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Considering an i9 Sports Franchise? Don’t Overlook These 27 Important Franchise Fees

by Franchise Chatter on October 17, 2017

in Child-Related Franchises, Franchise Fees



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i9 Sports Franchise Photo by msalfi

If you are considering an i9 Sports franchise, don’t get blindsided by these 27 important franchise fees (from the initial franchise fee, to the royalty fee, to 25 other fees found in Items 5 and 6 of i9 Sports’ 2017 FDD).

1.  Franchise Fee:  $22,410 to $24,900



  • i9 Sports charges a non-refundable franchise fee of $24,900 (the “Franchise Fee”). The Franchise Fee is payable to i9 Sports in a lump sum when you sign the Area Developer Agreement and is fully earned upon payment, and is non-refundable under all circumstances.
  • The Franchise Fee includes the cost for i9 Sports to train up to two persons at its headquarters in Florida or a designated training facility, technology license, website customization, software configuration, setup and installation, and venue starter kit.
  • The Franchise Fee is uniformly imposed on i9 Sports franchisees, except that you will be entitled to a 10% discount on i9 Sports’ then-current Franchise Fee if you are an existing franchisee and decide to enter into i9 Sports’ then-current Area Developer Agreement for an additional i9 Sports franchise (provided you meet i9 Sports’ then-current criteria to become a multi-unit operator).
  • i9 Sports also participates and support the International Franchise Association’s VetFran program which provides special financial incentives to U.S. Armed Forces veterans. If you are a veteran of the U.S. Armed Forces, i9 Sports will discount 10% ($2,490) off the $24,900 Franchise Fee.

2.  Territory Fee:  $15,000 for up to 79,999 children in your Network Area

  • i9 Sports charges a non-refundable territory fee in the amount of $15,000 for up to 79,999 children in your Network Area (the “Territory Fee”).
  • The Territory Fee is due in a lump sum when you sign an Area Developer Agreement.
  • i9 Sports determines the number of children (ages 14 and under) in your Network Area using the latest statistics released by Alteryx, the demographics and mapping service i9 Sports currently uses.

3.  Territory Expansion Fees:  $5,000 for each additional 5,000 children in population for the ages of 14 and under

  • During the term of your Area Developer Agreement, you may purchase additional territory up to a maximum of 79,999 children by paying the then-current Territory Fee for the additional territory and signing an Addendum to the Area Developer Agreement.
  • Currently, the Territory Fee for additional territory is $5,000 for each additional 5,000 children in population for the ages of 14 and under.

4.  Royalty Fee:  New Franchisees and Existing Franchisees with a territory of fewer than 80,000 children (ages 14 and under): 7.5% of Network Revenues or a minimum of $425 per month, whichever is greater; Existing Franchisees with a territory containing more than 80,000 children (ages 14 and under) or transfers from such Existing Franchisees with a territory containing more than 80,000 children (ages 14 and under): the Royalty Fee, including the minimum, as set forth in such prior Area Developer Agreement

  • Due Date:  Minimum does not take effect until 60 days from the start date of Phase I (Classroom) Training in the initial Term.
  • The Royalty Fee is currently deducted daily via an electronic fund transfer (“EFT”), but i9 Sports can change the payment interval and/or manner of payment as it designates.
  • i9 Sports requires you to collect all of your Network Revenues directly via its Billing System or other manner it designates, and then report them to i9 Sports along with the Royalty Fee payment to it via EFT.
  • The minimum amount will be applied at the end of each month if the minimum is not exceeded for that month.

5.  Customer Service Center Fee:  i9 Sports’ then-current Customer Service Center Fee, which is currently the greater of $.89 per minute or a minimum of $311.50 per month

  • Due Date:  Minimum does not take effect until 60 days from the start date of Phase I (Classroom) Training in the initial Term; deducted daily via an electronic fund transfer (“EFT”), but i9 Sports can change the payment interval and/or manner of payment as it designates.
  • i9 Sports requires you to utilize the Customer Service Center for all registration and customer support purposes.
  • i9 Sports reserves the right to modify the amount and/or the manner of payment of the Customer Service Center Fee upon 60 days’ written notice to you. It also reserves the right to discontinue the Customer Service Center at any time, and you would then no longer pay this fee.

6.  National Brand Fund Contribution:  1% of Network Revenues or a minimum of $275 per month, whichever is greater

  • Due Date:  Minimum does not take effect until 60 days from the start date of Phase I (Classroom) Training in the initial Term; deducted daily via an electronic fund transfer (“EFT”), but i9 Sports can change the payment interval and/or manner of payment as it designates.
  • Used by the National Brand Fund. Paid by you to i9 Sports in the same manner as the Royalty Fee.

7.  Local Advertising:  between 1% and 2% of Network Revenues



  • Due Date:  Monthly, in your Network Area.
  • Payable to your local advertising suppliers.

