How to Finance a Sportball Franchise: Mobile Youth Sports Costs
By Anthony Cornella
A Sportball franchise loan pays for a youth sports business that runs classes in rented and shared spaces instead of a dedicated facility. That changes almost everything about the financing: there is little real estate or build-out to fund, so the money goes toward the franchise package, starter equipment, insurance, launch marketing, coaches and the working capital needed while enrollment builds.
This article explains how the Sportball model works, what the franchisor publishes about its fees, how its SBA Franchise Directory listing helps and how lenders look at a new territory or the purchase of an existing one.
US Professional Funding is not affiliated with, sponsored by or endorsed by Sportball; the name is used only to describe the business. Figures from the franchisor’s website and disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice, so review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant.
Sportball Franchise Loan at a Glance
- Concept: non-competitive, multi-sport programs for children aged 16 months to 12 years.
- Track record: the company describes more than 30 years in business and more than 900 locations globally on its franchise website.
- U.S. presence: the franchise office is in Austin, Texas, which the company calls its first U.S. franchise location.
- Royalty: 8% of gross sales, according to the franchisor’s website.
- Ad fund: 2% of gross sales, according to the same source.
- Start-up cost categories: franchise fees, pre-launch marketing, rental and utility deposits, an initial insurance payment, working capital and a Sportball equipment package. Confirm the current dollar ranges in Item 7 of the FDD.
- Disclosure: the franchise website refers to a 2025 Sportball FDD.
- SBA Franchise Directory: listed under code S5578, with no additional notes.
What Is Sportball?
Sportball teaches young children the basics of sport without the pressure of competition. The company says it pioneered its non-competitive, multi-sport approach more than 30 years ago, and its programs cover eight different sports, including football, baseball, soccer and basketball.
Who the programs serve. Classes are built for children aged 16 months to 12 years, so a single territory can serve toddlers with a parent, preschoolers and school-age children. Families who start early can stay for years, which supports repeat enrollment.
How the model works. The franchisor describes a low-overhead, mobile operating structure that uses shared-use spaces rather than a storefront. Owners recruit, onboard and schedule part-time and full-time coaches, and coach training runs through a learning management system the company provides.
Where it is growing. Sportball’s franchise office is in Austin, Texas. Its available-territory listings include the Dallas/Fort Worth and Houston metro areas, alongside markets in Canada.
How lenders view the brand. Lenders see a service business with light fixed assets and a long operating history. The upside is low occupancy cost; the trade-off is limited hard collateral, so the owner’s liquidity, management ability and enrollment plan carry most of the weight in underwriting.
How a Sportball Territory Earns Revenue
Understanding the revenue engine matters, because it determines how much debt a territory can support.
- Class enrollment: families sign up for sessions held in rented community space, so revenue depends on filling class times.
- Age progression: programs span toddlers to pre-teens, which gives an owner a path to keep families enrolled as children grow.
- Community presence: the franchisor encourages free clinics, camps and local sponsorships to build awareness.
- Coach capacity: each new class time needs a trained coach, so payroll grows with the schedule.
What that means for a loan. With no build-out, start-up debt tends to be smaller than for a facility-based youth sports franchise. The real financing question is how quickly the schedule fills and how much cash the owner needs until revenue covers coaches, rent for class space and the royalty.
Sportball Franchise Costs
Initial franchise fee. The franchisor’s website folds franchisee fees into its overall start-up estimate rather than listing the fee separately. Item 5 of the FDD states the exact amount and whether pricing changes for additional territories.
Real estate and build-out. There is no storefront to build. Instead, the start-up list includes rental and utility deposits for the shared-use spaces where classes run, so lease negotiations are short-term and site-specific rather than a long commercial lease.
Equipment. A Sportball equipment package is part of the start-up cost, and the franchisor calls the model equipment-light. Owners should still budget for equipment refresh over time.
Opening costs and working capital. Pre-launch marketing, an initial insurance payment and working capital round out the list. Working capital matters most, because coaches must be paid and space rented before sessions are full.
Total investment. The company’s franchise pages give different start-up figures in different places, so we do not quote a total here. Use the Item 7 table in the current FDD as the only basis for a loan request. The categories it should cover include:
- Franchisee fees
- Pre-launch marketing
- Rental and utility deposits
- Insurance initial payment
- Working capital
- Sportball equipment package
If you plan to buy a vehicle to carry equipment between class sites, add it to your own budget even if Item 7 does not list it.
