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Soccer Stars

How much does Soccer Stars cost?

Initial Investment Range

$70,350 to $344,250

Franchise Fee

$58,850 to $74,250

The franchise offered is for the operation of a business that provides developmental sports education and physical fitness programs to children of varying ages.

Enjoy our partial free risk analysis below

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Soccer Stars April 1, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

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

1

Franchisor Stability Risks

Start Here
Total: 10
4
2
4

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

State regulators in multiple states (including California and Maryland) have determined that Soccer Stars, LLC (Soccer Stars LLC) is not adequately capitalized and must defer collecting initial fees. This is a direct regulatory red flag concerning the company's financial stability, despite showing profitability in 2023-2024. The financial statements also show significant cash advances made to its parent company, which could be depleting resources needed for growth and support, posing a risk to you.

Potential Mitigations

  • Your accountant must review the franchisor's complete audited financial statements, including all notes and the state-mandated fee deferral conditions.
  • Discuss the implications of the capitalization issues and cash advances to the parent company with your franchise attorney.
  • A business advisor should help you assess if the franchisor has sufficient capital to support its rapid growth and fulfill its obligations.
Citations: Item 21, Exhibit F, Exhibit G

High Franchisee Turnover

High Risk

Explanation

The FDD discloses concerning franchisee turnover for a young system. In 2024, seven franchised units were terminated and one was reacquired by the franchisor. Notably, the footnotes reveal that five of the seven terminations belonged to a single multi-unit owner in California. The failure of a multi-unit operator can be a significant indicator of potential systemic issues, profitability challenges, or problems in the franchisor-franchisee relationship that may affect your own chances of success.

Potential Mitigations

  • It is critical to contact former franchisees, especially the terminated multi-unit owner if possible, to understand their experience; your attorney can help guide this.
  • A business advisor can help you analyze the turnover rates in Item 20 against industry benchmarks for youth sports franchises.
  • Discuss the reasons for the high number of terminations and the multi-unit failure directly with the franchisor's management.
Citations: Item 20

Rapid System Growth

High Risk

Explanation

The system has grown explosively, from 3 franchised outlets at the start of 2023 to a projected 153 total outlets by the end of 2024. Such rapid expansion can strain a franchisor's ability to provide adequate training, site selection assistance, and ongoing operational support to all franchisees. This risk is amplified by state regulators' findings of inadequate capitalization, which may suggest that resources for building support infrastructure are limited.

Potential Mitigations

  • Inquire with current franchisees about the quality and responsiveness of the support they currently receive from the franchisor.
  • Your business advisor should help you question the franchisor about their specific plans to scale their support staff and systems to match franchise sales.
  • An accountant should review the franchisor's investment in support infrastructure relative to its revenue from franchise sales.
Citations: Item 20, Item 21

New/Unproven Franchise System

High Risk

Explanation

Soccer Stars LLC is a very new franchisor, formed in January 2022 and beginning to offer franchises in August 2022. While its management has experience with affiliated brands, this specific franchise system is unproven. This newness, combined with the rapid growth and financial concerns noted by state regulators, presents a significant risk. An unproven system may have underdeveloped support, minimal brand recognition, and a higher potential for failure.

Potential Mitigations

  • Conduct extensive due diligence on the viability of this specific business model by speaking with the earliest franchisees.
  • Your accountant should scrutinize the financials, paying close attention to the company’s reliance on initial franchise fees versus ongoing royalties for its income.
  • Consider asking your attorney to negotiate more favorable terms to compensate for the higher risk of investing in a new system.
Citations: Item 1, Item 2, Item 20, Item 21

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. The business model, which provides developmental soccer and fitness programs for children, operates in the well-established youth sports and enrichment industry. This is not a business based on a temporary trend, reducing the risk of demand disappearing due to a fad ending.

