Franchising Since: 2003
Headquarters: Riverview, Florida
Estimated Number of Units: 265
Franchise Description: The franchisor is i9 Sports, LLC. The franchisor is an indirect, wholly owned subsidiary of Youth Enrichment Brands, LLC. i9 Sports franchises create and supervise youth amateur sport leagues, camps, tournaments, sport clinics, child development, after-school programs, sport or social activities, umpire/referee training, sport-related training programs, and other related products or services that the franchisor may develop. i9 Sports franchises also market and sell products that the franchisor designates or approves, like uniforms, jerseys, t-shirts, jackets, shorts, trophies, medals/pins, awards, hats, caps, sporting equipment and supplies, apparel, beverages and food, and other products it designates or approves from time to time, within a defined geographic area.
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Territory Granted: The franchise is granted for a network area that first must be approved by the franchisor. Franchisees must locate their office for their i9 Sports franchise in their network area, unless otherwise approved by the franchisor. Generally, each network area is determined by the number of children (ages 14 and under) in the network area at the time of the signing the agreement, as determined using the latest statistics released by its mapping service, and by metropolitan or statistical boundaries, street boundaries, zip codes or housing subdivisions or other criteria the franchisor chooses. A single network area must be a contiguous geographic area. Franchisees are granted a protected network area to operate an i9 Sports franchise for the type of customers the franchisor designates and for the types of authorized sports within the protected network area, based on a territory of up to 79,999 children (ages 14 and under). Except for certain exceptions, neither the franchisor nor its affiliates will open or operate, or grant any third party the right to open or operate, an i9 Sports franchise in the network area during the term of the area developer agreement, provided franchisees comply with the terms and conditions of their agreement. The franchisee’s rights within the network area will not be modified by a subsequent change in population, however, the franchisee must meet the “performance standards” designated for minimum performance, sales, distribution and performance as a provision of the products or services in order to maintain exclusive operating rights in the network area.
Obligations and Restrictions: The operating principal (which will be the franchisee, if the franchisee is the only individual signing the Franchise Agreement) and the key manager (which may be the same person as the operating principal) must satisfactorily complete the training program, criminal background check, and any other training programs the franchisor requires during the term of the agreement. The operating principal must have authority over all business decisions related to the franchised business and must have the power to bind the franchisee in all dealings with the franchisor. The key manager must actively manage the day-to-day operations of the franchised business on a full-time basis. Franchisees must employ a sufficient number of qualified, competent personnel to offer prompt, courteous and efficient service to the public in accordance with the system standards. Franchisees must offer for sale all products, and perform, provide or render all services which the franchisor authorizes for their network area and may periodically require for i9 Sports franchises.
Term of Agreement and Renewal: The length of the initial franchise term has two options: (i) 10 years; and (ii) 5 years. If franchisees are in good standing, they have the right to renew the agreement for one additional 10-year term provided certain conditions are met.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or other obligation.
Estimated Initial Investment
Name of Fee | Low | High |
Franchise Fee | $24,900 | $24,900 |
Territory Fee | $15,000 | $15,000 |
Grand Opening Advertising | $6,000 | $8,000 |
Insurance | $1,000 | $1,500 |
Legal & Accounting Services | $800 | $1,500 |
Furniture, Equipment, Inventory, and Supplies | $3,000 | $4,000 |
Training Expenses | $1,200 | $2,000 |
Additional Funds – 3 months | $8,000 | $13,000 |
ESTIMATED TOTAL | $59,900 | $69,900 |
Other Fees
Type of Fee | Amount |
Royalty Fee | Territory of fewer than 80,000 children (ages 14 and under): 7.5% of network revenues or a minimum of $425 per month, whichever is greater. Territory of 80,000 or more children (ages 14 and under): 7.5% of network revenues or a minimum of $450 per month, whichever is greater. |
Customer Service Center Fee | The then-current customer service center fee, which is currently the greater of $0.95 per minute or a minimum of $332.50 per month. In addition to the fees listed above franchisees will pay a telecommunications platform fee which is currently $15 or $30 per month. |
National Brand Fund Contribution | Currently, 2% of network revenues or a minimum of $275 per month, whichever is greater. |
Local Advertising | A minimum of 2% of network revenues. |
Technology Fee | The then-current technology fee, which is currently a $3 processing fee charged directly to each customer with each paid registration. |
Email Fee | The then-current fee for each email address, which is currently $14.72 per address. |
Systems and Support Fee | Currently, not charged. |
Training Program Fee | A reasonable training fee. Currently, $395 for Phase I Training and $250 for Phase II Training. |
Additional Training or On-Site Assistance | Currently, $750 per trainee per day, which the franchisor may increase up to $1,000 per trainee per day. If the franchisor’s representatives provide training or assistance in the franchisee’s network area, they also must pay $750 per trainer per day (which the franchisor may increase up to $1,000 per trainer per day), plus their travel and living expenses. |
Annual Conference Registration | The then-current fee, which is currently $600 per attendee. |
Supplier Approval/Testing Costs | The franchisor’s cost of approval. |
Transfer Fee | For a 10-year area developer agreement: The greater of 50% of the then-current franchise fee, or $12,450. For a 5-year area developer agreement: $12,450. |
Renewal Fee | $5,000, plus expenses the franchisor incurs in conjunction with the grant of a renewal. |
Audit | Cost of inspection or audit plus travel. |
Interest | Lesser of 18% per year or highest contract rate of interest allowed by law, whichever is less. |
Late Payment Penalties | 5% of the late amount. |
Insufficient Fund Fee | $25 |
Costs and Attorneys’ Fees | The actual attorneys’ fees and costs the franchisor incurs related to such dispute. |
Liquidated Damages | See FDD. |
Mandatory Insurance Program Fee | Currently, $3.11 per unique player per policy year. If franchisees participate in certain optional sponsorship programs, currently, they must also pay an additional $2.56 per unique player per policy year. |
Procurement of Insurance | The franchisor’s actual costs of procuring insurance on the franchisee’s behalf. |
Step-in Fee | $500 per day, plus any direct out-of-pocket costs and expenses that the franchisor incurs, including the wages, travel, and living expenses of its representatives. |
Reimbursement of Costs Related to Non-Compliance | Varies based on nature, severity, number, and frequency of defaults, but will not exceed $1,000 per violation. |
Reimbursement of Costs Related to Risk Management Investigations | The actual costs of conducting and mitigating an investigation, including (i) the wages, travel, and living expenses of the franchisor’s representatives, (ii) the cost to hire investigators, public relation firms, and lawyers, and (iii) the expenses incurred by such third parties. |
Indemnification | The actual costs, expenses, and damages the franchisor incurs as a result of an indemnified claim. |
Additional Territory Fee | The then-current territory expansion fee, which is currently $1 per additional child in the additional territory. |
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