It’s been five years since Max, Ernesto and I built the first PingPod. Twenty corporate locations later, and hundreds of unsolicited requests from aspiring franchisees later, we have officially become a franchisor.
Our mission is simple – to increase the quantum of fun being had in the world. We are more motivated than ever before to pursue this mission. By becoming a franchisor, we can meaningfully increase our geographic footprint and bring the healthy, dynamic, community fostering experience that is PingPod to many more customers across the United States.
Where We Came From
In 2019, I was working in finance when a stubborn question bubbled up in my mind: why are there so few places to play ping pong in New York City? The answer was that the economics didn’t work with New York rent prices and labor costs. The solution that I dreamt up involved small-format (one to six table), technology-enabled “Pods” that could run without the need for an employee to regularly be present on-site. I met Max and Ernesto, they immediately understood the vision, and we got to work.
Our first few locations in NYC proved our hypothesis that creating supply for ping pong would awaken latent demand for the game while also generating new demand in a given neighborhood. We discovered that people were not playing ping pong not for lack of desire to play, but for lack of a place to play.
By inventing PingPod (and the technology that enables it, PodPlay) we invented a key that unlocks the supply side of ping pong (and other experiences) in urban areas. By reducing the labor requirements for operating a physical venue, we unleashed a world of new experiential possibilities.
Our 18 U.S. locations are spread out across NYC, NJ, Philadelphia, Boston, Chicago and Miami. In New York City, we have effectively doubled the number of indoor tables that are available for play in a private space. NYC has the highest concentration of PingPods and we have made a significant impact in right-sizing the severe supply-demand imbalance of yesteryear.
It is not only the number of tables in the network that matters, but the physical distribution of tables across the city that makes ping pong more accessible to a far greater number of people than ever before. NYC, once a barren and lonely landscape for the eager table tennis player, has been transformed into an oasis of autonomous pods for players of all levels.
Exterior shot of the Downtown, Brooklyn PingPod
Where We Are Going
Even in New York City, there are still plenty of neighborhoods, especially in the outer boroughs, where people have to travel 30 minutes or more in order to get on a table. This is a travesty which we vow to rectify in due time.
And if there is more work to be done in NYC with its nine locations, the Pod footprint outside of New York only scratches the surface of alleviating the lack of supply in urban and suburban areas across the country. To satisfy the potential demand for ping pong across the country will require hundreds of Pods to be built. Franchising will help get us there.
How Does Franchising Work?
Franchisors grant the rights to own an established business, its intellectual property and its operating know-how, to independent owners, known as franchisees. Franchising was made famous by restaurant brands such as McDonalds and Dunkin’ Donuts. It may surprise people that Hilton and Marriot are also franchisors. In the fitness category, Anytime Fitness and OrangeTheory are widely recognized franchise brands.
Franchising enables the brand to expand without enormous capital requirements, while empowering local entrepreneurs. The cost to physically build locations is borne by the franchisees, who may build a single location or numerous locations, in exchange for most of the economics of the franchised locations. Franchisors take only a one-time upfront franchise fee and a small cut of ongoing location revenue.
Franchisees receive the rights to operate a brand that already is a known quantity amongst consumers. Moreover, they receive an operating manual that contains all of the best practices on how to successfully operate and optimize the business. By licensing a proven business model the entrepreneur is able to focus on execution.
The Franchise Disclosure Document (FDD) is a document that governs the business, legal, and economic terms of the partnership. If buying a franchise is like buying a car, then the FDD is the title and purchase agreement and the operating manual explains how to drive the car, down to the bells and whistles.
Ribbon Cutting Ceremony for the Fort Lee, NJ PingPod
Why Franchise a PingPod?
We believe that PingPod is a one-of-one franchise proposition. Here are some reasons why you should consider owning a PingPod(s):
It’s fun creating fun: Perhaps the most important reason to get into the ping pong game is that it’s fun. It’s fun to play, it’s fun to coach, it’s fun to compete, it’s fun to be a part of a community and it’s fun to build and facilitate all of the above and more. In a world that is more digitized than ever, PingPod is a place where you use your phone to put down your phone. PingPod offers a space where age, ethnicity, and politics dissolves and people focus on the important things in life – getting a small white ball over the net and on to the table over and over again. Table tennis demands every ounce of our focus and attention.
