How to Finance a Pickleball Kingdom Franchise: Indoor Club Costs
By Marc Cornella
A Pickleball Kingdom franchise loan finances something closer to a small sports facility than a storefront: a large indoor space, court surfaces, climate control, lighting, technology, a pro shop and the cash to carry the club while memberships build. Because the brand’s financial terms are disclosed only in its Franchise Disclosure Document (FDD), buyers need that document in hand before they can size a loan.
This article explains how Pickleball Kingdom clubs work, which costs a lender will focus on, what the brand’s SBA Franchise Directory listing means, and how buyers can put financing together for a first club or several.
US Professional Funding is not affiliated with, sponsored by or endorsed by Pickleball Kingdom; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current FDD and franchise agreement with a qualified franchise attorney and accountant.
Pickleball Kingdom Franchise Loan at a Glance
- Concept: membership-based indoor pickleball clubs with coaching, leagues, events, a pro shop and food and drink.
- Founder: Ace Rodrigues, the company’s founder and CEO, who says he conceived the idea on January 9, 2021.
- Example club: the company’s Centerville, Ohio club lists 12 climate-controlled indoor courts.
- Footprint: clubs listed in Ohio, Massachusetts, Texas, Wisconsin, New Jersey, Louisiana, Florida and Oregon, with franchise regions outside the U.S. as well.
- Fees and investment: the franchise fee, royalty, marketing fees and estimated initial investment are disclosed in Items 5, 6 and 7 of the FDD; the franchisor’s website does not publish them.
- SBA Franchise Directory: listed under code S8070 with no additional notes.
What Is Pickleball Kingdom?
Pickleball Kingdom is a franchised chain of indoor pickleball clubs. Founder and CEO Ace Rodrigues says the idea came to him while standing on a windy, dirty outdoor court waiting to play, when he decided there had to be a better way. The result is a climate-controlled indoor club designed for players of every level.
The membership model. The company describes its approach as membership-first, arguing that recurring memberships create steadier, more predictable revenue than walk-in models. Clubs also earn revenue from group events, coaching and classes, equipment and apparel, food and beverage, and drop-in play.
What a club looks like. The Centerville, Ohio club page describes 12 indoor courts with pro-grade surfaces, air conditioning and premium lighting, free beginner classes, coaching and clinics, leagues and tournaments, a pro shop with paddle demos, an event space, snacks and drinks, digital scoreboards with live replays, and court reservations through the brand’s app.
Why lenders view it the way they do. Lenders see a young, fast-growing category with large real estate and equipment needs and limited operating history per club. That puts the focus on the borrower’s liquidity, the lease or property, realistic membership ramp-up assumptions and the franchisor’s disclosures.
Pickleball Kingdom Franchise Costs
Initial franchise fee. The fee is set out in Item 5 of the current FDD. Ask whether multi-unit or development agreements change the fee per club.
Real estate and build-out. An indoor club with a dozen courts needs a large, open, high-ceiling building, often a former warehouse, big-box store or light industrial space. Build-out can include demolition, slab work, court surfacing, HVAC sized for a large volume of air, lighting, restrooms, a front desk, a pro shop and lounge or event areas. In most cases this is the largest cost and the biggest variable in the loan.
Equipment and technology. Expect nets and posts, court surfaces, scoreboards and replay cameras, front-desk and point-of-sale systems, furniture, pro shop fixtures and food and beverage equipment.
Opening costs and working capital. Pre-opening marketing, membership presales, staff hiring and training, opening inventory for the pro shop and café, deposits and insurance all come before the first full month of revenue. Item 7 of the FDD will include an additional funds line for an initial operating period.
Total investment. The total estimated initial investment, and each line item behind it, appears in Item 7 of the FDD. Typical categories to review include:
- Initial franchise fee
- Lease deposits and rent before opening
- Leasehold improvements and construction
- Court surfacing, nets and lighting
- HVAC and climate control
- Furniture, fixtures and signage
- Technology, scoreboards and point-of-sale systems
- Pro shop and food and beverage inventory
- Training and travel
- Grand opening marketing and membership presales
- Professional fees, licenses and insurance
- Additional funds for the initial operating period
Match each line to contractor bids and the lease for your actual site. A lender will want to see that the loan request ties back to Item 7 and to real quotes.
