The Soccer Stars Franchise: Coaching as a franchised business
Many entrepreneurs want to invest with purpose, because its easy to be passionate about putting in hard work to make a difference. It all starts in your local communities. In the past few decades, sport leagues and travel teams have grown immensely.
In many cases, they supplement or fill a void where locality resources haven’t stepped up. In other cases, they provide a more competitive landscape for young athletes to develop their skills.
Soccer Stars is on a mission to shape the lives of children through fun, dynamic sports education programs.
But before you kick off this opportunity (pun intended), it’s crucial to equip yourself with the right knowledge—and that begins with a 10,000 foot overview of Soccer Stars Franchise Disclosure Document (FDD).
WHAT IS SOCCER STARS?
The Soccer Stars franchise opportunity is all about launching a business to offer developmental sports education and physical fitness programs to children of varying ages. There are two different franchise opportunities offered by Soccer Stars: the “Core Program” or the “Plus Program”.
"CORE PROGRAM"
Soccer Stars’ Core Program provides developmental soccer training and physical fitness programs to children within the age group specified for the Program.
"PLUS PROGRAM"
Soccer Stars’ Plus Program, on the other hand, offers either travel soccer program to children within the age group specified for the Plus Program and/or a program for individuals with developmental and intellectual disabilities (which is referred to as “Shining Soccer Stars”).
Target Market
Soccer Stars operates in the highly competitive weekend, in-school, after-school physical fitness, enrichment programs, childcare services, or other similar services.
HOW MUCH CAPITAL IS NEEDED TO LAUNCH A SOCCER STARS BUSINESS?
Soccer Stars estimates the required initial investment of a Soccer Stars franchise to range anywhere from $73,300 to $106,300.
What Expenditures are included in the Initial Investment?
A detailed breakdown of the expenditures encompassed within this range can be found in Item 7 of Soccer Stars’ 2024 FDD.
What Is the Initial Franchise Fee to Be Paid to The Franchisor?
Upon signing of a franchise agreement, Soccer Stars charges a franchisee an initial franchise fee of $49,000. This amount is non-refundable and is payable in one lump sum, via cash, check or wire transfer.
Does Soccer Stars Offer Discounts to Franchisees?
Yes. the Soccer Stars franchise opportunity offers a $4,950 reduction in the initial franchise fee for franchisees who are honorably discharged veteran and/or educator.
"HONORABLY DISCHARGED VETERAN"
According to the U.S. Department of Veterans Affairs, an honorably discharged veteran is a member of the U.S. Armed Forces who has completed their service with a discharge characterized by “honorable” conditions. This means they have met or exceeded the standards of conduct and performance expected during their time of service.
Are There Other Required Initial Payments?
Yes. You are also required to purchase the following:
1. Initial supply of uniforms and marketing materials along with the “Starter Kit.”
2. Enhanced Business Coaching and Training Free
"STARTER KIT"
The Starter Kit costs approximately $2,300 to $4,300 for Soccer Stars’ Core Program and contains all of the sports and fitness equipment (including balls, goals, spot markers, cones and similar equipment) necessary for one coach to teach the Program that a franchisee will offer.
"ENHANCED BUSINESS cOACHING AND TRAINING FEE"
First time Soccer Stars franchisees are required to pay $5,500 for Soccer Stars to visit its territory to provide enhanced business coaching and training. According to Item 5 of its 2024 FDD, this fee covers a $550 fee per day per person plus reimbursement of actual travel and accommodation expenses in connection to providing such Enhanced Business Coaching and Training, and $80 per hour for each Enhanced Business Coaching and Training phone call or video conference meeting.
Payment for Enhanced Business Coaching and Training Fee is not required for those purchasing their second or subsequent Soccer Stars franchise.
THE COST TO OPERATE A SOCCER STARS FRANCHISE
A franchisee will naturally incur ongoing operating expenses for any business. The franchise relationship typically involves ongoing support and an ongoing obligation to pay certain fees to the franchisor.
