Redline Athletics Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$100,475 - $224,925
Franchise Fee
$87,500
Min Cash Required
$5,000
Total US Locations
33
Business Summary
Redline Athletics Franchising, LLC offers Regional Developer Businesses that recruit and support franchisees for Redline Athletics Performance Centers. Regional Developers help prospective franchisees in a specific development area establish training centers. These Redline Athletics Performance Centers provide youth sports performance training, physical fitness classes, school fundraisers, adult boot camps, and related products and services to the public, focusing on ages 8 to 18.
Corporate History
Redline Athletics Franchising, LLC was formed as an Arizona limited liability company on March 29, 2013. The company began operating Redline Performance Centers in February 2013 and started offering Redline Athletics franchises in May 2013. It has no parent companies or predecessors.
Financial Overview
Investment Range
$100,475 - $224,925
Franchise Fee (Low)
$87,500
Franchise Fee (High)
$187,500
Minimum Cash Required
$5,000
Marketing %
1%
Equipment Costs (High)
$5,000
Working Capital
$5,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Redline Athletics Franchising, LLC has sustained recurring operating losses and negative cash flows from operations, which creates uncertainty about the company's financial stability. The franchisor's financial condition, as noted in its financial statements, calls into question its ability to provide services and support to franchisees. Working capital is partially provided by loans from the majority member, who has committed to providing additional financial support as needed. Management believes that with expected cash flows and the majority member's commitment, Redline Athletics Franchising, LLC has adequate resources to meet its obligations.
Financing Details
Redline Athletics Franchising, LLC does not offer any direct or indirect financing to its regional developers. The franchisor also does not guarantee any lease or other obligations for its regional developers.
Performance Metrics
Total US Locations
33
Franchised Units
33
Corporate Units
0
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Redline Athletics Franchising, LLC has no litigation information required to be disclosed in this Item.
Bankruptcy History
Redline Athletics Franchising, LLC has no bankruptcy information to report in this document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Redline Athletics Franchising, LLC regional developers must have substantially complied with their Regional Developer Agreement, provide notice of their intent to renew, and sign a new Regional Developer Agreement in the franchisor's then-current form. This new agreement may include materially different terms and conditions, such as no further renewals or higher royalty fees. Regional developers are also required to sign a general release of claims against Redline Athletics Franchising, LLC and its related parties, pay the applicable renewal fee, cure any existing defaults, and pay all amounts owed to the franchisor.
Training & Support Program
Franchisor Assistance
Redline Athletics Franchising, LLC provides its regional developers with pre-opening assistance that includes an approximately two-day initial training program conducted at its corporate headquarters in Scottsdale, Arizona. Regional developers receive copies of the Manual for RDS and Manual for Locations, and the franchisor helps prepare and register disclosure documents needed to recruit prospective franchisees. Redline Athletics Franchising, LLC also reviews and approves the regional developer's advertising and marketing materials. After opening, ongoing support includes additional or refresher training programs, such as periodic webinars, sales calls, and up to two annual courses or national business meetings. Regional developers continue to have access to the operating manuals and general guidance through various materials. The franchisor approves prospective franchisees and their proposed locations, reviews advertising, pays compensation, and indemnifies regional developers against trademark infringement claims for authorized use of the marks. Redline Athletics Franchising, LLC also screens, qualifies, and processes applications from prospective franchisees from leads generated by third-party marketing firms.
Initial Training Hours
13.5
Training Location
Corporate headquarters in Scottsdale, Arizona
Ongoing Support
After opening, Redline Athletics Franchising, LLC regional developers receive ongoing support that includes additional or refresher training programs, such as periodic webinars, sales calls, and attendance at up to two additional training courses or a national business meeting or convention annually. The franchisor continues to provide access to its operating manuals and general guidance through written materials. Redline Athletics Franchising, LLC also maintains and renews necessary documentation for soliciting prospective franchisees, approves or disapproves these candidates and their proposed locations, and reviews the regional developer's advertising materials. The franchisor pays compensation to the regional developer, allows the continued use of its trademarks and confidential information, and indemnifies against trademark infringement claims. Additionally, Redline Athletics Franchising, LLC screens, qualifies, and processes applications from prospective franchisees who originate from leads generated by third-party marketing firms.
Franchise Requirements
Ideal Candidate Profile
Redline Athletics Franchising, LLC seeks regional developers with prior business management experience, with prior business ownership experience being highly desirable. The franchisor requires regional developers to personally participate in the direct operation of their business. If the regional developer does not participate full-time, a fully trained manager must operate the business on a full-time basis. Regional developers are expected to be directly involved in day-to-day operations and use their best efforts to promote and enhance the performance of the franchised business.
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
Territory Size Requirements
The size and location of the Redline Athletics Franchising, LLC exclusive Development Area are determined based on population demographics, the regional developer's capacity to recruit prospective franchisees and provide support, and the number of Redline Performance Centers the franchisor believes the area can sustain. The regional developer and the franchisor mutually agree on the development area upon signing the agreement. While there is no specific minimum or maximum area, territories are typically defined by geographic areas like a state or county.
Staffing Notes
Redline Athletics Franchising, LLC requires the regional developer to personally participate in the direct operation of their Regional Developer Business. If the regional developer does not participate in the direct operation on a full-time basis, then a fully trained Manager must operate the Regional Developer Business on a full-time basis. While not required to have an equity interest, the franchisor believes an equity interest in the manager helps maintain quality and competence. Any manager employed at launch must complete the initial management-training course, and all subsequent managers must be trained fully according to the franchisor's standards, potentially incurring an additional fee.