From the filed FDD — automated extraction, check the source
2026 FDD
SBA-eligible · directory code S0024 since 2017
9ROUND
Boxing & kickboxing studios · parent company: not identified
9Round is a boutique fitness concept built around 30-minute, kickboxing-style circuit workouts. A franchisee operates a compact storefront gym where trainers guide members through a rotating nine-station circuit, selling recurring memberships to local fitness customers.
9ROUND net unit count declined 49.1% over 2023–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. Most numbers on this page come from that document; others come from federal SBA loan records and labor and census data, each labelled with its source:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened, transferred and left the system, the main basis for our verdict, which rates how strong the disclosed record is, or says when the system is too new, the filing too old, or the disclosure too thin to judge.
Our rating · opinion
Weaker disclosed record
SBA loans to its franchisees approved FY2014–2020 charged off far more often than franchise loans of the same years (24 vs about 9.8 expected, 2.5×). A charge-off is a lender's loss, not proof a business closed, but at 2.5× the same-year rate we cap the rating regardless of what Item 20 shows.
Exit rate · fiscal 2025
29.6%
vs 5.2% median across 35 comparable systems (fitness)
Cost to open
$160K–$390K
Item 7 total investment range
SBA loan losses · vs same-year loans
2.5×
24 of 89 charged off vs ~9.8 expected
Market density · Texas
Typical density
10% thinner than the national average
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Data as of 2026-10-29. Figures come from 9ROUND's public FDD filings (latest: MN 2026, extracted 2026-07-29) and SBA FOIA loan records (through FY2026), extracted by us and possibly containing errors. The rating is our opinion, not investment, legal, or tax advice. Franchisor or owner and see something wrong? Report a correction — we review every request.
Buying an existing 9ROUND? Transfer fee $5,000–$10,000, resale record and asking-price check →
What each source says
FDD record · SBA loans · model · auditor
We lead with the loan record: franchisees' loans defaulted far more often than franchise loans made in the same years, which outweighs what the franchisor's own Item 20 shows.
FDD record · Item 20
Weaker operating record
Units fell 49% (2023–2025: 279 → 142); exit rate 29.6% (fiscal 2025) vs 5.2% median.
SBA loans · vs same-year loans
Far more defaults than expected (2.5×)
24 charge-offs among 89 resolved loans approved FY2014–2020; about 9.8 expected.
Modeled risk
Higher modeled risk
Riskier than 82% of scored systems.
Auditor opinion · Item 21
Clean opinion
Unqualified audit, 2026 FDD. Says nothing about franchisee results.
Behind the verdict
the record, factor by factor · Item 20
latest consecutive years · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness · shown, not counted in the verdict
Systemwide units
2023–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 59 of 199 franchised outlets left the system — an exit rate of 29.6% (fiscal 2025), vs a 5.2% median across 35 comparable systems (fitness). An exit is not a failure: this counts terminations, non-renewals and "ceased — other reasons" as reported, and excludes transfers to new owners.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 371 | 279 | 200 |
| Opened | 4 | 4 | 3 |
| Transfers | 27 | 11 | 6 |
| Terminations | 68 | 66 | 49 |
| Non-renewals | 0 | 12 | 7 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 21 | 2 | 3 |
| Outlets at end | 279 | 200 | 142 |
| Net change | -92 | -79 | -58 |
The franchisor's own finances
FDD ITEM 21 · AUDITED STATEMENTS · 2026 FDD
Elliott Davis, LLC gave an unmodified (clean) opinion on the statements in the 2026 FDD; revenue fell 33% from FY2024 to FY2025 and it reported a net loss in every year shown (FY2024–FY2025).
This is the company selling the franchise, not any franchisee. A clean opinion means the statements are fairly presented — not that the business is healthy.
Revenue · FY2025
$7.8M
p. 84 · matched to statement
Net income · FY2025
−$564K
p. 84 · matched to statement
Where FY2025 revenue came from
22% royalties
12% initial / development fees
Show the statement figures ↓Hide the evidence ↑
| Fiscal year | FY2024 | FY2025 |
|---|---|---|
| Total revenue | $11.6Mp. 84 · matched to statement | $7.8Mp. 84 · matched to statement |
| Royalty revenue | $2.5Mp. 84 · matched to statement | $1.7Mp. 84 · matched to statement |
| Initial / development feesline: Franchise fee revenue | $1.6Mp. 84 | $909Kp. 84 |
| Net income (loss) | −$526Kp. 84 · matched to statement | −$564Kp. 84 · matched to statement |
| Cash at year end | $2.5Mp. 83 | $1.4Mp. 83 |
The lender's view
SBA 7(a)/504 loan outcomes · compared with franchise loans of the same years
Banks have made 118 SBA-backed loans to 9ROUND franchisees since 2014. Of the 89 approved FY2014–2020 that have resolved, 24 charged off — where about 9.8 would be expected for franchise loans made in the same years. That is 2.5× the expected rate: these loans defaulted far more often than comparable franchise loans.
