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Amazing Athletes Franchise Costs & Fees

Date of Incorporation: 2002
Franchising Since: 2006
Headquarters: Franklin, Tennessee

Business Description: The franchisor is Amazing Athletes Franchise Systems, Inc. Amazing Athletes offers franchisees the opportunity to provide developmental sports and physical fitness programs to children under the age of 12 with a primary focus on children aged 2 ½ to 6.

Franchise Offer: The franchisor grants the right to operate an Amazing Athletes franchise business in an “Exclusive Territory.”

Financial Assistance: If franchisees meet the franchisor’s credit standards, it will finance up to $12,500 of the initial franchise fee. The franchisor does not guaranty franchisees’ note, leases or obligations to third parties. The franchisor and its Affiliates have no past practice or future intent of selling, assigning or discounting franchisees’ financial arrangements to a third party. The franchisor does receive consideration in these transactions only in the form of the interest that franchisees will pay over the life of the loan.

Training and Assistance: For the first franchise that franchisees buy, they, or if the business is an entity, the “Principal Operator” must complete training to the franchisor’s satisfaction. The “Designated Manager” may, but is not required to attend training. Training for all programs, (the “Tot Curriculum” (for children between the ages of 18 mos. - 2 ½); the “Pre-School Curriculum” (for children between the ages of 2½ to 6); and, the “School-Age Curriculum” (for children between 7 and 12), consists of approximately 5 days of instruction of which approximately 23 hours are classroom instruction, and 8 hours are on-the-job training. Training may occur at the franchisor’s then-current headquarters or at another facility that we designate. The “Principal Operator” is the person designated by the franchisee’s business entity to operate the business and receive training. The “Designated Manager” is defined as the person, besides the franchisee, who acts as the general manager of the Business has been trained by the franchisor, and who delivers the services directly to the Students. Franchisees may wish to get on-site training from the franchisor. This is optional and is not required for the operation of the business unless franchisees feel it is necessary. If franchisees request additional, extraordinary, or refresher courses or training, the franchisor may, at its option, charge its then-current per diem fee plus expenses. The franchisor does have a biennial (once every two years) conference that requires attendance by all franchisees.

Territory: TFranchisees will be assigned an “Exclusive Territory” before they sign the Franchise Agreement. Once assigned, franchisees must operate only within the Exclusive Territory. The Exclusive Territory is determined from the records of all private pre-schools and day care centers that the municipality, county, or state in which you are located has maintained. The geographic boundaries of the Exclusive Territory in which franchisees can operate your business will be defined by the franchisor by identifying a sufficient number of zip codes or by identifying political boundaries, county lines, natural boundaries such as rivers or mountains, man-made boundaries such as highways or streets, or otherwise as the franchisor deems appropriate in order to provide franchisees with an Exclusive Territory that contains at least 60 private pre-schools or Day Care Centers each of which is licensed with a capacity for 40 or more Students.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees can renew for 2 additional consecutive 5-year terms if all obligations for Successor Franchise Rights are met.

Obligations and Restrictions: The Principal Operator, Designated Manager or the franchisee, must complete our training, and must personally participate in the direct operation of the Business. The manager, if there is one, must abide by all confidentiality requirements of the franchise agreement. Franchisees must sell only those products and services approved by the franchisor and may not use the Business, Systems, or Marks for any other purposes. Franchisees must only operate within the Exclusive Territory. Franchisees may offer the curricula at any time and in any location within their Exclusive Territory.

Estimated Number of Units: 90

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $19,500 $25,000
Rent and Rental Improvements $0 $0
Training Expenses $1,000 $2,500
Remote Training Fee $0 $3,000
Remote Training Fees $0 $1,000
Furniture, Fixtures, and Equipment $0 $500
Startup Kit $3,000 $3,500
Computer System $0 $1,000
Technology Maintenance Fee $150 $150
Insurance and Professional Services $500 $1,000
Additional Funds (3 months) $10,000 $15,000
ESTIMATED TOTAL $34,400 $52,850
Other Fees
Type of Fee Amount
Flat Royalty For the first 6 months in operation, franchisees will pay the greater of either $40 per month per location or the highest tuition paid by one child at each of the locations at which franchisees deliver services during the month. Beginning in the 7th month franchisees will pay the greater of $40.00 per location or the highest tuition paid by one child at each of the locations at which franchisees deliver services during the month except franchisees will never pay less than $500 per month during this period. Beginning in the 13th month, franchisees will pay the greater of $40 per location or the highest tuition paid by one child at each of the locations at which franchisees deliver services during the month; except franchisees will never pay less than $600 per month for the duration of the contract.
Franchise National Advertising Fee $150 per month.
Technology Maintenance Fee The then-current fee that now is $50 per month.
Regional Advertising Cooperative Fee Currently none. If a Regional Advertising Cooperative is established, franchisees may be required to contribute a specified part of the Franchisee National Advertising Fee to the Cooperative.
Advanced and Additional Assistance or Training The then-current fee that is now $500 per day plus travel reimbursement.
Transfer Fee $7,500
Successor Franchise Rights Fee $7,500
Biennial Conference Fee None now.
Biennial Conference Travel Expenses $1,000 to $2,000
Mandatory Fee for Not Attending Biennial Conference (Mandatory Non-Attendance Fee) Then-current fee that now is $1,000 per Exclusive Territory.
Computer System Maintenance and Update Will vary based upon the changes in the Computer System; hardware to cost about $500 to $1,000. The cost for updating software will vary.
Late Fee $50 late fee per incident plus 1.5% per month for any payment not timely made.
Default Notice Fee $50
Costs and Attorney’s Fees Will vary.
Indemnification Will vary.
Insurance $750 - $1,000 annually.
Replacement/Additional Inventory of Sales Literature, Uniforms and Equipment Will vary.
Audit Costs Will vary depending upon the level of the audit undertaken.
New Line of Goods or Services Will vary.

The above information has been taken from the FDD of Amazing Athletes. Year of FDD: 2016

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