Risk Score
Pending analysis
Investment Range
$228,500 - $545,000
Franchise Fee
$22,500
Min Cash Required
$79,975
Total US Locations
275
Business Summary
Fleet Feet operates brick-and-mortar retail stores specializing in running and fitness merchandise. Fleet Feet locations sell footwear, apparel, accessories, and offer training programs and services. The brand uses a unique system that includes specific merchandising, distribution strategies, store design, software, and advertising. Fleet Feet encourages its franchisees to be actively involved in the athletic communities of runners, walkers, and triathletes in their areas.
Corporate History
Fleet Feet, Incorporated is a North Carolina corporation that began selling Fleet Feet (formerly Fleet Feet Sports) franchises on December 11, 2002, for the operation of retail stores selling running and fitness merchandise, training programs, and services. The company's parent is ONWARD OUTDOOR BRANDS, LLC, formed in 2012, which also owns affiliates like FLEET FEET SPORTS DEVELOPMENT COMPANY LLC (FFSDC), operating company-owned Fleet Feet locations since 2012. Another affiliate, FFS DIGITAL, LLC, formed in 2014, operates the brand's e-commerce platform. RUNNING LOGISTICS, LLC, formed in 2018, handles bulk purchasing and distribution for franchisees. In 2021, J STREET 1976, LLC, acquired Jackrabbit-branded specialty running stores, converting or divesting them by the end of 2022. In 2022, MARATHON SPORTS, LLC, acquired Marathon Sports-branded specialty running stores in the northeastern U.S.
Financial Overview
Investment Range
$228,500 - $545,000
Franchise Fee (Low)
$22,500
Franchise Fee (High)
$45,000
Minimum Cash Required
$79,975
Royalty %
4%
Marketing %
0.25%
Equipment Costs (Low)
$38,800
Equipment Costs (High)
$114,700
Working Capital
$38,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Fleet Feet, Incorporated provides audited financial statements. The independent auditor's report indicates that the financial statements present fairly, in all material respects, the company's financial position and results of operations. Management is required to evaluate conditions that might raise substantial doubt about the company's ability to continue as a going concern, but the audit notes do not indicate any impairment during 2024, 2023, or 2022. The company has not recorded a valuation allowance against its net deferred tax assets, suggesting confidence in their realization. Overall, Fleet Feet, Incorporated appears to be in sound financial health.
Financing Details
Fleet Feet does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
275
Franchised Units
192
Corporate Units
83
Avg Square Footage
1,600
Franchising Since
2002
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Fleet Feet has no litigation that is required to be disclosed in this document. The franchisor or its management have not been involved in any material litigation or bankruptcy proceedings.
Bankruptcy History
Fleet Feet has no bankruptcy history to report. No bankruptcy is required to be disclosed for the franchisor or its key personnel.
Agreement Terms
Initial Term
20 years
Renewal Term
20 years
Renewal Conditions
To renew their franchise agreement, Fleet Feet franchisees must notify the franchisor of their intention to renew between 9 and 18 months before the initial term expires. Franchisees must be in compliance with their existing Franchise Agreement and all debts and obligations must be current. They should not have received more than three default notices in any consecutive 12-month period. Additionally, franchisees must sign the franchisor's then-current form of Franchise Agreement and related documents, which may have materially different terms and conditions, including royalty rates and territory definitions. They must also sign a general release of claims and commit to updating and refurbishing their business and premises to meet current brand standards. Franchisees must demonstrate they have the right to maintain their store for at least 10 years following the initial term's expiration.
Training & Support Program
Franchisor Assistance
Fleet Feet provides franchisees with a range of assistance. Before opening, the franchisor lends the Brand Standards Manual, provides lists of recommended equipment and approved suppliers, and offers initial training for up to two individuals (additional attendees may incur a fee). They advise on recommended site locations and review and accept the chosen site and lease. Ongoing support includes advice and consultation on operations, with a potential fee if remedial on-site training is required. Franchisees receive updates on system improvements and additions, access to the Brand Standards Manual, and template marketing materials for local use. Fleet Feet also provides an e-commerce program where franchisees can earn commissions on online sales within their designated Online DMA and may have opportunities to provide fulfillment services. While the franchisor offers pricing guidelines, it does not mandate prices. They maintain a Marketing Fund to promote the brand, and offer additional training courses and conferences, some of which may be required (franchisees are responsible for travel, lodging, and food expenses).
Initial Training Hours
134
Training Location
Carrboro, NC; Approved FLEET FEET store; or Web Based Training
Ongoing Support
After opening, Fleet Feet franchisees receive ongoing advice and consultation services regarding business operations, with remedial on-site training available for a fee if the franchisor deems it necessary. They receive updates on system improvements and additions, and have access to the Brand Standards Manual. Fleet Feet also provides template marketing materials for local use. Franchisees can participate in the brand's e-commerce program, potentially earning commissions on online sales within their designated Online DMA, and some may have the opportunity to serve as fulfillment service providers. While the franchisor offers pricing guidelines, it does not mandate specific prices. Fleet Feet maintains a Marketing Fund for brand promotion and may require or offer additional training courses and conferences, with franchisees covering their own travel and living expenses.
Franchise Requirements
Ideal Candidate Profile
Fleet Feet prefers franchisees who are knowledgeable about specialty running and fitness merchandise and are committed to a hands-on, well-informed approach to the business. Ideal candidates are expected to be community-oriented and actively involved in the athletic lives of runners, walkers, and triathletes in their local community. The franchisor strongly recommends that owners devote a substantial amount of time to the business, although personal full-time supervision is not strictly required if a trained full-time general manager is in place. Franchisees with prior experience in specialty running retail for at least 36 months may qualify for a reduced initial franchise fee.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Fleet Feet grants franchisees a territory that consists of a population base of approximately 200,000 people around their franchised business, provided that this population base does not exceed a 25-mile radius. The territory boundaries are typically defined as an area within a radius around the franchised business, but alternative methods may be used through mutual agreement.
Staffing Notes
Fleet Feet requires that the franchised business be directly supervised and managed on-site and full-time by a person who has successfully completed the franchisor's training program, or whose experience has led to a waiver of this training. This manager can be an owner or a hired full-time general manager, but the franchisor encourages owners to be hands-on and devote substantial time to the business. Franchisees are solely responsible for recruiting, hiring, training, and compensating their employees and agents, and must comply with all applicable employment laws. Fleet Feet is not considered a joint employer of the franchisee's staff. All employees with access to confidential information must sign confidentiality agreements. The franchisor provides training for employees on aspects like the fit id® technology, biomechanics, and product knowledge, which are typically utilized by sales staff.