Velocity Sports Performance

Infobox_Company |company_name = Velocity Sports Performance
company_
company_type = Private, Federal/selective state regulated
foundation = 1999
original location =
location =
key_people =J. Todd Anderson, CEO
Jim Bax, chairman
Loren Seagrave, CPO/founder
industry = Franchising
services = Sports performance training
homepage = http://www.velocitysp.com/

Velocity Sports Performance is a performance training franchise that specializes in training athletes in every sport, at all ages and all skill levels, providing the opportunity to improve speed, agility, mobility and flexibility, and energy systems, while reducing the risk of sports-related injuries.

Velocity says there were 210 franchises sold by 2004. [http://www.bizjournals.com/atlanta/stories/2004/10/11/focus47.html]

Notable franchisees

* Steve McKinney
* Charles Dimry
* Steve Smith
* Michael Timpson
* Bryce Salvador
* Charles Dimry

History

Velocity Sports Performance was founded by three individuals: David Walmsley, Richard Kissane and Loren Seagrave. Walmsley (CEO through 2006) and Kissane (president through 2005) are no longer with the company nor are they owners but Seagrave remains as an employee in the role of founder of the company.Velocity Sports Performance Franchise Systems UFOC filings]

In 2006, John Woods, an Atlanta businessman and franchise owner of several Velocity Sports Performance franchises in the Southeast led a group that purchased [ [http://www.chattanoogan.com/articles/article_91810.asp 8/29/2006 - East Ridge's John Woods Purchases Velocity Sports Franchise Systems - Sports - Chattanoogan.com ] ] the company. Mark Scott, who was part of the buyout group, was appointed CEO to replace Walmsley. In October 2006, Troy Medley, a California businessman and regional developer of the franchise in Southern California was named CEO to replace Scott and Florida businessman James Bax, who was also part of the buyout team, was named board chairman.In 2007, the corporate and field support operations of the franchisor moved from Georgia to California. Woods was not re-elected to the board in April 2007 and all but one of his franchises, and several of his related enterprises went dark. Fact|date=July 2008 In 2007, several new investment groups injected capital into the franchisor, including a group represented by J. Todd Anderson, a Southern California businessman and attorney. In September 2008 Anderson bought out all remaining shareholders and now owns 100% of the Velocity shares. On January 17, 2008, the company announced that Todd Anderson was replacing Troy Medley as CEO, largely as a result of uncontrolled spending that led to a loss of $4,500,000 in the year ended December 2007. Medley announced that he was returning to his Irvine, CA franchise and would be opening additional Velocity locations in 2008.Fact|date=July 2008In June, 2008 Mark deGorter is removed as COO. He served as COO from 2006-2008.

Business model and support concerns

Since 2004, several franchise industry and small business journalists have questioned the viability of Velocity's business model and cited Velocity as an example of the problems franchisee/investors can encounter with new franchise concepts.

The multiple closures, resales by original investment groups for a fraction of their original investment (citation needed) and outright failures of centers underlines that the original business and sales model, and initial investment/capital requirements promoted in the first years of the franchise offering were invalid and vastly underestimated.

Since the quality of the Velocity training product and the business acumen/previous success of the franchise owners has not been called into question to date, issues that are speculated to be the main causes of the closures and resales include:

1. The initial business/sales model.
2. Profitability and stable business model claims made by former and present franchisor executives [ [http://findarticles.com/p/articles/mi_m0675/is_2_21/ai_112982374 Venture in: the stepping stones to franchising - Club Scene | American Fitness | Find Articles at BNET.com ] ] [http://www.successmagazine.com/article.php?article_id=293] .
3. The ongoing franchisor management/ownership turmoil.

Recently, the validity of claims by Velocity management and ownership in multiple publications and UFOC/FDD's regarding the number of franchises and development areas sold, the timing of center openings, the revenue generated by Velocity network, and average location revenue are being called into question.

"The Wall Street Journal" article "Pitfalls People May Face When Buying a Franchise" highlighted some of the concerns and issues facing Velocity franchises and includes quotes from Velocity franchisees and employees. [ [http://s.wsj.net/article/S60227BENNETT.html?mod=SmallBusinessFranchising_more_articles "Pitfalls People May Face When Buying a Franchise"] , "Wall Street Journall", February 27, 2006]

In January, 2008 several current and former Velocity Sports Performance franchisees formed an independent franchise association. SPAFAN - The Speed, Power, Agility Franchise Advocacy Network was formed in order to promote and protect the Velocity brand and the interests of it's members. SPAFAN, a 501(c)(6) non-profit, established a web presence and online forums to support current and former Velocity franchisees and their investment in the Velocity brand. www dot spafan dot org.

References

External links

* [http://www.velocitysp.com/ Official website]
* [http://www.spafan.org/ Official Independent Franchise Association website]
* http://s.wsj.net/article/S60227BENNETT.html?mod=SmallBusinessFranchising_more_articles