How to Finance a Play It Again Sports Franchise: Trade-In Gear
By Chris Cornella
A Play It Again Sports franchise loan finances a sporting goods store with two supply lines. Customers sell their used bats, skates, golf clubs and fitness equipment to the store for cash, while new merchandise arrives from vendors. That blend makes inventory the biggest line in the budget and shapes how lenders look at working capital, collateral and seasonality.
US Professional Funding is not affiliated with, sponsored by or endorsed by Play It Again Sports or its franchisor, Winmark Corporation; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice.
Play It Again Sports Franchise Loan at a Glance
- Initial franchise fee: $25,000, according to the 2026 Franchise Disclosure Document; an additional U.S. store is $15,000, according to the company’s annual report.
- Estimated initial investment: $346,300 to $459,700.
- Net worth: $400,000.
- Liquid capital: $90,000 to $105,000 in non-borrowed personal resources; Winmark’s FAQ describes this as at least 30% of the investment.
- Store size: 3,500 to 4,000 square feet.
- Ongoing fees: royalties generally 4% to 5% of gross sales, a $1,500 annual marketing fee and an advertising spend of 5% of gross sales, according to the company’s annual report.
- Franchise term: 10 years, with 10-year renewal periods.
- System size: 309 franchised stores at December 27, 2025, according to the company’s annual report.
- SBA Franchise Directory: listed as Play It Again Sports under code S1328, with no additional note.
What Is Play It Again Sports?
Play It Again Sports buys, sells and trades gently used and new sporting goods, equipment and accessories. A family whose child has outgrown hockey skates can sell them to the store and be paid on the spot, and another family buys them for far less than new. Alongside used gear, the franchisor says stores carry roughly 60% new merchandise and 40% used, with the mix shifting by season and region.
The brand was founded in 1983 and became the flagship franchise of the company that later took the name Winmark Corporation, based in Minneapolis, Minnesota. Winmark has franchised Play It Again Sports since 1988. Its annual report counts 309 franchised stores at December 27, 2025, up from 302 a year earlier, with 15 opened and 8 closed during 2025.
How lenders see it. The brand’s long history and SBA directory listing make it familiar to franchise lenders. Underwriting centers on two questions: can the owner buy used equipment at a sound margin, and can the store manage new-product purchases through sharp seasonal swings without running short of cash?
Play It Again Sports Franchise Costs
Winmark’s franchise site publishes the 2026 disclosure document’s estimate of $346,300 to $459,700 for a single store.
Initial franchise fee
The fee is $25,000, the same across Winmark brands, according to its FAQ. A second U.S. store in any Winmark brand carries a $15,000 fee, according to the company’s annual report.
Build-out and leasehold improvements
Stores typically use 3,500 to 4,000 square feet of leased retail space. Item 7 lists leasehold improvements at $7,000 to $12,000 and build-out at $35,000 to $55,000. Winmark provides site selection support, and a landlord allowance can lower the out-of-pocket build-out cost.
Fixtures, signs and technology
Fixtures and supplies cover slatwall, racks for bats and sticks, golf club displays, shelving and a trade-in counter. Signs, security cameras and the required point-of-sale system complete the hard assets. The company’s annual report says stores must use a system built on Winmark’s proprietary Data Recycling System software and that the hardware is purchased from Winmark.
Opening inventory
Opening inventory, at $100,000 to $120,000, is the largest line in Item 7, and it is noticeably larger than at Winmark’s apparel brands because new sporting goods must be bought from vendors before opening. The company’s annual report says Winmark negotiates pricing with vendors for franchisees and provides limited centralized buying, including credit and billing.
Letter of credit, deposits and working capital
Item 7 includes a letter of credit of up to $5,000, deposits and business licenses, miscellaneous pre-opening expenses, three months of rent and additional funds for the first three months.
Item 7 line items
- Initial franchise fee: $25,000
- Fixtures and supplies: $40,000 to $52,000
- Signs: $11,000 to $16,000
- Security cameras: $1,500 to $4,000
- Point-of-sale system: $18,800 to $22,700
- Leasehold improvements: $7,000 to $12,000
- Build-out: $35,000 to $55,000
- Deposits and business licenses: $8,000 to $18,000
- Letter of credit: $0 to $5,000
- Opening inventory: $100,000 to $120,000
- Miscellaneous pre-opening expenses: $40,000 to $50,000
- Rent, first three months: $20,000 to $30,000
- Additional funds, three months: $40,000 to $50,000
- Total: $346,300 to $459,700
Local rents and construction costs move these numbers, so treat the table as a starting point and price your own site.
Ongoing Fees and How They Affect Your Loan
The company’s annual report describes royalties as generally 4% to 5% of gross sales, depending on the agreement, plus a $1,500 annual marketing fee. Franchisees must spend 5% of gross sales on advertising, and Winmark may raise that to 6%, with up to 2% going to an advertising fund. Check Item 6 of the current disclosure document for exact rates and any other recurring fees.
