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9Round Franchise ProfileFitness Franchises > Specialty Fitness Classes |
What Are the Initial Investment Requirements for a 9Round Franchise?
To open a 9Round franchise, you will need to prepare for a range of initial investment costs. The total investment can vary significantly, with a low end of approximately $130,549 and a high end reaching up to $390,300. The initial franchise fee is set at $19,900, and franchisees should also plan for ongoing royalty fees of 5% of revenue, along with a marketing fee of 8%. It's essential to have liquid cash available, ranging from $25,000 to $61,000, and a net worth between $200,000 and $500,000 to qualify for this franchise opportunity.
What Is the Average Revenue Potential for 9Round Franchisees?
Franchisees of 9Round can expect varying revenue levels based on unit performance. The average annual revenue per unit is reported at $11,977.67, with a median of $10,663.67. However, revenue can range widely, from as low as $4,235 to as high as $456,580 annually. Understanding these figures can help potential franchisees gauge the financial viability of their investment and set realistic income expectations.
What Is the Expected Breakeven Timeline for a 9Round Franchise?
One of the appealing aspects of investing in a 9Round franchise is the relatively quick breakeven timeline. Franchisees can anticipate reaching breakeven within approximately 12 months of operation. Additionally, the investment payback period is estimated at around 14 months, allowing franchisees to recover their initial investment in a reasonable timeframe, provided they effectively manage their operations and marketing strategies.
How Many 9Round Franchises Are Currently Operating?
The growth trajectory of 9Round has seen fluctuations in the number of franchised units over recent years. As of 2023, there are 275 franchised units, down from 365 in 2022 and 438 in 2021. The corporate presence has also decreased, with only four company-owned locations in 2023, compared to six in the previous two years. This data can inform potential investors about the brand's current market position and operational dynamics.
9Round Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
9Round Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 444 | 371 | 279 |
| Net Change YoY | -73 | -92 | |
| Franchised Units | 438 | 365 | 275 |
| Net Change YoY | -73 | -90 | |
| Corporate Units | 6 | 6 | 4 |
| Net Change YoY | 0 | -2 |
Investment Overview
9Round is an innovative fitness franchise that offers a low initial investment ranging from $130,549 to $390,300. With a franchise fee of $19,900, potential franchisees can enter the market with a cash requirement between $25,000 and $61,000. This structure provides a feasible entry point for aspiring entrepreneurs looking to invest in the booming fitness industry.
Financial Performance
The average annual revenue per 9Round unit is approximately $11,977.67, with a median of $10,663.67. Revenue can vary significantly, with the lowest reported annual revenue at $4,235 and the highest at $456,580. This range highlights the potential for profitability, depending on location and management effectiveness.
Ongoing Fees
Franchisees are subject to ongoing fees, including a royalty fee of 5% of gross sales and a marketing fee of 8%. These fees contribute to the brand's overall marketing efforts and support systems, ensuring franchisees benefit from national advertising and promotional initiatives.
Breakeven and Payback Period
9Round franchisees can expect a breakeven period of about 12 months, with an investment payback timeline of approximately 14 months. This relatively quick return on investment can be attractive for entrepreneurs seeking to achieve profitability in a timely manner.
Franchise Growth
The 9Round franchise has seen fluctuations in its growth, with 438 franchised units in 2021, reducing to 275 units in 2023. This trend indicates the importance of market adaptability and the need for franchisees to stay competitive in a dynamic fitness landscape.
Corporate Structure
9Round operates both franchised and corporate units, with 6 corporate locations in 2021 and 2022, decreasing to 4 in 2023. This structure allows the brand to maintain a close relationship with its franchisees while also testing new initiatives in corporate locations before wider rollout.
Frequently Asked Questions
The initial investment for a 9Round franchise ranges from $130,549 to $390,300. This includes the franchise fee, equipment, and other startup costs.