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ize a website other than ours, without our prior written approval. You may host or utilize social media relating to your franchise, or other types of advertising websites, such as Facebook, LinkedIn,
From the filings
HQ-led decisions
Phoenix Franchising Group
Youth servicesSoftware purchasing control at Phoenix Franchising Group sits at the franchisor HQ level. The system runs on Redline Software as its mandated operational platform, with no other named tech vendors disclosed in the 2025 FDD. Vendors are looking at a compact footprint of 46 franchised units, all in the youth-services segment, with a disclosed average unit volume of $518,844.
For software vendors selling into US franchise brands.
Live signals
Total units
46
46 franchised
Unit growth YoY
-6.122%
vs prior filing
AUV
$519K
Item 19, 2024
Royalty
7%
of gross sales
Ad fund
2%
national + local
Initial fee
$50K
per unit
Investment range
$373K–$579K
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
from the filing
Item 19
Claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
9%of gross sales (FY2025)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
LinkedInLinkedIn
ite other than ours, without our prior written approval. You may host or utilize social media relating to your franchise, or other types of advertising websites, such as Facebook, LinkedIn, Groupon, L
QuickBooksIntuit
accounting records, financial statements, and all reports you submit to us must conform to our requirements. Recommended software to use for bookkeeping and accounting records is QuickBooks. Computer-
Franchisor behaviours
What the franchisor requires
26 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 6 questions the text does not settle, which is not a no.
Accounting
Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesFranchise agreement
You agree to maintain, at your own expense, Redline Software, which will act as a bookkeeping, accounting, and record keeping system for Redline Performance Center.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have independent access to the information that will be generated such as membership, accounting, and point of sale information and stored on your Computer System.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
you must deliver to us in the form and manner that we specify: (1) by Tuesday of each week, an electronic report of your Redline Performance Center’s Gross Revenues for the preceding week ending on, and including, Sunday, and any other data, information, and supporting records that we may require; (2) by the fifth…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We are currently an approved vendor of computer hardware, software (including our proprietary Redline Software), and related networking equipment.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 11
We may periodically modify the specifications for, and components of, the Computer System.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
We did not derive any revenue from franchisee purchases in 2024.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesFranchise agreement
We and our affiliates reserve the right to charge any licensed manufacturer engaged by us or our affiliates a royalty to manufacture products for us or our affiliates, or to receive commissions or rebates from vendors that supply goods or services to you.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
25Item 8
The cost of purchasing required products and services to meet our specifications will represent approximately 52% of your total purchases in establishing your franchise and approximately 25% of your total purchases during the operation of your franchise.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
We may charge you a supplier evaluation fee (not to exceed the reasonable cost of the inspection and the actual cost of the test) to make the evaluation.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you would like to purchase items from any unapproved supplier, you must submit to us a written request for approval of the proposed supplier.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 17
Includes payment of money owed to us, cancellation termination/non-renewal of assumed names and transfer of phone numbers
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
You agree to present to your customers any evaluation forms we periodically prescribe, and agree to participate in, and/or request that your customers participate in, any surveys performed by or on our behalf.
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
As we deem advisable, conduct inspections and/or audits of your Redline Performance Center, including evaluations of its training methods, techniques, and equipment; its staff; and the services rendered to its customers.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 14
We may, from time to time, revise the contents of the Operations Manual, and you must comply with each new or changed provision, section, obligation, or requirement.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
Review and approve or disapprove the proposed site for your Redline Performance Center within the development area specified in your Franchise Agreement or an addendum to your Franchise Agreement (“Development Area”).
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
To use only the microsite we provide you.
Is a minimum grand opening advertising spend required?
YesFranchise agreement
We require you to spend $15,000 ($5,000 per month) (the “Minimum Presale Marketing Expenses”) on Presale Marketing Materials for marketing, and advertising expenses during the three (3) months prior to the date that your Redline Performance Center opens for business (the “Presale Period”).
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesFranchise agreement
We require you to spend no less than Three Thousand Two Hundred Dollars ($3,200) for each month during the term of this Agreement after your Redline Performance Center opens for business (the “Local Advertising Requirement”).
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase such products, services, supplies, insurance, etc. required for the operation of your Redline Performance Center solely from us or our suppliers (including distributors, manufacturers, and other sources) who have been approved in writing by Franchisor, as set forth in the Operations Manual.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase such products, services, supplies, insurance, etc. required for the operation of your Redline Performance Center solely from us or our suppliers (including distributors, manufacturers, and other sources) who have been approved in writing by Franchisor, as set forth in the Operations Manual.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 8
You will also be required to pay a monthly Technology Fee of $799 for the continuing use, development, and upgrades of your Redline Software, plus any costs/fees relating to the merchant services provided by our approved vendor.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
After you sign the documents we require to debit your business checking account automatically for the amounts due, we will debit your bank account for the Royalty Fee, Advertising Fee, and other amounts you owe us.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesFranchise agreement
5.2 Software. We will license you our proprietary franchise management software (the “Redline Software”), which you will be required to install onto the Computer System and use in the daily operation of your Redline Performance Center.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have independent access to the information that will be generated such as membership, accounting, and point of sale information and stored on your Computer System.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
We may require you and/or previously trained and experienced employees at your Franchise to attend up to seven (7) days of additional or refresher training courses each year and a national business meeting or convention up to three (3) days per year at the times and locations we designate.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
We may charge a non-attendance fee of $250 if you fail to attend any required training, including our annual conventions.
