How Much Is a Rumble Franchise? (Detailed Franchise Costs)

Rumble Franchise Costs: Estimated Initial Investment (Item 7, 2025 FDD)

1.  Initial Franchise Fee:  $60,000

• The Initial Franchise Fee is non-refundable. The Initial Franchise Fee for a single Studio is $60,000. Rumble does not provide financing for the Initial Franchise Fee.

• If this is your (or your affiliates’) second Studio, the Initial Franchise Fee will be reduced to $50,000, and if this is your (or your affiliates’) third or subsequent Studio, this Initial Franchise Fee will be reduced to $40,000.

2.  Sourcing Fee:  $0 to $28,000

• If you are an existing franchisee and a franchise broker is owed a commission in connection with the purchase of your additional franchise based on a previously-made introduction to Rumble or Rumble’s affiliates, you will pay Rumble an additional sourcing fee of $28,000 (in addition to the Initial Franchise Fee).

3.  Travel and Living Expenses While Training:  $0 to $2,500

• You (or, if you are an entity, your Operating Principal) must complete the proprietary franchise partner training program (the “Franchise Partner Training”). Rumble will not charge any tuition or training fees in connection with your attendance at Franchise Partner Training, provided all individuals attend at the same time.

• The estimate above assumes that you (or, if you are an entity, your Operating Principal) will attend the Franchise Partner Training, and you will be responsible for the costs and expenses associated with attending Rumble’s Franchise Partner Training (e.g., transportation, meals, lodging, and other expenses).

• The amount you will spend while training will depend on several factors, including the number of persons attending, the distance you must travel, and the type of accommodations you choose, if any are needed.

4.  Real Estate/Lease and Professional Fees:  $31,000 to $71,500

• If you do not own adequate Studio space, you must lease suitable premises.

• In addition to base rent, the lease may require you to pay common area maintenance charges, your pro rata share of the real estate taxes and insurance, and your pro rata share of HVAC and trash removal, which are included in the ranges provided above. You will also likely be required to pay a security deposit.

• This estimate includes three months of base rent plus one month for estimating the security deposit. This estimate is also designed to cover the legal and other professional fees associated with securing an approved premises.

5.  Net Leasehold Improvements (Net of Estimated Tenant Improvement Allowances):  $130,000 to $529,500

• This estimate includes the cost of leasehold improvements (net of estimated tenant improvement allowances), including floor coverings, wall treatments, ceilings, painting, electrical, carpentry, plumbing, HVAC, and similar work, as well as materials and the cost of labor.

• Rumble expects that you will not sign a lease unless the landlord is willing to provide a reasonable tenant improvement allowance which, in Rumble’s experience, has ranged from $42,000 to $407,000, or a median of $120,125.

• The net leasehold improvements estimate also includes fees for professional services of architect and sound consultant as well as permitting fees related to building construction.

6.  Signage:  $14,000 to $38,500

• You will need to purchase appropriate signage for your Studio that Rumble approves. Each landlord has different restrictions it places on interior and exterior signage that may affect your costs. This estimate includes costs associated with permanent signage and graphics only and does not include optional temporary signage and graphics.

7.  Insurance:  $5,141 to $11,579

• This estimate is for an annual premium of your minimum required insurance, using Rumble’s required or approved third-party vendor. You will need to check with your insurance carrier for actual premium quotes and costs, and for the actual amount of deposit.

8.  Fitness Equipment and Initial FF&E Package:  $115,500 to $199,700

• The “Fitness Equipment and Initial FF&E Package” includes: a Studio fixture package (comprised of a millwork bundle (front desk, retail display, cubbies, boxing glove wall), millwork accessories, and other related supplies); (ii) the package of fitness equipment and other operational equipment Rumble designates to be used in Studios (bag rig, punching bags, benches) and smaller pieces of related exercise equipment (e.g. dumbbells, brass knuckles); (iii) other items related to the outfitting and design and buildout of your Studio; and (iv) the installation and shipping costs for the foregoing items, which may vary depending on the geographic location of your Studio.

9.  Additional Operating Supplies and Accessories:  $10,000

10.  Pre-Sales and Soft Opening Retail Inventory Kit:  $23,000 to $27,000

• The Pre-Sales and Soft Opening Retail Package must be purchased directly through Rumble. This package will include designated branded merchandise, apparel, and accessories to support presales and soft opening retail sales.

• Rumble will provide a curated retail inventory based on your Studio’s retail display needs. The components will be determined in coordination with Rumble’s team to ensure brand consistency and optimal product selection.

