Redline Athletics Franchise Cost, Revenue & Review 2026
- Investment
- $100K – $223K
- Disclosed sales
- not disclosed
- SBA charge-off
- 34.8%
- on 63 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Redline Athletics is a youth athletic training franchise offering strength, speed, and sports-performance programs for young athletes. Franchisees run the facilities, managing coaches, memberships, and training sessions.
FranchiseVerdict summary · 2026
A Redline Athletics franchise requires a total initial investment of $100K – $223K, including a $87K – $187K franchise fee. This franchisor states the initial franchise fee as a rule rather than as one amount, so the figure shown is a single point from it and not what every franchisee pays. Item 5 states it as: The formula used to determine the Development Fee for your Development Area is calculated by multiplying 25% of the then-current Initial Franchise Fee (currently $49,500) for Redline Performance Centers times the number of potential Redline Performance Centers that you and we agree may be opened in the proposed geographically defined Development Area. This fee is for a master or area-representative grant rather than a single unit, so it is not comparable with the single-unit fees shown for other brands. 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. SBA 7(a) loans show a 34.8% charge-off rate across 63 loans[1]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Limited operating history: franchising since 2025. A system this young has fewer than three years of Item 20 outlet history and rarely enough SBA loans for a charge-off rate, so its grade rests on less evidence than an established system's. Read its Item 20 tables and talk to its first franchisees before relying on the grade. Other new franchisors
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
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 4 headline figures on this page cite a page of the filing.
Overview
- Investment
- $100K – $223K
- 16th pct Health & Fitn…
- Avg gross sales
- N/A
- Royalty
- Not extracted
- Units
- 48
- 71st pct Health & Fitn…
- SBA charge-off
- 34.8%
- % of SBA 7(a) loans not repaid · median varies by category
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 $100K – $223K including a $87K franchise fee. This franchisor states the initial franchise fee as a rule rather than as one amount, so the figure shown is a single point from it and not what every franchisee pays. Item 5 states it as: The formula used to determine the Development Fee for your Development Area is calculated by multiplying 25% of the then-current Initial Franchise Fee (currently $49,500) for Redline Performance Centers times the number of potential Redline Performance Centers that you and we agree may be opened in the proposed geographically defined Development Area. This fee is for a master or area-representative grant rather than a single unit, so it is not comparable with the single-unit fees shown for other brands.
- 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 D (Below average), verdict score 33/100 (higher is better). SBA loan charge-off rate of 34.8% across 63 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -5 franchised outlets in the latest year (2 opened, 7 closed) (Item 20).
- DATAThis 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.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Phoenix Franchising Group, LLC
- Predecessor
- Redline Athletics Franchising LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Chance J. Pearson
- CEO experience
- 6 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- Arizona
- HQ
- 14000 North Hayden Road, Suite 101, Scottsdale, AZ 85260
Overview
About
- CEO
- Chance J. Pearson
- Headquarters
- AZ
- Founded
- 2013
- FDD year
- 2025
- States available
- 23
Can you afford it, and what does the money buy?
Entry cost runs 59% below the typical health & fitness franchise.
Source: FDD 2025 · Items 5–7
This franchisor states the initial franchise fee as a rule rather than as one amount, so the figure shown is a single point from it and not what every franchisee pays. Item 5 states it as: The formula used to determine the Development Fee for your Development Area is calculated by multiplying 25% of the then-current Initial Franchise Fee (currently $49,500) for Redline Performance Centers times the number of potential Redline Performance Centers that you and we agree may be opened in the proposed geographically defined Development Area.
This fee is for a master or area-representative grant rather than a single unit, so it is not comparable with the single-unit fees shown for other brands.
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $87K | $87K |
| Working capital (3–6 mo) | $5K | $5K |
| Equipment, build-out, other | $8K | $131K |
| Total initial investment | $100K | $223K |
Source: Redline Athletics 2025 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
- $100K – $223K
- Top 40% of category vs category
- Liquid capital req'd
- $5K – $5K
- Top 40% of category vs category
- Franchise fee
- $87K – $187K
- Master/area fee
- Royalty
- Unit-franchisee Royalty Fees are referenced (e.g., Region…
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 1.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% |
| Technology fee | $325 |
| Training fee | $500 |
| Transfer fee | $26K |
| Renewal fee | $2K |
| Total fee load | 1.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Redline 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 Redline 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, royalty rate, 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: 2025 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 1.0% — below 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.
