Parisi Speed School Franchise Costs & Fees
Date of Incorporation: 1992
Franchising Since: 2005
Headquarters: Wyckoff, New Yersey
Business Description: The franchisor is Parisi Franchise Systems, Inc. Franchisees provide youth and active adults a performance enhancement training experience with a specific focus on improving speed, coordination, agility, flexibility, endurance, athleticism and overall self-esteem.
Franchise Offer: This license is for the operation of a sports performance training concept (Speed School) for the youth/adult fitness market focused on total sports performance.
Financial Assistance: Regardless of their personal financial position, the franchisor encourages franchisees to seek financing guidance for their Parisi franchise from Direct Connect Ventures, Inc., “DCV”, a recommended service provider. DCV provides financing management services to the franchisor’s new and existing franchisees with the ability to assist in placing the necessary financing option(s) for their startup and/or expansion. The franchisor has not entered into any agreements with DCV in connection with any financing programs that might be available to franchisees. The franchisor does not offer, either directly or indirectly, any financing to franchisees. Neither the franchisor nor any affiliate receives payment for the placing of financing. The franchisor does not have any present practice or intent to assign to a third party any instrument executed by franchisees. No contracts or investments contain a waiver of defenses or similar provisions. The franchisor does not guarantee franchisees’ notes, leases or other obligations.
Training and Assistance: The initial training program is provided to franchisees, their Program Director (which could be the franchisee), Assistant Program Director, and part-time and full-time trainers (a maximum of six trainees). Five days of training will be conducted in Morristown or Fairlawn, New Jersey and will take place at least 35 days before the opening for business, but not before signing the Franchise Agreement. At the franchisee’s request, the franchisor will also provide the franchisee with additional training programs, refresher courses or “on-the-job” training at a mutually convenient time, at the Licensed Business. All current staff members must attend a refresher training program at least once every two years, as required by the franchisor. All staff must also be recertified once every two years by the franchisor. Additional employees may participate in these standard additional training sessions, at the franchisee’s cost.
Territory: The Franchise Agreement grants franchisees the right to operate their Parisi Speed School Franchise only at the Approved Location. The franchisor will grant franchisees an exclusive territory. The exclusive territory gives franchisees’ location exclusivity based on Zip Codes. The franchisor (and any affiliates that the franchisor periodically might have) will not establish, nor allow another Franchise owner to establish, another Parisi Speed School Franchise located within the area that makes up the exclusive territory. The Exclusive Territory will include either 10,000, 20,000 or 30,000 children of school ages, ranging in age from 5 to 17 years depending on the size of the territory the franchisee purchases.
Term of Agreement and Renewal: The length of the initial franchise term is 5 years. Automatic renewal terms of 5 years are available, subject to performance of contractual requirements.
Obligations and Restrictions: During the term of the Franchise Agreement, and at the franchisor’s discretion, franchisees must attend and complete the initial training program, and franchisees (or, if franchisees are a corporation or partnership, a principal or general partner of the corporation or partnership) must devote their best efforts to the management and operation of the Parisi Speed School Franchise. Franchisees must also maintain a competent, conscientious, trained staff, including a fully trained Program Director (which may be the franchisee). Franchisees must use the Parisi Speed School Franchise solely for the operation of the Parisi Speed School Franchise. Franchisees must keep your Parisi Speed School Franchise open and in normal operation for the minimum hours and days as the franchisor specifies. Franchisees must offer for sale all Youth and Performance Training services approved by the franchisor and only those services approved by the franchisor, as they exist and/or are occasionally modified.
Estimated Number of Units: 90
|Name of Fee||Low||High|
|Initial Franchise Fee & Staff Training||$6,000||$30,000|
|Leasehold Improvements; Construction Costs||$0||$20,000|
|Opening Inventory and Supplies||$1,500||$3,000|
|Grand Opening Advertising||$6,000||$6,000|
|Travel and Initial Training||$2,000||$4,000|
|Continuing Service Fees – 3 months||$3,900||$3,900|
|Local Marketing – 3 months||$1,500||$4,500|
|Type of Fee||Amount|
|Continuing Service and Support Fee||$1,300|
|Advertising Cooperative||As determined by the members.|
|Local Advertising||From $500 to $1,500/month.|
|Transfer||From $5,000 to $25,000|
|Additional Training at the Franchisor’s Facility||$250 per day per person and the franchisee’s out of pocket expenses.|
|Additional Training at the Franchisee’s Facility||$1,000 to $1,500 per day, plus the franchisor’s expenses, which will depend on the franchisee’s location and the level of experience of the franchisor’s representative.|
|Training Weeks||$1,250 per person per week, plus expenses.|
|Mandatory Refresher Training Program||Out of pocket expenses only for the first two participants and out of pocket expenses plus $250 per additional participant per day, which will depend on the location of the program and the level of experience of the franchisor’s representative.|
|Interest on Late Payments||Lesser of 2% per month or highest rate allowed by law.|
|Costs and Attorneys’ Fees||Will vary under circumstances.|
|Indemnification||Will vary under circumstances.|
|Supplier Approval||Not to exceed $150|
|Territory Increase Option||$150 per month for each additional 5,000 children for territories over 30,000 children.|
The above information has been taken from the FDD of Parisi Speed School. Year of FDD: 2016
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