Franchising Since: 2007
Headquarters: Spokane, Washington
Estimated Number of Units: 125
Franchise Description: Skyhawks Franchise Group, LLC is the franchisor. Skyhawks businesses provide camps, classes/enrichment programs, birthday parties, after school programs, classes/clinics and leagues in baseball, basketball, cheerleading, flag football, golf, lacrosse, soccer, track & field, tennis, hockey and volleyball using our proprietary system. The franchisor offers franchises for Skyhawks businesses in large territories (Tier 1) or in small territories (Tier 2).
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Territory Granted: The Franchise Agreement for the Skyhawks franchise grants franchisees a protected territory to operate a franchise based on the geographic area and population properties within that area and other relevant demographic characteristics. If franchisees purchase a Tier 1 Franchise, their territory will have a population of greater than 250,000. If franchisees purchase a Tier 2 Franchise, their territory will have a population of 150,000 to 250,000. The population statistics used in determining the territory will be based on numbers derived from the current U.S. Census report and supplemented with other information available. During the term of the Franchise Agreement, the franchisor will not establish or franchise others to establish another Skyhawks business within the designated territory.
Obligations and Restrictions: The Skyhawks franchise shall be managed by the franchisee, or if the franchisee is an entity, by one of the owners who is a natural person with at least a 51% ownership interest and voting power in the entity (managing owner). The franchisor will allow franchisees to appoint a designated manager to run the day to day operations of the Skyhawks franchise. The managing owner and designated manager must successfully complete the initial training program. If franchisees replace a managing owner or designated manager, the new managing owner or designated manager must satisfactorily complete the initial training program at the franchisee’s own expense. Franchisees must sell, or offer for sale, only those services and products authorized by the franchisor and which meet its standards and specifications. Franchisees must sell, or offer for sale, all types of services and products specified by the franchisor. The franchisor reserves the right to establish minimum and maximum resale prices for use with multi-area marketing programs and special price promotions.
Term of Agreement and Renewal: The length of the initial franchise term is seven years. If the franchisee has complied with all the provisions of the Franchise Agreement, they can renew for up to four additional successive five-year terms.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation. The franchisor offers eligible United States veterans or their spouses a 30% discount off the then-current initial franchise fee and any additional territory fees.
Estimated Initial Investment
Name of Fee | Low | High |
Initial Franchise Fee | $22,500 | $42,500 |
Real Property / Lease | $0 | $1,500 |
Leasehold Improvements | $0 | $500 |
Signage | $0 | $500 |
Grand Opening Marketing | $3,000 | $6,000 |
Fixtures and Furniture | $0 | $500 |
Utility Expenses | $0 | $250 |
Computer Hardware and Software | $0 | $1,300 |
Training | $500 | $2,500 |
Supplies and Equipment | $2,000 | $15,000 |
Insurance | $800 | $3,200 |
Professional Fees | $1,000 | $2,000 |
Business Licenses and Permits | $0 | $3,000 |
Additional Funds – 3 months | $8,000 | $11,000 |
ESTIMATED TOTAL | $37,800 | $89,750 |
Other Fees
Type of Fee | Amount |
Royalty | The greater of the minimum royalty (between $250 to $1,100 per month depending on which year of the franchise agreement franchisees are in and whether they own a Tier 1 or Tier 2 franchise) for each Skyhawks franchise and for each territory that they purchase or a percentage between 5% and 9% (dependent on gross revenues in a calendar year). |
Brand Building Fund Contribution | Up to 2% of the gross revenues. |
Local Advertising Payment | The difference between the amount franchisees spent on local advertising each quarter and their required local advertising expenditure (3% of gross revenues). |
Additional Marketing Services | Then-current fee, currently, $85 per hour. |
Local and Regional Advertising Cooperative | An amount established by cooperative members, between 1% and 2% of gross revenues. |
Additional Training or Assistance Fees | The then-current fees (currently $300 per day) plus travel and other expenses. |
Interest and Late Charges | $50 late payment charge per occurrence; plus, the lesser of 0.5% interest of the unpaid amount per week or the maximum amount allowable by law. |
Payment Service Fees | Up to 3% of total charge. |
Program Processing Fee | The then-current fee (currently $5 per program). |
Insufficient Funds Charge | $100 per occurrence. |
Failure to Submit Required Report Fee | $100 per occurrence and $100 per week. |
Management Fee | Then-current fee, currently, $500 per day, plus costs and expenses. |
Audit Expenses | Cost of audit and inspection, any understated amounts, and any related accounting and legal expenses (the franchisor estimates this cost to be between $1,000 and $12,000). |
Transfer Fee | $10,000 per territory per Skyhawks business subject to the transfer. If the franchisor assists with brokering the sale, it may also assess a broker fee of up to 10% of the purchase price. |
Successor Franchise Fee | 15% of the then-current initial franchise fee under the franchisee’s franchise agreement and for each territory. |
Insurance for Franchisees | The franchisor’s costs plus a 20% administrative fee. |
Convention Fee | The then-current fee (currently, up to $395 per attendee per year), plus travel expenses. |
Absentee Fee | Then-current fee (currently $500 per person). |
Staff and Program Training Fee | The then-current fee (currently, up to $395 per attendee per year), plus travel expenses. |
Supplier and Product Evaluation Fee | Cost of inspection (estimated to be approximately $100 to $500). |
Unauthorized Advertising Fee | $500 per occurrence. |
Promotional Package Fee | Varies depending on merchandise. |
Professional Fees and Expenses | Will vary under circumstances. |
Indemnification | Varies under circumstances. |
Customer Issue Resolution | Reasonable costs the franchisor incurs for responding to a customer complaint. |
Technology Fee | The then-current fee (currently $250 per month) per Skyhawks business. |
Liquidated Damages | Will vary under circumstances. |
Broker Fees | The actual costs of the brokerage commissions, finder’s fees, or similar charges. |
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