9Round Franchise Costs & Fees
Date of Incorporation: 2007
Franchising Since: 2009
Headquarters: Greenvile, South Carolina
Business Description: 9Round Franchising, LLC is the franchisor. The franchisor has developed a proprietary business format and system for operating a fitness center that features a specialized program developed around a system of nine challenging circuit training stations, that incorporates boxing and kickboxing exercises, and that includes personal trainer assistance and nutrition services. The 9Round program combines strength, cardiovascular exercises and circuit training for the entire body to achieve results.
Franchise Offer: The franchisor grants qualified candidates the right to operate one or more 9Round Centers according to its Franchise Agreement and its Standards which will be communicated to franchisees via its confidential operations manuals.
Financial Assistance: The franchisor does not offer direct or indirect financing and it does not guarantee a franchisee’s note, lease or obligation.
Training and Assistance: The franchisor will provide initial training to at least two people in the franchisor’s organization. Unless the franchisor agrees in writing that franchisees may designate someone else to attend training, franchisees (or each owner of the franchisee entity) must complete the initial training program to the franchisor’s satisfaction within 30 days of signing the location lease. If franchisees have a general manager, he or she must also complete training to the franchisor’s satisfaction. The training program is four days. Periodically, the franchisor may offer ongoing training programs and it may charge a fee for attending these training programs.
Territory: When the Franchise Agreement is signed, franchisees will select a general geographic area in which they intend to operate the Center. The franchisor generally will approve the selection unless it determines, in its sole judgment, that it may negatively affect the interest of another 9Round franchisee or is otherwise unavailable for development under current policies. A minimum Designated Area will consist of one city block and, in suburban and rural areas, may be as large as a three-mile driving distance from the anticipated location. The actual size and boundaries of the Designated Area will depend upon a variety of factors, including the population base; density of population; growth trends of population; the density of residential and business entities; and major topographical features which clearly define contiguous areas, like rivers, mountains, major freeways, and underdeveloped land areas. Franchisees will not receive an exclusive territory.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Renewal for unlimited additional 10-year terms, if requirements are met.
Obligations and Restrictions: During the term of the Franchise Agreement, franchisees (if franchisee is an individual) or their general manager must devote sufficient time and best efforts to the management of the Center. Franchisees are expected to stay informed about the franchisor’s organizational plans, initiatives and direction by regular review of communications sent to franchisees electronically or otherwise. Franchisees or their general manager must provide direct on-premises supervision to the Center. Franchisees must offer at the Center all of the products, equipment and services that the franchisor periodically requires and franchisees may not offer at the Center any unapproved products or use the premises for any purpose other than the operation of the Center. If permitted by state and local law, franchisees must be open for business for the numbers of days and hours the franchisor requires, currently a minimum of 44 hours per week (we recommend 53 hours per week).
Estimated Number of Units: 380
|Name of Fee||Low||High|
|Initial Franchise Fee||$24,000||$24,000|
|Computer, Technology System and Sound System||$1,500||$2,000|
|Lease Deposits, Utilities and Insurance||$2,000||$5,500|
|Leasehold Improvements (Optional)||$0||$5,000|
|Leasehold Finishes and Fixtures||$5,000||$6,000|
|Sound Proofing (optional)||$0||$5,000|
|Grand Opening Marketing||$4,600||$4,600|
|Opening Equipment and Inventory Package||$14,200||$14,200|
|Heart Rate Zone System (optional)||$0||$3,000|
|Shipping and Handling (for both Grand Opening Marketing Materials and Opening Equipment and Inventory Package)||$1,000||$1,500|
|Travel, Lodging, Meals, Etc. for Initial Training Program||$1,000||$2,000|
|Business Licenses and Other Professional Fees||$400||$1,000|
|Additional Funds - 3 months||$10,900||$15,900|
|Type of Fee||Amount|
|Royalty||$449 per month.|
|National Marketing Fee/td>||$75 per month.|
|Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution||At least $6,000 per rolling 12-month period (average of $500 per month).|
|Member Service Fees||Currently $49 per month.|
|9Round Radio Fee||$35 per month per store.|
|Heart Rate Zone System (optional)||$150 per month.|
|Website Fee||$25 per month.|
|Audits||Cost of audit plus interest at the maximum rate allowable by law.|
|Transfer Fee||$4,000 if transferee is an existing 9Round franchisee. If the transferee is new to the System, the transfer fee is equal to the then-current initial franchise fee.|
|Costs and Attorneys’ Fees||Will vary under the circumstances.|
|Interest||18% per annum.|
|Indemnification||The franchisor’s costs and expenses, which it expects will range from $1,000 to $3,000, but may exceed this range depending on the product.|
|Modernization and Maintenance Costs||The franchisor’s reasonable costs and expenses which will vary.|
|Securities Offering Costs||Will vary under the circumstances.|
|Ongoing Training||$100 to $300 per person plus reimbursement of the franchisor’s related travel and lodging costs for its representative.|
|Renewal Fee||25% of the then current Initial Franchise Fee.|
|Administrative Fee||$250 per enforcement effort, such as notifying franchisees of a violation of their franchise obligations.|
|Management Fee||5% of the Center’s gross revenues, plus reimbursement of the franchisor’s reasonable costs and expenses.|
The above information has been taken from the FDD of 9Round. Year of FDD: 2016
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