FranchiseVerdict
CHEER ATHLETICS logo
FV-00506·CAUTIONExcellent86

Cheer Athletics

Health & FitnessFranchising since 2020Website
Investment
$607K – $1.3M
90th pct Health & Fitn…
Avg revenue
58th pct Health & Fitn…
Royalty
10.0%
66th pct Health & Fitn…
Units
20
53rd pct Health & Fitn…
SBA default

Bottom line

  • Total investment $607K – $1.3M including a $75K franchise fee, 10.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated CAUTION with a risk score of 71/100.
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Cheer Athletics Holdings, LLC
Parent company
Cheer Athletics Brands, LLC
Incorporated in
Texas
HQ
3712 E. Plano Parkway, Bldg B, Suite 100, Plano, Texas 75074
Auditor
Still Burton
Audited financials
Franchisor revenue
$1.3M
vs $1.3M prior year

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 CHEER ATHLETICS unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: fitness
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $607K–$1.3M
Working capital
$
FDD reports $140K–$160K

Unlevered ROIC · per unit

17%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$188K
EBITDA margin
25.0%
Total invested
$1.1M
Payback
70 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Cheer Athletics franchisees operate competitive cheerleading and gymnastics facilities serving youth and teen athletes. Day-to-day operations include coaching classes, managing competitive team rosters, facility maintenance, staff scheduling, and event coordination for local and regional competitions. Revenue derives from monthly tuition fees, competition fees, and merchandise sales.

CEO
Joseph K. Melton
Founded
2020
FDD year
2026
States available
12

Item 7 · what it costs

The Vitals

Total investment
$607K – $1.3M
All-in to open one unit
Liquid capital
$140K – $160K
Cash you must have on hand
Franchise fee
$75K
Royalty
10.0%
Percentage of Gross Revenues · typical 6–8%
Ad fund
3.0%
typical 3–5%
Total fee load
13.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
20
Opened
1
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
1
Corporate units in the system
% franchised
95%
vs corporate-owned
Net growth (yr3)
+5.6%
Net unit change last year
3-yr CAGR
+46.2%
Compounded over last 3 years
2024
19+1
Franchised units
2025
18
Franchised units
2026
13
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 12 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 12 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

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

71
Risk · 0-100
CAUTION71 / 100

Youth-serving sports franchise with active abuse litigation, minimal unit growth, zero financial transparency, and systemic liability concerns presents material operational and reputational risk.

Score breakdown · what drove the 71 / 100 rating

  1. 01HIGHActive sexual abuse and negligence litigation across multiple affiliates with vicarious liability claims indicates systemic supervision/hiring vulnerabilities in a youth-serving business
  2. 02MINORSlow unit growth (5.6% YoY on only 20 locations) suggests market saturation, franchisee struggles, or brand weakness despite 10-year terms
  3. 03MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation; combined with $607k-$1.2M investment, profitability is opaque
  4. 04MED10% royalty on undisclosed revenues creates unpredictable cost structure; franchisees cannot benchmark performance against system average
  5. 05HIGHAffiliate bankruptcy and stayed litigation indicate financial fragility within the franchise system itself

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
3
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Texas

Item 11

Training & Operations

Classroom training
12 hrs
On-the-job training
22 hrs
POS system
iClass Pro
Operating tech stack

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

Locked
(531) 210-••••
NE
(207) 309-••••
ME
(724) 265-••••
PA

One-time purchase · CSV download · Validation questions included

FDD download

CHEER ATHLETICS · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above