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USL Championship
USL Championship franchises enable investors to own and operate a men's professional soccer team (Club) participating in the USL Championship league, a Division II league sanctioned by the United Soccer Federation. Franchisees must comply with league standards, rules, minimum performance for revenues and attendance, and compete for fans, sponsors, merchandise, and event attendees against other sports and entertainment options. The business model involves substantial initial investments for team setup and ongoing league participation fees, targeting sports entrepreneurs in local markets.
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Franchise Costs
No royalty or ad fund. Key ongoing fees include annual Participation Fee up to $378,896 (max 15% annual increase), $1.50 per ticket surcharge, USSF membership ~$106,667 and player registration $1,333 annually, plus variable reporting software, website hosting/maintenance, insurance, referees, and other pass-through fees.
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
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Unlock financial performance dataUSL Championship Franchise Analysis
Imagine stepping into the owner's box of a professional men's soccer club in the USL Championship, the USSF-sanctioned Division II league drawing passionate crowds across 24 markets. With no Item 19 financial performance data disclosed, you're left piecing together the league's stability from location counts and a single transfer, amid whispers of a contentious termination dispute with a former operator. Does this setup promise soccer glory or expose you to the cutthroat competition of sports franchising?
Item 7 lays out a massive upfront commitment: franchise fee of $25 million atop total initial investment ranging $31,486,450 to $39,761,944, covering stadium builds, team assembly, and league compliance in a model demanding local market dominance for tickets, sponsors, and merch. Ongoing costs skip traditional royalties or ad funds but hit hard with annual Participation Fees up to $378,896 (capped at 15% yearly hikes), $1.50 per ticket surcharges, $106,667 USSF membership, $1,333 per player registration, plus variables like insurance, referees, and software. Zero growth from 24 locations in 2023 to 2024 signals a mature, saturated league where expansion stalls, and that one system transfer hints at rare resale opportunities.
Without Item 19, profitability stays opaque—no average revenues or earnings to benchmark against the enormous capital outlay, forcing reliance on league rules mandating revenue and attendance minimums amid fierce rivalry from other sports. Litigation notes reveal a former franchisee's suit over alleged improper termination and fraudulent inducement, underscoring operational risks in player contracts and financial obligations. For deep-pocketed sports moguls eyeing legacy over quick flips, this could build equity in a niche pro league; for others, the $30M+ entry and fee escalations scream caution in a no-growth system.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How USL Championship Compares
Key Insights
- Higher investment than 100% of Sports & Recreation franchises
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
USL Championship Current | $31.5M – $39.8M | $25.0M | N/A | 24 |
| i9 SPORTS | $60K – $70K | $25K | 7.5% | 294 |
| FREEDOM BOAT CLUB | $264K – $623K | $50K | 6.0% | 288 |
| AQUA-TOTS SWIM SCHOOLS | $1.6M – $2.9M | $50K | 6.0% | 131 |
| X-GOLF | $1.1M – $1.7M | $40K | 7.0% | 122 |
| The Back Nine | $307K – $689K | $50K | 8.0% | 120 |
Sports & Recreation Average 26 franchises | $1.8M – $2.8M | $1.0M | 7.0% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 26 Sports & Recreation franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+6 more states
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Unlock location growth dataFranchisee Contacts
13 franchisee contacts on file from official FDD filings.
13 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Termination dispute with former franchisee (team operator) alleging improper termination, fraudulent inducement, and related financial obligations.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a USL Championship franchise ranges from $31,486,450 to $39,761,944. This includes a franchise fee of $25,000,000.