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TGA Franchise Systems
How much does TGA Franchise Systems cost?
Initial Investment Range
$72,750 to $250,250
Franchise Fee
$60,000 to $82,000
The franchise offered is for the operation of a business that provides sport instruction for golf, tennis, and pickleball as well as optional sports such as flag-football, cheerleading, lacrosse, volleyball, floor hockey and ultimate in school and in after school sports programs, sports clinics, camps, tournaments, parent/child events, clinics for pre-teen and teen-age students, youth, adolescents, young adults and adults.
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TGA Franchise Systems April 1, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: August 21, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The franchisor, TGA Franchise Systems, LLC (TGA), presents profitable operations in its financial statements. However, state regulators in California, Maryland, and Hawaii have determined that TGA is not adequately capitalized and have imposed fee deferral conditions. This regulatory action suggests a significant underlying financial weakness that could impact TGA's ability to support you, representing a contradiction between the audited financials and regulatory assessment.
Potential Mitigations
- Your accountant must analyze the audited financial statements in conjunction with the state-mandated fee deferrals to assess the true financial stability.
- Discuss the implications of the state-imposed financial conditions and their potential impact on franchisor support with your franchise attorney.
- A business advisor can help you evaluate if the franchisor has sufficient resources to fulfill its obligations without relying on initial franchise fees.
High Franchisee Turnover
High Risk
Explanation
Item 20 data reveals a significant and concerning rate of franchisee churn. From the start of 2022 to the end of 2024, the number of franchised outlets decreased from 76 to 53, a net decline of approximately 30%. During this period, there were 24 terminations and 7 other cessations of operation. This high turnover is a critical red flag that may indicate systemic problems, franchisee dissatisfaction, or issues with profitability.
Potential Mitigations
- A thorough analysis of the multi-year turnover rates with your accountant is essential to grasp the scale of the issue.
- Contacting a significant number of former franchisees listed in Item 20 is crucial to understand why they left the system.
- Your attorney should help you frame precise questions for the franchisor regarding the high number of terminations and departures.
Rapid System Growth
Low Risk
Explanation
This specific risk was not identified in the FDD package. Rapid, uncontrolled growth can strain a franchisor's ability to provide necessary support to its franchisees. A system expanding too quickly may struggle with training, site selection, and ongoing operational assistance, potentially harming the entire network.
Potential Mitigations
- It is wise to have your business advisor assess the franchisor's growth plans in relation to its support staff and infrastructure.
- Speaking with franchisees who joined at different times can provide insight into how support levels have changed as the system grew.
- An accountant's review of the franchisor's financials can help determine if they have a stable financial foundation to support their growth.
New/Unproven Franchise System
High Risk
Explanation
TGA was formed in mid-2021 and began franchising in late 2021, acquiring the assets of a predecessor. While the management team has experience with other affiliated brands under the Youth Athletes United umbrella, TGA itself is a relatively new franchising entity. The system's high turnover rate, as shown in Item 20, further heightens the risks associated with a newer, and seemingly turbulent, franchise system.
Potential Mitigations
- A business advisor should help you thoroughly investigate the track record of the predecessor and the performance of other brands under the parent company.
- It is critical to speak with the earliest franchisees under the current ownership to understand their experience with support and system changes.
- Your accountant can assess if the franchisor's financial model appears sustainable given its recent formation and high turnover.
Possible Fad Business
Low Risk
Explanation
This risk was not identified as a primary concern. A fad-based business is one tied to a short-lived trend, which can be risky for a long-term franchise investment. Evaluating whether a concept has sustained consumer demand beyond current popularity is a key part of due diligence, as the franchise agreement will outlast a fad.
Potential Mitigations
- Engaging a business advisor to research the long-term market trends for the industry can help differentiate a fad from a stable business model.
- It is prudent to ask the franchisor about their plans for future innovation and adaptation to changing consumer preferences.
- Your own market research into the longevity of similar concepts can provide valuable context for your investment decision.
Inexperienced Management
Low Risk
Explanation
This risk was not identified in the FDD package. The executive team appears to have considerable experience in related children's sports and franchise industries through their roles with parent and affiliate companies. A lack of relevant management experience can be a significant risk, as it may lead to poor strategic decisions and inadequate franchisee support.
Potential Mitigations
- It is still beneficial to have your business advisor help you assess the specific experience of the key personnel who will be directly supporting you.
- Asking existing franchisees about the quality and effectiveness of management's guidance is a practical step.
- A conversation with your attorney can help you understand the contractual obligations the franchisor has regarding support, regardless of their experience.
Private Equity Ownership
Medium Risk
Explanation
TGA is part of a larger portfolio of brands owned by Super Sports Holdings, LLC, which operates as Youth Athletes United. This structure is akin to a private equity roll-up. This can create risks that decisions are made to benefit the holding company's overall strategy, such as rapid expansion or cost-cutting, rather than the long-term health of an individual franchisee or brand.
Potential Mitigations
- A business advisor can help research the track record of the parent company, Youth Athletes United, and its other franchise brands.
- Discussing the parent company's influence on the system with existing franchisees can provide valuable insight.
- Your attorney should review any clauses related to the sale or assignment of the franchise system, which is common with such ownership structures.
Non-Disclosure of Parent Company
High Risk
Explanation
The parent company, Super Sports Holdings, LLC, does not guarantee the obligations of TGA. Furthermore, while the parent's financials are not provided, the state addenda for California and other states indicate regulators found TGA itself to be undercapitalized, forcing fee deferrals. The lack of a parent guarantee combined with this regulatory finding elevates financial risk, as you cannot rely on the parent company for support if TGA faces financial difficulty.
Potential Mitigations
- Your attorney must explain the significant implications of the parent company not guaranteeing the franchisor's obligations.
- An accountant should analyze TGA's standalone financials very carefully, noting the lack of parental financial backing.
- A business advisor can help assess the operational risks stemming from a potentially undercapitalized franchisor without a guarantor.
Predecessor History Issues
Medium Risk
Explanation
The FDD discloses that TGA acquired its system from a predecessor, TGA Franchise Sports Holdings, LLC, in 2021. While the history is disclosed, the extremely high franchisee turnover detailed in Item 20 may reflect inherited systemic issues or problems arising during the transition to the new ownership under the Youth Athletes United umbrella. You are investing in a system with a turbulent recent history.
Potential Mitigations
- It's crucial to ask the franchisor direct questions about the transition from the predecessor and the reasons for the subsequent high turnover.
- A conversation with your attorney can help frame questions for long-term franchisees who operated under both the predecessor and current ownership.
- A business advisor can help you investigate the predecessor's public reputation, if possible.
Pattern of Litigation
Low Risk
Explanation
This specific risk was not identified in the FDD package, as Item 3 states no litigation is required to be disclosed. A pattern of litigation, especially claims of fraud or misrepresentation brought by other franchisees, can be a major warning sign about the franchisor's practices and the health of the system.
Potential Mitigations
- It is good practice for your attorney to conduct an independent search for litigation involving the franchisor or its principals, beyond what is disclosed.
- Even with no disclosed litigation, speaking with former franchisees can reveal past disputes that did not result in lawsuits.
- Maintaining open communication and documenting all important discussions with the franchisor is a wise strategy advised by legal counsel.
Disclosure & Representation Risks
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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Financial & Fee Risks
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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Legal & Contract Risks
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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Territory & Competition Risks
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.
Regulatory & Compliance Risks
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.
Franchisor Support Risks
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.
Operational Control Risks
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.
Term & Exit Risks
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.
Miscellaneous Risks
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.