What is the market opportunity for CATZ?
CATZ: According to the 2002 U.S. Census Bureau, 44.3 million American kids between the ages 7-17 participate in youth sports. Participation in high school sports has increased from 3.96 million to 6.49 million, a 64% increase, over the past 30 years. Along with this growth, the market for sports performance training and private coaching has been exploding. According to a recent article in the Wall Street Journal, “Americans spent $4 billion on personal training and coaching for children in 2000 and the number is believed to have surged since then.” With the growing concentration on a single sport and year-round participation in that sport, it is particularly important that kids supplement their activity with a strength and conditioning program. Parents are beginning to understand that a program such as CATZ will not only give their child a competitive edge, but it will help reduce the risk of injury.

How much does it cost to open a CATZ facility?
CATZ:  The estimated required investment to open a CATZ facility - including all franchise fees, build-out costs, equipment, marketing and working capital expenses - totals between $173,500 and $341,000.  You should have at least $100,000 to $175,000 of cash and equivalents on hand to fund your investment.  The balance of your investment can typically be funded from your bank, depending on your personal new worth.  CATZ does not provide financing to franchisees.

Your actual total investment may vary from the estimated amount.  This will depend on factors such as the location and physical condition of your facility, the landlord’s contribution (if any) to the necessary facility improvements, and how quickly you manage to develop CATZ into a positive cash flow position.

Your investment includes a $40,000 initial franchise fee payable to CATZ for your first facility and $25,000 for each facility thereafter. This payment covers our costs of marketing, training, and assisting you in establishing your CATZ. The balance of your initial investment covers leasehold improvements, décor and equipment costs, initial marketing costs, and sufficient working capital until you reach breakeven. Of course, multi-unit CATZ franchisees will be able to take advantage of some economies of scale. Multi-unit (or area franchises) are reserved for population centers over 500,000.

What is the best role I can play in the operation, development, and growth of my CATZ franchise?
CATZ: CATZ REQUIRES that 3 key positions are filled on a full time basis.
1. Director of Administration – a generalist in charge of the day-to-day business and financial matters.
2. Performance Director – a coach with a proven background in sports performance training who is responsible for the delivery of the CATZ program to all athletes.  This coach will typically have an advanced degree and be a certified strength and conditioning specialist (CSCS).
3. Director of Marketing – a sales-oriented individual with a sports background responsible for attracting athletes to CATZ.

It would be rare if any of these three individuals and their expertise were interchangeable. The individuals in all three positions will receive extensive training by CATZ in Boston, MA and Pasadena, CA in every aspect of business operations, sports performance training, and market development. You must decide which role suits you best. If you have not participated in organized team sports, your role should be the Director of Administration. If you have multiple CATZ facilities, the three roles at each of your facilities will be filled by others, all of whom you will manage. CATZ can assist in identifying qualified individuals for you.

What are the physical space criteria for my CATZ location?
CATZ: The prototype CATZ facility, depending on economics and availability, is approximately 5,000 square feet (60’ x 85’) of climate controlled open space. CATZ can be equally successful in a retail, industrial, or office setting, and/or within a large sports complex environment. You may also own your real estate.

Each CATZ is granted an exclusive and protected territory, easily accessible to 30,000 potential school-age children.

When do I begin searching for a CATZ location?
CATZ: Only after all necessary documents are signed and required monies are paid should you begin evaluating locations. Also, to conserve working capital needs, if you are employed, you should not terminate your position until it can reasonably be determined when your CATZ facility will open and therefore, how long a period of unemployment you will experience. This also holds true for any prospective employee or partner.

How does CATZ assist in location acquisition?
CATZ: Using the CATZ-provided criteria, you will scout your area and line up multiple locations and alternatives. CATZ will then visit with you to approve and prioritize your choices. After your lease is executed, CATZ will provide you with a plan for the required layout and decor package. All CATZ facilities are essentially similar in appearance to maximize branding and the athlete’s experience. It will be your responsibility to select, supervise, and pay your contractor. CATZ, at the same time, will coordinate and arrange your CATZ standard equipment purchase as well as assist in planning your initial opening and on-going promotional program.

What is the CATZ Franchise royalty fee?
CATZ: Each CATZ franchisee pays 8% of the first $1,000,000 of gross revenues, 7% of the second $1,000,000 of gross revenues, and 6% of all gross revenues thereafter. The gross revenues are aggregated from all facilities owned by the franchisee and the revenue amounts are reset annually.

What type of ongoing support does CATZ provide to its franchisees?
CATZ: We are committed to your success. After you are open and established, you are on your own but not by yourself. CATZ is always present to support your team and help maximize their efforts. CATZ provides ongoing support through periodic visits, webinars, regional and national seminars for review and introduction of new programs. CATZ is also continually seeking promotional and broad based public relation opportunities as well as developing effective advertising materials and marketing programs to help you attract athletes to your CATZ facility. Finally, CATZ athlete training protocols are constantly evolving in order to stay on the cutting-edge of sports performance training. CATZ coaches at each franchise location will participate in regular training programs to stay current on the CATZ system.

I understand there is a national advertising fund that I must participate in. Could you please explain what this is and how it is used?
CATZ: Yes, we have built a national advertising fund into our franchise offering to allow us to create a national marketing and advertising campaign at such time as we believe it is warranted. The fee for the franchisee will be 1% of gross revenues, paid monthly, and will be held separately for the sole purpose of marketing our brand. High brand value benefits all of us. The Fund may be used to conduct print, radio and/or television advertising or marketing programs, consumer research, on a national or regional level, and, if we deem appropriate at our sole discretion, to employ an in-house or outside advertising agency. Until such time as the fund is established, franchisees will not be asked to contribute to it.

I’ve studied the materials and like the concept and the business opportunity it presents. What is my next step?
CATZ: If you like what you have read about CATZ, it is now time to take action and get into the game. The next step in the process is to complete our On-Line Inquiry Form. After we receive it, we will call you and further discuss the possibility of your becoming a CATZ Franchisee.