Tennis Master Pro Shops, Inc. manages retail tennis shops known as Tennis Master Pro Shops. Each retail location offers indoor tennis instruction as well as custom racket fitting. Both these primary revenue streams offer high profits and minimal inventory requirements. Custom-made rackets made from components are produced on-site and are sold under ‘Tennis Master’ brand. In-store instruction and training in tennis are provided by a USTA professional at every 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 projects a 33% increase in its existing 15 stores to an aggregate total of 382, over the next three seasons. Ten stores will remain company-owned, while the rest will be franchised. Forty “Master Franchise” licenses will be sold to qualified regional marketers in order to achieve the high rate of growth targeted by this expansion plan.
Tennis Master franchises, as well as company-owned stores, will all fall under the corporate umbrella Tennis Master Pro Shops, Inc. Combined revenues are forecast to be $6.8 million in Year 1, $14.3 million in Year 2, and $23 million in Year 3. Profits will be $1.8million in Year 1. They will rise to $5 million by Year 2 and then reach $9.3million by Year 3. Also, the margins will grow from 26.7%-40.3% over that same period. These highlights of the over-all plan are illustrated in the chart below:
1.1 Objectives
Tennis Master’s goal is to become the nation’s largest indoor training facility. Our ultimate goal for the company is 400 retail stores. Our ultimate goal is to reach 400 retail locations. We have 40 Master Franchises. Each Master Franchise includes ten retail shops.
- Year 1–10 Master Franchises and 60 retail stores.
- Year 2–,20 Master franchises and 120 retail shops (Cumulative : 30 Master franchises and 180 retail outlets).
- Year 3󈝶 Master Franchises with 200 retail shops (Cumulative 40 Master Franchises with 380 retail outlets).
This table illustrates the expansion plan. It is found in Appendix “D” (Note: this appendix is customer-included and is not part a standard business plan).
Every store must achieve 25% training time utilization as its overall retail goal. The projections are based upon 25% utilization. High-profit retail stores will only be possible if this level is reached. Successful franchise sales and profitable stores are essential for the success of this plan.
1.2 Mission
Tennis Master Pro Shops, Inc. provides the best indoor tennis instruction. 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 via individual instruction and the fitting of an individual tennis player’s equipment. We provide all of our services and products at convenient times and locations.
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 To Success
The keys to success in Tennis Master’s business are:
- Attainment (both company and franchise store) of our store growth goals
- Minimum 25% utilization of training time at each retail location.
- Obtaining initial capitalization.
- Execution a franchise marketing campaign.
- Implementing a retail marketing program.
- Conversion existing stores to racket or training format.
- Careful attention to store locations by using economic and tennis playing demographics.
- Both the company and franchise stores are under management.
- Cash flow management.