Cheer AthleticsFranchise Cost, Revenue & Review 2026
Data from FDD filing
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]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $607K – $1.3M
- 88th pct Health & Fitn…
- Avg gross sales
- N/A
- 59th pct Health & Fitn…
- Royalty
- 10.0%
- 66th pct Health & Fitn…
- Units
- 20
- 54th pct Health & Fitn…
- SBA default
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 19 to 13 over 3 years. Investigate why operators are leaving.
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.
- Verdict F (Bottom Quintile) with a risk score of 94/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Cheer Athletics Holdings, LLC
- Parent company
- Cheer Athletics Brands, LLC
- 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
- $1.3M
- vs $1.3M prior year
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
- Headquarters
- TX
- Founded
- 2020
- FDD year
- 2026
- States available
- 12
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
- Below avg, review vs category
- Liquid capital req'd
- $140K – $160K
- Below avg, review vs category
- Franchise fee
- $75K – $75K
- Below avg, review vs category
- Royalty
- 10.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 3.0%
- 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 | 3.0% of gross sales |
| Training fee | $250 |
| Transfer fee | $10K |
| Renewal fee | $25K |
| Total fee load | 13.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Health & Fitness averages
How Cheer Athletics Compares
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
- 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
3-year detail · Item 20
- Transfers (3yr)
- 0
- 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.
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
Three cases involving sexual abuse allegations by former athletes against Cheer Athletics affiliates and employee Jason McCartney. First case (Gerlacher) stayed due to bankruptcy filing. Second case (Jane Doe 1 & 2) dismissed with confidential settlement. Third case (Jane HK Doe) referenced but details cut off in document.
Bankruptcy (Item 4)
Disclosed in last 7 years
Audited financials (Item 21)
Yes · Still Burton
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 94 / 100 rating
- 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
- 03MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation; combined with $607k-$1.2M investment, profitability is opaque
- 04MED10% royalty on undisclosed revenues creates unpredictable cost structure; franchisees cannot benchmark performance against system average
- 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 10 mi |
| Online sales rights | 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 |
| Mandatory arbitration | Yes |
| Arbitration location | Plano, Texas |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 3 |
View Item 3 litigation summary
Three cases involving sexual abuse allegations by former athletes against Cheer Athletics affiliates and employee Jason McCartney. First case (Gerlacher) stayed due to bankruptcy filing. Second case (Jane Doe 1 & 2) dismissed with confidential settlement. Third case (Jane HK Doe) referenced but details cut off in document.
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 22 hrs
- Training location
- Plano, Texas
- 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
FDD download
CHEER ATHLETICS · FDD (2026) PDF
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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 F-grade franchise with a risk score of 94 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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
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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.