SHOOT 360

Item 7 lays out the hefty initial investment of $653,100 to $2,120,000, covering buildout for proprietary basketball simulators and real-time metric software—far above typical fitness studio averages under $500K. Franchise fee hits $60,000, with ongoing 12% royalties (high for the category, where 6-8% norms prevail), a potential 2% brand fund, and $500 monthly gym management fee adding fixed costs. Item 19 reveals median gross sales around $450K-$600K for mature units (per FDD disclosures), yielding potential 20-25% EBITDA margins after fees if memberships hit 200-300 active users. Yet, with only 2 corporate locations versus 50 franchised, scalability leans heavily on franchisee execution in youth sports markets.

System growth surged 25% from 40 to 50 locations in 2025, with 13 projected new units and just 5 transfers signaling stability over outright distress. SBA records show 22 loans averaging $662,118, but default rates hover below 5%—better than many startup fitness brands facing post-pandemic churn. Litigation is minimal, no major flags in Item 3. For investors with $1M+ liquidity targeting niche sports, Shoot 360's data-backed momentum beats stagnant gym chains, but the high fees and capital intensity demand strong local competition analysis and 3-5 year ramp-up patience.