Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk Daily (Children’s Franchises): Total Registration Revenue for i9 Sports Franchises

by Franchise Chatter on March 6, 2013

in Child-Related Franchises, Franchise Earnings

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This special FDD Talk series will highlight the financial performance representations of over 20 Children’s franchises, with a cross-analysis of the featured franchises to be published at the end of the series.

Highlights of i9 Sports’ Item 19 Financial Performance Representations (2012 FDD) – Part 1

  • The franchise offered is for the operation of an i9 Sports Franchise, which utilizes the company’s system, copyrights, and marks to operate, market, sell, and provide amateur sports leagues, camps, tournaments, clinics, training, development, social activities, special events, products, and related services that the company approves.
  • The total investment necessary to begin operation of an i9 Sports Business as an area developer ranges from $44,900 to $72,900. This includes $24,900 to $39,900 that must be paid to the franchisor or its affiliates prior to opening.

Part I – Total Registration Revenue for i9 Sports Franchises in Operation More Than 24 Months as of December 31, 2011 and Operating a Minimum of Two Venues for Three Seasons in the Past Calendar Year

  • i9 Sports Franchise Photo by msalfiThe following chart sets forth information reported by 52 full-time area developer units and 1 company-owned location, which were open and operating more than 24 months as of December 31, 2011, and who, at a minimum, operated an average of two venues for three seasons, including:
  • (i) player registration revenues;
  • (ii) average number of venues per season;
  • (iii) year the area developer opened.
  • The table presents information for i9 Sports units open more than 24 months.
  • The information presented is for the period from January 1, 2010 through December 31, 2011 (the “Measurement Period”) (Ambrosio’s note: This is a 2-year Measurement Period, which is not typical for an Item 19 disclosure).
  • Registration Revenue means the amount of revenue derived by the Unit solely from registration fees during the Measurement Period.
  • Average Number of Venues Per Program means the average number of venues the Area Developer operated over a three or four season year.
  • Year Opened means the year in which the particular Unit commenced program operations.
  • The average registration fee equals the total registration revenue of 52 full-time i9 Sports Franchises and 1 company-owned location that were open and operating for over 24 months as of December 31, 2011, divided by the total number of player registrations during the Measurement Period.
  • The average registration fee may be affected by early registration discounts, late registration fee surcharges, free registrations, type of program or sport, local market pricing, and other discounts in accordance with the company’s System standards.

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