FDD Talk 2021: Amazing Athletes Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Amazing Athletes franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for an Amazing Athletes franchise, based on Item 7 of the company’s 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for an Amazing Athletes franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned Amazing Athletes outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Amazing Athletes’ financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 average and median monthly gross revenues (and average monthly gross sales for the highest grossing and lowest grossing unit) for the 96 Amazing Athletes units that have been operating for at least 1 year and that have been owned by the same owner(s) throughout the period of January 1, 2020 through December 31, 2020 (“Reporting Units”)

• 2020 average and median monthly gross revenues (and average monthly gross sales for the highest grossing and lowest grossing owner) for the 59 Amazing Athletes owners of units that have been operating for at least 1 year and that have been owned by the same owner(s) throughout the period of January 1, 2020 through December 31, 2020 (“Reporting Owners”)

• 2020 average annual and monthly sales by owner and by unit for the top 25% and bottom 25% Reporting Owners

• 2020 average annual and monthly sales by owner and by unit for the top 50%, middle 50%, and bottom 25% Reporting Units

Section I – Background Information

20 Things You Need to Know About the Amazing Athletes Franchise

Launches New Retail Concept with Amazing Athletes Sports Training Facility for Kids

1.  At the end of April 2021, Amazing Athletes announced that it had found a new way to deliver engaging physical education and sports programs to children. Over the past year, Amazing Athletes has expanded its franchise base, expanded into virtual classes, mobile programming, new activities, and private camps. Now, the 15-year-old company is moving into retail.

2.  The first Amazing Athletes Sports Training Facility opened on Monday, April 12th in Howell Township, New Jersey. The new training facility is owned and operated by Howell Township residents Vincent and Rose Scuorzo. The new retail concept location provides 3,200 square feet of activity spaces for kids to participate in multi-sport training and specialty camps, as well as nutrition and muscle group education.

3.  John Erlandson, president of Amazing Athletes, said, “This is a big opportunity for us as a company, and for our customers and their children, as we continue to find new ways to deliver engaging content to kids. As we lean into this new world, we want to provide more outlets for physical education for kids as schools continue to re-focus on general education and best practices for kids. As parents and teachers are trying to catch kids up from an educational standpoint, we will continue to focus on getting kids back to physical education in fun and engaging ways.”

4.  Erlandson continued, “We’re piloting our new retail concept in one of our most successful territories in New Jersey. Our goal is to get kids moving and active while providing them that physical supplement in their development. Just like they are getting supplemental education, they need that physical supplement, and they need it from coaches and trainers and a program with 18 years of history that knows how to connect with the kids. The pandemic now more than ever has shown the need for fun, engaging physical activity and we take this on as a responsibility and opportunity to be the best in class providers of our multi-sport enrichment curriculum.”

5.  The ribbon-cutting and grand opening ceremonies on April 12th included Howell Township Mayor Theresa Berger and members of the Howell Township Council, as well as the Amazing Athletes of Central Jersey franchise owners Vincent and Rose Scuorzo and local community members, as well as guest appearance by the Amazing Athletes mascot Kardio the Kangaroo.

6.  “Howell, and central New Jersey, is one of our largest regions, so we chose to partner with our franchise owners Vinny and Rose Scuorzo to launch our concept, with the intent to replicate the concept and launch it into our 32 other territories,” Erlandson said.

7.  Among the programs offered at the Howell Township Amazing Athletes Sports Training Facility are Amazing Athletes’ proven multi-sport coaching and instruction, Super Soccer Stars programs, one-on-one and private group training, clinics, and camp programs, including the extremely popular two-hour “Parents Night Out” program.

8.  Vinny Scuorzo noted that the Howell location grew from the experiences he and his wife had, teaching in preschools and home school groups through Amazing Athletes. Last October, the husband-and-wife team rented space in Freehold, Jackson and Old Bridge to offer youth sports enrichment programs, which were immediately met with success. For Vinny, the opening of the Amazing Athletes Sports Training Facility is a deeply personal achievement.

9.  Scuorzo, who was born and raised in Howell, said, “I had three open heart surgeries growing up, so I was always limited to contact sports. I played baseball, but in high school, sports were just too much of a risk. The main reason why I do this is not only to benefit kids in a positive way, but also to show that, no matter what their condition, what kind of athlete they are, there is a place for kids of all abilities.”

Offers a Wide Array of Programs

10.  Amazing Athletes has various programs for different age groups and settings. Each of the programs takes the time to carefully instruct each child at their own pace, breaking down and teaching the fundamentals of ten different sports: Basketball, Volleyball, Soccer, Football, Hockey, Lacrosse, Tennis, Golf, and Baseball.

11.  The Amazing Athletes program helps to develop key motor skills and instill the values and advantages of structured active play for healthy habits and benefits that can last a lifetime. Active children demonstrate better focus, energy, emotional control, social awareness, and more. All of Amazing Athletes’ programs are taught in group settings, allowing coaches to incorporate lessons on teamwork, sportsmanship, and self-confidence.

