Tennis Master Pro Shops, Inc. owns and operates tennis retail stores, known as Tennis Master Pro Shops. Each retail location markets indoor tennis instruction and custom racket fitting. Both these primary revenue streams offer high profits and minimal inventory requirements. The rackets can be custom-fitted on-site from the components. They are sold under the brand name “Tennis Master”. Tennis instruction and training are conducted by in-store staff under the direction of a USTA professional at each store.
A Tennis Master Pro Shop occupies 5,000 feet. It contains two virtual reality simulations of tennis, two swing analysis systems and four additional net combinations. A variety of brand and private label tennis merchandise is also available.
Tennis Master expects to grow from its 15 stores to a total of 380 stores in the next three-years. Ten stores will be owned by the company and the rest will be franchised. Qualified regional marketers will sell 40 Master Franchise licenses to help achieve the high growth rate targeted by this expansion plan.
Tennis Master franchise operations and company owned stores will all be included under the corporate umbrella of Tennis Master Pro Shops, Inc. The combined revenues are expected to reach $6.8 million in year 1, $14.3 million by Year 2, and $23 millions in Year 3. Profits are expected increase from $1.8 million to $5million in Year 1 and to $9.3million in Years 2 and 3. The same timeframe will see an increase in margins, from 26.7% up to 40.3%. The chart below illustrates these highlights.
Tennis Master aims to be the largest indoor retail training facility in the country. We are targeting 400 retail locations as our ultimate goal. Forty “Master Franchises” have been targeted, each with ten retail stores in a “Master Group.” Roll-out by year is as follows:
- Year 1󈝶 Master Franchises.
- Year 2–20 Master Franchises and 120 retail stores (Cumulative: 30 Master Franchises and 180 retail stores).
- Year 3’8211;10 Master Franchising and 200 Retail Stores (Cumulative, 40 Master Franchises & 380 Retail Shops).
A table to illustrate this expansion plan is included in Appendix #8220/D”.
All stores should strive to have 25% utilization of training time. All projections made in this plan are based only on 25% utilization. This level of utilization will result in highly profitable retail stores. Successful franchise sales and profitable stores are essential for the success of this plan.
Tennis Master Pro Shops, Inc. offers the highest quality indoor tennis training. By helping all levels of tennis fans play better tennis, we aim to enhance the enjoyment and enjoyment of the game. This product will be delivered by providing individual instruction in tennis fundamentals as well as individual fitting of a player’s equipment. We offer all of our products and services at times and locations convenient to our customers.
Tennis Master Pro Shops, Inc. will offer outstanding business opportunities to its franchisees. We also promise to provide the training and ongoing support that is outlined within our franchise program.
1.3 Keys for Success
Here are the keys to success for Tennis Master’s Business:
- Attainment our store expansion goals (both for company stores as well as franchise stores).
- Aim to use 25% of the training time per retail location.
- Obtaining initial capitalization.
- Execution of franchise marketing programs
- Executing a retail marketing campaign
- Converting existing stores to training/racket fitting format.
- You can pay attention to where your products are located by using the economic and tennis playing demographics.
- Control of both the franchise and company stores by management
- Management of cash flow: Maintaining the pace for franchise sales and obtaining additional investment in year 1 to support company-owned store growth.