Redline Athletics

franchise success story born from a passion for cars REDLINE ATHLETICS THE SPORTS PERFORMANCE FRANCHISE OF CHAMPIONS WWW.REDLINEATHLETICS.COM

REDLINE ATHLETICS THE SPORTS PE FRANCHISE OF AT A GLANCE REDLINE ATHLETICS WHAT: A leading youth sports performance franchise focused on training young athletes to excel both physically and mentally. WHERE: Scottsdale, AZ, with locations spread across the U.S. WEBSITE: www.redlineathletics.com 1 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 11

ERFORMANCE CHAMPIONS Stellar franchisee support and visionary partnerships support a bright future for Redline youths. Redline Athletics has steadily positioned itself as a dominant youth sports performance franchise, reliably demonstrating what the perfect blend of vision and execution looks like. Representing the industry model, this leading youth sports franchise possesses a strong national brand identity built on robust training program investments and long-lasting partnerships. 2 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 11

The franchise’s leaders follow a defined growth plan, including setting clear milestones for new locations and membership goals, to ensure that the franchise can scale while maintaining consistency across its network. Internally, Redline also fosters a supportive environment for franchisees, providing comprehensive training, continuous education, and hands-on support to ensure their success from day one. The franchise also prioritizes local engagement by creating meaningful connections with community leaders, schools, and families to help drive organic growth. It leverages technology, like user-friendly apps or membership systems to streamline operations and enhance customer experience, making it easier for families to engage with the brand. As a result, this youth athletics franchise has successfully emerged as a network of thriving locations across various communities, consistently delivering top-tier training and positively impacting young athletes’ lives. Redline Athletics demonstrates that when operational excellence is paired with community trust, an organization will grow not just in numbers, but in reputation, becoming an industry captain in its own right. THE BENEFITS OF A REDLINE MEMBERSHIP In 2010, the very first Redline Athletics was established in San Juan Capistrano, California when a man named John Leonesio — Founder of Massage Envy— approached the owners of Redline Athletics, hoping to apply the Massage Envy franchise structure to the athletics space. By 2014, Redline was officially established as a franchise and has done extremely well for itself since, now sitting just under 50 locations across the United States, with another 50 already paid for and under development. Part of its amazing growth lies in the two-pronged 3 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 11 REDLINE ATHLETICS

nature of its marketing efforts. Half of its promotion is done through traditional marketing channels like Meta, Google, and Sirius XM Radio. Thanks to its 84 Net Promoter Score, the franchise also leverages organic referrals. According to Chief Executive Officer Chance Pearson, over “half of [Redline’s] members come from a referral by a teammate, friend, or family member.” This makes sense, as the franchise touts a strong lineup of benefits that help it stand out. Being a youth-focused athletics brand, Redline encourages its athletes to improve physically and in character with a rewards-based incentive program that encourages them to display certain Redlineendorsed characteristics like Integrity, Composure, or Perseverance. The franchise also prioritizes the cleanliness and quality of its facilities, which comes in stark contrast to the typical “worn-and-torn” environment associated with athletics centers. However, the biggest benefit has to be the franchise’s proprietary Flex Membership. “This allows parents flexibility to adjust their child’s membership each week based on how often they plan to come in,” explains President of Franchise Development TJ O’Connor. The membership structure,developed in collaboration with a company called MindBody, essentially allows for three tiers of high-to-low weekly payments that can be reduced or increased according to the member’s schedule. As a result, many franchise locations have adopted this structure, skyrocketing their member bases, resulting in greater member retention and lower employee attrition. Finally, being exclusively for youths allows Redline to provide an added layer of safety and peace of mind for parents wanting their children to train in a safe environment. 4 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 11

KEY ENTERPRISES, SPORTS CONSTRUCTION AT IT'S VERY BEST We specialize in new construction and renovation projects for all of your sports facility needs, from floor to ceiling. COVERING THE ENTIRE STATE OF TEXAS CONTACT US for a QUOTE! CLICK HERE! • Telescoping Bleachers • Basketball Goals • Complete Basketball Gyms • Indoor Stadium Seating • Scoreboards • Artificial Turf Fields • Wall and Column Padding • Gym Floors • Natatoriums • Outdoor Stadium Seating • Batting Cages • Volleyball Equipment • Preventative Maintenance Programs WE SPECIALIZE IN: vISIT OUR WEBSITE FOR MORE INFO: 25 Dawson Road Round Rock, Texas 78665 512 246 9776 www.keyenterprises.com Ken Yerrington : 512 801 7900 ken@keyenterprises.com Chad Yerrington : 512 659 0054 chad@keyenterprises.com

