About destination athlete Franchise
Destination Athlete is a sports equipment and apparel franchise serving youth, high school, and small college teams and athletes.
The brand provides athletic apparel, sports equipment, fundraising solutions, and performance products through both online and in person sales channels within designated territories.
The franchise fee ranges from $20,000 to $50,000, and the company has been franchising since 2008.
destination athlete Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $20,000 - $50,000 | One-time payment upon signing |
| Royalty Fee | 5% of non-internet sales, 8% of internet sales (with $500 quarterly minimum after Year 1) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Sales (with up to 1% credit for local advertising) | National brand fund |
| Total Investment Range | $28,300 – $93,610 | Includes build-out, inventory, working capital |
The investment range of $28K–$94K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of non-internet sales, 8% of internet sales (with $500 quarterly minimum after Year 1)) and marketing fee (Up to 2% of Gross Sales (with up to 1% credit for local advertising)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $20,000 | $50,000 |
| Travel Expenses | $100 | $400 |
| Living Expenses while training | $150 | $1,500 |
| Cell/Telephone | $20 | $200 |
| Fax/copier | $150 | $400 |
| Lap top computer | $700 | $1,500 |
| Invoices/proposals | $100 | $160 |
| Office supplies | $100 | $400 |
| File cabinet(s) | $80 | $200 |
| Legal fees | $300 | $1,500 |
| Accounting software | $200 | $250 |
| Accounting services | $100 | $300 |
| Insurance | $300 | $800 |
| Additional Operating Funds for 3 Months | $6,000 | $36,000 |
| Retail/office rent (if applicable) | $1,000 | $5,000 |
| Rent security deposit (if applicable) | $1,000 | $7,500 |
| Office furniture and fixtures (if applicable) | $500 | $5,000 |
| Signage (if applicable) | $1,550 | $5,000 |
| Utility deposits (if applicable) | $500 | $1,500 |
| Office build-out/leasehold improvements (if applicable) | $2,500 | $10,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 |
| Renewal Fee | $5,000 (for second renewal and subsequent renewals) |
| Technology Fee | $10 - $80 per month, capped at $1,000 annually |
| Audit Fee | Franchisor's costs if under-reporting by 5% or more |
| Temporary Management | All expenses incurred by manager and reasonable management fee not to exceed 150% of the net earnings of the franchisee averaged over the preceding 12 months |
| Delinquent Interest | 1.5% per month or the highest contract rate of interest per month permitted by law, whichever is less |
| Indemnification | The amount of DESTINATION ATHLETE®’s liabilities |
| Attorney’s fees | Amounts incurred by DESTINATION ATHLETE® |
| Guaranty | All your obligations under the FA |
| Administrative Fee | $250.00 per enforcement effort |
| Destination Imprint (optional) | $480.00 Annual |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 4 days classroom, 80 hours on-the-job |
| Classroom Training | 40 hours |
| On-the-Job Training | 80 hours |
| Training Location | Franchisor’s corporate offices, Lebanon Township, Hunterdon County, New Jersey and Apparel Supplier—NJ. Remote training also available. |
| Additional Training | Annual in-person/virtual conferences and ongoing online seminars are provided, but not mandatory to attend. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Defined by county borders |
| Description | The territory is exclusive for the corporate limits of the approved County or Counties. Exclusivity is maintained by achieving a sales volume of $15,000 in the first year, with 10% increases annually thereafter. Failure to meet minimum sales may result in termination of territorial rights. The franchisor will not solicit or accept orders from customers inside the franchisee's territory, nor establish company-owned stores or other distribution channels selling similar products under different trademarks within the territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 5 years (first renewal), subsequent renewals not specified but implied to be 5 years |
| Renewal Fee | $5,000 (for second renewal and subsequent renewals) |
| Renewal Conditions | Full compliance with agreement, sign new agreement with potentially different terms, franchisor can deny renewal with 90 days notice. |
| Transfer Fee | $15,000 |
| Transfer Conditions | Franchisor approval required, transferee must meet franchisor's standards (character, experience, aptitude, financial resources), franchisee must be in full compliance, payment of transfer fee. |
| Termination for Cause | Franchisor can terminate for various curable and non-curable defaults, including abandonment, material misrepresentation, unauthorized transfer, felony conviction, dishonest conduct, loss of retail site, disclosure of confidential information, unauthorized use of marks, violation of law, failure to make payments/reports, failure to pay taxes, non-compliance with System Standards, failure to meet minimum performance requirements, and bankruptcy (though enforceability may vary). |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise, franchisees cannot make sales outside their territory without written permission, and the franchisor/other franchisees cannot make sales within the franchisee's territory if in compliance. After termination or expiration, franchisees and owners cannot have any direct or indirect interest in a Competitive Business for 2 years within 100 miles of the former territory or 50 miles of any other DESTINATION ATHLETE® franchise. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Principal members of the franchisee are required to personally participate in the direct operations and must complete DESTINATION ATHLETE®’s training. If a retail store is opened, on-premises supervision by an owner or trained non-member supervisor (who must be at least 18, complete training, and sign confidentiality/non-compete agreements) is strongly recommended. |
| Required Suppliers | Yes, franchisees must purchase from franchisor-approved suppliers. |
| Supply Restrictions | Franchisees must purchase all apparel, equipment, accessories, and related durable goods/services from franchisor-approved vendors. Use of non-approved vendors requires written consent from the franchisor, whose approval criteria are proprietary. |
| Franchisor Revenue from Suppliers | Yes, the franchisor may derive modest revenue or other material consideration (rebates from less than 5% of vendors) from franchisee purchases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | DESTINATION ATHLETE® may finance the initial franchise fee at its discretion. Standard financing is 25% of the franchise fee, with 0%-10% per annum interest, and repayment periods of 2-7 years. Security required is a UCC-1 Financing Statement and personal guarantees from owners and spouses. Cross-default provisions apply. The franchisor lends directly and does not rely on third-party lenders for this financing. |
destination athlete Franchise Earnings — Item 19
destination athlete does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
destination athlete Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
destination athlete System Growth
destination athlete currently operates 229 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 23 | 0 | 151 |
| 2021 | 62 | 10 | 203 |
| 2022 | 27 | 1 | 229 |
Transfers: 3 | Closures: 1
State Registrations
Registered in 12 states: CA, IL, IN, MI, NY, VA, FL, KY, NC, SC, TX, UT
destination athlete Franchise — FAQ
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