In this FDD Talk post, you’ll learn the following:

• Section I – Estimated initial investment (franchise costs) for a RockBox Fitness franchise, based on Item 7 of the company’s 2022 FDD

• Section II – Initial franchise fee, royalty fee, and marketing fee for a RockBox Fitness franchise, based on Items 5 and 6 of the company’s 2022 FDD

• Section III – Number of franchised and company-owned RockBox Fitness outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

• Section IV – Background information on the RockBox Fitness franchise opportunity, including relevant news updates

• Section V – Presentation and analysis of RockBox Fitness’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2021 average, median, high, and low monthly net revenue generated by the top 20%, bottom 20%, and all 23 franchised RockBox studios that were open and operating during the entire 2021 calendar year

• 2021 average, median, high, and low net revenue generated during the first 30 days of operation for the top 20%, bottom 20%, and all 15 franchised RockBox studios that opened during the 2021 calendar year

• average, median, high, and low net revenue increase from calendar year 2020 to calendar year 2021 for the 16 franchised RockBox studios that operated during the entire 2020 calendar year and 2021 calendar year

• total monthly member value and total retention rate during Q4 of the 2021 calendar year for all franchised RockBox studios

• Section VI – Key ratios, comparables, computations, and analyses for the RockBox Fitness franchise opportunity (exclusive content for Platinum subscribers)

Section I – RockBox Fitness Franchise Costs

• RockBox Fitness franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $49,900
• Rent and Security Deposit:  $6,500 to $30,000
• Utilities:  $500 to $1,000
• Leasehold Improvements:  $12,626 to $245,265
• Initial Advertising Spend:  $20,000 to $32,000
• Inventory, Furniture, Fixtures, and Equipment (Genesis Package):  $118,735 to $145,861
• Computer Systems:  $3,000 to $5,000
• Insurance:  $300 to $3,000
• Signage:  $10,231 to $11,480
• Office Expenses:  $500 to $1,500
• Licenses and Permits:  $500 to $1,200
• Dues and Subscriptions:  $1,000 to $2,000
• Business Planning and Miscellaneous Expenses:  $1,000 to $3,000
• Professional Fees (lawyer, accountant, etc.):  $1,500 to $3,000
• Travel, Lodging, and Meals for Initial Training:  $1,000 to $4,000
• Additional Funds (for first 3 months):  $25,000 to $50,000
• Total Estimated RockBox Fitness Franchise Costs:  $252,292 to $588,206

Section II – RockBox Fitness’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• RockBox Fitness’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $49,900
• Royalty Fee:  the greater of 7% of your monthly Gross Sales, or $2,100 per month
• Brand Fund Contribution:  the greater of 1% of your monthly Gross Sales, or $300 per month
• Local Advertising Requirement:  $2,000 per month

Section III – Number of Franchised and Company-Owned RockBox Fitness Outlets

Franchised

2019

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  14
• Net Change:  +10

2020

• Outlets at the Start of the Year:  14
• Outlets at the End of the Year:  20
• Net Change:  +6

2021

• Outlets at the Start of the Year:  20
• Outlets at the End of the Year:  36
• Net Change:  +16

Company-Owned

2019

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  2
• Net Change:  -1

2020

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  1
• Net Change:  -1

2021

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  0
• Net Change:  -1

Section IV – Background Information on the RockBox Fitness Franchise

17 Things You Need to Know About the RockBox Fitness Franchise

Builds Momentum with Aggressive Growth and Happy Franchisees

1.  In late December 2021, RockBox Fitness said it had 36 studios open and dozens more in development, with over 120 territories awarded in 20 states – and counting. Franchise owners are reaping the rewards of a proven business model designed for sustained success.

2.  For Mike Tolbert, a former three-time Pro-Bowl fullback with the Carolina Panthers, and his wife Shia, owning multiple RockBox studios has given the husband-and-wife entrepreneurial duo a path to pursue their passion for fitness, health, and community as a team. It was Shia who took the lead in their latest venture when the family settled in for post-football life in Charlotte when Mike retired after a decade in the NFL.

3.  Shia had joined an existing RockBox studio in Charlotte to help with the postpartum depression she experienced after the birth of the couple’s third child. In the studio, Shia found healing and her calling. In 2020, the Tolberts assumed ownership of an existing studio, RockBox Fitness Blakeney, and opened their second location in SouthPark in August of 2021.