8.  Additional Training or Periodic Training:  currently $500 per trainee per day, plus expenses

  • Due Date:  If incurred.
  • If i9 Sports provides or requires Additional or Periodic Training, additional travel and living expenses and outside Network Area training fees may apply.

9.  Transfer Fee (if you transfer your franchise):  the greater of 50% of i9 Sports’ then-current Franchise Fee or $12,450

  • Due Date:  Due prior to closing in connection with the assignment/transfer of the franchise at issue.
  • The Transfer Fee includes transferee’s tuition for Phase I Training and Software Licensing Fees. You or the transferee pay all travel and living expenses incurred by transferees.
  • i9 Sports will not charge a Transfer Fee if you transfer your i9 Sports franchise to an existing co-owner, spouse, or direct descendant.

10.  Renewal Fee:  $5,000, plus expenses i9 Sports incurs in conjunction with the grant of a renewal

  • Due Date:  Upon signing a successor Area Developer Agreement.
  • You have the right to renew the Area Developer Agreement for 1 additional 10-year term, subject to meeting certain criteria.

11.  Audit:  cost of inspection or audit, plus travel

  • Due Date:  10 days after billing.
  • Payable only if you fail to furnish reports, supporting records, or other required information, or if the audit reveals an understatement.
  • You must also pay any understated amount plus interest.

12.  Interest:  lesser of 18% per year or highest contract rate of interest allowed by law, whichever is less

  • Due Date:  15 days after billing.
  • Payable on all overdue amounts.
  • Interest accrues from the original due date until paid in full.

13.  Late Payment Penalties:  5% of the late amount



  • Due Date:  Due on payment of late amount.
  • Payable on all late payments including interest.

14.  Insufficient Funds Fee:  $25

  • Due Date:  As incurred.
  • This fee applies to check/EFT return for insufficient funds.

15.  Costs and Attorneys’ Fees:  will vary under circumstances

  • Due Date:  As incurred.
  • Payable upon your failure to comply with the Area Developer Agreement.

16.  Indemnification:  will vary under circumstances

  • Due Date:  As incurred.
  • You have to reimburse i9 Sports if you are held liable for claims arising from your i9 Sports Business operations.

17.  Annual Conference Registration:  i9 Sports’ then-current fee, which is currently $600 per person (whether or not you attend)

  • Due Date:  90 days prior to conference.
  • Paid via EFT.
  • You are responsible for all travel, food, and lodging expenses that you and eligible staff incur in attending the regional or national convention.

18.  Liquidated Damages:  will vary under circumstances

  • Due Date:  If incurred.
  • If i9 Sports terminates your Area Developer Agreement for cause, you agree to pay i9 Sports, within 15 days after the effective date of termination, liquidated damages equal to the average monthly Royalty Fees you paid to i9 Sports during the 12 months of operation preceding the effective date of termination multiplied by (a) 24 (being the number of months in two full years), or (b) the number of months remaining in the Agreement had it not been terminated, whichever is less.

19.  Merchant Account Services:  will vary under circumstances

  • Due Date:  As incurred.
  • You must use a merchant account services provider and gateway provider whom i9 Sports designates or approves.
  • Currently, you must use TSYS as the gateway/merchant account provider.
  • You will pay continuing fees directly to the provider.

20.  Supplier Approval/Testing Costs:  i9 Sports’ cost of approval

  • Due Date:  When incurred.
  • If you request i9 Sports to test an unapproved product, service, or supplier, you must pay any out-of-pocket costs i9 Sports incurs in researching and approving the proposed product, service, or supplier, regardless of whether it subsequently approves the product or supplier.

21.  Financial Records and Reports:  cost of preparing financial statements

  • Due Date:  Annually.

22.  Telephone Line and Listing:  cost of telephone line

  • Due Date:  As required by utility provider.
  • You must pay for and maintain, at your expense, a telephone number for general business purposes, as well as:  (i) a secondary separate, customer telephone line which will be provided to you by the third-party Customer Service Center; and (ii) a third separate telephone line to be specifically dedicated as your Weather Hotline.

23.  Insurance:  cost of insurance

  • Due Date:  As required by Insurer or Broker.
  • If you fail to maintain your insurance as required, i9 Sports has the right to procure insurance on your behalf.

24.  Step in Fee:  costs and expenses associated with managing the i9 Sports franchise

  • Due Date:  As incurred.

25.  Non-Compliance Fines:  i9 Sports’ then-current fees, which are currently:  First Infraction: $150. Second Infraction: $250. Third Infraction: $750.

  • Due Date:  As incurred.

26.  Email Fee:  i9 Sports’ then-current fee for each Email Address that it provides to you (currently $5 per address)

  • Due Date:  Same date that Royalty is collected.

27.  Additional Territory Fee:  i9 Sports’ then-current Territory Expansion Fee

  • Due Date:  Upon execution of the Addendum to your ADA.

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