Sportswear and footwear are one of the biggest markets in the clothing industry, with millions of people shopping every day.
Foot Locker is one of the biggest players in this industry, with exclusive brands in their stores.
They operate in numerous countries, and no matter where you live, you probably saw one of their stores.
If you are looking to enter into franchising or become a first-time entrepreneur, Foot Locker could be a reasonable choice.
Their brand awareness and exposure in many locations could make it easy to make a profit.
We are going to discuss the important points of Foot Locker’s franchising details and policies.
About Foot Locker
Foot Locker is a commerce and retail business selling athletic footwear and apparel.
The company operates in over 20 countries worldwide, with more than 3,000 stores, and has a strong online presence.
Foot Locker sells a wide range of athletic footwear, apparel, and accessories from top brands such as Nike, Adidas, Puma, and Reebok.
In addition to its own brand stores, the company also operates other retail brands such as Champs Sports, Eastbay, and Footaction.
Foot Locker is known for its high-quality products, exceptional customer service, and knowledgeable staff.
They can provide expert advice on choosing the right athletic gear for customers.
Foot Locker’s stores are designed to provide customers with a comfortable and engaging shopping experience.
These include modern designs, innovative displays, and interactive features such as touchscreen displays and virtual reality experiences.
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Foot Locker History
Foot Locker was essentially founded under a different name by F.W. Woolworth.
This was a corporation that had a history of successful retail operations dating back to the 19th century, specifically 1879.
Later on, this corporation decided to change its name to Foot Locker in 2001.
The first actual Foot Locker store was opened in 1974 when Woolworth bought Kinney Shoe Corporation and branched into specialty shoe stores operating it as a subsidiary.
The first store was in the City of Industry, California. Their headquarters are now in New York, and they expanded quickly after the initial store’s opening.
Over the years, Foot Locker has continued evolving and adapting to changing athletic retail industry trends.
The company has invested heavily in technology and digital innovation, launching a mobile app, online store, and social media channels.
Today, Foot Locker is a global leader in the athletic retail industry, with over 3,000 stores in over 20 countries on different continents.
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Footlocker Franchise Model
Sadly, Foot Locker has no franchise locations in the United States.
Foot Locker Europe BV owns and operates all of its stores in Europe, whereas it operates all its stores in the United States.
Your only choice is to work your way up the corporate ladder to become a store manager or find other positions that will make it possible to create a Foot Locker store in your neighborhood.
| Franchise | NO |
| Franchise-Fee | NO (Doesn’t Franchise) |
| Estimated Outlets | 3,129 |
How Much Does It Cost To Open A Foot Locker Franchise?
Foot Locker is not a franchise business. All their stores are company-owned. That’s why there are no costs associated with opening a Foot Locker franchise branch.
Why Doesn’t Foot Locker Offer Franchising?
Foot Locker is a publicly traded company on the New York Stock Exchange, but all their stores are company-owned.
Because their stores are company-owned, it means that only the company opens new stores.
All their US stores are operated internally, and all their European branches belong to Foot Locker Europe BV.
There is no official information about the reason why Foot Locker doesn’t franchise.
However, considering that they do not even offer licensing opportunities, the reason behind this might be to prevent the quality.
When companies franchise, they see quick growth, but keeping the same quality in each location is hard.
Foot Locker now oversees all their locations themselves and can keep the quality the same everywhere.
Foot Locker Revenue & Profit
Foot Locker is a publicly traded company, which means that they are obligated to share their financial statements every quarter with every little detail.
This allows us to get an insider look at how Foot Locker is doing financially and how their revenue and profit numbers are.
It’s no surprise that Foot Locker can generate exceptional revenue and profit since they have over 3,000 stores.
According to the last reports, Foot Locker’s total revenue was $8.75 billion in 2022. This is almost the same as the previous year.
It did not see a massive change. However, although their revenue stayed almost the same, their profit numbers have significantly declined.
They had $342 million in profit in 2022, which is significantly lower than the $893 million profit they had the previous year.
Even though Foot Locker can keep their clients and still generate the same revenue through sold goods, it can’t keep up with the profits.
This shows a distressing look for Foot Locker as they might need to increase their prices which might affect their overall revenue numbers in the future.
There is no definitive number for revenue and profit numbers per store, but we can get an estimation from the total numbers.
