9Round Fitness Franchise in 2024: Costs, Fee & FDD
Looking to invest in a dynamic fitness franchise? Discover the ins and outs of 9Round, from its innovative 30-minute kickboxing workouts to the costs and potential earnings involved. Dive into our comprehensive analysis to see the major factors you need to consider before making an investment in this franchise.
Table of Contents:
9Round is a dynamic fitness franchise founded in 2008 by Shannon and Heather Hudson. Shannon, a former kickboxing champion, and Heather envisioned a unique workout experience that combined elements of kickboxing with a circuit training format. Their concept was innovative, offering a high-intensity, 30-minute workout that is both efficient and effective. 9Round has since gained significant recognition in the fitness industry for its distinct approach, blending the intensity of kickboxing with the accessibility of a circuit workout, making it suitable for a broad range of fitness levels.
The core product of 9Round is its 30-minute, full-body workout that incorporates kickboxing, strength training, and functional movements. The workout is designed to be engaging and varied, with nine different stations that members rotate through, each offering a different exercise focus. No class times and a personal trainer on hand make it convenient for busy individuals looking for a quick yet comprehensive workout. Additionally, 9Round offers nutritional guidance, heart rate monitoring, and gear like gloves and wraps, catering to a wide demographic, including busy professionals, parents, and fitness enthusiasts.
Currently, 9Round operates on a global scale, with over 700 locations across 19 countries. The franchise has grown rapidly, appealing to those who want a quick and effective workout without the need for traditional gym equipment or lengthy class times. On average, each location serves hundreds of members weekly, offering a flexible workout that fits into diverse lifestyles. This global presence and consistent expansion underscore 9Round’s success and the growing demand for its unique fitness offering.
9Round franchisees benefit from a comprehensive support system that includes initial and ongoing training, marketing support, and operational guidance. New franchisees receive training at 9Round University, which covers everything from running the business to coaching members. Additionally, 9Round provides robust marketing tools, including digital and social media strategies, to help franchisees attract and retain members. The franchise’s support system is designed to ensure that each location thrives, offering both business acumen and fitness expertise to its franchisees.
9Round Franchise Insights
- Since its founding in 2008, 9Round has expanded to over 700 locations in 19 countries, highlighting its strong global appeal and rapid growth in the boutique fitness sector.
- Despite its global success, 9Round has a 3-year franchise failure rate of 88% in the U.S., significantly higher than the industry average of 9%, highlighting the importance of thorough due diligence.
- The 30-minute circuit format, with no class times and personal trainers available at all times, appeals to busy individuals, with 9Round members often reporting improved fitness levels in just a few weeks.
- 9Round boasts a strong member retention rate, with many members staying committed due to the workout’s efficiency, variety, and the supportive community environment.
9Round Franchise Key indicators
Unit Growth YOY (%)
-24%
vs industry 5%
Total U.S. Franchised Units
275
3-Year Failure Rate
88%
vs industry 9%
Sales-to-Investment ratio
0.5:1
How much does it cost to open a 9Round franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a 9Round franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a 9Round franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a 9Round below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $5,000 | $19,900 |
| Computer, Technology, and Sound System | $2,500 | $20,000 |
| Security System | $7,000 | $9,000 |
| Lease Deposits, Utilities, and Insurance | $2,000 | $7,500 |
| Leasehold Improvements | $10,000 | $110,200 |
| Leasehold Finishes and Fixtures | $6,000 | $25,000 |
| Sound Proofing (optional) | $0 | $10,000 |
| Grand Opening Marketing | $10,000 | $25,000 |
| Opening Equipment and Inventory Package | $39,800 | $41,700 |
| Stretching Station Package | $0 | $2,500 |
| Free Weight Station Package | $0 | $5,000 |
| Digital Advertising Screen (optional) | $0 | $1,500 |
| Exterior Signage | $2,000 | $12,000 |
| Heart Rate Zone System | $1,400 | $2,400 |
| Daily Workout Screens System | $10,000 | $15,000 |
| Customized Managed Network System | $2,600 | $3,600 |
| Body Composition Analyzer | $349 | $5,500 |
| Shipping and Handling | $5,500 | $8,000 |
| Travel, Lodging and Meals for Initial Training Program | $1,000 | $4,000 |
| Business Licenses and Other Professional Fees | $400 | $1,500 |
| Additional Funds - 3 months | $25,000 | $61,000 |
| Total Estimated Initial Investment | $130,549 | $390,300 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a 9Round franchise, prospective franchisees need to be financially prepared to meet both the initial investment and the ongoing financial requirements. Here’s a closer look:
- Initial Investment The total investment to open a 9Round franchise ranges from approximately $131,000 to $390,000. This includes the franchise fee, equipment, leasehold improvements, and other startup costs. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement 9Round generally requires potential franchisees to have at least $50,000 in liquid assets, ensuring that they have enough cash on hand to cover operating expenses and initial costs.
- Net Worth Requirement Franchisees should have a minimum net worth of approximately $150,000 to $200,000, which demonstrates financial stability and the ability to support the business through its early stages.
These figures are industry estimates based on available data and may vary depending on location, lease terms, and other factors.
How much does a 9Round franchise owner make?
Calculating the salary of a 9Round franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a 9Round franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
9Round Revenue & Gross Sales
Based on most recent analysis, 9Round franchises achieved a median gross sales of $141,459, reflecting a stabilization in recent years. This shows that 9Round will continue to maintain a significant presence in the boutique fitness industry.