12.  Most importantly, Amazing Athletes teaches each child at their own pace, helping them to meet, master, and exceed their motor development milestones and personal goals. By encouraging each child on an individual level, athletes gain the confidence and personal insight to encourage a love of fitness that can stretch through adolescence and adulthood. The different programs offered by Amazing Athletes include Amazing Tots, Amazing Athletes, Amazing Athletes P.E., and Amazing Athletes @Home Virtual Classes.

13.  Amazing Tots is a guided, discovery-based program helping children 18 months to 2.5 years engage in structured physical activities tailored specifically to toddlers. Amazing Tots uses age-appropriate developmental milestones and works with each individual toddler based on their attention span and physical abilities. During each 20-25 minute weekly class, toddlers learn about one of four sports through Amazing Athletes’ discovery lessons. Classes also balance a combination of structured physical challenges and organized physical exploration activities specifically designed with little ones in mind.

14.  Amazing Athletes is the premier year-round developmental physical fitness program empowering children aged 2.5 to 6 years old to reach developmental milestones at an individual pace. The curriculum is endorsed by Early Childhood Expert Bonnie Bruce who reviews each element of the program to ensure Amazing Athletes get every possible advantage. During the 30-35 minute weekly classes, children learn the importance of patience, teamwork, and self-confidence in a non-competitive, learning-based environment that fosters a love of healthy living. Their excitement for structured physical activity promotes advancements and advantages that keep children on the path to personal well-being. Different elements of the Amazing Athletes program include Motor and Life Skills, Sports Introduction, Starter Nutrition, and Body Awareness.

15.  Amazing Athletes P.E. is a game-based sports program designed to engage older children (ages 5 to 12) in active wellness through advanced physical fitness challenges and interactive sports lessons. Children between the ages of 5 and 12 display a wide range of physical abilities and strengths. Amazing Athletes coaches work with each child to help them strive for their personal best. Each 45-60 minute class engages athletes in non-competitive, sport-specific training for focused development. Athletes work in pairs to develop teamwork, motor skills, and patience. The program focuses on Teamwork Activities, Advanced Fitness Challenge, and Introductory Strength Training.

16.  To adapt to COVID-19 restrictions, Amazing Athletes launched virtual classes, dubbed Amazing Athletes @Home. The program includes an interactive 30-45 minute virtual class, once a week over Zoom. Children can see their teammates and work directly with their coach through screen sharing. Lessons are designed to play in small spaces – a 5 x 5 ft. area is all a child needs. Additionally, no special equipment is needed for the virtual classes.

Company History

17.  Amazing Athletes, a children’s educational sports program, was founded in 2003 by Glen and Janee Henderson in Orange County, California. Glen Henderson, an international business major, and Janee Henderson, a Doctor of Chiropractic, had always wanted to start their own business. Not long after they were married, they started their own chiropractic office. However, after having their first son, their interests began to shift toward the early childhood industry.

18.  The Hendersons had also always loved sports. They used their passion for early childhood education and their love for sports to develop the Amazing Athletes program. The Hendersons initially launched the program across 11 schools in the Orange County area. As demand for the Amazing Athletes program grew, the Hendersons decided to start franchising the concept in 2006.

19.  Over the years, Amazing Athletes grew around the United States. Today, there are Amazing Athletes franchises in more than 26 states.

Entrepreneur’s Franchise 500

20.  Amazing Athletes ranked No. 436 on Entrepreneur’s 2021 Franchise 500.

Section II – Estimated Costs

• Please click here for detailed estimates of Amazing Athletes franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Amazing Athletes’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  97
• Outlets at the End of the Year:  106
• Net Change:  +9

2019

• Outlets at the Start of the Year:  106
• Outlets at the End of the Year:  120
• Net Change:  +14

2020

• Outlets at the Start of the Year:  120
• Outlets at the End of the Year:  124
• Net Change:  +4

Company-Owned

2018

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  11
• Net Change:  +11

2020

• Outlets at the Start of the Year:  11
• Outlets at the End of the Year:  21
• Net Change:  +10

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• The financial performance representation being made below is a historic financial performance representation about a subset of the existing outlets in the franchise system that have been granted the right to operate an Amazing Athletes Complete Program and the Basic Package.

• The following information represents the “Gross Revenues” of 59 owners representing 96 of Amazing Athletes’ 124 franchised units for the time period of January 1, 2020 to December 31, 2020.

• This information includes only units that have been operating for at least 1 year and that have been owned by the same owner(s) throughout the period of January 1, 2020 through December 31, 2020.

• There are franchised units that did not deliver their Gross Revenues statements in time for this compilation and 28 additional franchised units did not report because they were either open for less than one year or they were transferred to other franchisees during the year.

• “Gross Revenues” is defined as the gross revenue generated by a Business for all of the services it provides. Gross Revenues does not account for any deduction of fees and costs paid to Amazing Athletes, of wages, fees, taxes, or costs paid to any employee or independent contractor hired by a franchisee, for the payment of taxes, or for any other operating expenses, fees, costs, or deductions that the franchisee may decide to subtract from Gross Revenues.

Part 1 – Monthly Gross Revenue Information for All Reporting Units and All Reporting Owners

All Reporting Units (96 Units)

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