Bottom line
- Total investment $179K – $330K including a $25K franchise fee.
- Average unit revenue of $888K/year.
- Rated MODERATE with a risk score of 60/100.
- Emerging franchise — only 3 years of franchising with 3 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Athletes HQ unit return on the cash you put in?
Unlevered ROIC · per unit
99%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Athletes HQ units return on equity?
Equity IRR · 5-yr
29.8%
3.69× MOIC
Year-1 DSCR
2.70×
EBITDA ÷ debt service
Equity required
$8.7M
on $19.5M purchase
Total debt
$10.9M
SBA $5.0M + senior + seller note
Overview
About
Athletes HQ franchisees operate sports training, coaching, or athletic facility centers serving youth and adult clients. Day-to-day responsibilities include managing coaching staff, scheduling classes/sessions, member retention, facility maintenance, marketing to build client base, and handling administrative/billing operations.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage sports franchise with minimal unit count, undisclosed profitability metrics, and a suspicious royalty ramp structure that misaligns franchisor-franchisee interests.
Score breakdown · what drove the 60 / 100 rating
- 01MEDNet income not disclosed in Item 19 — unable to verify actual profitability despite $887K average revenue claim
- 02MINOROnly 3 units in system with 100% YoY growth appears artificially inflated (1→2→3 is small sample size, not market validation)
- 03MINORRoyalty structure is unusually low ($300/week) initially then doubles ($500/week) — incentivizes early exit after year 1
- 04HIGHGoing Concern flag is FALSE but typically franchisors disclose this voluntarily — lack of transparency raises questions
- 05MINORFranchise fee ($25K) is low relative to investment range ($178-330K) — suggests high capex with unclear ROI
- 06HIGHNo litigation disclosed but only 3 units limits exposure history and complaint visibility
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
18 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Athletes HQ · FDD (2025) PDF