Risk Score
Pending analysis
Investment Range
$352,266 - $1,197,554
Franchise Fee
$35,000
Total US Locations
13
Business Summary
PickUp USA Fitness operates full-service, basketball-focused fitness clubs. These clubs offer basketball training programs and games for youth and adults, in addition to providing weight and cardio equipment for members.
Corporate History
PickUp USA Franchise Company, LLC was formed as a California limited liability company on March 23, 2016. The concept for PickUp USA Fitness clubs was originally created in 2011, and the first club opened in June 2012. PickUp USA Franchise Company, LLC began offering franchises on April 14, 2016.
Financial Overview
Investment Range
$352,266 - $1,197,554
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$45,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$185,000
Equipment Costs (High)
$815,000
Working Capital
$87,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for PickUp USA Franchise Company, LLC indicate that the company has incurred accumulated net losses as of December 31, 2023. Management has stated plans to implement operational strategies to achieve the necessary working capital to sustain operations. Key elements of this strategy involve opening more pipeline franchisee locations and increasing royalty revenue streams from existing franchisees. PickUp USA Franchise Company, LLC believes it has access to additional financing if needed, and management has determined that these plans alleviate any going concern uncertainty.
Financing Details
PickUp USA Franchise Company, LLC does not offer direct or indirect financing to its franchisees, nor does it guarantee any notes, leases, or obligations. However, if a franchisee is purchasing the assets of an existing PickUp USA Fitness Club from the franchisor or its affiliate, PickUp USA Franchise Company, LLC may agree to allow payment of an initial portion of the purchase price, with the balance covered by a promissory note secured by the franchisee's interest in the club.
Performance Metrics
Total US Locations
13
Franchised Units
12
Corporate Units
1
Avg Square Footage
22,000
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
PickUp USA Franchise Company, LLC has no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document. This means PickUp USA Franchise Company, LLC has a clean legal record with no material lawsuits or legal disputes to report.
Bankruptcy History
PickUp USA Franchise Company, LLC has no bankruptcy history to report. No bankruptcy information is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, PickUp USA Fitness franchisees must fulfill several conditions. They must sign PickUp USA Franchise Company, LLC's then-current Franchise Agreement, which may have terms materially different from their original agreement. Franchisees must be in full compliance with all agreements with PickUp USA Franchise Company, LLC and its affiliates, having paid all outstanding sums. Their PickUp USA Fitness Club must meet current requirements, or the franchisee must make necessary expenditures to update the club's equipment, signage, and decor. Franchisees, their operating partners, or general managers must successfully complete retraining. A general release of claims against PickUp USA Franchise Company, LLC and its affiliates must be signed, and the franchisee must not have received three or more default notices within any 24-month period. Additionally, PickUp USA Franchise Company, LLC must not have decided to withdraw from the franchisee's market, and the franchisee must have the right to occupy their club's premises for the renewal term. A renewal fee of $3,000 is also required when giving notice of intent to renew, which must be provided at least 120 days before the current term expires. All required documents must be returned within 20 days of receipt from PickUp USA Franchise Company, LLC.
Training & Support Program
Franchisor Assistance
PickUp USA Fitness provides extensive assistance to its franchisees both before and after their clubs open. Pre-opening support includes help with selecting a location using designated real estate representatives, input on facility design and construction, and a copy of the Brand Standards Manual. PickUp USA Fitness also provides initial training for franchisees and their key personnel, assists with pre-selling memberships, and arranges supplier relationships. After opening, franchisees receive ongoing support through periodic updates to the Brand Standards Manual, advice on operations, guidance for developing annual business plans, and marketing consultation with advertising materials. PickUp USA Fitness may also conduct mystery shopping programs and quality service audits as part of its ongoing support.
Initial Training Hours
124
Training Location
Hybrid: Remote, web-based, and telephone sessions, along with in-person training at the franchisee's location and a PickUp USA Fitness Club location of PickUp USA Franchise Company, LLC's choice.
Ongoing Support
After opening, PickUp USA Fitness provides ongoing support through periodic updates to its Brand Standards Manual, which includes supplier designations and updates to standards. PickUp USA Fitness also furnishes advice and guidance on club operations and may provide assistance in developing annual business plans. They offer marketing and advertising advice, periodically supplying advertising materials, and evaluating franchisee-proposed advertising. PickUp USA Fitness may conduct mystery shopping programs and quality service audits. Franchisees and their personnel may be required to attend up to five days of annual refresher training and national business meetings, with additional training available upon request or if operational standards are not met. There is also a system of reciprocity among clubs that franchisees must participate in.
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
Full-Time
Territory Type
exclusive
Staff Count
900
Territory Size Requirements
PickUp USA Fitness defines its territories based on a geographic area surrounding the club, with a minimum population base of 50,000 people. The exact size and shape of the territory are determined by considering specific local market variables such as population density, age demographics, market trends, traffic flow, and the proximity of other PickUp USA Fitness Clubs. There is no specific radius for the territory.
Staffing Notes
PickUp USA Fitness requires that each franchised club have a qualified general manager in place at the time of opening. The operation of the PickUp USA Fitness club must be under the direct supervision of the franchisee or an operating partner. If the franchisee does not work full-time in the business, an operating partner must be designated who lives near the club, owns at least 10% of the business, and works full-time. PickUp USA Fitness must consent to any designated operating partner, who will serve as the primary day-to-day contact. If the franchisee acts as general manager, an assistant general manager is recommended. All on-site general managers and operating partners must successfully complete the initial training program and sign a confidentiality and non-competition agreement. Should an operating partner or general manager leave, a replacement must be recruited and qualified within 30 days, completing any required training.