4.  Shia said, “I learned firsthand how much the workout, trainers, and the community of members all impacted my life. I fell in love with RockBox and wanted to continue to change the lives of others as well.”

5.  RockBox franchisees can count on unmatched support, the latest digital consumer marketing techniques, and science-backed workout regimens that turn members into lifelong brand ambassadors. “I know that I can call anyone from the network at any time and know that they will answer,” added Shia. “It is so refreshing to be associated with a brand who wants to ensure you are equipped with all the necessary materials to become successful. The RockBox Home Office team has gone above and beyond to ensure our needs continue to be met.”

6.  RockBox studios continue to thrive with stable and consistent growth at a time when other fitness concepts have taken a significant pandemic-related hit. In 2021, the brand inked agreements for 20 new franchise locations and opened eight new studios, with owners reporting record pre-opening sales.

7.  With a low initial investment, multiple revenue streams, high customer retention rates, and industry-leading revenue, RockBox offers a competitive advantage that has franchisees like Kim Ryan trading corporate life for an unmatched franchise opportunity.

8.  “It has been the most rewarding career I have ever had,” said Ryan, who opened her San Diego-based RockBox studio in 2019 after 14 years in pharmaceutical sales. “I get chills every time a member tells me about how RockBox has changed their life. I knew I wanted to create a supportive community around health and fitness and am so humbled every day at the amazing community we have formed.”

Continues Efforts Benefiting National Charity Partner

9.  In mid-January 2022, RockBox Fitness said that it was capitalizing on its recent success to benefit a cause close to its heart – mental health. As part of its partnership with nonprofit organization To Write Love on Her Arms (TWLOHA), RockBox undertook a fundraising effort to benefit TWLOHA’s dedication to helping those struggling with grief, depression, addiction, and thoughts of suicide. Throughout April’s “Month of Hope,” RockBox studios across the country took part in various campaigns to boost fundraising and awareness for the cause.

10.  “The impact (of these efforts) is huge,” said Leslie Zimmerman, co-owner of the RockBox studio in Lafayette, LA which organized and hosted a golf tournament with local sponsors. “The partnership allows an open door for members or anyone to seek the help they need. It’s tough for some people to ask for help, and TWLOHA opens that door.”

11.  Beyond the fundraising efforts resulting in more than $12,000 in one month towards RockBox Fitness’s overall 2022 goals, owners said the motivations and efforts went beyond financial benefits. In addition to social media efforts, merchandise sales, and organizing events, RockBox studios added a personal touch as well.

12.  John Rouse, co-owner of the Flower Mound and Frisco studios in Texas, said, “Every day during the Month of Hope, staff shared stories at the end of class about themselves or people in their lives who suffer from mental health challenges, and encouraged members to do the same. That could be parlayed into sharing what TWLOHA does and how members can help people who may not have the resources to get this help on their own.”

13.  RockBox Fitness announced its charity partnership with To Write Love on Her Arms at its annual summit in October 2021. As the boxing franchise expands rapidly throughout the United States, each studio will continue to work towards this charitable effort as part of its national commitment to TWLOHA.

Company History

14.  RockBox Fitness was founded in 2017 by Steve Halloran and Roger Martin in North Carolina. Before starting RockBox, Halloran had been operating a boxing gym since 2013. Passionate about fitness, Halloran developed a boxing gym concept that helped its members build their minds, bodies, and confidence. Halloran’s gym was a success and he opened additional studios.

15.  In 2016, Martin became a member of one of Halloran’s gyms and was so impressed with the concept that he left his pharmaceutical job and partnered with Halloran to further expand the boxing gym concept. Halloran and Martin rebranded Halloran’s gyms to RockBox Fitness.

16.  Within one year, membership at one location grew from 53 members to 431. Franchising began just a year later in 2018. Today, there are RockBox Fitness locations in more than 22 states.

Entrepreneur’s Franchise 500

17.  RockBox Fitness did not rank on Entrepreneur’s 2022 Franchise 500 list.

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the RockBox Fitness Franchise (Item 19, 2022 FDD)

• As of December 31, 2021, there were 36 franchised Studios (collectively, “Franchised Studios” and individually, each a “Franchised Studio”) and 0 Affiliate-Owned Studios.

