Fleet Feet Franchise Costs, Fees & FDD

Year Business Began: 1976

Franchising Since: 1978

Headquarters: Carrboro, North Carolina

Estimated Number of Units: 275

Franchise Description: The franchisor is Fleet Feet, Incorporated or its affiliate, FFS Digital, LLC in the case of its e-commerce platform. Franchisees operate a brick and mortar retail store selling specialty running and fitness merchandise, training programs, and services under the name of “Fleet Feet” and other service marks.
Training Overview: At least one franchise owner must successfully complete the training program to the franchisor’s satisfaction. If the trained owner is not actively involved in the business, then the franchisee must have an approved full-time manager the franchisor has trained designated as the general manager. The franchisor has sole discretion to hold training virtually through web-based methods, at its corporate office, in existing store locations, or at an alternative location it designates. The exact combination of training techniques will be applied on a case-by-case basis as the franchisor determines in order to facilitate training effectiveness. While most additional training is optional, franchisees may be required to attend the additional training. The franchisor may offer conferences and other training courses, and franchisees or their manager may be required to attend.

Territory Granted: Franchisees will receive a territory consisting of a population base of approximately 200,000 people around the franchised business, provided the population base does not exceed a 25-mile radius. Within the territory the franchisor will not locate or allow any other party to locate a retail, brick and mortar store of the kind being licensed to the franchisee using the trademarks. Typically, the territory will be defined as the area within a radius around the franchised business, but the franchisor reserves the right through mutual agreement to define the territory using a method other than a radius method.

Obligations and Restrictions: The business must be directly supervised and managed by a person, identified to the franchisor, who has successfully completed the training program or for whom, based on his or her experience, the franchisor has waived this requirement. The franchisor encourages but does not require franchisees to personally supervise the franchised business. The franchisor does, however, prefer to select franchisees who favor and appear committed to a “hands on” and well-informed approach to the business. All owners owning 20% or more of the equity in the business and their spouse will be required to sign a personal guaranty agreement in which they will guarantee the performance of the franchisee’s obligations, as well as the franchisor’s form of non-competition and non-disclosure agreements. Franchisees must sell only the products and services authorized by the franchisor. Franchisees must operate the franchised business solely as a retail, brick and mortar business, and they must agree not to sell any items through any other channel of distribution.

Term of Agreement and Renewal: The length of the initial franchise term is 20 years. If franchisees qualify for renewal, a term that is the greater of five years or the length of the then-current initial term of the Franchise Agreement is available.

Financial Assistance: At this time, neither the franchisor nor its affiliate offers direct or indirect financing. The franchisor does not guarantee any note, lease, or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$22,500	$45,000
Inventory	$80,000	$120,000
Real Estate & Improvements	$50,000	$200,000
Furniture, Fixtures & Equipment	$35,000	$103,000
Computer System Equipment	$3,800	$11,700
fit id® Subscription	$1,200	$1,200
Travel and Living Expenses While Training	$4,000	$6,000
E-Commerce Fee – 3 Months	$300	$300
Legal, Accounting, License/ Registration Fees	$3,000	$10,000
Additional Funds – 3 Months	$28,700	$47,800
ESTIMATED TOTAL	$228,500	$545,000

 
Other Fees

Type of Fee	Amount
Royalty	4% of gross sales.
Marketing Fund	Currently 0.25% of gross sales.
Technology Fee	Currently not collected.
E-Commerce	Currently $100 per month.
Business Conference Registration Fee	Historically ranges from $0 to $675 per person plus any additional costs incurred for hotel and air fare.
Customer Experience Services (optional)	Customer survey software is up to $25 per month for self-selecting franchises.
Email Newsletter Services (optional)	Currently $175 per market plus an additional $50 for each additional market per month for self-selecting franchises.
Digital Advertising Services (optional)	Currently $1,200 per month.
Miscellaneous Vendor Sales from Inventory	Varies.
Audit Fee	The cost of audit.
Collection and Interest Charges	18% or highest lawful rate if lower.
Additional Training (for extra people at outset of the franchisee’s option or later if desired or required)	Currently, $200/day plus expenses.
National Training Program Liability Insurance	Current rate is $500 per store per year. The annual rate varies annually depending on total number of participants nationwide. The franchisor reserves the right to adjust the rate more frequently if necessary.
Renewal Fee	None.
Late Payment or Insufficient Funds Fee	$50
Transfer Fee	Greater of $10,000 or 25% of the then-current franchise fee. For certain transfers with limited impact on ownership and governance, just the franchisor’s legal expenses.
Attorneys’ Fees and Cost of Litigation	Depends on what the franchisor spends.
Enforcement Costs	Will vary, the franchisor’s actual costs and expenses.
Indemnification	Any and all types of damages, liabilities, losses, costs, and expenses the franchisor incurs as a result of third parties claims or from the franchisee’s ownership and operations of the franchised business.
Early Termination Damages	The franchisor’s damages, costs, and expenses.
Default Damages	Damages, costs, losses, and expenses, including reasonable attorneys’ fees.
Continued Operation After Expiration	Greater of $1,000 or 150% of royalties per month.
Early Transfer Fee	$10,000 to $22,500
Refurbishing Reimbursement	The franchisor’s costs plus 15% additional fee.
Inspection Costs	The franchisor’s costs and expenses.
Quality Assurance Program	Varies; the franchisee’s share of the total cost.
Insurance Reimbursement	If franchisees fail to obtain the required insurance and the franchisor must obtain it on their behalf, they will reimburse for costs.
Data Inspections and Reimbursement	Varies.
Customer Complaint Fee	Varies, the franchisor’s costs and expenses.
System Modifications	All costs and expenses associated with system modification.
Gift Card Liability	Will vary.
Approval of Alternate Supplier, Product, or Service	Currently no fee charged; In the future the fee could be the franchisor’s costs.
Goods or Services Supplied by the Franchisor or Its Affiliates	Then-current stated costs.
Transfer Damages	Greater of 15% of the purchase price paid to franchisee or its owners or $25,000.
Liquidated Damages	Will vary under the circumstances; subject to a minimum of $30,000.
Fines	Up to $1,000 per instance of noncompliance plus the franchisor’s costs to inspect and/or re-inspect.

The above information has been compiled from the FDD of Fleet Feet. Year of FDD: 2025.
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