Understanding the 9Round Franchise Cost
9Round is a popular franchise that offers kickboxing fitness classes to men and women. The company was founded in 2008 by Marc Eskenazi, who aimed to create a unique workout experience that combines martial arts training with cardio exercise. With over 300 locations across the United States and abroad, 9Round has become a well-known brand in the fitness industry. For those considering joining the 9Round franchise, understanding the costs involved is crucial. In this article, we will delve into the estimated cost of starting a 9Round franchise and explore the key points to consider when making an investment decision.
Key Points:
1. Initial Franchise Fee
The initial franchise fee for 9Round is $40,000. This fee grants you access to the company’s proprietary business system, training programs, and marketing support. However, this fee does not include ongoing royalties, which are discussed later.
2. Ongoing Royalties
Ongoing royalties for 9Round franchises range between 5% and 7% of gross sales. This means that for every dollar earned by your location, you will need to pay a percentage of it back to the company as royalties. The royalty rate may vary depending on the specific location agreement.
3. Marketing Fees
In addition to royalties, 9Round franchises also pay marketing fees. These fees are typically around 2-3% of gross sales and help support the company’s national marketing efforts. Marketing fees can add up quickly, so it’s essential to factor them into your business plan.
4. Equipment and Supplies Costs
Starting a 9Round franchise requires significant investments in equipment and supplies. You will need to purchase or lease boxing gloves, hand wraps, jump ropes, and other training gear for your members. Additionally, you may need to pay for flooring, mirrors, and sound systems. The cost of these items can range from $10,000 to $20,000.
5. Leasehold Improvements Costs
If you plan to lease a commercial space, you will also need to factor in leasehold improvements costs. These costs can include installing flooring, painting, and building out the interior of the location. The cost of these improvements can range from $20,000 to $50,000.
6. Insurance Costs
As with any business, 9Round franchises require insurance coverage to protect against liability, property damage, and other risks. Insurance costs can vary depending on factors like location, equipment, and coverage limits. On average, franchisees pay around $2,000 to $5,000 per year for insurance premiums.
7. Training and Support Costs
9Round provides comprehensive training and support to its franchisees. This includes on-site training sessions, business coaching, and access to online resources. While these services are valuable, they do come at a cost. Franchisees may need to pay around $2,000 to $5,000 for initial training costs.
8. Ongoing Expenses
In addition to the initial franchise fee, royalties, marketing fees, and other costs, 9Round franchises also incur ongoing expenses like staff salaries, utilities, and supplies. Franchisees can expect to pay around $3,000 to $6,000 per month in ongoing expenses.
9. Potential Returns
While the initial investment for a 9Round franchise is significant, the potential returns on investment are substantial. According to 9Round’s own data, top-performing franchises can generate up to $400,000 per year in revenue. This translates to a potential return on investment of around 100% or more.
Conclusion:
Starting a 9Round franchise requires careful consideration of the costs involved. While the initial investment is significant, the potential returns on investment are substantial. By understanding the key points outlined above, including the initial franchise fee, ongoing royalties, marketing fees, and other costs, you can make an informed decision about whether investing in a 9Round franchise is right for you. In addition to the financial considerations, it’s also essential to research the company’s business model, training programs, and support systems. By choosing a reputable franchise with a proven track record, you can set yourself up for success and achieve your business goals.