Effect on debt service. Because these fees are tied to gross sales, a lender reviewing a Play It Again Sports franchise loan subtracts them before measuring how much cash is left for loan payments. In a store with large swings between peak and slow months, lenders also look at whether the slow months can still cover the payment, which is why monthly rather than annual projections matter.
Term and renewal. Agreements run 10 years, with 10-year renewal periods. According to the company’s annual report, 17 of the 18 Play It Again Sports agreements up for renewal in 2025 were renewed. A buyer of an existing store should confirm the years left on the agreement before setting the loan term.
Franchisor Requirements for New Owners
For Play It Again Sports, Winmark lists a $400,000 net worth and $90,000 to $105,000 in cash or liquid assets, such as non-retirement stocks and bonds. Its FAQ describes the liquidity rule as at least 30% of the investment in non-borrowed personal resources, a higher floor than its apparel brands. Candidates can qualify alone or with a financial partner.
Owner involvement. Owners must be owner-operators or have a qualified owner-operator actively running the store. Retail experience helps but is not required, and Winmark says it looks for franchisees who are enthusiastic about sports and engaged with their local community.
Training and timeline. Winmark provides more than 65 hours of classroom and in-store training, product knowledge training and business planning training that includes a full day spent building a three-year plan. The typical path from signing to grand opening is 9 to 12 months.
Ways to Own a Play It Again Sports
A new store. You choose an open territory and build out a lease, and the lender relies on projections, your equity and your plan. See our page on franchise start-up financing for how these loans come together.
An existing store. Buying an operating store brings a sales history, trade-in relationships with local families and leagues, and staff who already know the product. The buyer needs Winmark’s approval. Inventory value often becomes a negotiating point, since used equipment is valued differently from new stock. Our article on buying a franchise resale walks through the process, and our retail acquisition loans page explains purchase financing.
Additional stores. Winmark does not offer multi-unit agreements and requires the first location to be open at least 12 months before it considers another.
Financing Options for a Play It Again Sports Franchise
SBA 7(a) loans
Winmark does not lend directly, and it says franchisees usually borrow from a third-party lender with an SBA loan. An SBA 7(a) loan can combine the franchise fee, build-out, fixtures, technology, opening inventory and working capital, subject to program rules and lender approval, and it can also finance a store purchase.
SBA 504 loans
If an owner buys and occupies a building for the store, SBA 504 loans are designed for owner-occupied real estate and long-lived fixed assets. For a typical leased store, 504 is not the main tool.
Conventional term loans
Well-capitalized buyers, or owners buying a store with a strong record, may qualify for conventional business financing.
Equipment and fixture financing
Slatwall, racks, display cases, signs and point-of-sale hardware may be financed or leased separately. Our page on franchise equipment financing and leasing explains how that works.
Working capital and lines of credit
A sporting goods store builds inventory ahead of each season: baseball and softball in spring, football and fall sports at back-to-school, hockey and winter gear before cold weather. A line of credit helps fund new-product orders and trade-in buying before the season’s sales arrive. Read about retail working capital and credit lines.
Seller financing on resales
A seller may carry part of the price on an existing store. Seller notes are typically subordinate to the main loan, and SBA rules and lender conditions may limit their terms.
SBA Loans for Play It Again Sports Franchisees
The SBA does not lend directly for 7(a) loans; it guarantees part of a loan made by a participating lender. Before lending to a franchisee, the lender must confirm the franchise relationship meets SBA eligibility rules, and the SBA Franchise Directory records brands that have been reviewed.
The directory listing. Play It Again Sports is listed under code S1328, with no additional note. That means no special conditions are flagged for this brand, and the lender can rely on the listing for the franchise eligibility review. It says nothing about any individual borrower, who still must qualify on credit, equity, experience and cash flow.
Program size. The SBA 7(a) program maximum is currently $5 million, and program rules can change.
Tips for the application. Show monthly projections that reflect seasonality, include a realistic plan for new-product purchasing and trade-in buying, and document your non-borrowed liquidity. Our SBA loan calculator can help estimate payments for planning; results are not offers.
How Lenders Evaluate a Play It Again Sports Deal
Credit and financial history. Lenders review personal credit, tax returns and debts, and significant owners usually sign personal guarantees.
Net worth and liquidity. Winmark’s $400,000 net worth and $90,000 to $105,000 liquidity requirements set the minimum. Lenders also consider reserves left after the equity injection.
Experience. Coaching, league administration, sporting goods sales or management experience all help tell the story, even though retail experience is not required.
Business plan and projections. Lenders want to see youth sports participation in the trade area, local leagues and schools, competing sporting goods retailers, and a monthly sales curve with seasonal peaks. Projections should show royalty, advertising, rent, payroll, vendor purchases and cash paid for trade-ins.
The disclosure document and agreement. Lenders review Items 5, 6, 7, 17 and 19. The 2026 disclosure document includes financial performance representations; your projections should still be your own.
