Amazing Athletes Franchise Costs, Fees & FDD

Year Business Began: 2002

Franchising Since: 2006

Headquarters: Budd Lake, New Jersey

Estimated Number of Units: 170

Franchise Description: The franchisor is Amazing Athletes Franchise Systems, LLC. The parent company is Amazing Athletes, LLC. The franchised business permits franchisees the opportunity to use proprietary curricula, (which consists of weekly lesson plans encompassing developmental sports lessons, age-appropriate physical fitness activities, motor-development fundamentals and basic anatomy and nutrition) to teach children within the ages specified for the program(s) offered by the franchised business.
Training Overview: For the first franchise that franchisees buy, they (or if they are a business entity, their “operating principal”) must complete the Franchisee Training Program to the franchisor’s satisfaction. The “manager” may but is not required to attend the training. Training for all programs consists of approximately five days of instruction for the core program and a sixth day of instruction for the plus program. Training may occur at the then-current headquarters or at another facility that the franchisor designates. The franchisor may provide web-based training in addition to or instead of classroom instruction. Additionally, for the first Amazing Athletes franchised business, the franchisor will provide franchisees with enhanced business coaching and training. If franchisees request additional, extraordinary, or refresher courses or training, and the franchisor agrees to provide that training, it will charge its fees plus the expenses incurred to provide that training. Also, the franchisor may in its sole discretion, offer and/or require that franchisees, their operating principal(s), their manager(s) and/or staff attend and complete additional training courses that the franchisor either periodically chooses to provide or otherwise may require in connection with the franchised business, at the times and locations that it designates. The franchisor hosts an annual conference that requires the franchisee’s attendance. The annual conference will be held in a location to be determined by the franchisor.

Territory Granted: The franchise is granted for a geographic area that must be approved by the franchisor (the territory), which will be identified on an attachment to the Franchise Agreement. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. The geographic boundaries of the territory will be defined by the franchisor by identifying a sufficient number of zip codes or by identifying political boundaries such as cities or counties, natural boundaries such as rivers or mountains, man-made boundaries such as highways or streets, or otherwise as it deems appropriate in order to describe an area that contains at least 100 “qualified locations,” but in no event containing a population of more than 400,000 people. Qualified locations include private pre-schools, public pre-schools, and licensed day care centers.

Obligations and Restrictions: Franchisees, or their operating principal(s), will be required to personally participate in the day-to-day activities of the franchised business. Franchisees may employ a manager to personally participate in the day-to-day activities of the franchised business. The franchisor requires that franchisees appoint an operating principal who will serve as the principal contact with the franchisor. If the franchisee is an entity, the operating principal will be required to directly own not less than 25% of the equity ownership of the franchisee entity. Managers are not required to own, directly or indirectly, any equity in the franchisee entity. Franchisees must sell only those services and products that the franchisor periodically requires, as described in the FDD, in the Franchise Agreement, in the confidential operating manual and as may be supplemented. Franchisees may not offer and sell any products and/or services that the franchisor has not specifically authorized.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. The franchise may be renewed for two additional consecutive five-year terms, if requirements are met.

Financial Assistance: Neither the franchisor nor any agent or affiliate offers direct or indirect financing to franchisees, guarantees any note, lease or obligation of theirs, or has any practice or intent to sell, assign or discount to a third-party all or any part of any financing arrangement of theirs. If franchisees are an honorably discharged veteran and/or educator, the franchisor will reduce the initial franchise fee by $4,950 for the core program.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$49,500	$49,500
Training Expenses	$1,000	$3,000
Enhanced Business Coaching and Training Fee	$5,750	$5,750
Furniture, Fixtures, and Equipment	$0	$500
Starter Kit and Initial Uniforms and Marketing Materials	$5,000	$7,000
Computer System	$0	$1,000
Insurance and Professional Services	$1,500	$3,500
Permits, Licenses and Certifications	$0	$1,000
Territory Overage Fee	$0	$0.13 per person
Plus Program (optional)	$0	$7,500
Additional Funds – 3 months	$10,000	$20,000
ESTIMATED TOTAL	$72,750	$98,750