• The cost for the Pre-Sales Retail Package will be collected directly by the retail team at the start of the Pre-Sales Phase, while the Soft Opening retail inventory cost will be included as a line item in the equipment invoice.

• While you currently purchase the Pre-Sales and Soft Opening Retail Inventory Kit from Rumble, it may designate that you purchase it directly from a third-party Approved Supplier.

11.  Audio/Visual Package, Computer System, and Related Components:  $47,500

• You will be required to purchase (i) an audio/visual package (“Audio/Visual Package”) which includes all audio and visual equipment, (ii) certain hardware, software, technology licenses, other equipment and network connections that Rumble specifies in the Learning Management System necessary to operate the scripted Rumble workouts system and the Rumble instructor technology platform; and (iii) the point-of-sale computer system (“POS System”) and components for use in the operation of the Studio.

• Your computer and network system must meet Rumble’s specifications. Your Studio must be equipped with a high-speed internet connection through a local area network for access to certain web-based business management software programs specific for the Studio.

• You must purchase these components from designated vendors and must execute any related software licenses these vendors require. Rumble will make available to you a certain business management software program specific for the Studio to be loaded onto your system.

• These costs are paid to suppliers, when incurred, before beginning business and are usually not refundable.

12.  Initial Marketing and Advertising Spend:  $24,825 to $30,563

• While you must spend at least $15,000 on your initial marketing program (the “Initial Marketing Requirement”) in coordination with your Opening Support Program, Rumble estimates that you will spend between $24,825 to $30,563 on advertising and marketing expenses during the Pre-Sales Phase and the first three months after your Studio’s Soft Opening.

• Rumble may require that you spend any portion of these funds on services or product supplied by one or more of its Approved Suppliers.

• Rumble will have the right to modify its Opening Support Program as it determines appropriate in its sole discretion. You must provide Rumble with supporting documentation evidencing these expenditures upon its request.

13.  Initial Instructor Training Fee:  $5,000

• Rumble’s New Trainer Onboarding is for all trainers that you and other System franchisees engage to work at a Studio location. New Trainer Onboarding is not a fitness certification, and it is not meant to fill in gaps for non-comprehensive trainers.

• The trainer will complete onboard training videos, online training, and a training manual prepared specifically for the New Trainer Onboarding. They will be required to complete a video test out that will be reviewed by Rumble for specific feedback about the trainer to complete the training.

14.  Technology and Software Fees:  $4,674

• This estimate is designed to cover Rumble’s current Technology Fee and Software Fee obligations from when you begin the Pre-Sales Phase of opening your Studio, which Rumble estimates you will begin five months prior to the Soft Opening of your Studio, and over the first three months of operation, for a total of eight months of payments.

• As of the issue date of the Disclosure Document, the technology fee is $600 and the software fee is $203 per month. However, you will pay a reduced Technology Fee in the amount of $250 during your Pre-Sales Phase.

15.  Additional Funds – 3 Months:  $39,000 to $75,000

• This is an estimate of certain funds needed to cover your business (not personal) expenses during the first three months of operation after your Studio’s Soft Opening and certain other typical expenses in connection with the development of the Studio during the Pre-Sales Phase, such as expenses incurred in connection with the selling of pre-sale memberships.

• These expenses include, for example, payments to Rumble, vendor processing fees, business incorporation and legal costs, broker and consultant fees, bank service fees, initial personnel wages, ongoing purchases of equipment and supplies, utilities, recruitment fees, and repairs and maintenance.

• This estimate is net of any estimated revenue generated in connection with your Studio during the relevant time period.

• The estimates in this Item 7 are based on: (i) Rumble’s franchisees’ experience in developing Studios; (ii) Rumble’s and it Predecessor’s experience in selling franchises for Studios; (iii) the experience of Affiliate SPV Franchisors and Affiliate Prior Franchisors in developing other fitness concepts and information related to their respective studio investment costs; (iv) current estimates Rumble has received from its Approved Suppliers and other third-party vendors; and (v) Rumble’s affiliates’ experience in developing and/or operating Studios and franchises of other Xponential Brands.

• The availability and terms of financing to you will depend on many factors such as the availability of financing in general, your creditworthiness, the collateral security you may have, and policies of lending institutions concerning the types of business you operate.

• This estimate does not include any finance charges, interest, or debt service obligations.

16.  Total Estimated Initial Investment:  $509,640 to $1,141,016

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