Conquer Padel Club

Item 7 lays out a hefty initial investment of $1,119,250 to $3,035,750, dwarfing typical fitness studio franchises like Anytime Fitness under $800K, driven by buildout for indoor courts, event spaces, pro shops, and bars in high-traffic shopping centers needing 250+ parking spots. The $60,000 franchise fee is standard-ish, but ongoing fees bite: 7% royalty plus 2% brand/ad fund, topped by $433-$1,083 monthly tech fees that could add $5K-$13K yearly. With franchising since 2025 from Tempe, AZ headquarters and just 8 projected new units, this is embryonic—zero track record on terminations, transfers, or SBA defaults means betting on unproven unit economics in a niche sport.

Without Item 19, you're blind on AUVs or margins, a red flag for a capital-intensive play where real estate and equipment dominate costs. Fitness studios average lower barriers, but padel's social/membership model could yield sticky revenue if adoption surges; still, category norms show 5-6% royalties, so 9% total ongoing feels elevated for a newbie brand. For investors eyeing emerging trends, the $3M ceiling signals outsized risk—prioritize market demand for padel locally before committing, as contraction in unproven systems hits hardest.