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Soccer Post

Elite Sports Enterprises, Inc.
https://www.soccerpost.com
1-732-233-2032
303 Highway 35, Eatontown, NJ 07724

How much does Soccer Post cost?

Initial Investment Range

$56,600 to $396,500

Franchise Fee

$29,500

Elite Sports Enterprises, Inc. offers franchise rights, under the “SOCCER POST” trademark and brand name to operate retail stores offering soccer equipment, footwear, apparel, accessories and related products and services.

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Soccer Post March 18, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 22, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
2
3
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The FDD explicitly warns that Elite's financial condition "calls into question" its ability to provide support. Financials show a massive contingent liability: Elite Sports Enterprises, Inc. (Elite) guarantees up to $75 million in parent company debt. This amount dwarfs Elite's equity of only $154,739. A default by the parent could jeopardize Elite's solvency and its ability to support your franchise.

Potential Mitigations

  • An accountant must analyze the audited financial statements, especially the footnotes regarding the parent company debt guarantee.
  • Discuss the potential impact of this contingent liability on the franchisor's long-term stability with your business advisor.
  • Your attorney should clarify the implications of the joint and several liability outlined in the corporate guarantee.
Citations: Special Risks to Consider About This Franchise, Item 21, FDD Exhibit D (Note 5)

High Franchisee Turnover

High Risk

Explanation

The franchisor explicitly warns of a high "Turnover Rate," stating that over 24% of franchised outlets were reacquired or ceased operations in the last three years. Item 20 data confirms six such exits between 2022-2024. For example, all three Utah franchises were reacquired by the franchisor in 2023. This rate of turnover could indicate systemic issues or challenges with franchisee success.

Potential Mitigations

  • It is critical to contact former franchisees listed in Item 20 to understand why they left the system; your attorney can help prepare questions.
  • Discuss the reasons for the high reacquisition rate with the franchisor directly.
  • A business advisor can help you assess if this turnover rate reflects a higher-than-average risk for this industry.
Citations: Special Risks to Consider About This Franchise, Item 20

Rapid System Growth

Medium Risk

Explanation

The system is expanding quickly, particularly in company-owned stores, which have nearly quadrupled in the last three years. While growth can be positive, this rapid pace, combined with the franchisor's disclosed financial condition and large annual distributions to owners, may strain its ability to provide adequate support and resources to all franchisees.

Potential Mitigations

  • A business advisor can help you question the franchisor about their plans to scale support infrastructure to match this growth.
  • Speaking with a range of new and established franchisees is important to gauge the current quality of franchisor support.
  • Your accountant should review whether the franchisor's financial statements show sufficient reinvestment to support this expansion.
Citations: Item 20, Item 21

New/Unproven Franchise System

Low Risk

Explanation

This risk was not identified. The FDD indicates the "SOCCER POST" brand has been franchising since 1991, first under a predecessor and since 2001 under the current franchisor. This long operational history suggests the system is established and not unproven, which is generally a positive factor for prospective franchisees.

Potential Mitigations

  • Engaging a business advisor to review the franchisor's long-term strategic plans can provide insight into its future direction.
  • Your attorney can verify the business history and any successor liability from the predecessor disclosed in Item 1.
  • Discuss the system's evolution and brand strength over its long history with current franchisees.
Citations: Not applicable

Possible Fad Business

Low Risk

Explanation

This risk was not identified. The franchise operates retail stores specializing in soccer equipment and apparel. Soccer is a globally popular and well-established sport with a long history and sustained interest, not a temporary trend. This suggests the business model is based on a stable market rather than a fad.

Potential Mitigations

  • A business advisor can help you research the long-term trends and competitive landscape for sports retail in your local market.
  • You should develop a business plan with your accountant that accounts for market seasonality and competition.
  • An attorney can review any clauses in the agreement that might restrict your ability to adapt product offerings over time.
Citations: Not applicable

Inexperienced Management

Low Risk

Explanation

This risk was not identified. FDD Item 2 indicates that the key executives have significant experience. For example, the CEO has been with the company since 2010, the COO has over a decade of experience in the soccer retail business, and the CFO has over 35 years of finance experience.

Potential Mitigations

  • Interviewing current franchisees about their direct experiences with the management team's competence and support is still a good practice.
  • A business advisor can help you assess how the management team's background aligns with the company's strategic goals.
  • When meeting the management team, asking about their vision for the franchise system is advisable.
Citations: Not applicable

Private Equity Ownership

Medium Risk

Explanation

The franchisor's parent company structure and its significant debt obligations, detailed in the financial statement footnotes, are characteristic of private equity ownership. This could mean a focus on short-term returns, which may not always align with your long-term interests. The franchise agreement also permits the franchisor to sell the system, potentially to a new owner with different priorities.

Potential Mitigations

  • Investigating the track record of the parent company with other franchise systems can be helpful; a business advisor may assist.
  • It is prudent to discuss with current franchisees if they have noticed changes in support or focus since the current ownership took over.
  • Your attorney should review the assignment clause in FA §19.9 to explain your rights if the system is sold.
Citations: Item 1, Item 17, FA § 19.9, FDD Exhibit D (Notes 2, 5)

Non-Disclosure of Parent Company

Medium Risk

Explanation

While the FDD discloses a parent company, it does not include the parent's financial statements. This is a significant omission because your franchisor, Elite, guarantees up to $75 million of its parent's debt. Without the parent's financials, you cannot fully assess the risk associated with this large contingent liability or the overall financial health of the controlling entity.

Potential Mitigations

  • Your attorney should request the parent company's audited financial statements from the franchisor for a complete risk assessment.
  • An accountant should review both Elite's and its parent's financials (if obtained) to understand the consolidated financial health.
  • Inquiring with your attorney about whether the franchisor is required by law to provide these financials is advisable.
Citations: Item 1, Item 21, FDD Exhibit D (Note 5)

Predecessor History Issues

Low Risk

Explanation

This risk was not identified. The FDD discloses a predecessor from which the current franchisor acquired the system in 2001. No negative history, such as significant litigation or bankruptcy, is disclosed regarding this predecessor. The information provided appears to be straightforward.

Potential Mitigations

  • For very thorough due diligence, a business advisor could help you research the public records of the predecessor company.
  • Asking long-tenured franchisees about their experience under the predecessor could provide historical context.
  • Your attorney can confirm that the asset purchase from the predecessor does not expose you to unexpected legacy liabilities.
Citations: Not applicable

Pattern of Litigation

Low Risk

Explanation

This risk was not identified. Item 3 discloses a single concluded regulatory action from 2015 related to selling franchises in Virginia without proper registration. It does not disclose a pattern of litigation involving claims of fraud, misrepresentation, or other systemic issues brought by franchisees.

Potential Mitigations

  • You should still have your attorney review the details of any disclosed litigation to understand its potential implications.
  • Asking the franchisor about the circumstances surrounding any past litigation can provide useful context.
  • A business advisor can help you research public records for any undisclosed litigation involving the franchisor or its principals.
Citations: Not applicable
2

Disclosure & Representation Risks

Total: 15
2
2
11

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
1
6
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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4

Legal & Contract Risks

Total: 16
6
6
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
3
1
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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6

Regulatory & Compliance Risks

Total: 10
3
4
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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7

Franchisor Support Risks

Total: 4
0
3
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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8

Operational Control Risks

Total: 12
4
7
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
8
8
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
1
1
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.