About Lil Athletes Franchise
Lil Athletes is a children's sports instruction franchise offering classes for kids ages 20 months to 7 years.
Each session introduces young children to a variety of sports fundamentals in a fun, structured environment that promotes physical development, coordination, and social skills through age appropriate play and learning.
The franchise fee is $40,000, and Lil Athletes has been franchising since 2024.
Lil Athletes Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 6% of your Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of your Gross Sales, with a minimum of $150 per month (Brand Fund Contribution); Currently 2% of your Gross Sales, subject to increase up to 3% of Gross Sales (Local Marketing/Required Spending); As determined by co-op, max 5% of Gross Sales (Market Cooperative Contribution) | National brand fund |
| Total Investment Range | $95,500 – $140,625 | Includes build-out, inventory, working capital |
The investment range of $96K–$141K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of your Gross Sales) and marketing fee (1% of your Gross Sales, with a minimum of $150 per month (Brand Fund Contribution); Currently 2% of your Gross Sales, subject to increase up to 3% of Gross Sales (Local Marketing/Required Spending); As determined by co-op, max 5% of Gross Sales (Market Cooperative Contribution)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee (see Note 1) | $40,000 | $40,000 |
| Rent and Lease Security Deposit (see Note 2) | $8,500 | $12,625 |
| Utilities | $500 | $1,000 |
| Leasehold Improvements (see Note 3) | $15,000 | $25,000 |
| Vehicle (see Note 4) | $2,000 | $5,000 |
| Furniture, Fixtures, and Equipment (see Note 5) | $15,000 | $25,000 |
| Market Introduction Program (see Note 6) | $2,000 | $4,000 |
| Computer Systems (see Note 7) | $500 | $1,500 |
| Insurance (see Note 8) | $1,750 | $3,500 |
| Signage (see Note 9) | $1,500 | $3,500 |
| Licenses and Permits | $1,500 | $3,500 |
| Dues and Subscriptions | $250 | $500 |
| Professional Fees (lawyer, accountant, etc.) (See Note 10) | $1,000 | $3,500 |
| Travel, lodging and meals for initial training (see Note 11) | $1,500 | $3,000 |
| Additional funds (for first 3 months) (see Note 12) | $1,000 | $3,000 |
| Staff Cost (first 3 Months) | $3,500 | $6,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 plus any broker fees and other out-of-pocket costs we incur |
| Technology Fee | $200-$300 per month (monthly software subscriptions) |
| Audit Fee | Our actual costs |
| Replacement / Additional Training fee | Currently $400 per day |
| Third party vendors | Pass-through of costs, plus reasonable administrative charge. Currently, none. |
| Non-compliance fee | $500 + $250/week until the non-compliance is corrected |
| Reimbursement | Amount that we spend on your behalf, plus 10% |
| Late fee | $100 plus interest on the unpaid amount at a rate equal to 18% per year |
| Insufficient funds fee | $30 |
| Costs of collection | Our actual costs |
| Special support fee | Currently, $600 per day, plus our expenses |
| Customer complaint resolution | Our expenses |
| Special inspection fee | Currently $600, plus our out-of-pocket costs |
| Non-compliance cure costs and fee | Our out-of-pocket costs and internal cost allocation, plus 10% |
| Indemnity | Our costs and losses from any legal action related to the operation of your franchise |
| Prevailing party’s legal costs | Our attorney fees, court costs, and other expenses of a legal proceeding, if we are the prevailing party |
| Annual Meeting/Convention Fee | Currently $1,000 per attendee |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 52 hours |
| Classroom Training | 32 |
| On-the-Job Training | 20 |
| Training Location | East Northport, NY or Your Location |
| Additional Training | If a manager or other employee attends training after opening, a fee of $400 per day will be charged. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | approximately 150,000 - 250,000 people |
| Description | Your territory will usually be specified as a radius around your location; however, we may use other boundaries (such as county lines or other political boundaries, streets, geographical features, or trade area). The average household income for that population is preferably $90,000 or higher. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | up to 2 additional 5-year terms |
| Renewal Conditions | Franchisee must notify franchisor of election to renew 90-180 days prior to term end, be in compliance with all agreements, make required renovations/changes to conform to current System Standards, execute the then-current standard form of franchise agreement and related documents (which may have materially different terms/fees), and execute a general release. |
| Transfer Fee | $10,000 plus any broker fees and other out-of-pocket costs incurred by Lil Athletes Franchising, LLC |
| Transfer Conditions | Franchisor's consent is required. Conditions include payment of transfer fee, proposed assignee meeting franchisor's standards and approval, assignee not being a competitor, assignee executing current franchise agreement (without initial fee), franchisee having paid all monetary obligations and being in compliance, assignee and employees undergoing required training, franchisee and transferee executing a general release, and the business complying with current System Standards (including remodel, if applicable). |
| Termination for Cause | Franchisor may terminate for non-payment (10-day cure), other breaches (30-day cure), or without cure period for misrepresentation, false information, bankruptcy, failure to open by deadline, loss of location, material violation of compliance with laws, confidentiality, non-compete or transfer articles, abandonment of business for more than 5 consecutive days, slander/libel, refusal to cooperate with audits/inspections, operation posing significant health/safety danger (48-hour cure), two or more defaults in 12 months, cross-termination, or felony conviction/accusation affecting the brand. |
| Non-Compete Period | During the term of the franchise agreement and for two (2) years after termination or expiration. |
| Non-Compete Details | During the term, franchisee, principals, and their spouses (Restricted Parties) cannot have ownership interest in, lend money to, provide financial assistance to, provide services to, or be employed by any competitor. For two years after termination/expiration (or transfer), Restricted Parties cannot engage in such activities within five (5) miles of the former territory or any other Lil Athletes business territory operating on the date of termination/transfer. If the agreement terminates before the territory is determined, the non-competition area will be the Development Area and any other Lil Athletes business territory. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | You are not required to participate personally in the direct operation of your business, but it is recommended. A Principal Executive must be designated, own at least 10% of the business, complete initial and future training programs, and make reasonable efforts to attend required meetings. The Principal Executive cannot fail to attend more than three consecutive required meetings. On-premises supervision by the owner is recommended but not required; a general manager who has completed training can fulfill this role. There is no limit on who can be hired as an on-premises supervisor, and the general manager is not required to own equity in the entity. |
| Required Suppliers | Franchisee must purchase or lease all goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating the business either from the franchisor or its designee, or from approved suppliers, or according to franchisor specifications. Specific obligations include real estate (subject to franchisor approval and landlord rider), insurance (specified types and amounts), point-of-sale software and hardware (specified by franchisor), and products, inventory, and equipment (from franchisor affiliate and approved vendors). |
| Supply Restrictions | Franchisee must purchase required items from the franchisor's affiliate and approved vendors. Franchisee must purchase or lease the point-of-sale software and hardware specified by the franchisor. Franchisee must obtain insurance as described in the Franchise Agreement and Brand Standards Manual. |
| Franchisor Revenue from Suppliers | Franchisor does not currently derive revenue from suppliers, but reserves the right to do so in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligations. |
Lil Athletes Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Lil Athletes 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.
Lil Athletes System Growth
Lil Athletes currently operates 0 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | 0 | 1 |
| 2023 | 0 | 0 | 1 |
| 2024 | 0 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Omar Alnuaimi, CPA for year ending December 31st.
Lil Athletes Franchise — FAQ
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