From Field to Franchise: Why Athletes are Making the Jump into Franchising

By Brooke Wylie Most children have dreamed one day of joining the ranks of Michael Jordan, Tom Brady or Alex Rodriguez by spending a lifetime as a professional athlete.  But in reality, the average career of a professional athlete is only 3 to 5 years, with 60-78 percent of pro athletes either bankrupt or in financial trouble within 2 to 5 years of retirement, so a career after the big leagues is more than just an afterthought for most athletes. For many pros, franchising has become a very viable second career option. Soccer Shots, a child health and fitness franchise which teaches the fundamentals of soccer to students ages 2-8 years of age, is a natural fit for many former – and current – athletes.  With about 12 of their current franchisees former professional or semi-professional players, Soccer Shots has found a way to tap into athletic circles. “We have a partnership with the U.S. Soccer Foundation, which really helps us connect with players to get the word out about Soccer Shots,” said Annie Ferret, Recruitment Coordinator for Soccer Shots.  “Most of our franchisees are soccer people, so we’ve built a strong and unique network that includes several former players who help us connect with other players who are looking for the next step in their careers, after their pro days come to a close.” While playing for teams like Miami Dolphins, Tampa Bay Buccaneers, St. Louis Rams, and Detroit Lions for 12 seasons, Tyoka Jackson stayed business minded, venturing into real estate with his father and brother.  “I came into the league a little different than many players, because I was undrafted which meant my career could end at any moment, since the team didn’t have a huge financial investment in me. So I was preparing to leave since the day since I got into the NFL.”    Towards the very end of his NFL career, he learned of an opportunity to bring IHOP, a brand he both knew and loved, to the Washington D.C. area. “I had never wanted to be involved in restaurant industry before.  I had heard nothing but horror stories of the percentage of new restaurants closing in first three years.  But as I found out, that wasn’t the case for the franchising industry. By joining a franchise system, you have a proven track record to help mitigate those risks.” Jackson has opened two IHOPs in the Washington D.C. market, with plans to open a third, as well as an IHOP Express.  But Jackson has his eyes on expanding further.  “Smart franchisees look to diversify themselves, so we are looking for more great brands to add to our portfolio.” Angelo Crowell also saw beyond the game during his seven year career as a linebacker for the Buffalo Bills and the Tampa Bay Buccaneers.  “I always understood that football was never a guaranteed sport, because there was high risk involved,” said Crowell, “I started looking into opening my own athletic business but realized it would be a lot of work, especially while I was still playing football.  So I started researching franchising.  I had always wanted to go big, and franchising in the restaurant industry could get me there.” Crowell current owns and operates five Jersey Mikes in the Tampa area. But he isn’t stopping there. “We want to keep doubling our number of units every year, so our goal is to have 10 open next year.” So why the uptick in athletes joining franchising? Franchisors and athletes alike have come to recognize that there are many skills that athletes and successful franchisees have in common.  “Our franchisees who were once professional athletes have a great understanding of team work and what it means to follow an already proven model,” said Ferret. Crowell agrees that much of the training athletes get on the field crosses over into franchising.  “In sports, everyone has a job to do and one person can’t win the game on their own,” he says.  “Understanding how everyone can work together for one common goal and follow the plan to get there is key in a game and key in running a franchise.” So how do franchisors connect with athletes interested in franchising? One organization that is working to bridge that gap between athletes and franchisors is the Professional Athlete Franchise Initiative(PAFI).  Founded in 2010 by Michael Stone, a seven year NFL safety, PAFI seeks to educate professional athletes about opportunities in the franchising community and helps connect franchisors with athletes. “We’re trying to create a playbook to help athletes explore the next step of their careers, while they’re still playing,” said Stan Friedman, Chairman of the Advisory Board for PAFI. “With the average professional athlete’s career only lasting about 2 years, it’s critical that they start looking forward and get prepared while they’re still in the game and producing an income, so that if they’re athletic career suddenly comes to an end, they are prepared for the next step.” Friedman agrees that franchising for athletes just makes sense.  “For an athlete, you are handed a playbook, given the plays and are expected to execute those plays.  Then, execute those same plays better next week, and even better the week after.  That’s what franchising is.” In 2011 PAFI signed a memorandum of understanding with the International Franchise Association to help continue its goals of connecting franchisors with professional athletes.  Through annual summits, PAFI provides a platform for franchisors to education athletes about opportunities in franchising, as well as for athletes to educate franchisors about their potential as franchisees.  Many of the athletes who come to the summits know very little about franchising, so PAFI doesn’t allow brands to pitch their particular business, but instead provide information and teach them things they should consider when becoming a franchisee. While initially PAFI has spread through the franchising and athletic communities through word of mouth, the organization is rapidly gaining momentum.  They are also building an accreditation program that will allow for professionals who counsel athletes to be able to also accurately educate athletes about franchising.  While this curriculum is still in its initial stages, PAFI, in conjunction with the IFA, seeks to have this program available by 2014. Jackson and Crowell both hope to help other athletes realize their dreams of entrepreneurship through franchising and the PAFI.  “I suggest to athletes who are still in the game to take their time and really figure out what excites you.  Think about what you enjoy talking about, buying, and doing and see if you can marry those passions with a brand.  Don’t put yourself on a short timeline – it will save you money and anguish in the long run.” Crowell also notes that it is important to start this process early.  “Financing is a lot easier when you’re playing and still have a paycheck coming in.  Since you don’t always know when exactly you are going to retire, it’s key to start this process while you’re still playing, as it will make the transition out of sports much easier.” Crowell also notes that programs like PAFI are most effective in getting the attention of athletes interested in franchising. “I think it is important for franchisors to work with someone like PAFI,” said Crowell.  “When you play sports it’s really a brotherhood, so we are aware of bad deals or investments that happen, so we might be more hesitant with franchisors that approach us without the backing of an organization like PAFI who is respected in the sports community.”