Part 1 – Average, Median, High, and Low Monthly Net Revenue Generated by the Franchised Studios During the 2021 Calendar Year

• Part 1 of this Item discloses the average, median, high, and low monthly Net Revenue generated by the 23 Franchised Studios that were open and operating during the entire 2021 calendar year.

• Part 1 excludes data in connection with 13 Franchised Studios that opened during the 2021 calendar year and were not otherwise open the entire calendar year.

Monthly Net Revenue Generated

Top 20%

• Average:  $56,642.04
• Median:  $55,660.72
• High:  $92,173.63
• Low:  $29,232.08
• Number That Met or Exceeded the Average Monthly Net Revenue:  2 of 4

 Middle 60%

• Average:  $32,543.43
• Median:  $30,402.21
• High:  $84,701.07
• Low:  $14,840.14
• Number That Met or Exceeded the Average Monthly Net Revenue:  6 of 14

Bottom 20%

• Average:  $20,472.19
• Median:  $21,320.13
• High:  $28,840.50
• Low:  $8,930.57
• Number That Met or Exceeded the Average Monthly Net Revenue:  4 of 5

• “Net Revenue” means all consideration (less refunds), whether by cash, credit or otherwise, that was derived from the operation of the represented Franchised Studio. Net Revenue does not reflect the cost of sales, operating expenses, or other expenses that must be deducted from Net Revenue figures to obtain net income.

• “Average” means the sum of all data points in a set, divided by the number of data points in that set.

• “Median” means the data point that is in the center of all data points used. That number is found by examining the total number of data points and finding the middle number in that set. In the event the number of data points is an odd number, the median will be the center number. If the dataset contains an even number of data points, the median is reached by taking the two numbers in the middle, adding them together, and dividing by two.

Part 2 – Average, Median, High, and Low Net Revenue Generated During the First 30 Days of Operation

• Part 2 of this Item discloses the average, median, high, and low total Net Revenue generated during the first 30 days of operation for the 15 Franchised Studios that opened during the 2021 calendar year.

Net Revenue Generated Over First 30 Days of Operation

Top 20%

• Average:  $83,918.23
• Median:  $80,123.26
• High:  $94,415.90
• Low:  $77,215.53
• Number That Met or Exceeded the Average Monthly Net Revenue:  1 of 3

 Middle 60%

• Average:  $52,631.00
• Median:  $53,664.61
• High:  $70,911.70
• Low:  $33,870.17
• Number That Met or Exceeded the Average Monthly Net Revenue:  5 of 9

Bottom 20%

• Average:  $27,294.40
• Median:  $32,038.00
• High:  $32,457.33
• Low:  $17,387.86
• Number That Met or Exceeded the Average Monthly Net Revenue:  2 of 3

Part 3 – Percentage Increase in Total Net Revenue Generated During the 2020 Calendar Year and 2021 Calendar Year

• Part 3 of this Item discloses the average, median, high, and low Net Revenue increase from calendar year 2020 to calendar year 2021 for the 16 Franchised Studios that operated during the entire 2020 calendar year and 2021 calendar year.

• Excluded from Part 3 is Total Net Revenue data in connection with 25 Franchised Studios that were not open and operating for 24 months as of December 31, 2021.

Percentage Increase in Total Net Revenue Generated from 2020 to 2021

Franchised Locations

• Average:  52.18%
• Median:  46.82%
• High:  146.90%
• Low:  -14.48%
• Number That Met or Exceeded the Average Monthly Net Revenue:  7 of 16

Part 4 – Total Monthly Member Value and Retention During Q4 of the 2021 Calendar Year

• Part 4 of this Item discloses the total monthly member value and total retention rate during Q4 of the 2021 calendar year.

• This data only includes Q4 of the 2021 calendar year since RockBox Fitness changed its technology platform which now provides insight into this data. No Franchised Studios were excluded from Part 4.

• Monthly Member Value:  $181.44
• Retention:  89.36%

• “Monthly Member Value” is calculated by taking the total Net Revenue generated by all of the Franchised Studios during Q4 of the 2021 Calendar Year and dividing that amount by the total members of all Franchised Studios.

• “Retention” is calculated by taking the total cancelled memberships during Q4 of the 2021 Calendar Year and dividing that amount by the number of active memberships during Q4 of the 2021 Calendar Year.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

Section VI – RockBox Fitness Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️