Franchises

Planning to Start a Sports Franchise? Avoid These Mistakes

Dodging the Franchising Hurdles
Planning to Start a Sports Franchise? Avoid These Mistakes
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2 min read

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India has turned its focus on developing the sports sector as a strategy for creating jobs, revenues, and attracting investors. The federal government of India allotted Rs 1,756 crore budget for its “Khelo India” program, which will help the sector to evolve more, creating more opportunities for people.

It’s not an easy task to own a sports franchise where many challenges await the investors. The same happened with David Beckham’s dream of owning a Miami football franchise, where his dream finally rests on a public referendum after numerous bureaucratic obstacles.  

Few challenges that a franchisor can face while setting up a sports franchise is mentioned below:

Following rules and regulations

It’s important to keep the rules and regulations in mind, while planning any business, especially a sports franchise. Recently, Beckham faced a similar challenge where has was accused of not following the bidding rules. Local government has their own set of rules, which a franchisor needs to follow, in order to establish a sports academy or franchise.

Frequent change of location

Another big challenge is location, which the investors face while entering into a sports franchise. Any sports franchise requires having a stadium, for future training and working process. Beckham himself had to change the location four times for the proposed stadium development, before experiencing bureaucratic challenges.

The local government undergoes many considerations before approving the desired location for building a stadium, as it could lead to wastage of tax payer’s money if the biz fails.     

Environmental concern

If a franchisor passes all the above-mentioned hurdles, the environmental concern may serve as another issue to deal with. Just as Miami city commission revealed that the site was a former toxic dump, Beckham was not allowed to go forward with his dream of owning a football franchise.

Therefore, franchisors should do a proper research on their franchise location, eliminating the risk of facing this challenge.   

This article was originally published on Franchise India by Shahram Warsi.

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