All-time, 25 of 93 resolved loans charged off (26.9%). That raw figure mixes every approval year since 2014 — loans made in 2006–08 failed at several times the rate of loans made in 2010–13 across all franchises — so it is shown as evidence, not as the score.
2.5×
24 of 89 resolved (FY2014–2020) vs ~9.8 expected
26.9%
25 of 93 resolved, every approval year
65.7%
charged-off $ ÷ approved $, defaulted loans
$115,776
what recent franchisees borrowed
53 mo
approval → charge-off, defaulted loans
8 vs 38
distinct banks — fewer than FY16–20 (loan volume and SBA name coding affect this)
Charge-off rate by loan approval year (%) · dashed line = all franchise loans that year
Loan performance by state
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO 9ROUND BY SBA FRANCHISE NAME/CODE · RESOLVED = CHARGED-OFF + PAID-IN-FULL · EXPECTED = SAME-YEAR RATE ACROSS ALL SBA FRANCHISE LOANS, LOANS ≥ ~6 YEARS OLD
The owner's side of the deal
FDD × federal loan record
Who finances it
Stearns Bank National Association
17.8% of this brand's loans
That lender charges off 12.1% of its resolved SBA loans to other franchise brands in the FOIA file, vs 14.8% nationally — a read on that lender's portfolio mix, not a finding about the bank.
Who buys it
60.2%
borrowers with no other franchise SBA loan on record
The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators have charged off less often than brands sold mostly to newcomers (see methodology).
Does experience help here?
−2.8pp
multi-unit vs single-unit owners
Owners of multiple units default at 22.2%; single-unit owners at 25.0% (each on 15+ resolved loans, owners identified by borrower-name matching).
Computed from 118 SBA 7(a)/504 loans matched to 9ROUND by SBA franchise code in the SBA FOIA file. Debt service assumes level amortization at the average disclosed term and rate. Owner-level splits rely on borrower-name matching and may misclassify. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $19,900 franchise fee (Item 5) and a total investment of $160K–$390K (Item 7). The franchisor publishes no earnings claim (Item 19) — ask current and former franchisees for real numbers.
To open (Item 7)
$160K–$390K
all-in investment range
Franchise fee (Item 5)
$19,900
upfront, one-time
Royalty (Item 6)
6%
of sales, ongoing
Starts at a placeholder of $500K — a round figure for the sector, not from 9ROUND’s filings. This brand's FDD makes no Item 19 earnings claim; set your own figure and check it with current and former owners.
Royalty you'd pay / yr
$30K
6% of sales, before profit
Over a 10-yr term
$300K
royalties alone, excl. ad fund
This estimate is computed by software from the brand's public filings and any inputs you enter. No CPA prepared it for you and no assurance is provided on it. Actual results will differ, and the differences may be material.
This is not profit. It covers what the FDD fixes: what you put in, and the royalty you owe on sales. Your take-home depends on rent, staff pay, equipment payments, and the months to breakeven, none of which the FDD fixes for your unit (some Item 19s include cost data — read it).
Build a real pro-forma for 9ROUND with a buyer-paid CPAModeled risk
FDD Risk Score · a prediction from disclosure and loan-file features
Modeled from the public record, this brand looks riskier than 82% of the systems we score (higher-risk band).
Observed · vs same-year loans
2.5×
24 of 89 seasoned loans charged off
Risk percentile
82nd
Checkable · higher = riskier
Modeled · vs same-year loans
1.5×
≈ 24.6% at the all-loan vintage mix
Top drivers: Item 20 exit rate (raises) · No Item 19 disclosure (lowers) · Share financed by high-loss lenders (lowers) · Item 3 litigation (log) (raises). The brand has 30+ seasoned resolved SBA loans, so the score can be checked against its own record. A linear scorecard trained on brands' vintage-adjusted SBA loss records; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Public records
Bankruptcy, closure & federal court records · coverage is selective · dockets are not scored
Franchise litigation docket: 9Round Franchising LLC v. McKenny (District Court, D. South Carolina)
Filed by the franchisor · CourtListener/RECAP ↗ · 6mo ago
Filed by the franchisor · CourtListener/RECAP ↗ · 20mo ago
Filed by the franchisor · CourtListener/RECAP ↗ · 25mo ago
10 questions to ask a 9ROUND franchisee
Built from this brand's own disclosures · take it to your validation calls
The franchisor will give you a list of owners to call. Most buyers ask whether they like it. These questions come from what 9ROUND has disclosed. Each one carries the number it came from, so you can check the answer against the record.
- 01
9ROUND’s own Item 20 shows 59 of 199 franchised outlets left the system in fiscal 2025 — about 29.6%. Do you know any of those owners, and do you know why they left?