The filing answers no to 2 questions
- Is there a franchisee advisory council, association or committee?Item 11
- Must the franchisee participate in a regional advertising cooperative when one exists?Franchise agreement
The vendor opportunity at Phoenix Franchising Group
Phoenix Franchising Group operates 46 franchised locations in the youth-services segment, headquartered in Arizona. The system disclosed an average unit volume of $518,844 in its 2025 FDD, with a royalty rate of 7.0% and an initial franchise term of 10 years. Year-over-year unit growth was -6.122%, indicating a contracting footprint. For software vendors, the addressable market is those 46 franchised units, all of which operate under a franchisor that exerts centralized control over technology mandates.
No company-owned units are disclosed in the FDD, so every location in the system is a franchisee. That means any enterprise software sale likely requires franchisor endorsement or mandate, not just individual operator buy-in. The absence of a parent company suggests Phoenix Franchising Group is independently owned, which can simplify the decision-making chain compared to a private-equity-backed roll-up.
Who controls software purchasing
The 2025 FDD lists four executives in Item 1: Chance J. Pearson (Chief Executive Officer), T.J. O'Connor (President of Development), Brad Hinkle (Vice President of Operations), and Rachel Elfata (Vice President of Operations). No chief information officer, chief technology officer, or dedicated IT leadership is named. In systems of this size, the CEO and VP of Operations typically own technology decisions, often with input from the development president if new unit growth is a priority.
Because the system is small—46 units—vendors should expect direct access to these executives. The buying center is likely compact: the CEO sets strategic direction, while the operations VPs evaluate day-to-day workflow impact. There is no operator footprint mapped in our corpus, so individual franchisee influence on software purchasing is not visible from the FDD alone.
Mandated and current tech stack
Redline Software is the only mandated technology disclosed in the 2025 FDD. No other point-of-sale, CRM, scheduling, payroll, or marketing platforms are named as required or recommended. This creates a clear wedge for vendors whose products complement or replace Redline’s functionality, provided they can demonstrate integration capability or a compelling operational improvement.
The absence of a broader mandated stack does not mean franchisees use nothing else—it means the franchisor has not publicly committed to specific vendors beyond Redline. A vendor selling into this system should be prepared to map the de facto tech stack through discovery calls, as the FDD offers no further signals on accounting, HR, or customer engagement tools.
Procurement, renewals, and timing
Item 8 of the FDD contains no procurement extract, so the formal purchasing model—designated supplier, approved supplier, or open market—is not publicly disclosed. In practice, this often means the franchisor retains discretion without publishing a rigid procurement framework. Vendors should assume that any system-wide software adoption will require HQ approval and likely a pilot with one or more locations.
Renewal terms are detailed in Item 17. Franchisees must give notice of intent to renew between 12 and 24 months before the initial 10-year term expires. The renewal requires signing the then-current Franchise Agreement, which may include materially different terms, a general release of claims, payment of a renewal fee, and curing all defaults. For software vendors, renewal windows represent a natural inflection point: franchisees facing a new agreement may be more open to adopting new tools if the franchisor bundles them into the updated requirements.
How to read the Phoenix Franchising Group FDD
The 2025 FDD is the primary source for the data above. It was filed with state franchise regulators and is available in the embedded viewer on this page. When reviewing it, pay closest attention to Item 1 (executives), Item 11 (franchisor assistance and mandated suppliers), Item 8 (purchasing restrictions), and Item 17 (renewal and termination). These sections reveal who controls technology decisions, what systems are already locked in, and when contractual churn creates openings for new vendor relationships.
For a ranked target list of franchise systems that match your software category, FranCloud can help you prioritize outreach based on tech mandates, unit counts, and decision-maker access.
Questions vendors ask
Phoenix Franchising Group, answered from the filing
The FDD lists Chance J. Pearson (CEO), T.J. O'Connor (President of Development), Brad Hinkle (VP Operations), and Rachel Elfata (VP Operations) as key executives. No dedicated CIO or CTO is named.
Redline Software is mandated for franchisees, per the 2025 FDD. No other mandated POS, CRM, or operational systems are disclosed.
The system has 46 total units, all franchised. Company-owned unit count is not disclosed. Year-over-year unit growth was -6.122%.
The 2025 FDD does not include an Item 8 procurement extract, so designated-supplier versus approved-supplier status is not publicly disclosed.
Franchise agreements run 10 years. Renewal requires notice 12–24 months before expiration and signing the then-current agreement, which may materially differ from the original.
The 2025 FDD was filed with state franchise regulators. You can review it using the embedded PDF viewer below.
Source
Read the filing itself
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Operator footprint
Who runs the locations
92 operators run 92 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit92
Top states by locations
| TX | 13 |
|---|---|
| FL | 12 |
| CA | 10 |
| CO | 6 |
| GA | 5 |
Ownership
The portfolio behind Phoenix Franchising Group
unknown of redline athletics franchising.
Related Youth services brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.