Ongoing Fees and How They Affect Your Loan
Royalty and brand fund. Royalty, marketing or brand fund contributions and any technology fees are disclosed in Item 6. Whether they are a percentage of revenue or a flat amount changes how they behave in a slow month.
Rent and occupancy. For a large-footprint club, rent, property taxes, insurance and utilities for heating and cooling a big building can outweigh franchise fees. Lenders will look closely at occupancy cost relative to projected membership revenue.
How lenders factor these costs in. Lenders build a monthly cash flow from projected memberships and other revenue, subtract payroll, rent, utilities, royalty and marketing, and test whether what remains covers loan payments with a cushion. The ramp-up period, before the club reaches a stable membership base, gets particular scrutiny.
Franchisor Requirements for New Owners
Pickleball Kingdom does not publish minimum net worth or liquid capital requirements on its main website. Ask the franchise development team for current requirements and review the FDD. Lenders will look for enough personal liquidity to fund an equity injection and reserves after closing.
The approval process. Candidates typically speak with the franchise development team, review the FDD, validate with existing owners and complete an approval process before signing. The company’s leadership team includes roles dedicated to design and construction, development and franchise support, which buyers can ask about when planning their timeline.
Ways to Own a Pickleball Kingdom
A new club. Most buyers open a new club. Lenders underwrite on the FDD, the lease or purchase contract, construction bids and membership projections. Our overview of family entertainment start-up financing explains how these loans are typically structured.
Buying an existing club. As the system matures, some clubs may change hands, subject to the franchisor’s transfer approval. A resale lets a lender review actual membership counts and financial statements. See our family entertainment acquisition financing page.
Multiple clubs. The company has announced multi-unit deals in several markets. Development commitments raise the importance of a funding plan for every club on the schedule.
Financing Options for a Pickleball Kingdom Franchise
SBA 7(a) loans. Because Pickleball Kingdom is on the SBA Franchise Directory, an SBA 7(a) loan can combine the franchise fee, leasehold improvements, equipment, opening costs and working capital in one package. See the SBA section below.
SBA 504 loans. If you buy the building rather than lease it, an SBA 504 loan is built for owner-occupied real estate and long-lived fixed assets such as HVAC and major improvements.
Conventional term loans. A conventional business loan can fit borrowers with substantial liquidity, outside collateral or existing business cash flow.
Equipment financing. Scoreboards and replay systems, lighting packages, HVAC units, point-of-sale hardware and café equipment can often be financed or leased separately. Learn more about equipment financing and leasing for entertainment venues.
Working capital and lines of credit. Payroll, utilities and rent start before memberships reach their target, and lines of credit can also help cover league and tournament seasons. See our working capital and lines of credit options.
Seller financing on resales. On an existing club, a seller may carry part of the price. Seller notes are typically subordinate to the senior loan, and SBA programs may limit how they are structured.
SBA Loans for Pickleball Kingdom Franchisees
The SBA Franchise Directory lists franchise brands whose agreements have been reviewed for SBA eligibility. A listing does not approve any borrower; it means the franchise relationship itself does not block SBA financing.
Pickleball Kingdom’s listing. Pickleball Kingdom appears on the directory under code S8070 with no additional notes, so lenders can proceed under standard SBA franchise review without brand-specific conditions on the listing.
SBA application tips. A Pickleball Kingdom franchise loan request should include the current FDD, the lease or letter of intent, construction bids, equipment quotes, a membership-based projection and a personal financial statement. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Our article on SBA loans for family entertainment centers covers what lenders typically request.
How Lenders Evaluate a Pickleball Kingdom Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement.
Net worth and liquidity. With a large build-out, lenders want to see a meaningful equity injection plus reserves left after closing.
Industry and management experience. Experience in fitness, sports, hospitality or multi-site management helps, as does a plan for a strong general manager and coaching staff.
Business plan and projections. Projections should start from membership presales and a realistic ramp, then layer in court reservations, leagues, lessons, events, pro shop and food and drink. Lenders will compare assumptions with the local market and population around the site.
The FDD and franchise agreement. Lenders review the term, renewal, transfer conditions and territory rights in Items 12 and 17, and whether Item 19 includes financial performance representations. Our article on how lenders read a Franchise Disclosure Document explains what gets attention.
Site, lease or real estate. Lease length should match or exceed the loan term, and landlord contributions to improvements can reduce the loan amount. Read our article on negotiating a lease for an entertainment venue.
