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RedLine Athletics Franchise ProfileChildren’s Franchises > Children's Fitness |
Initial Investment Overview for RedLine Athletics Franchise
The initial investment for a RedLine Athletics franchise ranges from $325,296 to $1,040,296. This includes a franchise fee of $49,000, which is a one-time payment to join the brand. Franchisees should also anticipate ongoing costs, including a 7% royalty fee on revenue and a 1% marketing fee. It's essential to assess your financial readiness, as you will need a minimum net worth of $500,000 and cash available in the range of $325,296 to $1,040,296.
Financial Performance Insights
The average annual revenue per unit for RedLine Athletics is approximately $38,737, with a median annual revenue of $37,244. However, revenue can vary significantly, with the lowest annual revenue recorded at $2,365 and the highest at $83,505. This range highlights the importance of location and management in determining financial success. Additionally, the breakeven time is around 15 months, and investment payback is estimated at 16 months, making it crucial for franchisees to have a solid business plan.
Operational Expenses Breakdown
Understanding the operational expenses is vital for managing a RedLine Athletics franchise. The total operating expenses average around $1,688,602 annually. Key expense categories include salaries and benefits, which account for $977,745, and selling and marketing expenses at $261,462. Depreciation and other administrative costs also contribute to the overall expenses. Franchisees should prepare for these costs to maintain profitability and ensure a successful operation.
Growth Potential and Franchise Units
RedLine Athletics has shown consistent growth in its franchised units, increasing from 26 in 2020 to 35 in 2022. This growth indicates a rising interest in the brand and its offerings. With no corporate-owned units, the franchise model relies solely on franchisees, which can foster a strong community of owners. Aspiring franchisees should consider this growth trajectory when evaluating the potential for success and market entry within their local areas.
RedLine Athletics Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
RedLine Athletics Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 26 | 32 | 35 |
| Net Change YoY | - | 6 | 3 |
| Franchised Units | 26 | 32 | 35 |
| Net Change YoY | - | 6 | 3 |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | - | - | - |
Initial Investment
The RedLine Athletics franchise requires an initial investment ranging from $325,296 to $1,040,296. This includes a franchise fee of $49,000, and potential franchisees should prepare for additional costs associated with setting up their facilities and operations.
Financial Performance
Average annual revenue per unit for RedLine Athletics is approximately $40,000, with a median annual revenue of $37,244. However, revenue can vary significantly, with the lowest reported annual revenue at $2,365 and the highest at $83,505, indicating a range of performance among franchise units.
Royalty and Marketing Fees
Franchisees are subject to a royalty fee of 7% of gross sales, along with a marketing fee of 1%. These fees are essential for supporting brand development and marketing efforts, contributing to the overall success of the franchise network.
Breakeven and Payback Period
The average breakeven time for a RedLine Athletics franchise is approximately 15 months, with an investment payback period of around 16 months. This relatively quick return on investment can be appealing for potential franchisees looking to recoup their initial costs efficiently.
Franchise Growth
RedLine Athletics has shown consistent growth in franchised units, increasing from 26 units in 2020 to 35 units in 2022. This upward trend reflects the brand's expanding market presence and potential for future franchise opportunities.
Corporate Structure
RedLine Athletics operates as a franchise model without any corporate-owned units as of 2022. This structure allows franchisees to independently manage their locations while benefiting from the support and resources provided by the corporate team.
Frequently Asked Questions
The initial investment for a RedLine Athletics franchise ranges from $325,296 to $1,040,296. This includes the franchise fee, equipment, and other startup costs.