i9 Sports Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)

1. Franchise Fee: $24,900

In the 5 Year Area Developer Agreement, the Franchise Fee is not paid as an initial fee upon signing but is paid as an on-going monthly fee over the term of the agreement. The low amount is 3 months’ worth of the $500/month Franchise Fee payable during the initial 3 months after signing the 5 Year Area Developer Agreement prior to the start of operations.

In the 10 Year Area Developer Agreement, the Franchise Fee of $24,900 is paid and deemed fully earned upon signing the 10 Year Agreement.

i9 Sports offers a VetFran discount of 10% ($2,490) off the 10 year Area Developer Agreement Franchise Fee. This discount is not included in the figures above.

If you are an existing i9 Sports franchisee and wish to purchase an additional i9 Sports franchise, you will be entitled to receive a discounted Franchise Fee (10% off i9 Sports’ then-current Franchise Fee) in connection with this additional i9 Sports franchise, provided: (i) you meet i9 Sports’ then-current criteria to own and operate an additional i9 Sports franchise; (ii) enter into i9 Sports’ then-current form of 10 Year Area Developer Agreement; and (iii) also pay i9 Sports the appropriate Territory Fee upon execution.

Please be advised that entering into an Area Developer Agreement does not grant you any automatic right or option to own or operate any additional i9 Sports franchises.

2. Territory Fee: $15,000

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.

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 $4,000

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: $9,000 to $14,000

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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: $59,900 to $69,900