Amazing Athletes Franchise

Financing Details

Item 10 of the FDD states that Amazing Athletes does not offer direct or indirect financing, nor does it guarantee any notes or obligations for its franchisees. However, a specific provision in Item 4.1(b) and the inclusion of a "Promissory Note" as Exhibit 10 indicate that Amazing Athletes does allow franchisees to finance a portion of the initial franchise fee. Franchisees are required to pay a lump sum upfront and can execute a promissory note for the remainder. This note, attached as Exhibit 10, specifies a 15% interest rate, with payment in 12 equal monthly installments, beginning no later than the fifth day of the month following the note's date. If an installment payment is late by more than ten days, a default interest rate of 18% per annum (or the highest rate permitted by law) applies. If the franchisee is a business entity, the note must be guaranteed by all partners, members, or shareholders.

Litigation Summary

Amazing Athletes Franchise Systems, LLC has no litigation to report. Item 3 of the FDD states that no litigation is required to be disclosed. This means that Amazing Athletes Franchise Systems, LLC, its predecessors, parents, or affiliates have not been involved in any material litigation or bankruptcy proceedings that would require disclosure under federal franchise law within the specified reporting period.

Renewal Conditions

To renew their Amazing Athletes franchise agreement, franchisees must notify Amazing Athletes between nine and six months before their current agreement expires. They must have substantially complied with all terms of their franchise agreement, been in good standing, and resolved any defaults. Franchisees will need to sign Amazing Athletes' then-current franchise agreement, which may include materially different terms and fee structures. They must also upgrade their business to meet Amazing Athletes' current standards, including equipment, methods, procedures, product lines, and computer systems, with a cost cap of $5,000 for single units or $10,000 for multiple units. All current training requirements must be completed to Amazing Athletes' satisfaction, and all monetary obligations to Amazing Athletes, its affiliates, and suppliers must be settled. Franchisees are required to execute a general release of claims (subject to state law), maintain all necessary permits, licenses, and certifications, and have generated over $100,000 in Gross Revenues during the ninth year of the franchise term. Finally, a successor agreement fee of $7,500 must be paid.

Staffing Notes

An Amazing Athletes franchisee or their designated Operating Principal(s) is required to personally participate in the day-to-day activities of the business. Franchisees may also employ a manager to handle day-to-day operations. If the franchisee is a business entity, the Operating Principal(s) must own at least 25% of the entity. Amazing Athletes has the right to approve Operating Principals, and these individuals (and any hired managers) must successfully complete the Amazing Athletes initial training program and any supplemental training. Amazing Athletes requires the franchisee to train its own staff, with the exception of any manager trained by Amazing Athletes. Franchisees are solely responsible for all aspects of employee management, including hiring, scheduling, compensation, and liabilities. The Starter Kit provided to franchisees contains enough equipment for one coach to teach the Amazing Athletes program. All employees and staff, along with owners, are required to sign non-disclosure and non-competition agreements.