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Franchisee Economics Pack
Complete Financial Analysis & ROI Overview
Investment Summary
Comprehensive breakdown of initial investment and expected returns
$850K - $1.2M
Total Investment
Including franchise fee
$75K
Franchise Fee
One-time payment
18-24
Payback (Months)
Base case scenario
35-45%
5-Year ROI
Conservative estimate
Initial Investment Breakdown
Franchise Fee$75,000 - $75,000
Real Estate & Lease Deposits$50,000 - $80,000
Leasehold Improvements & Build-Out$400,000 - $600,000
Padel Courts (2-3 courts)$120,000 - $180,000
Pilates Equipment & Studio Setup$60,000 - $90,000
Contrast Therapy & Recovery Equipment$80,000 - $120,000
Technology & Software Systems$15,000 - $25,000
Initial Inventory & Supplies$10,000 - $15,000
Marketing & Pre-Opening$25,000 - $40,000
Working Capital (3 months)$75,000 - $100,000
Total Investment Range$910,000 - $1,325,000
Revenue Projections (5-Year)
Base case scenario with conservative growth assumptions
Year 1
350 members
Revenue
$630K
Expenses
$490K
Net Income
$140K
Margin
22%
Year 2
525 members
Revenue
$945K
Expenses
$650K
Net Income
$295K
Margin
31%
Year 3
675 members
Revenue
$1.22M
Expenses
$790K
Net Income
$430K
Margin
35%
Year 4
800 members
Revenue
$1.44M
Expenses
$910K
Net Income
$530K
Margin
37%
Year 5
925 members
Revenue
$1.67M
Expenses
$1.03M
Net Income
$640K
Margin
38%
5-Year Cumulative Net Income
$2.04M
Based on $1M initial investment, delivers 40% ROI over 5 years
Revenue Mix & Diversification
Membership Dues
55%
Monthly recurring revenue from all-access and category-specific memberships
Court Bookings (Non-Members)
18%
Hourly padel court rentals, open play sessions, clinics
Personal Training & Instruction
12%
Private and small group training for padel, Pilates, and reformer
Recovery Services (Add-Ons)
8%
Contrast therapy, sauna, cold plunge sessions for non-unlimited members
Retail & Pro Shop
5%
Padel equipment, apparel, accessories, nutritional products
Events & Corporate Partnerships
2%
Corporate bookings, tournaments, league play, special events
Operating Margin Analysis
Expense Breakdown (Stabilized Operations)
Labor (Instructors, Staff, Management)32%
Rent & Occupancy Costs18%
Utilities & Facility Operations8%
Marketing & Member Acquisition6%
Technology & Software3%
Equipment Maintenance & Supplies4%
Insurance & Administrative4%
Royalty & Brand Fund (8%)8%
Target Operating Margin35-38%
Key Performance Indicators
Average Revenue Per Member
$180/month
All-access memberships + add-ons
Member Retention Rate
82%
Annual retention (Year 2+)
Break-Even Point
280-320 members
Typically achieved in months 8-12
Court Utilization Target
65-75%
Prime hours (6am-10pm)
Average Class Size
8-12 participants
Pilates & group training
Corporate Partnership Revenue
$4-8K/month
Year 2+ opportunity
Ready to Dive Deeper?
This Economics Pack provides a comprehensive overview, but we customize every analysis to your specific market, site, and investment parameters. Schedule a call with our franchise development team to receive your personalized financial model.