In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the RockBox Fitness franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a RockBox Fitness franchise, based on Item 7 of the company’s 2021 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a RockBox Fitness franchise, based on Items 5 and 6 of the company’s 2021 FDD
- Section IV – Number of franchised and company-owned RockBox Fitness outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD
- Section V – Presentation and analysis of RockBox Fitness’ financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:
- total gross revenue for the first 30 days of operations, in addition to all pre-launch revenue, for the 8 franchised RockBox Fitness studios that underwent some or all of the Pre-Opening Marketing Introduction Program for the time period of January 1, 2020 to December 31, 2020
- 2020 average annual gross revenue and high, median, and low monthly gross revenue for the top 33%, middle 33%, and bottom 33% of the 14 franchised RockBox Fitness studios that were open as of January 2020
- 2020 annual gross revenue and high, median, and low monthly gross revenue for the 1 affiliate-owned RockBox Fitness studio
Section I – Background Information
17 Things You Need to Know About the RockBox Fitness Franchise
Appoints New CEO
1. At the beginning of May 2021, RockBox Fitness announced April Fisk’s promotion to chief executive officer. Fisk officially transitioned from president to CEO on April 30, filling the position that Jeff Dudan vacated as he moved into a new role as the brand’s principal and senior advisor.
2. Fisk brings more than 15 years of experience working with several prestigious brands across the globe. Before joining RockBox Fitness as president in 2020, she served as vice president of international operations for Orangetheory Fitness, following an impressive stretch helping Snap Fitness grow from 25 clubs to more than 1,700 worldwide. Fisk views RockBox Fitness as a franchise with a chance to become a leader in the boutique fitness space, both with members and franchisees across the nation.
3. Fisk said, “I’m incredibly excited to step into this role and very thankful for the experiences that have prepared me for this leadership appointment. Having the opportunity to develop other leaders within our ever-growing organization brings me a great amount of excitement and confidence for the future of RockBox Fitness. Leadership is not a position, but an action. The franchisees can expect to see a team that is committed to action, always keeping their best interest in the forefront of our minds when making strategic decisions. I look forward to working with our team to build on the foundation that has already been laid, to ensure we positively change our members’ lives while also driving both financial and personal growth for our franchisees.”
4. Dudan will continue his work with the executive team to help RockBox Fitness achieve its franchise development goals. His role as principal and senior advisor will allow him to contribute in recruiting and participating in the company’s strategic direction, along with providing coaching to the executive team and home office staff in North Carolina.
5. Dudan said of the transition, “April’s elevation to CEO creates room in our C-Suite to add game-changing executives to our team as we continue to accelerate the growth of the franchise network. Simply put, the journey continues as we ascend RockBox to the front of the pack in fitness. April’s extensive background in fitness with industry leading franchise brands provides her with the experience and know-how to lead an aggressive and fast-growing category leader like RockBox.”
6. On a final note, Fisk added, “My wish is that we will create a culture that trickles down from within our home office team, directly to the franchisees, that transcends to their studio staff, and ultimately to our members. My passion is to make an impact not just in business but in individuals’ lives, empowering them to learn, grow, and become the best versions of themselves. My hope is this can be felt through our entire organization in a way that impacts our ability to be successful not only as a brand but as people.”
Introduces New Area Development Program
7. In early May 2021, RockBox Fitness announced that it was introducing several initiatives to uniquely position itself for a period of rapid growth in the coming year. After successfully navigating various health guidelines across the nation, RockBox Fitness plans to capitalize on its recent franchise development efforts with the launch of an innovative program: welcoming “area developers” to drive its upcoming expansion across the country. “We are beyond excited to launch our new Area Development program and find long-term partners to grow RockBox Fitness into the market powerhouse it is destined to become,” said April Fisk, who was appointed CEO just before this latest announcement.
8. RockBox Fitness is in the process of welcoming and recruiting these area developers – or ADs – to purchase a collection of 10 studios throughout the country, with the intent that they can eventually transition into absentee ownership opportunities once those studios are fully operational. The concept offers the opportunity to gain leverage in real estate agreements to secure studio locations in addition to an opportunity to collect a share of the royalties. These area developers would also be able to spread their 10 studios across multiple geographic locations if they desire. Fisk said, “The product is right, the home office team is great, the market is growing, and the economics just make sense for ADs.”
9. The new program also coincides with a shift in leadership roles to guide RockBox into its next growth period. As of April 30, Fisk became CEO following Jeff Dudan’s transition into a new role as a principal and senior advisor for the brand, continuing his commitment to shaping the strategic direction of the company and advising the executive team. Fisk brings more than 15 years of experience working with some of the world’s largest fitness brands. Her expertise in management and development are key in her new role as CEO.
