Risk Score
Pending analysis
Investment Range
$86,000 - $134,700
Franchise Fee
$24,500
Total US Locations
118
Business Summary
Apex Leadership Co. operates a fundraising business that provides solutions for schools, sports teams, clubs, and other groups. The company offers a proprietary two-week curriculum focused on health, fitness, and leadership training for students, culminating in events like fun runs. Apex Leadership Co. generates revenue through donations collected by participating groups, which are then shared with the franchisee. Its programs include full-service events (Apex Live), adapted programs for lower-income schools (Apex Flex), fundraising for non-school groups (Anython, including virtual models), and specialized programs for middle schools.
Corporate History
Apex Leadership Franchising, LLC was organized in Delaware on November 15, 2021. The company operates under the trademarks APEX FUN RUN, APEX, and APEX LEADERSHIP CO. Its parent company, Heritage Acquisition, LLC, acquired substantially all the assets of Apex Fun Run, LLC (the predecessor) on October 25, 2021. Apex Fun Run, LLC had been the franchisor of the Apex Fun Run system from August 2012 to October 2021. Apex Leadership Franchising, LLC itself began offering franchises in December 2021, focusing on providing fundraising solutions and leadership training for schools, sports teams, clubs, and other groups.
Financial Overview
Investment Range
$86,000 - $134,700
Franchise Fee (Low)
$24,500
Franchise Fee (High)
$49,500
Royalty %
8%
Equipment Costs (Low)
$8,000
Equipment Costs (High)
$17,000
Working Capital
$12,750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Apex Leadership Franchising, LLC reported a net loss of $286,533 for the year ending June 30, 2024, and has an accumulated member's deficit of $536,519 as of the same date. However, Apex Leadership Franchising, LLC generated positive operating cash flow of $392,523 for the year. Since its inception, Apex Leadership Franchising, LLC's operations have been funded through capital contributions from its parent company. The company is growing and is currently incurring expenditures to expand its franchisee base and enter new markets. Apex Leadership Franchising, LLC continues to sell franchises, and royalties are increasing as more franchised units open. Management believes that the parent company has the intent and ability to provide any necessary financial assistance to ensure Apex Leadership Franchising, LLC can meet its working capital needs for at least one year.
Financing Details
Apex Leadership Franchising, LLC does not offer any direct or indirect financing to its franchisees. Additionally, Apex Leadership Franchising, LLC does not guarantee any of a franchisee's notes, leases, or other financial obligations. Franchisees will need to secure their own funding through external sources.
Performance Metrics
Total US Locations
118
Franchised Units
108
Corporate Units
10
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Apex Leadership Co. has a limited legal history to disclose, with only one past litigation case. This single case involved its predecessor, Apex Fun Run, LLC. In 2015, the predecessor entered into a Consent Order with the Washington Department of Financial Institutions. The issue arose because the predecessor sold an Apex business in Washington in 2014 without a fully approved franchise registration and failed to provide the franchisee with the required disclosure document within the mandated 14-day period. The predecessor agreed to cease and desist from such violations and paid a $1,000 fine for the investigation costs. There are no other litigation cases that Apex Leadership Co. is required to disclose in this document.
Bankruptcy History
Apex Leadership Franchising has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
Apex Leadership Co. franchisees who wish to renew their franchise agreement must not be in default under their current agreement or any other agreements with Apex Leadership Co. They need to provide timely written notice to Apex Leadership Co. within a specific timeframe (not less than 180 days nor more than 360 days before the expiration of the term). Additionally, Apex Leadership Co. franchisees must sign the then-current form of franchise agreement and any related documents, which may have materially different terms. They are also required to sign a general release of claims, pay a $5,000 renewal fee, and upgrade all their equipment and supplies to meet Apex Leadership Co.'s current standards and specifications. Franchisees must also comply with any additional reasonable actions Apex Leadership Co. may require.