With PingPod, the product you are selling is something good in the world.
The economics are enticing: At the end of the day, PingPod is a business and one of the main pursuits of business is to make money. While FTC guidelines disallow us from getting into specifics on the dollars and cents of what a location can generate (that info is contained in the FDD), suffice it to say that PingPod unit profit margins have the potential to be significantly greater than average brick and mortar concepts due to the low operating cost profile of a unit.
PingPod is simple: At its core, we have designed PingPod to be as simple to operate as possible. If you find a space that is already a white box*, then building a PingPod can be relatively straightforward and capital light. The technology and security service that PingPod offers through its PodPlay subsidiary enable the Pod to be run without the need for employees to physically be on-site most of the time. There is minimal inventory to manage, maintaining and provisioning a location is not highly intensive, and PodPlay makes accounting easy. A PingPod location can be run successfully by a single, dedicated owner-operator
In comparison, even a small sandwich shop could require a significantly greater upfront capital investment because there is a bunch of physical equipment that is needed to store, process and deliver food products to customers safely. And that same sandwich shop might require numerous full time employees to manage and run the store. Just think about the effort that goes into procuring the right quantities of turkey, tomatoes and peppers each and every week.
The market is large and growing: Table tennis is having a cultural moment. Some people say that ping pong only took off after COVID. But the idea for PingPod was conceived in 2019 before COVID was part of the lexicon. And the recent Olympics and associated lift is just gravy on top. According to the SFIA, as of 2023 there were ~16 million active participants in table tennis in the U.S. That is three million more than Pickleball! Where there are people, there is a desire to play ping pong.
The Olympics put table tennis into the zeitgeist as more than a niche sport in the United States. The table tennis movie starring Timothee Chalamet should accelerate the trend (Queen’s Gambit effect, anyone?). There has never been a better time to get into the business of ping pong.
Foster a community: At the core of each PingPod location is a community. PingPod is a vehicle for people to meet for the first time, forge relationships, connect and compete. PingPod ownership is for people who are excited by the prospect of fostering a vibrant community of people.
Grand Opening Event for the Jersey City, NJ PingPod
Who Are We Looking for in a Franchise Owner?
Other franchise concepts tend to be more weighted towards purely financial goals, and will not be attractive to entrepreneurs looking for purpose along with profits. As Ben Borton has said, “hamburgers are not a mission.” No disrespect to any burger joint out there. I love a good burger, and they have their place in society. But we view PingPod as a real force for good in the world.
We are a mission driven company and we are seeking mission driven entrepreneurs. We are interested in people who are extremely excited about the prospect of bringing people together. Listed below are some things we care about, as well as some things that you might be surprised are not super important to us.
- You don’t necessarily need to be passionate about table tennis. If you have a basic background in table tennis but are generally enthusiastic about experiences and building community, let’s talk. That being said, being a table tennis lover and/or having a pre-existing table tennis community is a bonus.
- Your goal in owning your own PingPod business should be to pursue your passion, create something meaningful and make a positive impact!
- Yes, PingPod is simpler to operate than most other brick and mortar concepts. However, we are NOT looking for passive owners. We are seeking owners who want to roll up their sleeves, dedicate time to be fully engaged and immersed in their business and the community.
- Buying a franchise license comes with inherent risk and there are some basic financial requirements that you need to meet. We’d like our franchisees to have at least $250,000 in liquid assets and a net worth of at least $1,000,000.
- We’d like franchisees to have some relevant experience. Don’t worry, you don’t need to be Phill Knight. Whether your background is in operating a business, technology, or as an athlete, we think there are various pathways to becoming an owner of PingPod.
- Franchisees should love people. If facilitating fun, building a community, fostering connection and competition makes you want to jump out of bed in the morning, then PingPod may be right for you.
Bring PingPod to Your City
If this blog post resonates with you or anyone you know, please submit a franchise inquiry form. That is the starting point for everyone. An introductory call will serve as a forum to answer any questions you have about the franchise process and the PingPod operating model.
To my friends in Los Angeles, San Francisco, Seattle, Atlanta, Austin, Dallas, Nashville and everywhere in between… there’s a PingPod coming to you soon.
*A white box is a space that needs minimal work done. Our definition of white box includes an HVAC system and bathrooms already in place.