10. “April Fisk has an esteemed career in fitness franchising and has earned the opportunity to lead a brand,” Dudan said of the transition. “Her insights, team building skills, and leadership practices continue to influence the way RockBox emerges as a category leader and as a best-in-class franchise brand.”
11. The collaboration between Fisk, Dudan, and the rest of the home office has been key in identifying new avenues through which RockBox Fitness can grow into a national fitness powerhouse. Following its steady growth in its first few years with 29 open studios and more than 20 additional studios in development, the area development effort is a push to further position the brand as an attractive option for franchisees and experienced business owners looking for their next best opportunity.
12. Dudan said, “RockBox is a forward-thinking business model and built to scale. Sophisticated multi-unit operators will immediately recognize the systems and special processes RockBox has incorporated to support growth and provide maximum controls. This model is attracting proven and successful business builders to the RockBox brand; operators who want to build a large footprint in a well-supported industry category leader.”
13. The area development program, along with other support systems getting up to speed, is a move made to create a robust framework that is simple to scale, both in growing relationships with existing RockBox franchisees and adding more multi-unit ownership. “Innovation doesn’t always have to be big and expensive, because when done well and executed with precision, many small changes can have a similar impact,” said Fisk. “We are doing a bit of both to ensure we secure market leadership for years to come. When building our long-term strategy for the business, we continually challenge the status quo in the industry and think about what the market and franchisees will want tomorrow, not just what is acceptable today.”
14. And just as its mission is to promote an environment for its members to grow physically and mentally stronger, RockBox Fitness is using that same mindset to build its brand nationwide. “We strongly believe our approach to innovation, unique market offering, and a fun and dynamic product will separate RockBox Fitness from the competition for decades to come,” said Fisk. “We will positively change our members’ lives while also driving both financial and personal growth for our franchisees.”
15. RockBox Fitness was founded in 2017 by Steve Halloran and Roger Martin in North Carolina. Halloran, who was an entrepreneur with a passion for boxing and fitness, opened his first gym in 2013. He developed a boxing gym concept that helped its members build their minds, bodies, and confidence. Over the next few years, Halloran opened a couple of studios and in 2016, Martin became a member of one of Halloran’s gyms. Martin was so impressed by Halloran’s concept, that he left his pharmaceutical job to partner with Halloran and expand the company.
16. Halloran and Martin rebranded the gyms into RockBox Fitness and within one year, membership at one location grew from 53 members to 431. In 2018, RockBox Fitness began franchising and there are now locations in over 15 states.
Entrepreneur’s Franchise 500
17. RockBox Fitness did not rank on Entrepreneur’s 2021 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of RockBox Fitness franchise costs, based on Item 7 of the company’s 2021 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on RockBox Fitness’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 5
- Net Change: +4
- Outlets at the Start of the Year: 5
- Outlets at the End of the Year: 14
- Net Change: +9
- Outlets at the Start of the Year: 14
- Outlets at the End of the Year: 20
- Net Change: +6
- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 2
- Net Change: 0
- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 2
- Net Change: 0
- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 1
- Net Change: -1
Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis
- As of December 31, 2020, there were 20 franchised Studios (“Franchised Studios”) and 1 Affiliate-owned studio (“Affiliate Studio”) in operation.
- This Item 19 sets forth certain Gross Revenue data for 14 Franchised Studios that were open as of January 2020, and Gross Revenue data for 8 Franchised Studios that opened with a Pre-opening Marketing Introduction Program.
- The data was obtained through RockBox Fitness’ cloud-based software and reported financial statements.
- Part 1 summarizes the Total Gross Revenue for the first 30 days of operations, in addition to all Pre-Launch Revenue, for the 8 Franchised Studios that underwent some or all of the Pre-Opening Marketing Introduction Program for the time period of January 1, 2020 to December 31, 2020 (the “Measurement Period”).
- In Part 1, RockBox Fitness excluded 12 Franchised Studios that did not engage in the Pre-Opening Market Introduction Program during the Measurement Period.
- Part 2 of this Item discloses the (i) highest monthly Gross Revenue, (ii) median monthly Gross Revenue, (iii), lowest monthly Gross Revenue, and (iv) average annual Gross Revenue for the 14 Franchised Studios that were open as of January 2020, for the entire 2020 calendar year.
- In Part 2, RockBox Fitness excluded 6 Franchised Studios that were open less than 11 months during 2020.
- Part 3 of this Item discloses the (i) highest monthly Gross Revenue, (ii) median monthly Gross Revenue, (iii), lowest monthly Gross Revenue, and (v) annual Gross Revenue for the Affiliate Studio.
- Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll earn as much.