Site and lease. Visibility, parking for customers bringing in bulky equipment, rent relative to sales and lease assignability all matter.
Resale financials. For an existing store, expect to provide several years of financial statements, tax returns and point-of-sale reports, along with an inventory breakdown between new and used goods.
Inventory and Seasonality: The Center of the Loan
Inventory is where a Play It Again Sports budget differs most from other resale franchises. Opening inventory of $100,000 to $120,000 must cover both new product and an initial stock of used equipment across several sports. After opening, new-product orders arrive before each season, and the store keeps paying cash for trade-ins year-round.
Lenders tend to treat used sporting goods as modest collateral, so the loan rests mainly on cash flow and guarantees. A working capital plan that covers preseason buying, plus the additional funds included in Item 7, keeps a new owner from cutting orders right before a peak.
Multi-Unit Growth
Because the first store must be open at least 12 months before Winmark considers another, growth is incremental. The company’s annual report says an owner may add stores in any Winmark brand for the additional store fee when a territory is available and brand standards are met. Lenders then look at the first store’s results, combined cash flow and who will manage each location. Our article on multi-unit franchise financing covers what changes with a second loan.
Real-World Scenarios
A youth coach opening a first store. A former sales manager who coaches youth hockey meets Winmark’s financial requirements and opens in a suburb with strong league participation. An SBA 7(a) loan funds the build-out, fixtures, point-of-sale system and opening inventory, with a working capital component sized for the first preseason.
A buyer taking over an established store. A buyer acquires a long-running store from its original owner. The lender reviews three years of results and the new-versus-used inventory mix, Winmark approves the transfer, and the seller carries a small subordinate note.
An owner adding a second Winmark brand. An owner with a profitable Play It Again Sports store opens a different Winmark brand nearby after the first store passes its first year. The lender relies on the existing store’s financial statements and the owner’s remaining liquidity.
Common Mistakes to Avoid
- Budgeting opening inventory but not the preseason orders that follow
- Building annual projections that hide slow months when debt service still comes due
- Counting borrowed funds toward the non-borrowed liquidity requirement
- Paying too much for a resale store’s used inventory without an itemized count
- Choosing a site without enough youth sports activity nearby
For more, read common retail store loan mistakes.
Next Steps to Finance Your Play It Again Sports Franchise
Step 1: Check your capital. Compare your net worth and non-borrowed liquid assets with Winmark’s Play It Again Sports requirements.
Step 2: Review the disclosure document. Read it with a franchise attorney, focusing on Items 5, 6, 7, 17 and 19.
Step 3: Choose your route. Decide between a new store and an existing one, and confirm territory availability.
Step 4: Build a seasonal budget. Use the Item 7 ranges, actual site quotes and a month-by-month buying plan.
Step 5: Talk with a financing specialist. Settle on the loan structure, equity injection and working capital before signing a lease.
Step 6: Prepare your package. Gather tax returns, a personal financial statement, a résumé, franchise documents, a lease or letter of intent and your business plan.
Play It Again Sports Franchise Loan FAQs
How much does a Play It Again Sports franchise cost?
The 2026 disclosure document estimates $346,300 to $459,700, including the franchise fee, fixtures, build-out, opening inventory, three months of rent and additional funds.
What is the Play It Again Sports franchise fee?
$25,000 for a first store. The company’s annual report lists $15,000 for an additional U.S. store.
What royalty does Play It Again Sports charge?
According to the company’s annual report, royalties are generally 4% to 5% of gross sales, with a $1,500 annual marketing fee and a 5% of gross sales advertising requirement. Confirm the details in Item 6.
How much liquid capital do I need?
Winmark lists $90,000 to $105,000 in non-borrowed liquid resources and a $400,000 net worth.
Is Play It Again Sports approved for SBA loans?
It is listed on the SBA Franchise Directory under code S1328 with no additional note. Each borrower still has to qualify.
Does Winmark finance franchisees?
Winmark says it does not lend directly. Item 10 of the disclosure document describes any financing arrangements.
Why is the opening inventory so large?
Stores carry a substantial share of new merchandise bought from vendors, plus used equipment across several sports, so the opening stock costs more than at Winmark’s apparel brands.
Can I buy an existing Play It Again Sports store?
Yes, with Winmark’s approval. A Play It Again Sports franchise loan for an existing store is underwritten on the store’s actual results.
How long is the franchise term?
10 years, with 10-year renewal periods.
Can I open more than one store?
Yes, after your first store has been open at least 12 months; Winmark does not offer multi-unit agreements.
Final Thoughts
A Play It Again Sports franchise loan is mostly an inventory and working capital loan wrapped around a leased store. Clear published costs, defined financial requirements and an SBA listing give buyers a strong starting point; a season-by-season cash plan is what makes the numbers hold up.
US Professional Funding helps owners finance franchise start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing programs and retail business loans.
