Franchise Deep Dive: Redline Athletics Costs, Model & More

REPORTED COST TO GET IN: $325,296 - $1,040,296

Franchise overview

Redline Athletics is a youth sports franchise that focuses on providing specialized fitness and athletic training for young athletes aged 8-18. It offers training programs aimed at improving strength, speed, agility and sport-specific skills. The franchise caters to a growing market, as youth sports participation is high and there is significant demand for specialized training.

Redline Athletics was established in Scottsdale, Arizona, in 2010 and began franchising in 2014. There are currently 54 open Redline Athletics locations.

Redline Athletics is designed to offer young athletes a path to enhanced sports performance, while also providing franchisees with a structured and supported business model in the thriving youth sports market.

Redline Athletics offers two main franchise opportunities:

• Regional Developer: This role involves securing the rights to a geographical area, developing Redline Athletics facilities within that territory, recruiting franchisees and providing ongoing support.

• Performance Center Franchisee: Franchise partners operate their own Redline Athletics Performance Center, benefiting from multiple revenue streams including memberships, private training, group fitness, teams, leagues and merchandise.

Business model components

Here are the key components of Redline Athletics’ business model:

• Target Market:Focus on youth athletes aged 8-18.Also offers programs for younger children (Intro to Sports) and adults (Personal Training, Adult Fitness).

• Revenue Streams:Memberships: Regular income from athletes enrolled in training programs.Private Training: One-on-one or small group training sessions.Group Fitness: Structured group classes focusing on fitness and athletic skills.Teams and Leagues: Organized sports teams and leagues for various sports.Gift Cards and Merchandise: Sales of branded merchandise and gift cards.

• Support Systems:Real Estate: Assistance with site selection, lease negotiations and demographic analysis.Construction: Support with architectural plans, specifications and finding contractors.Training: Comprehensive training for franchisees and staff, including POS systems, service techniques and center operations.Business Systems: Detailed operations manual, start-up checklists and business processes.Marketing: Access to marketing materials, guidelines, local marketing programs and national website support.Technology: POS systems, business review tools and an online Franchise Support Portal.

In Redline Athletics’ 2023 Franchise Disclosure Document, the brand outlines gross revenue of 53 Redline Performance Centers categorized by top third, middle third and bottom third on a monthly basis for a twelve-month period from April 2022 to March 2023. Here is a summary of the revenue information for each group:

Top Third:

• Number of Locations: 15-18

• Average Gross Revenue: $34,226 - $47,555

• Median Gross Revenue: $33,491 - $45,195

Middle Third:

• Number of Locations: 14-18

• Average Gross Revenue: $20,385 - $25,571

• Median Gross Revenue: $20,531 - $23,824

Bottom Third:

• Average Gross Revenue: $6,546 - $10,281

• Median Gross Revenue: $7,247 - $12,585

Initial investment costs

The initial investment required to open a Redline Athletics franchise ranges from $325,296 to $1,040,296. Here is a breakdown of the costs:

• Initial Franchise Fee: $49,000

• Security and Utility Deposits: $3,000 - $10,000

• Lease Payments/Rent (3 Months): $15,000 - $65,000

• Architectural Expenses: $10,000 - $23,000

• Project Management Expenses: $12,000 - $26,000

• Leasehold Improvements: $170,000 - $260,000

• Equipment: $55,000 - $125,000

• Flooring: $65,000 - $279,000

• Signage (Interior and Exterior): $7,500 - $25,000

• Furniture and Fixtures: $5,000 - $15,000

• Computer Hardware and Installation: $15,500 - $25,000

• Business Licenses and Permits: $500 - $1,500

• Professional Fees: $1,000 - $3,000

• Insurance (3 Months): $3,000 - $10,000

• Initial Training Expenses (Including Travel): $4,500 - $6,000

• Start-Up Supplies: $2,000 - $3,000

• Marketing Expenses (3 Months): $28,500 - $48,500

• Technology Fee (3 Months): $2,997 - $7,497

• Technology Set Up Fee: $699

• Additional Funds (3 Months): $30,000 - $50,000

The franchise fee is $49,000.

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