PROSPECTUS 20209ROUND.COM.AU | +64 27 672 2312 | PPOWERMAN@LIFTBRANDS.COM

9ROUND AUSTRALIA FRANCHISE OPPORTUNITY

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PARTNER WITH THE HARDEST HITTING FRANCHISE IN THE WORLD RIGHT NOW

Congratulations and welcome to the first step to owning a 9Round and helping others become stronger in 30 minutes physically and mentally.

As the Franchise Sales Manager, I will be your first point of contact and main source of support and guidance throughout not only your journey to becoming a 9Round franchisee but ongoing after you have opened the doors to your new club.

Be it that you have always dreamt of owning your own training facility or you have aspirations of owning multiple sites or that you are an investor looking for a great investment I am here to help you realise your dream and potential within the 9Round franchise group.

This initial prospectus is a great starting point to answer some of your early questions about the 9Round franchise model and I will contact you over the coming days to answer any further questions you may have.

Here is to health, wealth and happiness

PAIGE POWERMANNational Franchise Sales Manager

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CONTENTS4. MARKET SNAPSHOT6. MARKET POSITIONING7. A PROVEN CONCEPT8. INVESTMENT SUMMARY9. FINANCE OPTIONS10. EQUIPMENT & CLUB LAYOUT13. SYSTEM AND SUPPORT

MARKET SNAPSHOTMARKET POTENTIALIn the health club industry, Australia one of the strongest markets in the world with a market value of $3.5billion and current growth rate of 3.4% year on year.

GROWTH & MARKET CHANGE DELIVERED THROUGH BOUTIQUE FITNESSThe sector has seen significant growth from penetration levels 14% in 09-10 to 17.1% at present equating to 3.3 million Australians aged 15 years and over.

This number is set to continue increasing with estimated 3.9 million in 2025 providing huge opportunity for the health club sector to continue its significant growth. Compare this to the U.S. who are already at 22% and this further adds to the confidence of these estimates

Reference: Gyms health and fitness clubs in Australia, MarketLine industry profile, December 2017.

LIFT BRANDS

9ROUND – PART OF THE GLOBAL LIFT BRAND’S FAMILY › Lift Brands Elevated Wellness Companies are the world’s largest wellness franchise organisation.

› Six fitness brands: Three of which are in Australia, Snap Fitness, 9Round and Fitness on Demand.

› Lift Brands has 4,000 clubs open or in development in 27 countries.

› Franchisees have been wildly successful partnering with Lift Brands.

› Simple process, turnkey systems, financing options, and world-class support.

WHY 9ROUND? › High-instensity, 30-minute full body workouts which appeal to the busy modern consumer

› Mix of Functional & kick-boxing exercises offering consumers a unique workout experience

› Heart-rate training technology installed in every club for results tracking

› Workout changes every day

› No class times as a new round starts every 3 minutes

› 9Round APP includes personalised nutrition as well as fitness testing and mind-set assistance.

› Systems and processes that can be replicated for multi-club ownership.

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9ROUND MARKET POSTION

9Round sits in the boutique training sector and is recognised as a high-quality competitor with a premium offering at a very affordable investment level.

LEADING FITNESS FRANCHISE9Round is ranked #22 on Entrepreneur’s Fastest Growing Franchises and has experienced 397% growth over the past three years.

Our mission is to “make members stronger in 30 minutes, physically and mentally.”

WHERE DO WE FIT IN?The boutique training sector of the market, as seen in the chart below, is a great position for 9Round. Boutique training is significantly trending right now with groups such as Crossfit and F45 Training seeing huge growth it has opened the market to consider alternate options than the traditional style gym.

9Round blends the best of a number of aspects which are trending worldwide at the moment being HIIT, Fight Fit, UFC / Kickbox fitness and roles it into an element of boutique training under the guidance of a trainer.

This unique mix of training certainly differentiates it within the market however coupled with fast full body workouts that last just 30mins, affordable memberships that are significantly less than most boutique options and convenient access in that there are no class times 9Round is absolutely setting a new standard in this space.

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A PROVEN CONCEPT

With more than 750 locations open worldwide and growing in Australia, 9Round is set to replicate the same growth it is seeing in the USA. You have the chance to be on the ground floor;

› Over 750 locations open

› 13 Countries inc USA, Mexico, UK, Canada, NZ, Australia, Saudi Arabia, Jordan, UAE, India and Japan.

› 10-15 New clubs added monthly

› 20.1 Billion calories burned

› 430 Million rounds completed

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INVESTMENT SUMMARYAFFORDABLE INVESTMENTOur low start-up costs make it easy for you to get started quickly.

Additionally, we have excellent relationships with asset and equipment finance providers who can help you achieve your goal of starting your own 9Round Franchise. You can read more about available finance options on page 9.

