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 2020 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 2020 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 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
- Section V – Presentation and analysis of Rockbox Fitness’ financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- total gross revenue for the first 30 days of operation, plus pre-opening revenue, for the 9 Rockbox Fitness franchised studios that were open as of December 31, 2019, reported their financial information to Rockbox Fitness, and were opened with a Pre-opening Marketing Introduction Program
- average, median, high, and low monthly gross revenue, and number of months in operation for the 11 Rockbox Fitness franchised studios that were open as of December 31, 2019 and reported their financial information to Rockbox Fitness
- 2019 actual and average gross revenue, gross profit, total advertising, operations expenses, payroll, rent/utilities/repairs, royalty fee, managed member acquisition fee, brand fee, and net income for the 3 Rockbox Fitness officer-owned studios that are majority owned by one of Rockbox Fitness’ officers, and operated the entire 2019 calendar year
Section I – Background Information
21 Things You Need to Know About the Rockbox Fitness Franchise
Continues to Invest in Franchising Strategy
1. In July 2019, RockBox Fitness announced the hiring of Zachary Celaya as the brand’s director of franchise development. After spending the last two years in franchising at Driven Brands, Inc., Celaya brings new knowledge and expertise to RockBox and will be responsible for the continued growth of the RockBox community across the country.
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3. Celaya is the former operations manager and franchise business consultant for Driven Brands, Inc. He brings with him a foundation of management and communication skills with a strong background in sales. Before joining the franchise industry, he worked in the automotive industry leading a purchasing team and assisted in sales training for CarMax, which ultimately led to him taking a role at Driven Brands, Inc.
4. According to Celaya, “As a former collegiate athlete myself, I know how important it is to have a gym you can trust and feel comfortable in. After attending a RockBox class myself, I automatically knew I wanted to be a part of their mission. RockBox combined my passion for fitness and previous franchise experience to create a position tailored to me. From my experience, there are few business opportunities that allow you to dive into your community and impact people’s lives the way I have seen RockBox do.”
5. Celaya continued, “Finding the right franchise partners is key to what we do. Seeing franchisees who truly believe in how RockBox can change lives is the core of our company. Having worked as a personal trainer myself, I’ve seen firsthand the changes exercise can have on a person’s life. I am excited to find others who share a mission of creating a tight-knit community where everyone can accomplish their goals.”
Adds Rockstar Franchisor
6. In late March 2019, RockBox Fitness announced that it had signed franchising guru Jeff Dudan to bolster its already-booming franchise development. Dudan is the former co-founder and CEO of AdvantaClean, the world’s largest franchising system in the home improvement space, specializing in mold remediation, water damage restoration, and air duct and dryer-vent cleaning. He grew the company to more than 230 franchise territories in 37 states before selling it to Home Franchise Concepts in January 2019.
7. For RockBox, he will take that vast experience and identify the top markets for growth as well as find the best prospective franchise partners.
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9. Roger Martin, co-founder of RockBox Fitness, said, “We are extremely happy to welcome Jeff to the team. With his impressive background and operational excellence, we are very confident in his ability to lead our franchise development, work with our franchise partners and locate markets that make sense for our company.”
10. “One of the things that attracted me to RockBox Fitness was the company’s level of research and how it has been positioned in the fitness industry,” Dudan said. “RockBox has everything you’re looking for in a fitness brand. I became a member last year and I’ve been experiencing tremendous personal results.”
Continues Rapid Texas Expansion
11. In late May 2020, despite the ongoing COVID-19 pandemic, RockBox Fitness announced its first East Texas development agreement. RockBox has an existing location in Frisco, and is slated to open studios in Cypress and Flower Mound by the end of the year. This is the brand’s third development deal in the Lone Star State.
12. Husband-and-wife team Greg and Renee Branch will own and operate the newest RockBox Fitness location. Though an address has yet to be announced, the duo is eyeing sites in south Tyler due to the area’s recent growth. They are looking to open their studio later on this year in November.
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14. Renee Branch said, “Health and wellness play such big roles in our lives and we wanted to share that with our friends and neighbors. Our lives revolve around helping people, and after connecting with RockBox, experiencing the workouts, and learning more about the brand’s mission, we knew it was the perfect fit for us and for the Tyler community.”
