Detailed Estimates of i9 Sports Franchise Costs Based on Item 7 (Estimated Initial Investment) of i9 Sports’ 2016 Franchise Disclosure Document
1. Franchise Fee: $24,900
- i9 Sports offers a VetFran discount of 10% ($2,490) off the Franchise Fee.
2. Territory Fee: $5,000 to $20,000
- The low amount of $5,000 assumes a Network Area containing 50,000 to 59,999 children in population. The high amount of $20,000 assumes a Network Area containing 80,000 to 89,999 children in population.
3. Grand Opening Advertising: $5,000 to $7,000
- The low amount of $5,000 is the minimum required amount you need to spend on your grand opening advertising to promote your initial sports program (this is a total amount which will be budgeted over a period of 90 days leading up to your first program) as per i9 Sports’ Marketing Plan System Standards.
- The high amount of $7,000 includes additional recommended marketing efforts.
4. Insurance: $1,000 to $1,500
- Insurance must be obtained to meet the minimum requirements established by the System Standards. If you fail to obtain the required insurance, the System Standards provide that i9 Sports may purchase insurance on your behalf and charge you for doing so.
5. Legal and Accounting Services: $800 to $1,500
- You should consult with an attorney, accountant, and/or other business advisors regarding the operation of your i9 Sports franchise. This item includes an estimate of the cost to incorporate as an entity and an initial consultation with an accountant.
6. Furniture, Equipment, Inventory, and Supplies: $3,000 to $5,000
- This item includes a laptop computer, a mobile smartphone (with contracted service), printer, desk, chair, phone/fax, filing cabinets, and office supplies.
- The low end of the range assumes that you use an existing home office space with some of these items already in place or due to purchase of used equipment. The high end of the range assumes that all new equipment is purchased.
7. Training Expenses: $1,200 to $2,000
- You must pay for all travel, living expenses, and compensation for all persons attending Phase I (Classroom) Training, Phase II (Opening Day) Training, or additional training at i9 Sports’ headquarters or designated facility.
- The cost can vary dramatically due to airfare (including the distance you must travel), lodging (the type of accommodations you choose), and meal costs.
8. Additional Funds – 3 Months: $10,000 to $15,000
- The range in the chart reflects the amount of additional working capital you will need during the first 3 months of operation, including a wide variety of miscellaneous expenses, such as 2nd season marketing, additional payroll costs, and cost of maintaining and using your automobile in connection with your business activities.
- i9 Sports anticipates that you and your personnel will use your personal automobiles to visit customers, events, and to provide certain Products or Services. i9 Sports has not estimated the cost to purchase or lease vehicles since it assumes that personal vehicles will be used.
- Since the franchisor expects most i9 Sports franchises to be operated out of existing homes, the estimate does not include leasehold improvements or rent.
9. Total Estimated Initial Investment: $50,900 to $76,900
- These figures are estimates, and i9 Sports cannot guarantee that you will not have additional expenses starting the business.
- i9 Sports relied on the experience of its affiliates and its owners to compile these estimates.