Franchising in sports

A franchise (or franchising) is a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system. Franchise is about: ۱) the relationship that the franchisor has with its franchisees, ۲) the brand to which consumers have trust to meet their expectations, ۳) Systems and Support which franchisor provide for franchisee to have the ability to live up to the system’s brand standards ۴) Contractual Relationship between franchisor and franchisee that allows the business owner to use the licensor’s brand and method of doing business to distribute products or services to consumers. Investing in a sports franchise can include many different areas of interest including sporting goods, training and fitness, recreations, sports businesses, … etc. Sports marketing remains one of the most effective advertising channels for franchises because it targets specific consumer segments while also tapping into fan loyalty, which helps franchises increase marketing reach and build community good will. Sports fans are loyal and economically and emotionally attached to their favourite teams and athletes. Franchise brands can take advantage of these unique characteristics through sponsorship, endorsements, or sports advertising, resulting in greater brand awareness and loyalty from sports fans. Moreover, There are a few key elements that make these sports franchises so valuable to investors. First off is the structure that is used and the consistent business model in place in each league. It is in place to carefully protect the integrity of the brand itself and the overall association with the teams. The teams have a structured, rule driven platform they must operate within to stay compliant with league rules and structure. The business model is based on a diverse revenue stream combining Advertising Dollars, Sponsorship revenue, Royalties, Ticket Sales and Endorsements. The leagues generally share this revenue generously with the teams and the teams support the leagues initiatives to grow the fan base.in addition to the professional sports franchises, There are several types of sports and recreational franchise opportunities in the franchise market. This category of franchise opportunities offers a wide range of recreational sports from adult gyms and fitness centers to children’s after-school programs and child entertainment services from bouncy houses to art, music, and sports clubs. Some sports and recreation franchises require a brick and mortar location with lots of equipment, while others can be home-based or managed from a mobile location. With so many adult sport clubs, choosing a children’s recreational franchise can be very self-rewarding by helping to stop obesity and promote a healthy lifestyle for the child. The sport and recreation sector has seen a huge rise in interest from all ages and levels of sporting ability. Franchises, despite their many benefits in improving the economic situation of individuals and society, are not well received in Iran. The reason for this is the lack of a clear law on how to properly implement franchises in sports. In addition, the lack of experienced and specialized people in the field of setting up and managing franchises in Iranian sports is an important factor for neglecting to start this type of business in the Iranian sports industry. Also, the unfavorable economic situation of individuals has limited their willingness to invest in sports franchises. In order to launch sports franchises in Iran, special rules and regulations need to be enacted and organizations need to be established to monitor the performance of sports franchises, and the government must provide financial support to those who want to launch sports franchises but are economically limited.

کلیدواژه ها:

franchise ، sports ، recreation ، investment ، Iran