Considering they have 3,129 stores and $342 million in profit, each store has the potential to generate around $100,000 in annual profit on average.
What Are Some Alternatives to Foot Locker Franchise?
Foot Locker might not offer franchise opportunities, but they are not the only athletic and footwear company.
There are many other similar businesses like Foot Locker, both bigger and smaller. Here are two of those alternatives that you can franchise with.
Play It Again Sports
Play It Again Sports is a retail franchise that buys, sells, and trades used sports equipment and gear.
They have been providing quality new and used sports gear and equipment for over 30 years.
The company is known for offering a wide variety of products, including everything from hockey and football gear to fitness equipment, golf clubs, and even winter sports gear.
The initial investment for a Play It Again Sports franchise ranges from $292,500 to $401,300.
This initial investment includes the franchise fee of $25,000 and all the other operational costs, such as the lease, equipment, training, and many others.
On top of the initial investment, you also need to pay a 5% royalty fee on the gross sales.
Once you are approved, they also offer training and ongoing support to support your daily operations. They also can give you limited financial assistance for inventory supply.
Play It Again Sports’ history goes back to 1983, when they were founded in Minneapolis, Minnesota.
The company grew quickly, and they were sold to Winmark Corporation in 1988, only five years after being founded.
Winmark took the flag of the company and started its franchising journey the same year. Play It Again’s main idea was to offer quality used sports equipment at affordable prices.
Keeping with the same motto, they have grown to become the largest and most recognized used sporting goods retailer in North America. They now boast over 400 stores in the US and Canada.
Soccer Post
Soccer Post is a soccer specialty business selling products focused on soccer and soccer wear.
They offer a wide range of soccer equipment, apparel, and accessories for players of all ages and skill levels.
Their products include the biggest brands like Nike, Puma, Adidas, and many others.
They are known for their extensive selection of products and knowledgeable staff that provides expert advice to customers.
Contrary to Foot Locker, you have the option to have a Soccer Post franchise.
To open this franchise, you need to be able to make an initial investment of between $200,000 to $300,000.
Their franchise fee is $29,500, which is included in the initial investment. The other things you can expect to spend on our lease are equipment, employee, training, and other operational costs.
They take a 5% royalty fee from the gross sales. They are also very active in providing support for franchisees, such as ongoing support and starting training.
Soccer Post was founded in 1978 in the United States. The company’s main aim was to provide soccer players with a better shopping experience and help the customers with their selections.
The first store was opened in Connecticut, and they quickly expanded and started to franchise in 1991. They now have 38 stores across the United States, most of which are franchised.
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Foot Locker Comparison
| Company | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Fleet Feet | $38,000 | 4% | $169,000-$416,000 |
| Athlete’s Foot | $30,000 | 7% | $304,200-$715,000 |
| Foot Locker | N/A | N/A | N/A |
Conclusion
Foot Locker is by far one of the biggest sport and footwear stores in the United States and in most parts of the world. With over 3,000 stores, they operate in around 20 countries across the globe.
They generated $345 million in profits last year and $8.75 billion in revenue. This shows how big and profitable a business they are.
However, if you are looking to own a piece of Foot Locker through franchising, this is not available as they do not franchise.
There are other alternatives in the same industry that you can franchise with, such as Athlete’s Foot or Soccer Post.
They are not as big as Foot Locker, but still, they are extremely profitable businesses to own.
FAQ
Who is the CEO of Foot Locker?
Mary Dillon is the current CEO of Foot Locker. She has been holding the spot since late 2022.
How much does it cost to open a Foot Locker?
As Foot Locker doesn’t offer franchise and all their stores are company-owned, there are no costs associated.
That’s because no one except for Foot Locker itself can open its stores.
Can everyone open a Foot Locker franchise?
No, Foot Locker doesn’t offer franchises. That’s why no one can operate their stores except for the brand itself.
Sources
https://en.wikipedia.org/wiki/Foot_Locker
https://franchise.fleetfeet.com/ways-to-join/franchise
https://en.wikipedia.org/wiki/Play_It_Again_Sport
https://www.playitagainsports.com/home/about-us
https://soccerpost.com/pages/about-us
https://www.macrotrends.net/stocks/charts/FL/foot-locker/financial-statements
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.