Do you want to open a fitness business by buying Parisi Speed School franchise? If YES, here is how much it cost to open Parisi Speed School franchise successfully. If you are looking towards opening a Parisi Franchise Systems, Inc. Franchise, it will be nice for you to have a preview of what the company represents before going ahead to make enquiries about the total cost of opening their franchise in your location.
Parisi Franchise Systems, Inc. was founded in 1992 and they began franchising in 2005, about 15 years ago. Bill Parisi is the founder and current CEO of the company and the company has her corporate head office at 516 Commerce St. Franklin Lakes, NJ 07417, USA.
As of the 2016 Franchise Disclosure Document, there are 84 franchised Parisi Speed School locations in the United States of America. Based on 2016 FDD data, Parisi Speed School has franchise locations in 31 states. The largest region is the Northeast with 39 franchise locations.
Bill Parisi started Parisi Speed School in 1992 by offering free clinics and seminars on speed training and motivation for high school athletes. The next year, he opened a 3,000 square-foot personal training studio in Wyckoff, New Jersey, to offer youth sports performance training. Over the years, he opened three more facilities, combining health clubs with Parisi Speed Schools.
The franchisor is Parisi Franchise Systems, Inc. This franchise is for the operation of a sports performance training concept for the fitness market focused on total sports performance. Franchisees will provide a performance enhancement training experience with a specific focus on improving speed, coordination, agility, flexibility, endurance, athleticism and overall self-esteem.
Parisi Speed School is the leader in safe youth sport performance training. Parisi Owners enjoy a vast array of benefits from a company with more than 20 years in the business. Our proven business models allow owners to tap into the ever-growing youth market. Here are areas where you are expected to spend money and the cost associated with it;
Financial Investment Required to Open a Parisi Speed School Franchise
1. Initial Investment Range: $86,150 to $187,900
2. Franchise Fee: $6,000
3. Royalty Fee: 5 percent of Gross Sales
And the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
- 4Staff Certification Fee: $2,500 to $2,500
- Fitness Equipment: $0 to $42,000
- Branding Signage: $250 to $5,000
- Travel for Initial Certification: $2,000 to $4,000
- Professional Fees: $0 to $3,500
- Build-Out Cost: $0 to $80,000
- Additional Funds (3 months): $5,000 to $10,000
- Continuing Service Fee: $400 for the basic program or $600 for the advanced program.
- Transfer: $2,500
- On-Site Staff Certification: $2,400 – $2,800 per 3-day event plus Master Coach travel expenses.
- Corporate or Regional Staff Certification: Participant travel expenses.
- Additional Training Sessions for Additional Employees: $1,250 per week.
- Late Payment Fee: $50 per event.
- Optional Services: $200 to $1,000 per month.
- Supplier Approval: Not to exceed $150.
- Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.
Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Parisi Franchise Systems, Inc. and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative.
If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Parisi Franchise Systems, Inc. if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs and this could be anywhere from $0 to $2,500
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Parisi Franchise Systems, Inc. if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Parisi Franchise Systems, Inc. is required to defend your unsuccessful claim against it.
- Veteran Incentives: Free tactical marketing or business support for six months.
- Term of Agreement and Renewal: The length of the initial franchise term is 30 months. Renewal is for an automatic term of two years, subject to performance of contractual requirements.
- Financial Assistance: Parisi Franchise Systems, Inc. does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation but they have relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.
In Summary,
- Initial Franchise Fee: $3,500 to $6,000
- Total Investment: $86,150 to $187,900
- Working Capital: $20,000 to $30,000
- Ongoing Royalty Fee: $250-$1.4K/mo.