Cheer Athletics Franchise Cost, Revenue & Review 2026
- Investment
- $607K – $1.3M
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Cheer Athletics is a youth sports franchise operating competitive cheerleading and tumbling gyms. Franchisees run the facilities, managing coaches, teams, classes, and competitions.
FranchiseVerdict summary · 2026
A CHEER ATHLETICS franchise requires a total initial investment of $607K – $1.3M, including a $75K franchise fee and an ongoing 10.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $607K – $1.3M
- 90th pct Health & Fitn…
- Avg gross sales
- N/A
- Royalty
- 10.0%
- 88th pct Health & Fitn…
- Units
- 20
- 53rd pct Health & Fitn…
- SBA charge-off
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $607K – $1.3M including a $75K franchise fee, 10.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict C (Average), verdict score 44/100 (higher is better).
- GROWTHPositive: net +1 franchised outlets in the latest year (1 opened, 0 closed) (Item 20).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Cheer Athletics Holdings, LLC
- Parent company
- Cheer Athletics Brands, LLC
- FDD Item 1, page 8 of the 2026 FDD
- Predecessor
- Cheer Athletics Brands, LLC (previously sold CA franchises, assigned to franchisor in 2020)
- Prior franchisor entity
- CEO title
- Manager
- Joseph K. Melton
- CEO experience
- 1994 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- TX
- HQ
- 3712 E. Plano Parkway, Bldg B, Suite 100, Plano, Texas 75074
- Auditor
- Still Burton
- Audited financials
- Franchisor revenue
- $1.5M
- vs $1.3M prior year
Overview
About
- CEO
- Joseph K. Melton
- Headquarters
- TX
- Founded
- 2020
- FDD year
- 2026
- States available
- 12
Can you afford it, and what does the money buy?
Entry cost runs 140% above the typical health & fitness franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $75K | $75K |
| Working capital (3–6 mo) | $140K | $160K |
| Equipment, build-out, other | $393K | $1.0M |
| Total initial investment | $607K | $1.3M |
Source: CHEER ATHLETICS 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $607K – $1.3M
- Bottom third — review vs category
- Liquid capital req'd
- $140K – $160K
- Bottom third — review vs category
- Franchise fee
- $75K – $75K
- Bottom third — review vs category
- Royalty
- 10.0%
- typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 13.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 0.0% |
| Training fee | $3K |
| Transfer fee | $10K |
| Renewal fee | $25K |
| Total fee load | 13.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
CHEER ATHLETICS makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one CHEER ATHLETICS unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 13.0% — above the Health & Fitness median of 9.0%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System expanding at 46.2% CAGR over 3 years across 20 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Health & Fitness medians
How Cheer Athletics Compares
Category median of published Health & Fitness brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 20
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (3-yr)
- +46.2%
- Net unit change over 3 years
- 3-yr CAGR
- +46.2%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
18 current owners across 12 states.
- TX 5
- CO 2
- PA 2
- FL 1
- IL 1
- KY 1
- ME 1
- MO 1
- NC 1
- NE 1
- NY 1
- OH 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Youth-serving sports franchise with active abuse litigation, minimal unit growth, zero financial transparency, and systemic liability concerns presents material operational and reputational risk.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
3 cases, all involving sexual abuse allegations by former athletes against employees/affiliates: (1) Gerlacher v. Cheer Athletics et al. (2021, stayed due to affiliate bankruptcy); (2) Jane Doe 1 & 2 v. Cheer Athletics et al. (2021, dismissed 12/21/2023 via confidential settlement); (3) Jane HK Doe v. USASF et al. (2020, dismissed 10/13/2022 via confidential settlement).
Bankruptcy (Item 4)
Subject: the company or an affiliate. Disclosed (Item 4 covers the last 10 years)
Affiliate Cheer Athletics-Plano, Inc. filed Chapter 11 bankruptcy on November 2, 2025 (Case No. 25-43320, Eastern District of Texas). No plan for reorganization filed as of FDD issuance. Did not involve franchisor or franchise system directly.
Audited financials (Item 21)
Yes · Still Burton
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY2025 total revenue of $1,483,112 comprises royalties $1,397,181 and initial franchise fees $85,931; prior-year (FY2023) figures include a one-time $131,958 gain on sale classified as other revenue.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 44 / 100 verdict
- 01HIGHActive sexual abuse and negligence litigation across multiple affiliates with vicarious liability claims indicates systemic supervision/hiring vulnerabilities in a youth-serving business
- 02MINORSlow unit growth (5.6% YoY on only 20 locations) suggests market saturation, franchisee struggles, or brand weakness despite 10-year terms
- 03MED10% royalty on undisclosed revenues creates unpredictable cost structure; franchisees cannot benchmark performance against system average
- 04HIGHAffiliate bankruptcy and stayed litigation indicate financial fragility within the franchise system itself
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 13.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 10 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Arbitration location | Plano, Texas (county where franchisor's principal place of business is located) |
| Jury trial waiver | No |
| Governing law | TX |
| Litigation count | 3 |
View Item 3 litigation summary
3 cases, all involving sexual abuse allegations by former athletes against employees/affiliates: (1) Gerlacher v. Cheer Athletics et al. (2021, stayed due to affiliate bankruptcy); (2) Jane Doe 1 & 2 v. Cheer Athletics et al. (2021, dismissed 12/21/2023 via confidential settlement); (3) Jane HK Doe v. USASF et al. (2020, dismissed 10/13/2022 via confidential settlement).
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 22 hrs
- Training location
- Plano, Texas affiliate location or other designated location
- Ongoing training
- Required
- Field support
- 40 hrs/yr
- On-site visits per year
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- iClass Pro
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: iClass Pro
Item 20 · call current owners
Franchisee Contacts
18 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a CHEER ATHLETICS franchise?
The total investment to open a CHEER ATHLETICS franchise ranges from $607K – $1.3M, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do CHEER ATHLETICS franchise owners earn?
CHEER ATHLETICS makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns CHEER ATHLETICS?
CHEER ATHLETICS is franchised by Cheer Athletics Holdings, LLC. Its parent company is Cheer Athletics Brands, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the CHEER ATHLETICS FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the CHEER ATHLETICS FDD and qualifies whose outlets they describe.
What is CHEER ATHLETICS's franchise failure rate?
SBA 7(a) loan charge-off data is not available for CHEER ATHLETICS (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many CHEER ATHLETICS franchise locations are there?
As of their most recent FDD filing, CHEER ATHLETICS has 20 total units in the United States, including 19 franchised units and 1 company-owned units. 1 new units were opened in the latest reporting year.
Is CHEER ATHLETICS a good franchise to buy?
FranchiseVerdict rates CHEER ATHLETICS as a C-grade franchise with a verdict score of 44 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.