Karting Franchise Idea

IDEA:

Individually, or through a small group, purchase a suitable 8-12 acre. plot. Build a paved parking lot. Somewhere around 2/3 of the lot will be empty for a course layout. That layout could change year to year. The perimeter of that track area is fenced off, and a bunch of storage units installed. These will serve as rentable pit areas and storage for track-operations. One will be a concessions area (with serving door cut in side.) Install bleachers ABOVE the storage units.

Track configurations will be outlined with cones and Scribner-type plastic barriers. Ideally, enough of these locations will exist that they can opt to make the same layouts and compete with time-attack runs throughout the year via practice days…

Site will be positioned in or near industrial parks or airports so noise isn’t a concern.

Track length ~0.8 mi. (closer to karting’s original tracks rather than country-club layouts)

Club or org running the track will have a spec racing class for noobs and budget racers (Think: Ignite or equivalent) with karts stored at the track in one unit. ALL classes MUST use medium or harder tires for asphalt longevity.

Financing will be obtained for mixed-use, but with the benefit that it could be all converted to storage units if the karting business folded… (Banks like viable alternative plans, I presume.)

What am I not thinking of? What do you think of the concept?

Yes, I realize variable natural terrain is more ā€˜fun’ but I’m prioritizing access and logistics and operations…

Discuss.

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In EU you will need 300 different type of permit from the township , 2-3 years of pain to get them approved and 4 to 5M € budget.

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Figure out the costs on that. That is a few million dollar project between land acquisition, site work, paving, buildings, etc. The concessions area would be even more expensive with kitchen items and permits. It would be a fun exercise to go through the real numbers on this for people to see. I think everyone will be surprised at where they come in before you even get to operating costs.

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I think the finding property that allows for the noise level of karting would be an issue. One of the reasons current karting/racing facilities are closing.

What is the Franchise offering? If someone is paying a fee to purchase a franchise, and likely a percentage of sales, I would imagine there is some level of support/startup provided.

I have run some numbers for a concession karting facility a few times. It can get pricey fast.

Property can swing wildly based on location. Anywhere from 250k to 1.5M for 25 acres where I am. And that’s not near a metro.

Asphalt will be 7.50-11.00 per sq ft depending on what you spec for aggregate, binder, and thickness.

Finished and climate controlled structures will be 100-140 per sq ft.

Unfinished spaces will be 40-60 per sq ft.

Customer parking will be 2-6 per sq ft depending on if you do gravel or basic asphalt.

Site work can vary wildly depending on property. The stuff I was looking at was all minimal.

If you could get out for 3M or less I would be impressed. Most parts of the country probably looking 4-6M, and that’s not for anything fancy.

The ā€˜Franchise’ here is somewhat of a misnomer. What I have in mind is the initial investment being done by a consortium of people who genuinely care about the sport, and the ā€˜franchisee’ gets a local group (club?) to ā€˜buy-in’ and then it becomes a lease-to-own up to 49% ownership. At that point, the consortium retains controlling interest and ultimate ownership, but the operational ā€˜profit’ and such go to the club. The point is NOT to be a strictly for-profit operation. The point is to preseve the existence of the sport and establish commonality between regions.

Noise mitigation would help, but is primarily why I’d put it near airports and business (think industrial) parks. Noise wont be an issue there…

I will do a budgeting exercise here for those interested.

Who is it for and what are your goals for it?

First thing that comes to mind is buy or rent an existing paved lot to see if it catches vs building from scratch. Lots of malls with space out there.

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I was thinking along those lines too. Locally, the SCCA clubs are using either unused airport runways or abandoned military runways. I suppose the only concern with all of these ideas is the condition or smoothness of the surface.

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As an idea, I think it’s not a terrible one. I think you’d struggle to find enough consortium members who have the passion for the sport combined with the financial backing to come together with enough moolah to get going.

Which leads you towards the seeking investors route - then you need to consider most investors want to know two things at the outset - what’s the ask (how much money they’re being asked to put in) and when do they get it back, which typically needs to be within 2-3 years and minimum 10x return on their investment - which is difficulty to achieve in a kart center. An investor cum passionate karters consortium won’t work - two sides wanting different things always ends in trouble but maybe terms and conditions could be tailored to appease both sides

Def worth a bit more number crunching though I’d say.

BDC Canada is a good resource for business plan and financial templates, if you want to crunch some numbers seriously.

Locally to me Autocross has had difficulty getting insurance. I think the acquisition of loan and insurance would guide the possibility. There was a club that ran karts at Baseball stadium, it was rough on karts though.

thats why you hire your buddy joe to build your parking lot out of quickrete

When I first moved to NC, before Trackhouse Motorplex existed, there was a group running karts at the parking lot of Rockingham Speedway…hot, no shade, no amenities, but it was a place to race…

I predict this setup would work, and could be built in stages… parking lot….containers… niceties.

And worst case, could be sold for semi-trailer storage and container storage. I’ll see what local rates are.

The benefit of an existing lot would be the chance to use a 1ā€ micropave topcoat and save money. There are plenty of abandoned industrial sites that might be options. (At least around me…)

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I would imagine parking lots are in better shape in the south than anywhere that has a winter with freeze/thaw.

I wonder how well a topcoat would hold up. We’re seeing brand new karting facilities and/or full repaves experiencing issues in their corners.

@revolutionracing – hence my MG Orange and harder mandate. :slight_smile: Make karts slide again…

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I had a decent idea but its different than yours.

I live relatively close to a big name national track, and I would like to collaborate with them for a ā€œkarting campā€ Imagine the parents drop off the kids for a week or 2, adults/teens burn a week of vacation from work and spend it at the track with national drivers where you start from the very beginning (what the flags mean, how to find the racing line) etc.. all the way up to intermediate/advanced driving techniques. Taught by real pro’s. Just like any other camp would be. I can’t believe that this doesn’t already exist. I feel like it would be an amazing way to get up to speed 10x faster!

Ted pls come to indonesia. We only have 1 kart track nationwide. That is safe for pro karting. Rentals have lots. Hahahahahaha i need investors to make new track. Permits n whatnot is easy.

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I have a couple friends there, but I think I’d better refine the concept before going international… :slight_smile: Are there any indonesian kart chassis makers?

Oh im surpirsed you know someone in indonesia.. there is but he only make rental kart. Pro level not yet.

Sounds a bit like United Karting in the Baltimore airport lot.

Permanent facility.

Sign me up! A karting ā€œimmersionā€.

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