A franchisor will call these “transitions.” An owner three doors down usually knows whether they sold at a profit or handed the keys back.
FDD Item 20 · FY2025
- 02
6 units transferred to new owners in fiscal 2025. When you look at those, were they people cashing out a good business — or getting out of a bad one?
Item 20 counts transfers as neutral, but a transfer can be a good sale or a reluctant exit — the filing does not say which.
FDD Item 20 · FY2025
- 03
The system went from 279 units to 142 over 3 disclosed years. What's the explanation you've been given, and do you believe it?
A shrinking system means fewer owners funding the ad fund and support staff you're paying for.
FDD Item 20 · FY2023–FY2025
- 04
SBA loans to 9ROUND franchisees approved 2014–2020 defaulted far more often than franchise loans made in the same years: 24 charge-offs among 89 resolved loans, where about 9.8 would be expected (2.5×). Did you finance with an SBA loan, and how close did your first two years come to trouble?
This is the lender's view of how these loans ended, from public federal records matched by SBA franchise code — independent of anything the franchisor discloses — compared with franchise loans made in the same years. A charge-off is a loan outcome, not proof the business closed.
SBA 7(a)/504 loan record, seasoned loans FY2014–FY2020 · 2.5× of same-vintage franchise loans
- 05
You pay 6.0% royalty on gross sales, plus the ad fund, before any of your own costs. On your actual revenue last year, what did you take home as the owner — not revenue, take-home?
Royalty is charged on sales, not profit. This is the number the brochure never shows and the one your life actually runs on.
FDD Item 6
- 06
9ROUND’s FDD makes no financial performance representation at all — legally, they've told buyers nothing about earnings. What did your first 24 months actually look like, month by month?
When a franchisor won't publish numbers, existing owners are the only source. Silence in Item 19 is a choice, not a requirement.
FDD Item 19 · 2026
- 07
How many months did it take to cover your own costs, and how much cash did you burn getting there?
Ramp-to-breakeven working capital is the most underestimated line in any franchise purchase, and the most common reason otherwise-good units fail.
Not disclosed in any FDD — ask an owner
- 08
What does the franchisor charge for that you didn't expect — required tech fees, mandatory remodels, approved-supplier pricing?
Required spending appears across Items 6, 8 and 11 rather than in one place, so buyers routinely miss the total.
FDD Items 6, 8, 11
- 09
If your agreement came up for renewal tomorrow at current terms, would you sign again?
The single most predictive question you can ask. A hesitation is the answer.
Ask every owner you speak to
- 10
Who else should I call — including someone who left?
The franchisor's list is curated by definition. Former franchisees are where the unflattering truth lives, and current owners usually know how to reach them.
Ask every owner you speak to
Want this as a checklist you can take to the calls?
I'll email you the printable version, and tell you if 9ROUND’s numbers move — a new filing, a rising exit rate, a distress signal. Unsubscribe in one click.
A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing 9ROUND’s numbers, including talking you out of a bad deal.
This page is what buyers see before they call you for validation. If the record above is wrong — or right in a way the numbers can't show — say so. Franchisors: send corrections with the page reference and we will review them against the filing and update or annotate the page. Corrections are checked against the filings; nothing you write is published with your name unless you agree to it.
9ROUND franchise questions, answered from the filings
How many 9ROUND franchised outlets left the system last year?
In 9ROUND's latest FDD Item 20 (fiscal 2025), 59 of 199 franchised outlets left the system — an exit rate of 29.6% — compared with a 5.2% median across 35 comparable systems (fitness) tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons" as the franchisor reported them; it excludes transfers to new owners. The FDD does not say why each outlet left, and an exit is not the same as a failure.
How much does a 9ROUND franchise cost?
Per 9ROUND's 2026 FDD, buying in requires an initial franchise fee of $19,900 (Item 5) and a total initial investment of $160K–$390K (Item 7).
What royalty does 9ROUND charge?
9ROUND charges an ongoing royalty of 6.0% of gross sales, per Item 6 of its 2026 FDD.
Does 9ROUND disclose earnings (Item 19)?
No — 9ROUND's 2026 FDD makes no financial performance representation in Item 19. That is legal and common, but it means the franchisor publishes no earnings claim; ask current franchisees for real numbers.
How often do SBA loans for 9ROUND franchises default?
SBA loans to 9ROUND franchisees approved 2014–2020 defaulted far more often than franchise loans made in the same years: 24 charge-offs among 89 resolved loans, where about 9.8 would be expected (2.5×). All-time, 25 of 93 resolved loans since 2014 charged off (26.9%); that raw figure mixes every approval year, so we compare with same-year loans instead. A charge-off is a loan loss, not proof the business closed. Source: public SBA 7(a)/504 FOIA data.