9Round is about 2 things: 1. Fun 2. Fitness 9Round is NOT about 1. Making Fighters 2. Making Black Belts 3. Perfect Form
What s the Unique Selling Proposition? (USP) There is NO competition! Unique, Convenient, Affordable fitness experience We have solved the 4 problems in fitness: 1. No Class Times/ Convenient 30 Min Workout 2. Full Body in 30 Minutes 3. Different Stations/Never Boring 4. Trainer ALWAYS included
The 9 Stations Stations 1 and 2 incorporate jump ropes, dumbbells, kettlebells, medicine balls, rope ladders, etc. to develop strength, coordination, and conditioning. Stations 3-8 incorporate all the different types of bags of boxing and kickboxing. These bags include 100 pound heavy bags, wrecking ball, uppercut bag, double end bag, and speedbag. Station 9 is dedicated to the core using a variety of equipment (medicine ball, kettlebell, etc.) Each of the 9 Rounds is three minutes in duration, with a 30-second transitional exercise between each round.
Sample 1200 SF (120 Meters) Floorplan
MISSION STATEMENT Empower members to reach their physical fitness goals, 9 rounds at a time!
The 9Round Experience 1. Everyone is Greeted 2. The Hand-wrapping Ritual 3. Great workout 4. Ring Gong/Trainer yells Thank you! 5. Trainer yells, When are you coming back?
Each Trainer Uses the 3x Rule Principle We know everyone by name Make eye contact Appropriate touch This type of service doesn t exist in a Big Box gym setting.
Three Magic keys to 9Round 1. Getting them in the door 2. Closing them 3. Keeping them
How are you going to get them in the door? 1. Great exterior signage Marquis/building 2. Pre-sell campaign 3. Community partnerships: PTA/Chamber of Commerce 4. Social Media: Facebook/Twitter/Google Plus 5. SEO and national advertising from Corporate office 6. Advertising your mini site 8. Local media 9. Grand Opening 10. B2B: business to business 11. Email campaigns 12. Direct mail: Val Pak/Money Mailer 13.Various guerilla marketing/ stuffing paper boxes, lead boxes, etc. 14. Internal contests and internal referral programs 7. Community newspaper
Printed Materials
Two things that make your 9Round a SUCCESS: 1. Location 2. Trainer
Location Criteria 1,000-1,500 SF (100-150 Square Meters) Neighbor-Sensitive
How do I Find Good Trainers? 1. Owner/Operators find from within 2. Online Advertising 3. Working interview process 4. We recommend club owners bring their staff to Training Camp & Incorporate Incentivized Pay Structure
Who is our customer? Age: 18-45 75% of the 9Round member base is female
Why Women Love 9R They work their own station at their own pace Flexible Times No Classes Full Body workout each time Workouts change daily IT WORKS! Burn up to 500 Calories
3 TYPES OF MEMBERSHIPS Month to Month, Term (Contract) & Prepaid Membership Membership Rates: $49-$99/monthly (U.S.) Two streams of income: 1. Memberships 2. Merchandise
150 Breakeven Formula/ Unit Economics Total monthly expenses divided by 150 equals the club s monthly rate Example: $10,000/150 = $66 per month
Master Franchisee Support 9Round s Real Estate guidelines Build Out Guidance & Club Design 4-Day operational Training in US Headquarters 1-Day Master Franchise Training Complete back-office solution to Manage Franchisees Branded store equipment including gloves, bags, hand wraps, and internal signage
Ongoing Support Access to 9Round Locker Room Portal Access to 9Round advertising material Phone, email, webinar training Access to 9Round employee documents and employee training program Access to 9Round Daily Workouts from Corporate Equipment purchasing from 9Round (gloves, hand wraps, etc.) Yearly convention Access to 9Round s monthly newsletters
Franchisee Portal
Mini Site
Mini Site