Ongoing Fees and Your Sportball Franchise Loan
Royalty. The franchisor’s website lists an 8% royalty fee on gross sales.
Ad fund. The same page lists a 2% ad fund fee on gross sales.
Other costs. Item 6 of the FDD lists any technology, training, transfer or renewal fees. Outside the fee table, plan for coach payroll, rent for class space, insurance renewals and equipment refresh.
How lenders treat these fees. Lenders deduct the royalty and ad fund from projected revenue before measuring debt service coverage. Because those fees are tied to gross sales, they rise as the territory grows, so lenders test the plan at realistic enrollment levels rather than at full capacity.
Franchisor Requirements for New Owners
Sportball’s public franchise pages do not publish a minimum net worth or liquid capital figure. Ask during discovery and confirm what the FDD and franchise application require.
Who tends to fit. The business is people-driven. Experience coaching, teaching, managing staff or selling to families helps, and lenders will look for the same skills.
Approval process. Expect an inquiry, introductory calls, FDD review, validation with existing owners and franchisor approval. Start lender conversations early, because a lender will want to see the FDD, the territory plan and your financial statements well before you sign.
Ways to Own a Sportball
New territory. A new territory is a start-up. Lenders focus on the owner’s liquidity, background and launch plan, since there is no operating history. Our educational center start-up financing page explains how lenders approach new learning and enrichment businesses.
Buying an existing territory. When an owner sells, the buyer gets an operating schedule, coaches and enrolled families. Lenders can underwrite the territory’s tax returns and enrollment reports, and the franchisor must approve the transfer. Our page on educational center acquisition financing covers purchase loans.
Additional territories. Owners who succeed in one territory may add another. A lender will want to see the first territory’s results first.
Financing Options for a Sportball Franchise
SBA 7(a) loans. SBA 7(a) loans can finance the franchise fee, equipment, launch marketing and working capital in one package. Learn more about SBA 7(a) loans.
SBA 504 loans. SBA 504 loans finance long-lived fixed assets such as real estate. A Sportball territory runs in shared-use space, so 504 rarely fits a new territory.
Conventional term loans. Borrowers with strong credit and collateral may qualify for conventional business loans, which can be useful for an established owner adding a territory.
Equipment financing. Sports gear, storage and a cargo vehicle or trailer can sometimes be financed separately. See our franchise equipment financing options.
Working capital and lines of credit. Enrollment follows the school calendar and seasons, so a line of credit can bridge payroll and deposits between session starts. Our educational center working capital page explains the options, and our article on planning cash flow around the school calendar helps you size a reserve.
Seller financing on resales. A seller may agree to carry part of the price on a resale. Seller notes are typically subordinate to the main loan, and loan programs may limit their terms.
SBA Loans for Sportball Franchisees
SBA-backed lenders use the SBA Franchise Directory to confirm that a brand’s agreements meet program eligibility rules. Sportball is listed under code S5578 with no additional notes, which means the lender can generally proceed under standard SBA franchise review without a brand-specific addendum flagged in the directory.
The SBA 7(a) program maximum is currently $5 million, although program rules can change, and a single Sportball territory will typically need far less. Our article on SBA loans for educational businesses covers how lenders review enrollment-based companies.
Application tips.
- Bring the current FDD and franchise agreement to your first lender meeting.
- Show where your equity injection comes from with bank statements.
- Build projections around class times, class sizes and coach availability.
- Include a detailed list of community spaces you expect to rent.
You can estimate payments with our SBA loan calculator before you apply.
How Lenders Evaluate a Sportball Franchise Loan
Personal credit and financial history. Lenders review your credit report, tax returns and debt load. Explain any past issues in writing.
Net worth and liquidity. Because collateral is light, cash on hand after the equity injection is a key comfort factor.
Industry and management experience. Coaching, teaching, youth programming or staff management experience strengthens the file.
Business plan and projections. Lenders expect assumptions about session length, class fill rates, coach pay, space rental and the 8% royalty and 2% ad fund.
