s second, third, and fourth months of operations, you must spend at least $6,000 per month on local advertising for your Club.

Note 8 - Inventory.  These amounts represent the cost of your inventory  including apparel, pickleball paddles, various other merchandise, balls, supplies, concessions, and uniforms.

Note 9 – Travel Expenses/Pre-Opening Salaries. This amount is for transportation, lodging and meals for 2 persons attending our onboarding program and initial training program. Costs and will vary in relation to travel expenses for air fare, lodging, meals, seasonality, and the geographic area from where you are traveling.

Note 10 –  Insurance.  These amounts represent a two-month deposit of the annual premium for the required insurance.  Many insurance companies will require you to pay this amount before opening and allow you to pay the remainder in monthly payments for an additional 10 months.  Typically, the annual premiums will range from $20,000 to $40,000 depending on the size of your club. Insurance premiums are subject to increase at any time based on market conditions and certain states may have higher premiums.

Note 11 - Additional Funds – Three Months.  This item estimates your initial startup expenses during the initial period of the operation of your Club, which we estimate is three months.  These expenses include payroll, benefits, utilities, additional inventory requirements, supplies, etc., but do not include Royalty Fees and Advertising Fees and do not include an owner's salary or draw or any expenses which are listed in the above chart.  These figures are estimates, and you may have additional expenses to start the business.  These figures were based on the experience of our management team supporting the opening and operating of similar entertainment and sports facility businesses with similar real estate size and requirements, and the expenses may differ in other parts of the country.  Your costs will depend on factors like how closely you follow our methods and procedures; your management skill, experience, and business acumen; local economic conditions; the local market for your products and services; the prevailing wage rate; competition; and sales level reached during the initial period.

Note 12 - Total.  Costs and expenses can vary depending on factors like local real estate values, cost of labor and supplies.  None of the fees listed in this Item are refundable.  Your financial condition and arrangements negotiated and the business decisions made by you will also affect these costs.  You should review these figures carefully with a business advisor before making any decision to purchase the franchise.

We do not offer, either directly or indirectly, financing to you for any items.  (See Item 10 of this document.)  The availability of financing will depend upon various factors like the availability of financing generally, your credit worthiness, other security that you may have, and the requirements of lending institutions concerning the type of business to be operated by you.