Training & Support Program
Franchisor Assistance
Before an Apex Leadership Co. franchise opens, Apex Leadership Co. provides its System Standards and the annual event theme, curriculum, and prizes. It also supplies a list of approved suppliers for products and services. Franchisees and their key staff receive initial training, and Apex Leadership Co. lends or provides electronic access to its confidential Operating Manual. To support the launch, Apex Leadership Co. offers a coaching program with a consultant visiting the franchisee's territory at least twice to help initiate sales efforts and secure initial school contracts. During the first 90 days of operation, Apex Leadership Co. may also provide up to two days of on-site consultation during one of the franchisee's first events. Once the Apex Leadership Co. franchise is operational, Apex Leadership Co. offers periodic advice and assistance on signing schools, employee training, advertising, and administrative procedures. It also provides additional training or retraining for managing owners, team leaders, and sales professionals as needed. Apex Leadership Co. evaluates suppliers proposed by franchisees and creates advertising and marketing materials for their use. While currently not active, Apex Leadership Co. anticipates establishing a Marketing Fund by 2025 to promote the brand and system-wide, and will contribute to this fund for its own outlets. Franchisees must use Apex Leadership Co.'s specified computer systems and adhere to its social media policies for marketing.
Initial Training Hours
55
Training Location
Remote (e-learning/virtual calls) and Phoenix, Arizona (or other designated location for on-the-job)
Ongoing Support
After an Apex Leadership Co. franchise opens, Apex Leadership Co. provides various forms of ongoing support. Franchisees receive continuous training through mandatory weekly conference calls and an annual refresher training program delivered via webinar and checklists. There is also a mandatory annual training session, typically in early August, to introduce the new year's theme, prizes, and curriculum, which key staff must attend. Apex Leadership Co. may offer additional training or retraining for managing owners, team leaders, and sales professionals at its convenience, and requires new or replacement key personnel to complete relevant parts of the initial training program. Franchisees are also required to provide initial and ongoing training for their employees using Apex Leadership Co.'s online library of training modules. Furthermore, Apex Leadership Co. offers reasonable periodic advice and assistance in the ongoing operation of the business and evaluates any new suppliers proposed by the franchisee.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
exclusive
Staff Count
4
Territory Size Requirements
Apex Leadership Co. territories are assigned based on specific zip codes outlined in the franchisee's agreement. The size of an Apex Leadership Co. territory is determined by a point system, with each territory requiring a minimum of 170 points. Fifty of these points are automatically allocated to the Anython program, which supports fundraising for organizations other than elementary or middle schools. The remaining 120 points are assigned based on the percentage of students receiving free or reduced lunches in the schools within the territory. Schools with less than 30% free or reduced lunches (and private schools with over 100 students) contribute 3 points each. Schools with 30% to less than 55% free or reduced lunches contribute 2 points, those with 55% to less than 75% contribute 1 point, and schools with more than 75% free or reduced lunches contribute 0 points.
Staffing Notes
Apex Leadership Co. requires each franchise to designate a 'Managing Owner' who holds at least a 25% ownership interest and is either directly involved in the business's operations or supervises the Team Leaders and other staff. This Managing Owner or a designated Team Leader must be actively involved full-time in on-site management and supervision. Each Apex Leadership Co. business must also have at least one 'Team Leader' responsible for directing and supervising staff, conducting events, and one 'Sales Professional' to market the business to schools and groups. The Managing Owner may fulfill the roles of Team Leader and/or Sales Professional if they have the appropriate background. All Managing Owners, Team Leaders, and Sales Professionals must complete all required training, including specific marketing/sales techniques training for the Sales Professional. New or replacement Team Leaders and Managing Owners must complete the initial training program, either at corporate headquarters, with a certified trainer, or through the online training platform provided by Apex Leadership Co. Franchisees are solely responsible for hiring, training, and supervising all other employees, ensuring they are competent, courteous, and comply with operational standards. Employees must sign an acknowledgment form clarifying their status as the franchisee's sole employees. Apex Leadership Co. also mandates that Team Leaders and Sales Professionals, along with other employees, sign a Confidentiality Agreement before accessing proprietary information.