DOES SOCCER STARS COLLECT ROYALTY FEES?
Yes. Soccer Stars collects royalty fees which is equivalent to the amount greater between 8% of the Gross Revenue or the minimum monthly royalty fee. This is payable to Soccer Stars every 7th of the month personally, through bank check or through electronic transfer, if required by Soccer Stars.
What Is Gross Revenue?
Gross revenue refers to all income that a franchisee derives through the operation of the franchised business before deduction for expenses (i.e. marketing expenses and taxes) are made.
What is the Minimum Monthly Royalty Fee for Soccer Stars?
The minimum monthly royalty fee depends on the type of program offered. For the Core Program, the minimum monthly fee is $700 per month while for the Plus Program, it is $800 per month.
According to Note 2 of Item 6 of Soccer Stars’ 2024 FDD, the minimum royalty fee starts only on the seventh month after the opening of the business. So, for the first 6 months, royalty fees will be equivalent to 8% of a franchisee’s gross revenue.
DOES SOCCER STARS COLLECT ADVERTISING FEES?
Yes. Soccer Stars collects two type of advertising fees: national advertising fees and local advertising expenditures. These are discussed below.
How much National Advertising Fee is Collected?
The Franchisee National Advertising Fee collected by Soccer Stars which is the greater of 1% of Gross Revenue or $200. This amount is payable every 7th day of the month.
How much Local Advertising Expenditure is Collected?
Soccer Stars requires a franchisee to spend a minimum of 1% of Gross Revenues on local advertising, marketing and promotional programs (“Local Advertising”) in a year. This is the required minimum on Local Advertising as stated in Item 6 of Soccer Stars’ 2024 FDD.
If a franchisee fails to spend the required minimum on Local Advertising in any given year, Soccer Stars may require a franchisee to contribute toward the Franchisee National Advertising Fee the difference between (a) the amount spent during the year; and (b) the required minimum on Local Advertising.
HOW MANY FRANCHISES DOES SOCCER STAR CURRENTLY HAVE?
Item 20 of the FDD discloses the total number of franchises in operation of a business. There are 5 separate tables in Item 20 that can help provide insight into the growth metrics of Soccer Stars.
According to the first table under Item 20 of its FDD, Soccer Stars has a total of 95 outlets as of December 31, 2023. These 95 outlets are composed of 85 franchised outlets and 16 company-owned outlets. Comparing these figures to 2022, Soccer Stars’ franchised outlets increased by 83 units while its company-owned outlets decreased by 3 units.
What is the Difference Between franchised Outlets and Company-Owned Outlets?
Franchised Outlets are independently owned by franchisees who pay for the right to operate their own franchise business while Company-owned Outlets are fully owned and managed by the franchisor itself.
Where Are These Outlets Located?
Soccer Stars’ franchised outlets are located in the following states: Arizona, California, Colorado, Florida, Georgia, Illinois, Kansas, Maryland, Nebraska, New Jersey, Nevada, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin.
On the other hand, Soccer Stars’ company-owned outlets are found in the following states: California, District of Columbia, Florida, Illinois, Massachusetts, New Jersey and New York.
INTERESTED IN EXPLORING A SOCCER STARS FRANCHISE OPPORTUNITY?
We are a franchise focused law firm and our franchise attorneys excel at empowering clients to make informed decisions. This post provides a brief overview and it is no substitute for obtaining personalized legal advice, or business and legal analysis. If you are serious about Soccer Stars, we encourage you to work with a financial advisor and a franchise attorney. You can schedule a free consultation with a franchise attorney today.
Meet the Author:
Christine Bontuyan is a lawyer in the Philippines based in Cebu City. She earned her Juris Doctor degree in 2020. Apart from handling civil and criminal cases in the Philippines, she also serves as a paralegal for reputable US law firms. She previously served as an elected public official in the Philippines from 2018 to 2023.