The franchise has created a platform allowing it to centralize and record data for athletes, which is crucial to how the franchise helps its youth members track their progress. “Data is super important for us. Our Deliverable is the improvement of performance, and that’s measurable,” Pearson says, explaining how important it is for parents that they provide parents with a visible return on their investment, With this level of support, Redline leadership ensures that it is provided only to individuals who fit the mold of the ideal franchisee. The franchise looks predominantly for businessoriented leaders who understand the employee perspective and the value of following its proven process to regional growth. It also emphasizes grit, and the anti-victim mentality DATA-DRIVEN FRANCHISEE SUPPORT AND PARTNERSHIPS At the heart of Redline Athletics’ franchise model lies a dedication to robust training, operational support, and a commitment to building long-lasting partnerships that drive growth and innovation. The franchise training begins at the National Support Center, where franchisees are introduced to the core aspects of the business and supported by a dedicated team to get them properly acquainted with the company’s POS system, CRM, the Redline App, and other key software. However, Redline goes further by providing on-site support during the location’s opening days, ensuring that the franchisee feels confident and capable in their new role. There are also teams dedicated to creative copy for marketing and member data analytics. 6 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 11 REDLINE ATHLETICS

when accomplishing goals, because frankly, while it is well worth it, starting a franchise of any kind is a commitment. “In Redline’s case, the initial franchise fee is $49,000, typically ending up somewhere between $400,000 – $600,000 investment to fully open and become profitable. Redline also provides a 10% discount to veterans and a three-territory bundle for an initial fee of $99,000.” Partnerships are also essential for Redline Athletics, as these partnerships extend beyond the initial setup and into the day-to-day operations that make the business function smoothly. The company has formed key alliances with several industry-leading vendors, developers, and service providers. One such partner is Axle, a software development company vital to the franchise’s operations. Axle is responsible for developing and maintaining Redline’s mobile app, allowing franchise members to adjust their memberships remotely—a crucial innovation for today’s digital-savvy customer base. Pearson states, “Building it inside our point of sale wasn’t good enough. We needed Axle to put those controls or the remote control, if you will, to that membership in the members’ hands.” 7 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 11 REDLINE ATHLETICS

Axle’s responsiveness and willingness to innovate have positioned them as a key partner in Redline’s growth strategy. Recently, the company worked with Axle to integrate a Tesla-inspired referral system into the app. This feature allows Redline members to refer others and benefit from incentives, similar to Tesla’s approach. This initiative increases customer engagement and helps franchisees reduce their cost per acquisition, making it a win-win for everyone involved. “That’s a real partner,” Pearson says, reflecting on Axle’s ability to execute innovative ideas without adding unnecessary financial strain on the franchise. Additionally, Redline relies on real estate and development partners like Morrow Hill and Centralized Development Services (CDS) to help franchisees find prime locations and manage construction projects. These partners handle crucial aspects of the development process, from site selection to architectural planning, ensuring that each new franchise location has a solid foundation for success. As O’Connor highlights,“We don’t have a real estate team internally here. So, without Morrow Hill and CDS, we would have a logjam in that area.” These strategic partnerships have become the backbone of Redline’s operational success, allowing the company to focus on expanding its reach while maintaining high-quality service across all its locations. THE ROAD TO CLAIMING THE TOP SPOT As Redline Athletics grows, the company is set on 8 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 11

several ambitious goals. One of the most significant milestones for the brand is reaching royalty neutrality, a point where all operational costs are covered solely through franchise royalties, eliminating the need to rely on franchise sales to stay afloat. For Redline, this milestone is not just about financial stability; it represents the brand’s maturity and sustainability as a franchise network. Pearson estimates that Redline will hit royalty neutrality once it reaches 63 open locations. Achieving royalty neutrality would allow the company to focus on scaling further without the pressure of relying on new franchise sales for operational support. Beyond this milestone, Redline’s long-term goals include hitting 100, 200, and even 300 open locations. 9 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 11 REDLINE ATHLETICS

PREFERRED VENDOR/PARTNER n KEY ENTERPRISES www.keyenterprises.com Key Enterprises specializes in Athletic Equipment and Sports Construction for New and Existing Sports Facilities. We offer over 40 years of Selling and Servicing Ceiling Suspended, Wall Mounted and Portable Basketball Goals, Batting Cages, Volleyball Equipment, Safety Padding, Scoreboards, Telescoping Bleachers, Lockers and More n FLIP www.flip.cards FLIP is the dynamic platform for businesses to create and distribute knowledge, streamlining training and increasing retention. Ideal for onboarding, skill development, assessments, and more, it enhances engagement through its fun, intuitive interface. With real-time analytics and publishing, organizations can measure progress and improve training efficiency. Reaching these numbers would solidify Redline’s position as a major player in the sports performance training industry. “Very, very few franchises ever make it as far as we’ve made it right now,” Pearson says, acknowledging both the challenges and rewards that come with growth.“But to hit those milestones would be great. I’m looking forward to it.” The company aims to become the number one sports performance training brand in America, impacting millions of athletes and thousands of communities. Redline Athletics is more than just a franchise—it’s a brand built on a foundation of support, innovation, and strategic partnerships. From its hands-on franchise training and ongoing support to its collaborative efforts with key partners like Axle, Morrow Hill, and CDS, Redline Athletics is dedicated to the success of its franchisees and the athletes they serve. As the company works towards achieving royalty neutrality and expanding its national footprint, it remains focused on its ultimate goal: becoming the top sports performance training brand in the country, one athlete, and one community at a time. 10 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 11

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