9Round Store
Daily Workouts
Yearly Convention
What To Look For In A Franchise Owner Passionate about fitness Passes the 9Round Initial Strength Test (IST) E2 Training Hard work ethic Always promoting Not reinventing the wheel Follows best practices (stays updated on franchise news) Open lines of communication with Corporate Follows the proven systems
Single Unit Start-Up Costs in the U.S. Estimated Initial Franchise Initial Franchise Fee $18,000 Investment Security & Media Package $2,500 - $6,500 Lease Deposits, Utilities, & Insurance $2,700 - $5,700 Leasehold Improvements & Finishes (Build Out) Equipment (Bags, Dumbbells, Med Balls, etc.) $0 - $13,300 $15,900 - $17,900 External Signage Package $2,500 - $5,900 MYZONE Heart Rate Monitoring System*** $0 - $4,600 Equipment Shipping & Handling $500 - $1,500 Travel, Lodging, & Meals for Initial Training Program Business Licenses & Other Professional Fees $500 - $2,000 $250 - $2,500 Working Capital $10,000 - $15,000 Total $52,850 - $92,900
Ongoing (U.S.) Fees : Royalty: $449/Month National Advertising: $75/Month Website Fee: $25/Month Nutrition Coach: $49/Month Total: $598/Month
Corporate Store (U.S.) Expenses Fully Staffed with 1 Manager and 2 Part Time Trainers with 400 Active Members Rent $1800 Payroll $4500 Utilities $350 Accounting $250 Resale Items $500 Royalty $449 Club Adv $400 (mailers, flyers, banners, etc.) Website $25 National Adv $75 9R Nutrition $49 Software $149 (includes collections/member mgmt./auto emails/texts) Insurance $128 9Round Radio $30 TOTAL $8705
Master Agreement Terms Development schedule and length of term to be determined A recent example: 7 Regions in the Middle East, 100 units, 10 year term
Streams of Income Franchise Fees Royalties Advertising Fees Equipment (Gloves, Hand Wraps, etc.) Software/Credit Card Processing Print/Advertising Material Apparel & Retail Items Store build out
Franchise Fees (U.S.) 20 Stores x $18,000 = $360,000 Master Franchisee s 50% equals $180,000 Less any broker fees
Royalties & Advertising Fees (U.S.) 10 year term = 120 months $549 per month in royalty and advertising = $65,880 per location $65,880 x 20 locations = $1,317,600 Master Franchisee s amount is $658,800 9Round U.S. portion is $658,800 (9Round does not take any percentage of the advertising or website fee)
Equipment (Gloves) Conservatively each store buys 20 pairs of gloves and hand wraps each month Purchase from 9Round and Master Franchisee s revenue stream will be $4 for each pair of gloves and $1.50 for each hand wrap 120 months x 20 gloves = 2,400 gloves x $4 profit = $9,600 per location $9,600 x 20 locations = $192,000 (Master Franchisee s revenue)
Equipment (Hand Wraps) Conservatively each store buys 20 pairs of gloves and hand wraps each month Purchase from 9Round and Master Franchisee s revenue stream will be $4 for each pair of gloves and $1.50 for each hand wrap 120 months x 20 hand wraps = 2,400 hand wraps x $1.50 profit = $3,600 per location $3,600 x 20 locations = $72,000 (Master Franchisee s revenue)
Software/Misc. Equipment/ Print Material/Apparel/Build Out We will source this in your country 9Round U.S. will help negotiate so the Master Franchisee gets a rebate, and the best price possible The goal is to provide a smooth process for the club owners and create a profit center as a Master Developer
Corporate Expenses Office Storage/Warehouse Space 2-3 employees (one IT person) Accounting Advertising Sales Commissions (Brokers)
WHERE ARE WE NOW? We have 200+ locations open with 100 more in development Entrepreneur Magazine recently recognized us in the top 500 Franchises (#288) Expanding to Canada, Mexico, Australia, Middle East, Asia & South America
WHAT ARE THE NEXT STEPS FOR YOU?