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XP League Franchise Costs, Fees & Profits

XP League Franchise Costs, Fees & Profits (2024)

Here’s what you need to know if you’re interested in opening a XP League franchise.

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KEY FRANCHISEE INFORMATION

Here are the most important stats to know for franchisees.

NUMBER OF LOCATIONS

35

INITIAL INVESTMENT

$79,000 – $171,000 

ROYALTY FEE

8.00%
revenue

REVENUE PER YEAR

$0

Established in 2020 in  North America with a focus on fostering the next generation of esports competitors, XP League has become a leader in the youth esports franchise market.  Headquartered in Bedford, TX, they began franchising in 2020 allowing passionate individuals to bring their structured and coach-led esports leagues to new communities.  

XP League caters to children in elementary, middle, and high school, offering them the opportunity to compete in popular video games like Fortnite and Rocket League.

What sets XP League apart is its emphasis on creating a positive and skill-building environment for young gamers.  Their programs go beyond simply playing games; they incorporate professional-level coaching, fostering teamwork, communication, and sportsmanship.

Number of locations

TOTAL UNITS
35
FRANCHISED UNITS
33

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Initial investment

INITIAL INVESTMENT
$79,000 $171,000 

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

ROYALTY FEE
8.00%

Initial Franchise Fee

The initial franchise fee for signing a Franchise Agreement with XP League is $35,000. This fee is non-refundable and is fully earned by XP League upon payment. The fee is uniform for all franchisees, except for a discount provided under certain conditions, such as for veterans .

Royalty Fee

From the Royalty Start Date to the Opening Date, the Royalty Fee is the Minimum Royalty Fee ($500 per month). After the Opening Date, the Royalty Fee is the greater of the Minimum Royalty Fee or 8% of monthly Gross Sales.

Renewal Fee

The Renewal Fee is 25% of the then-current Initial Franchise Fee plus reimbursement of legal and professional expenses incurred by Franchisor in connection with the renewal.

Transfer Fee

The Transfer Fee varies based on the scenario: 50% of the then-current Initial Franchise Fee for new franchisees, 25% for existing franchisees, and a fixed $3,500 for transfers of 20% or less of the total units, limited to once per year.

Relocation Fee

The Relocation Fee is 25% of the then-current Initial Franchise Fee, payable upon approval of relocation.

Technology Fee

A Technology Fee of $350 to $500 per month is required, covering email, website hosting, and access to electronic support systems and software.

Profits

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How to apply

1. Initial Research

  • Understand the business model: Research XP League’s business model, market presence, and competition.
  • Evaluate your compatibility: Assess whether your business philosophy aligns with XP League’s mission and values.

2. Contact XP League

  • Initial inquiry: Reach out through their official franchising inquiry form or contact information.
  • Request information: Ask for franchising brochures, financial requirements, and other relevant documents.

3. Submit Application

  • Complete the application form provided by XP League.
  • Include necessary documentation, such as financial statements, business plan, and personal background information.

4. Financial Review and Approval

  • Undergo a financial review process to ensure you meet the financial qualifications.
  • Await approval from XP League’s franchising team.

5. Training and Support

  • Participate in any required training programs to understand XP League’s operational procedures, technology platforms, and marketing strategies.
  • Take advantage of support offered by XP League in setting up your franchise, such as location selection, setup, and grand opening.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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