Risk Score
Pending analysis
Investment Range
$178,650 - $330,200
Franchise Fee
$20,000
Total US Locations
3
Business Summary
Athletes HQ Systems, Inc. offers franchises for baseball and softball training academies that operate under the "Athletes HQ" trademark. These facilities provide personal and group training in pitching, catching, hitting, and fielding. They also offer batting cage rentals, pitching machines, memberships for cage rentals, and organize travel teams for both baseball and softball. Some Athletes HQ facilities may include an artificial turf field.
Corporate History
Athletes HQ Systems, Inc. was established on August 1, 2022, in Illinois, with the purpose of franchising baseball and softball training academies. The brand's origins trace back to its affiliate, Athletes HQ, Inc., which began as "Athletes First, Inc." in March 2018 and later adopted the name Athletes HQ, Inc. in September 2018. This affiliate operates a baseball and softball training center in Elgin, Illinois, which started in November 2018. Athletes HQ, Inc. licenses its trademarks to Athletes HQ Systems, Inc. for use and sublicensing to franchisees. Athletes HQ Systems, Inc. commenced offering franchises for its training facilities on the FDD's issuance date, April 21, 2025. The franchisor is also associated with another affiliate, BAB Systems, Inc., which has been franchising Big Apple Bagels and My Favorite Muffin concepts since 1992.
Financial Overview
Investment Range
$178,650 - $330,200
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$25,000
Equipment Costs (Low)
$114,000
Equipment Costs (High)
$240,500
Working Capital
$6,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Athletes HQ Systems, Inc. has provided audited financial statements for the years ending December 31, 2024, and 2023. Despite reporting positive net income for both 2023 ($4,994) and 2024 ($11,901), and maintaining positive working capital ($59,793 in 2023 and $66,485 in 2024), the company's retained earnings remain negative (approximately -$498 at the end of 2024). A significant risk highlighted in the Franchise Disclosure Document indicates that the financial condition of Athletes HQ Systems, Inc. "calls into question the franchisor's financial ability to provide services and support" to franchisees. This concern is further underscored by the Illinois Attorney General's requirement that the payment of initial fees be deferred until Athletes HQ Systems, Inc. has fulfilled its initial obligations and the franchisee has commenced business operations, a condition imposed specifically "due to Franchisor's financial condition." However, Athletes HQ Systems, Inc. has demonstrated positive cash flow from operating activities for both reported years.
Financing Details
Athletes HQ Systems, Inc. does not offer any direct or indirect financing to its franchisees. This means that franchisees will need to secure all necessary funding, whether for equipment, the franchise fee, or working capital, through external sources like banks or other lenders, as Athletes HQ Systems, Inc. will not provide any loans or guarantees for their obligations.
Performance Metrics
Total US Locations
3
Franchised Units
2
Corporate Units
1
Avg Square Footage
10,750
Franchising Since
2025
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Athletes HQ Systems, Inc. has a clean legal record. Item 3 of the FDD states that no litigation is required to be disclosed, meaning Athletes HQ Systems, Inc. or its management have not been involved in any material legal proceedings.
Bankruptcy History
Athletes HQ Systems has no bankruptcy history to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
Athletes HQ franchisees can renew their franchise for two additional ten-year terms, provided they give written notice of their election to renew between six and twelve months before the current term ends. Franchisees must be in good standing, having substantially complied with all terms of their agreement, and satisfied all monetary obligations to Athletes HQ and its designated suppliers. Their facility location and lease must be approved by Athletes HQ, and they must agree to upgrade the facility to Athletes HQ's then-current standards for decor, equipment, and product offerings. A renewal fee of $2,500 is required, along with compliance with current qualification and training requirements, and the execution of a general release of any claims against Athletes HQ. The new renewal agreement may contain materially different terms and conditions, but the royalty and Team Players Fees will not exceed those imposed on other similarly-situated renewing franchisees.
Training & Support Program
Franchisor Assistance
Athletes HQ provides extensive assistance to its franchisees both before and after their facility opens. Before opening, Athletes HQ helps with site selection and approval, assists in developing the facility layout, and reviews final plans, specifications, and signage. Franchisees receive an initial training program for up to three individuals, consisting of two to three days at Athletes HQ's headquarters in Elgin, Illinois, and one to two days of onsite training at the franchisee's facility. Athletes HQ also provides consultation and advice on facility development, operation, and manuals. After opening, Athletes HQ periodically advises and consults with franchisees on operations, communicating expertise through various channels like on-site visits, printed or electronic materials, meetings, seminars, and telephone or email communications. They also approve or disapprove any advertising, direct mail, identification, and promotional materials within 15 days of receipt.
Initial Training Hours
21
Training Location
Elgin, Illinois, and at the franchisee's facility
Ongoing Support
After opening, Athletes HQ provides ongoing support by periodically advising and consulting with franchisees on facility operations. Athletes HQ communicates its knowledge and expertise regarding the system and pertinent new developments, techniques, and improvements in management, sales promotion, and service concepts. This communication can be delivered through on-site visits, distribution of printed or filmed materials, electronic information, meetings, seminars, telephone calls, or email. Athletes HQ also approves or disapproves any proposed advertising, direct mail, identification, and promotional materials within 15 days of receiving them. While refresher and supplemental training programs may be provided, none are currently planned, but franchisees are required to attend if offered.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
limited
Staff Count
15
Territory Size Requirements
AHQ Systems territories typically range from 10 to 20 miles. The specific size is determined by factors such as population and other geographic considerations.
Staffing Notes
An AHQ Systems facility must always be under the direct personal supervision of the franchisee or a qualified, full-time manager who has successfully completed AHQ Systems' training program. The franchisee or manager is solely responsible for hiring, training, and managing all employees, including setting wages, benefits, and schedules, and handling disciplinary matters. All employees must maintain a neat and clean appearance and wear uniforms as required by AHQ Systems. Identified job roles for an AHQ Systems facility include a Facility General Manager, Facility Operations Manager, Instructor, Athletes HQ® Travel Team Instructor (additional help), and Front Desk Receptionist. Franchisees must clearly communicate to their employees that they are employees of the independently owned franchise, not of AHQ Systems. If an AHQ Systems facility is not managed by the franchisee or a qualified manager, AHQ Systems may appoint a manager and charge a management fee.