Historical financials for resales. On an existing club, expect to provide membership reports, profit and loss statements and tax returns.
The Court and Building Package
The building is where an indoor pickleball loan succeeds or struggles. A club with a dozen courts needs clear span between columns, enough ceiling height for lobs and lighting, durable flooring for court surfaces, and HVAC that can keep a large volume of air comfortable in summer and winter. Converting a vacant retail or warehouse building can be cost-effective, but structural, roof, electrical and mechanical surprises are a real risk.
Before setting the loan amount, get an inspection, a mechanical assessment and contractor bids, and build in a contingency. If the landlord will fund part of the improvements, document it in the lease so the lender can count it.
Multi-Unit Growth and Development
Pickleball Kingdom has announced multi-unit agreements in several states. For a multi-club owner, financing usually happens one club at a time: once the first club has a membership base and financial statements, lenders can underwrite its cash flow alongside the next build. Owners with a development schedule should plan equity and reserves for each opening, since one club running behind on memberships can strain the next.
Real-World Scenarios
A first-time owner converting a warehouse. A buyer with management experience leases a former warehouse. A Pickleball Kingdom franchise loan through SBA 7(a) covers the franchise fee, build-out, courts, technology and working capital, and the lender leans on membership presales in the projections.
A fitness operator adding a club. An owner with an existing fitness business opens a Pickleball Kingdom nearby. The lender looks at the combined cash flow of both businesses and the operator’s experience with memberships.
Buying the building. A buyer purchases the building for the club with an SBA 504 loan and finances courts and technology separately through equipment financing.
A multi-unit group. A group signs for several clubs, opens the first with SBA financing and plans the second once the first reaches a stable membership base.
Common Mistakes to Avoid
- Sizing a loan before receiving and reviewing the current FDD
- Underestimating HVAC, electrical and roof work in a converted building
- Assuming memberships will reach target quickly
- Signing a lease shorter than the loan term
- Leaving too little working capital for the ramp-up period
- Committing to a development schedule without a funding plan for each club
For more pitfalls, read the entertainment center loan mistakes owners most often make.
Next Steps to Finance Your Pickleball Kingdom Franchise
Step 1: Request the FDD. Review Items 5, 6, 7, 12, 17, 19 and 20 with a franchise attorney and accountant.
Step 2: Confirm the franchisor’s requirements. Ask the development team for current net worth and liquidity expectations.
Step 3: Estimate your budget. Use our SBA loan calculator for early payment estimates, which are for planning only and are not an offer or approval.
Step 4: Find and inspect a building. Gather contractor bids and mechanical assessments.
Step 5: Build membership-based projections. Use realistic presale and ramp-up assumptions.
Step 6: Apply for financing. Submit the FDD, lease, bids, quotes, projections and personal financial documents.
Step 7: Close and open. Coordinate funding with construction, training, presales and your grand opening.
Pickleball Kingdom Franchise Loan FAQs
How much does a Pickleball Kingdom franchise cost?
The estimated initial investment is disclosed in Item 7 of the current FDD. Costs depend heavily on the building, the number of courts and the build-out required.
What is the Pickleball Kingdom franchise fee?
The initial franchise fee is set out in Item 5 of the FDD.
What royalty does Pickleball Kingdom charge?
Royalty and other ongoing fees are listed in Item 6 of the FDD.
Can I get an SBA Pickleball Kingdom franchise loan?
Pickleball Kingdom is listed on the SBA Franchise Directory under code S8070 with no additional notes, so SBA financing may be available to qualified borrowers, subject to lender approval.
Can I buy the building with my loan?
Yes. If you will occupy the property, an SBA 504 loan or a conventional real estate loan may fit.
Do I need pickleball experience?
Not necessarily, but lenders look for management, fitness, sports or hospitality experience in the owner or general manager.
Can I open more than one club?
Yes. The company has announced multi-unit agreements, and each club will need its own funding plan.
Does Pickleball Kingdom offer financing?
Check Item 10 of the current FDD for any franchisor financing. Most buyers arrange their own loans.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see whether it includes financial performance representations.
Final Thoughts
A Pickleball Kingdom franchise loan rests on three things: the building, the build-out and a realistic membership ramp. Get the current FDD, tie every dollar of the request to bids and Item 7, keep generous reserves and approach lenders early.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and family entertainment financing solutions.