15. Throughout the COVID-19 pandemic, RockBox has adapted and continued to provide services to members through the launch of RockBox Remote, an online workout portal to help members workout while quarantining at home. The portal provides members with access to nutritional guides, over 20 written body-weight workouts/circuits, accountability sheets, food journals, and checklists. It also provides members with the opportunity to stream live workouts and meet one-on-one with coaches.
16. Greg Branch added, “RockBox’s hybrid workout of boxing, kickboxing, and functional training helps provide real results to our members. The workouts take place in motivating and supportive environments to help people reach their goals and have fun improving their physical fitness. There is nothing else like it in the fitness industry and we are excited to play a part in the brand’s growth in Texas.”
17. According to Roger Martin, chief commercial officer and co-founder of RockBox Fitness, “Our growth in Texas has been very impressive. Partners like Renee and Greg who are passionate about health, wellness and helping their community, are what RockBox Fitness is all about. We are excited to welcome them to the RockBox team and look forward to seeing them make RockBox a success in Tyler.”
Company History
18. RockBox Fitness was founded in 2017 by Steve Halloran and Roger Martin in North Carolina. Halloran, an entrepreneur who loved fitness and boxing, first opened a gym in 2013. He set out to open a different kind of gym and continually honed the workout, member experience, and studio offerings to become something unique and incredibly special.
19. Martin began working out at one of Halloran’s gyms in 2016 and was so inspired by Halloran’s vision that he left his job in the pharmaceutical industry to work for Halloran. They decided to rebrand Halloran’s gyms into RockBox Fitness and within one year, the business partners grew from 53 members to 431.
20. In 2018, Halloran and Martin started franchising RockBox Fitness and by the end of the year had a handful of locations up and running. Along with multiple locations in the Charlotte metro area, RockBox has expanded throughout the Southeast, Texas, Arizona, and even as far as San Diego. RockBox Fitness said that its goal is to have at least 200 units open across the U.S. by 2024.
Entrepreneur’s Franchise 500
21. Rockbox Fitness did not rank on Entrepreneur’s 2020 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 2020 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 2020 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
Franchised
2017
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2018
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 4
- Net Change: +4
2019
- Outlets at the Start of the Year: 4
- Outlets at the End of the Year: 13
- Net Change: +9
Company-Owned
2017
- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 3
- Net Change: +1
2018
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 3
- Net Change: 0
2019
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 3
- Net Change: 0
Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis
- This Item sets forth certain historical income and expense information for three affiliate-owned studios (the “Affiliate Studios”), as well as 11 of Rockbox Fitness’ 13 franchised studios that were open as of December 31, 2019, and reported their financial information to Rockbox Fitness (the “Reporting Franchised Studios”).
- The data was obtained by request of monthly financial reports. Franchisees must record all Gross Revenue they receive from operation of their RockBox studio.
- Part 1 of this Item discloses the Total Gross Revenue for 9 of Rockbox Fitness’ 11 Reporting Franchised Studios that underwent its Pre-opening Marketing Introduction Program. Part 1 summarizes the Total Gross Revenue for the first 30 days of operation in addition to Pre-opening Revenue for the 9 Reporting Franchised Studios that were opened with a Pre-opening Marketing Introduction Program.
- Part 1 excludes 2 Reporting Franchised Studios that did not conduct the Pre-opening Marketing Introduction Program.
- Part 2 of this Item discloses the (i) average monthly Gross Revenue, (ii) median monthly Gross Revenue, and (iii) number of months each Reporting Franchised Studio was operating for the 11 Reporting Franchised Studios.
- Part 3 of this Item discloses the Gross Revenue, Gross Profit, and Net Income from Rockbox Fitness’ Officer-Owned Franchise Locations, which are studios that (i) are majority owned by one of Rockbox Fitness’ officers, and (ii) operated the entire 2019 calendar year.
Part 1 – Financial Performance of Certain Reporting Franchised Studios Open as of December 31, 2019
Total Gross Revenue for First 30 Days Open + Pre-launch Sales
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