The FDD and franchise agreement. Lenders read the term, renewal and transfer rules, plus Item 7 and Item 19. Our article on how the FDD shapes franchise financing explains what lenders look for. Review Item 3 and Item 4 for litigation and bankruptcy history as well.
Space agreements. Short-term rental agreements for class space should be in writing so the lender can see predictable access.
For resales. Expect to provide the territory’s tax returns, profit and loss statements and enrollment history.
Equipment and Program Delivery
The starter package covers the gear used across the sports in the curriculum, and owners replace items as they wear. Storage space and a vehicle large enough to move gear between sites are practical needs that affect your budget, even though they are not facility costs.
Multi-Unit Growth and Development Agreements
Adding a territory works best after the first one has steady enrollment and a bench of trained coaches. Lenders will look at the first territory’s cash flow, your remaining liquidity and how management time will be split. Our article on multi-unit franchise financing explains how lenders structure second-territory loans.
Real-World Scenarios
A former teacher opening a new territory. She has classroom experience but no business history. Her lender focuses on her liquidity, a conservative enrollment ramp and a working capital reserve sized for the first sessions.
A buyer acquiring an established territory. He buys an operating territory with trained coaches. His lender underwrites the seller’s tax returns and asks for enrollment reports and franchisor transfer approval.
An owner adding a neighboring territory. After several strong seasons, she applies for a second territory. Her lender reviews the first territory’s financial statements and her plan to promote a lead coach.
Common Mistakes to Avoid
- Borrowing too little working capital for the period before classes fill.
- Projecting full classes from the first session.
- Leaving the royalty and ad fund out of cash flow projections.
- Relying on verbal agreements for class space.
- Forgetting equipment refresh and vehicle costs.
Read more in our article on educational business loan mistakes.
Next Steps to Finance Your Sportball Franchise
Step 1: Request the FDD. Review Items 5, 6, 7, 10, 17 and 19 with a franchise attorney.
Step 2: Confirm your territory. Ask which markets are available and how boundaries are drawn.
Step 3: Talk to current owners. Ask about enrollment ramp, coach hiring and seasonality.
Step 4: Build your budget. Use the Item 7 ranges and add a vehicle and reserve if needed.
Step 5: Prepare your documents. Gather tax returns, a personal financial statement, a resume and a business plan.
Step 6: Apply with a franchise-savvy lender. Share the FDD and plan early so underwriting runs alongside franchisor approval.
Sportball Franchise Loan FAQs
How much does a Sportball franchise cost?
The franchisor’s pages show different start-up figures, so rely on the Item 7 table in the current FDD. Costs center on fees, equipment, deposits, insurance, marketing and working capital rather than real estate.
What royalty does Sportball charge?
The franchisor’s website lists an 8% royalty fee on gross sales.
Is there an advertising fee?
Yes. The website lists a 2% ad fund fee on gross sales.
What is the Sportball franchise fee?
The website includes franchisee fees in its start-up estimate. Item 5 of the FDD gives the exact amount.
How much liquid capital do I need?
The public franchise pages do not publish a minimum. Confirm it during discovery and plan for a reserve beyond the equity injection.
Is Sportball eligible for SBA loans?
Yes. Sportball is listed on the SBA Franchise Directory under code S5578 with no additional notes.
Can I get a Sportball franchise loan as a first-time owner?
Yes, if you bring liquidity, relevant experience with children or staff and a realistic plan.
Can I finance equipment or a vehicle separately?
Often, yes. Gear and vehicles can be financed apart from the main loan.
Can I buy an existing Sportball territory?
Yes, when one is for sale. The franchisor must approve the transfer, and lenders will review the territory’s records.
Does Sportball offer financing?
Check Item 10 of the current FDD for any franchisor financing.
Does the FDD include financial performance information?
The franchise website references gross sales data from its 2025 FDD. Read Item 19 directly rather than relying on summaries.
What documents do I need?
Expect tax returns, a personal financial statement, a resume, a business plan, the FDD and franchise agreement and, for a purchase, the territory’s financial statements.
How long is the franchise term?
Item 17 of the FDD sets the term and renewal rights. Your loan term should fit within it.
Final Thoughts
A Sportball territory replaces build-out risk with enrollment risk. Buyers who confirm every figure in the FDD, plan for seasonality and keep a healthy working capital reserve make the strongest case for a Sportball franchise loan.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and educational services financing solutions.