Potential Mitigations

  • A business advisor can help you research the long-term demand and competitive landscape for youth sports programs in your specific market.
  • When evaluating any franchise, it's wise to ask your financial advisor to assess the business model's resilience to economic shifts and changing consumer tastes.
  • Your attorney can review the FDD for any disclosures regarding the industry's stability or potential volatility.
Citations: Not applicable

Inexperienced Management

Low Risk

Explanation

This risk was not identified. Item 2 of the FDD shows that the executive team of Soccer Stars LLC has extensive prior experience in the franchising industry and in managing similar youth sports franchise brands under the same parent company, Youth Athletes United. This significant and relevant experience mitigates the risk of an inexperienced management team.

Potential Mitigations

  • Even with an experienced team, it is prudent to have your attorney verify the backgrounds of key management personnel.
  • A business advisor can help you formulate questions for the franchisor about how their past experience will benefit your specific franchise.
  • Discuss the management team's reputation and track record with current franchisees to corroborate the information in the FDD.
Citations: Not applicable

Private Equity Ownership

Medium Risk

Explanation

While not explicitly stated, the franchisor's structure as a subsidiary of Super Sports Holdings, LLC, which owns multiple franchise brands, is characteristic of private equity or similar financial sponsorship. The cash flow statement shows large cash advances to the parent company, a common practice for such owners. This structure may lead to decisions that prioritize short-term returns for investors over the long-term health of the franchisees.

Potential Mitigations

  • A business advisor should help you research the parent company and its track record with other franchise systems.
  • Discuss with current franchisees whether they have observed any changes in support or strategy that seem focused on short-term profits.
  • Your attorney can analyze the Franchise Agreement for terms that facilitate a sale of the system, which is a common exit strategy for financial sponsors.
Citations: Item 1, Item 21

Non-Disclosure of Parent Company

Medium Risk

Explanation

The franchisor discloses its parent company, Super Sports Holdings, LLC, but does not provide the parent's financial statements. While not always required, the absence of this information is a concern because the franchisor has been flagged by state regulators for capitalization issues and is simultaneously advancing large sums of cash to this parent. This lack of transparency makes it difficult to fully assess the financial health and stability of the entire corporate structure supporting your franchise.

Potential Mitigations

  • Your accountant should carefully analyze the franchisor's financials in light of the advances made to the parent company.
  • Have your attorney inquire why the parent's financials are not provided, especially given the state-mandated fee deferrals.
  • A business advisor can help you weigh the risks associated with this lack of financial transparency from the parent entity.
Citations: Item 1, Item 21

Predecessor History Issues

Low Risk

Explanation

This risk was not identified. Item 1 of the FDD states that the franchisor has no legal predecessors. While affiliated with an existing operator, Super Soccer Stars, LLC, the new franchising entity is presented as distinct. No negative history associated with a predecessor entity was found to be obscured in the documents.

Potential Mitigations

  • It is always wise to have your attorney confirm the corporate history described in Item 1.
  • A business advisor can help you research the history of any affiliated companies mentioned to understand the full background of the brand.
  • Ask long-tenured employees or franchisees about the company's history if the opportunity arises.
Citations: Not applicable

Pattern of Litigation

Low Risk

Explanation

This risk was not identified. Item 3 of the FDD discloses that there is no litigation that is required to be disclosed. This suggests the franchisor is not currently involved in a significant pattern of franchisee-initiated lawsuits alleging fraud or other systemic problems, nor is it engaged in an unusually high number of lawsuits against its franchisees.

Potential Mitigations

  • Your attorney can conduct an independent public records search to verify the absence of significant litigation.
  • It is good practice to ask current franchisees about the general nature of disputes within the system and how the franchisor resolves them.
  • A business advisor can help you understand what level of litigation is considered normal for a franchise system of this size and age.
Citations: Not applicable
2

Disclosure & Representation Risks

Total: 15
4
2
9

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
4
4
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.

4

Legal & Contract Risks

Total: 16
7
5
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
2
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.

6

Regulatory & Compliance Risks

Total: 10
5
3
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.

7

Franchisor Support Risks

Total: 4
1
2
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.

8

Operational Control Risks

Total: 12
4
6
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.

9

Term & Exit Risks

Total: 18
8
7
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

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.