Franchise Deep Dive: Redline Athletics Franchise Costs, Fees, Profit and Data

Learn about the costs, fees, business model and potential profit for this franchise offering specialized fitness programs for youth.

By Victoria CampisiStaff Writer

8:08AM • 08/12/24

LAST UPDATED: August 2024

FRANCHISE WEBSITE: https://redlineathletics.com/corporate/franchising

NUMBER OF LOCATIONS: 54

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

REPORTED ROI: see below

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.

How Many Redline Athletics Locations Are There?

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

What Is the Redline Athletics Business Model?

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.

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.

How Much Can Redline Athletics Franchise Owners Make?

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:

Number of Locations: 15-18
Average Gross Revenue: $6,546 - $10,281
Median Gross Revenue: $7,247 - $12,585

How Much Does It Cost To Open a Redline Athletics Franchise?

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

What Is the Franchise Fee for Redline Athletics?

The franchise fee is $49,000.

Who’s on the Redline Athletics Leadership Team?

What Helpful Articles Can I Read to Learn More About Redline Athletics?

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Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.

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