Which key factors impact the average revenue performance of 9Round franchisees?
Several factors likely contributed to the recent performance in 9Round’s U.S. franchisee median gross sales over the past year. The lingering effects of the COVID-19 pandemic may have continued to impact member retention and new sign-ups, as some individuals remain hesitant to return to in-person fitness settings. Additionally, increasing competition in the boutique fitness space, with new and existing brands offering innovative and diverse workout options, might have drawn potential members away from 9Round. Economic challenges, such as inflation and rising costs, could have also affected consumer spending on non-essential services like gym memberships, leading to a slight dip in revenue for franchisees.
9Round Franchise Operational Costs
When opening a 9Round franchise, it’s crucial to understand the primary ongoing operational costs that will impact your profitability. Here are the key expenses to consider:
- Staff Salaries Paying personal trainers and support staff is a significant ongoing expense, crucial for maintaining high-quality service and member engagement.
- Lease and Utilities Rent for the facility and utility costs, including electricity, water, and heating, are essential for day-to-day operations.
- Equipment Maintenance Regular upkeep and replacement of fitness equipment and gear are necessary to ensure a safe and effective workout environment.
- Insurance Coverage for liability, property, and workers’ compensation insurance is vital to protect your business and staff.
- Marketing and Promotions Costs associated with local marketing efforts, promotional events, and member acquisition strategies are important for attracting and retaining members.
Understanding and managing these ongoing operational costs is essential to maintaining profitability and long-term success in your 9Round franchise. By carefully budgeting and prioritizing these expenses, you can create a solid foundation for your business, ensuring it thrives in the competitive fitness industry.
9Round Franchise Fees
When considering the financial aspects of opening a 9Round franchise, it’s important to account for ongoing fees beyond the initial investment. Here’s a breakdown of the key recurring costs:
- Royalty Fee $600 per month, due monthly. This fee is subject to increase and is paid to the franchisor for ongoing support and brand usage.
- Brand Building Fund Fee $250 or 2% of net sales, whichever is greater, due monthly. This fee contributes to national marketing and brand development efforts and may also increase over time.
- Additional Fees There are additional fees for training programs, technology, and other items provided by 9Round that may be applied.
These ongoing fees are essential to consider when planning the financial aspects of owning and operating a 9Round franchise. They cover the costs of brand support, advertising, and ongoing operational assistance provided by 9Round.
9Round Franchise Earnings
The earnings of a 9Round franchise owner can vary significantly based on a variety of factors including location, sales volume, operational efficiency, and cost management. With median gross sales of $141,459, the estimated annual earnings for an owner-operator are approximately $25,000. This means that you can consider the salary of a 9Round franchise owner to be roughly $25,000 before interest, taxes, depreciation, and amortization (EBITDA).
Clearly, 9Round gross sales, and the corresponding earnings, need to increase in order to make the franchise a compelling option in a competitive fitness category.
It’s important to note that these figures can fluctuate depending on several variables, including market conditions, local competition, and management practices. Diligent financial planning and operational management are key to optimizing profitability and ensuring the success of your franchise.
How to Open a 9Round Franchise
Embarking on the journey to become a 9Round franchisee involves several key steps, each crucial for ensuring a successful investment. Here’s an overview of the process from initial inquiry to launching your business:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Application and Evaluation Complete the franchise application, providing details about your background, financial status, and business experience. 9Round will review your application to assess your suitability as a franchisee.
- Discovery Day Attend a Discovery Day event, where you’ll meet the franchisor’s team, tour existing locations, and get a deeper understanding of the franchise operations. This is your opportunity to ask detailed questions and evaluate the fit.
- Final Decision and Agreement If satisfied, you’ll sign the franchise agreement and pay the initial franchise fee. This agreement formalizes your commitment and outlines the terms of your franchise relationship.
- Training and Preparation Undergo training at 9Round University, which covers operational procedures, marketing strategies, and business management. This training ensures you’re well-prepared to run your franchise.
- Site Selection and Setup Work with the franchisor to select a suitable location and set up your facility. This includes leasing, renovating, and equipping the space according to 9Round’s specifications.
- Grand Opening With everything in place, you’ll launch your 9Round franchise. The franchisor typically provides support for the grand opening to help drive initial membership and establish your presence in the community.
By following these steps, you’ll be well-equipped to start your journey as a 9Round franchisee and launch a successful fitness business.
Pros & Cons
Pros
Unique Fitness Model: 9Round’s 30-minute kickboxing-themed circuit workout is designed to be efficient and engaging, appealing to a wide range of fitness enthusiasts and busy individuals.
No Class Times: The flexibility of no set class times and a focus on personal training offers convenience for members and can attract a steady flow of customers throughout the day.
Global Brand Presence: With over 700 locations in 19 countries, 9Round has a strong global brand presence, which can provide a solid foundation for attracting members.
Cons
High U.S. Failure Rate: The franchise has an extremely high 3-year failure rate of 88% in the U.S., which could indicate challenges in maintaining profitability and operational success.
Competitive Market: The boutique fitness industry is highly competitive, with numerous alternatives available, which could affect member acquisition and retention.
Operational Challenges: Managing a franchise involves ongoing costs such as staff salaries, equipment maintenance, and insurance, which require careful financial planning and management.