 
Other Fees

Type of Fee	Amount
Royalty	The greater of 8% of gross revenues or the minimum. The minimum is $750 per month for the core program plus $50 per month for any additional program that the franchisee offers.
Franchisee National Advertising Fee	The greater of 1% of gross revenue or $200 per month.
Local Advertising Expenditures	Up to 3% of gross revenues, but currently 1% of gross revenues.
Regional Advertising Cooperative Fee	Currently none. The franchisor may require franchisees to contribute up to 3% of the gross revenues to the cooperative.
Initial Training Program for Additional Individuals	$500 prior to the initial training program.
Enhanced Business Coaching and Training Fee	$5,750 due at signing of the Franchise Agreement against which the franchisor applies a cost of (i) $550 per day per staff member plus travel reimbursement, and (ii) $80 per hour for each enhanced business coaching and training phone call or videoconference.
Post-Opening Enhanced Business Coaching and Training Fee	$550 per day per staff member, if provided in person, or $80 per hour if provided by phone or videoconference.
Transfer Fee	$8,750
Successor Franchise Rights Fee	$7,500
Annual Conference Fee	$600 per owner regardless of units owned; spouses $0; $400 for the second attendee, and $350 for each additional attendee above and beyond the second attendee.
Annual Conference Travel Expenses	$1,000 to $2,000 per person attending.
Mandatory Fee for Not Attending Biennial Conference (Mandatory Non-Attendance Fee)	$1,000 per owner.
Late Fee	1% of gross revenues.
Bank Fees	Actual cost of bank fees plus $50 for insufficient funds.
Credit Card Processing Fee	4% of total amount charged.
Default Notice Fee	$50
Legal Fees and Expenses	All costs and expenses, including but not limited to attorneys’ fees for any failure to pay amounts when due or failure to comply in any way with the Franchise Agreement.
Indemnification	The amount of any claim, liability or loss the franchisor incurs from the franchised business.
Replacement/Additional Inventory of Marketing Materials, Uniforms and Equipment	Will vary. This amount will range from $500 to $7,000.
Audit Costs	In the event of an underreporting of more than 2% of gross revenues, franchisees will be required to pay the franchisor the underreported amount plus interest along with the cost of the audit, including travel, lodging, meals, wages, expenses and accounting and legal fees.
New Line of Goods or Services and Technology Update and Fees	Will vary.
Interest	1.5% per month or highest rate allowed by law.
Technology Fee	$200 for the first Amazing Athletes franchised business; $150 for the second business; $100 for each business thereafter.
In-Term and Post-Term Deficiency Costs and Expenses	Costs and expenses.
Test Marketing Expenses	Costs and expenses of test marketing new services or products.
Transferee Lead Generation Fee	2.5% of the sales price.
Liquidated Damages	The lesser of (i) the number of months remaining in the term of the Franchise Agreement, or (ii) 24 months, multiplied by the average royalties, franchisee national advertising fees and other fees owed by the franchisee during the last 12 months.
Default Reimbursement	The franchisor’s costs and expenses arising from the franchisee’s default.
Operation Upon Death or Disability Fee	If the franchisor or a third-party assumes the operation of the franchised business upon the franchisee’s death or disability, it may charge a per diem fee (currently $250), plus direct out-of-pocket costs and expenses.
Data Security Safeguards	Varies.
Insufficient Funds Charge	$50 per occurrence.
Plus Program (for the right to offer Karate Zoo, Little Rookies or other programs the franchisor may develop from time to time)	Will vary depending upon the equipment, and services offered.
Document Preparation Fee	$1,500 if the franchisor prepares the documents. $500 per draft, if the franchisee prepares the documents for the franchisor’s review and approval.
Recruiting Services and Applicant Tracking System Software	Currently $20 per month, but may vary subject to third party vendor’s costs.
Sales CRM	Currently $10 per month, but may vary subject to third party vendor’s costs.
Learning Management System	Currently $50 on an annual basis, but may vary subject to third party vendor’s costs.
Bookkeeping	Currently $150 per month, but may vary subject to third party vendor’s costs.

The above information has been compiled from the FDD of Amazing Athletes. Year of FDD: 2025.
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