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 Redline 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 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 48
- Opened
- 2
- Last reporting year
- Closed
- 7
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 14.6%
- Company-owned
- 6
- Corporate units in the system
- % franchised
- 88%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 1
- Transferred
- 0
- Reacquired
- 6
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 2
- Franchisor's next-year forecast
- Termination rate
- 12.5%
- Franchisor-initiated terminations
- Ceased ops
- 14.6%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 23 states 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.
23
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 63
- Loan volume
- $20.3M
- Median loan
- $270K
- 50th percentile
- Charge-off rate
- 34.8%
- on 63 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 65.2%
- 5-yr charge-off
- 20.0%
- Loans approved 2021+
- Active lenders
- 22
- Defaults
- 8
- Typical loan rate
- 6.2%
- avg rate to borrowers
- Franchised industry avg
- 15.8%
- brand above franchise avg ↑
- Jobs supported
- 53
- 2.5 per loan
- Lender concentration
- 63%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Franchise vs independent — in fitness and recreational sports centers, franchised businesses charge off at 15.8% vs 18.2% for independents — franchising is associated with 13% lower SBA default risk in this category.
Top lenders financing Redline Athletics franchisees
Showing 3 of 22 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Redline Athletics from SBA 7(a) FOIA data.
- Principal loss rate
- 35.5%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 6.16%
- Avg chargeoff amount
- $256K
- Lender concentration
- 62.5%
- Job velocity
- 2.5 per $100K
- NAICS benchmark
- 12.5%
- NAICS 713940
- Jobs supported
- 53
Top SBA lendersTop lender holds 63% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Simmons Bank | 5 | $1.6M | 60.0% |
| 2 | The Huntington National Bank | 2 | $400K | 0.0% |
| 3 | Trustmark Bank | 1 | $206K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| OHOhio | 3 | 1 | 33.3% |
| TXTexas | 2 | 0 | 0.0% |
| AZArizona | 1 | 0 | 0.0% |
| MIMichigan | 1 | 1 | 100.0% |
| MNMinnesota | 1 | 1 | 100.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
A 34.8% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 34.8% — 117% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Newly franchising (2025) youth sports-training brand with no litigation or bankruptcy. Concerns are UN-audited financials, no Item 19 disclosure, and very thin net worth ($76K). 48 units already but limited operating history as a franchisor.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation information is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
No audited financials on file
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 33 / 100 verdict
- 01MINORNo audited financials
- 02MINORNo Item 19 disclosure
- 03MINORThin net worth $76K
- 04MEDVery new franchisor (began 2025), limited history
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 1.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1.5 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 15 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 10 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Maricopa County, Arizona |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation information is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 9 hrs
- On-the-job training
- 4 hrs
- Training location
- Corporate Office/In Region
- Ongoing training
- Required
- Field support
- 3 hrs/yr
- On-site visits per year
- Franchisor financing
- Not offered
- Item 10
- POS system
- MindBody Online Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: MindBody Online Software
Item 20 · call current owners
Franchisee Contacts
22 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 Redline Athletics franchise?
The total investment to open a Redline Athletics franchise ranges from $100K – $223K, with an initial franchise fee of $87K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD). This fee is for a master or area-representative grant rather than a single unit, so it is not comparable with the single-unit fees shown for other brands.
What do Redline Athletics franchise owners earn?
Redline 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 Redline Athletics?
Redline Athletics is franchised by Phoenix Franchising Group, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Redline 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 Redline Athletics FDD and qualifies whose outlets they describe.
What is Redline Athletics's franchise failure rate?
Based on SBA 7(a) loan data, Redline Athletics has a charge-off rate of 34.8% across 63 loans, meaning 34.8% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Redline Athletics franchise locations are there?
As of their most recent FDD filing, Redline Athletics has 48 total units in the United States, including 42 franchised units and 6 company-owned units. 2 new units were opened in the latest reporting year.
Is Redline Athletics a good franchise to buy?
FranchiseVerdict rates Redline Athletics as a D-grade franchise with a verdict score of 33 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
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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.