PREPARING YOUR FINANCINGGenerally speaking, you are likely to qualify financially for a 9Round franchise if you meet most of these criteria:

› $65k Cash or liquid assets

› $100k Equity

*This estimate is based on a 100 - 150m2 club. Larger size clubs may have higher costs. Final costs are based on your club’s size & Fit Out requirements.

**Please Note: You may wish to consider obtaining extra funds to cover other expenses including utilities, salaries etc, during your first few months in business until cash flow is optimized to cover these expenses. Cash required varies dependent on strength of applicant. Please contact 9Round for more information and a franchise disclosure document.

INITIAL COST LOW HIGH

Initial Franchise Fee $26,400 $33,000

Computer, Sound, and Technology $1,500 $2,000

Lease Deposit $3,500 $7,500

Fit Out: Furniture, Floor Mats, Mirrors, Lighting, Paint, Paneling, Contractor $85,000 $150,000

Equipment (GFK): Bags, Dumbbells, Kettle Bells, Internal Signage, Initial Inventory, Heart Rate Technology System etc.

$45,000 $47,000

External Signage Package $8,000 $12,000

Professional Fees (Town Planner, Acoustic Engineer)- Only if required, site dependant** $0 $9,000

Club Opening Marketing $5,000 $10,000

Travel to Brisbane, QLD for Training $1,000 $2,000

Working Capital $10,000 $15,000

TOTAL $185,400 $287,500

Average Landlord Contribution Will vary from site to site $50,000 $120,000

Typical Finance 30% $40,600 $50,250

Potential Cash Needed $94,800 $117,125

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FINANCE OPTIONS9Round offers financing assistance with the best in the business, helping you reduce upfront capital required.

With a streamlined “pre- qualification” process this program provides turnkey financing for investments unsecured against the business.

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CLUB SIZE LAYOUTSTANDARDISED LAYOUT + DESIGN

FLOOR PLAN

CONSISTENCY OF BRAND › 9Round fits ideally in a space between 100-150m2

› A single order for your full equipment package and set-up with no ongoing equipment lease costs as you would find with a standard gym model.

› Fit out suppliers are standardised across the network to ensure consistency, quality, brand integrity and the ability to deliver the concept to the market faster.

› Floorplan layout is flexible to suit the site chosen and extra equipment is available.

A typical 100 - 150m2 9Round club.

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EQUIPMENTIncluded in the investment summary page you will notice an approximate $46k equipment package.

This initial equipment package along with multiple additional aspects of the business can be rolled into a single finance package if required. We call this one kit your Go-Fast Kit or GFK. Extra equipment is available to add unique pieces to your 9Round such as assault bikes, battle ropes etc.

The 9Round Go-Fast Kit includes;

› The stations for all 9Rounds; Bags, Hangmen, timers etc

› Fitness kit; dumbbells, medicine balls, kettlebells, plyo box set etc

› 200 Sets of 9Round branded quality 14oz Gloves & Wraps

› Myzone system plus 100 Myzone heart rate belts

› Technology kit; membership cards, iPad etc

› Interior branding kit; all hanging signs, clock, posters etc

› Merchandise kit; T-shirts, water bottles, lanyards etc

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9Round offers a fully-integrated 9Round APP which is designed to increase the members habit of attending the club by creating a ‘member’s diary’ and encouraging weekly fitness testing, personalised nutrition plans, ‘Playbook’ access offering exercise techniques as well as mindset tools and a community forum to build engagement and member retention.

The 9Round APP is also synced with MyZone which provides members a one-touch login to view and track their performance of each workout and obtaining their overall health and fitness goals.

What is Myzone? MYZONE is an innovative heart-rate based system that uses wireless and cloud technology to accurately and conveniently monitor physical activity. It monitors heart-rate, calories, time and MYZONE Effort Points (MEPs), with a focus on rewarding effort rather than fitness.

Myzone is an integral part of the 9Round experience for members allowing them to track their results and for trainers to keep clients accountable throughout their sessions. These two aspects are powerful tools in retaining members with research suggesting that members who use wearable tech on a regular basis are 12% more likely to continue long term.

9ROUND APP

MYZONE

9ROUND TECHNOLOGY

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SYSTEMS & SUPPORT

TIMELINE OF SUPPORT

1. Reserve your territory:

Complete a reservation form, pay a deposit & get the ball rolling towards Step 2

2. Choose your location: Site selection assistance, including lease advice and help

3. Fit out your space: Dedicated in-house support team to help you with planning and execution of club fit out with dedicated 9Round shop fitters.

4. Pre-opening training

5. Grand opening support: Fully-integrated marketing and sales training support

6. Continued Success: Year-round support with a dedicated corporate franchise team to boost your business success!

PRE-OPENING TRAINING

9Round offers an internal four-day intensive training at our Corporate Headquarters covering topics such as marketing, sales, operations, health & safety and practical training to get you started on the right foot.

GRAND OPENING SUPPORT

Start things off with a bang! We support your club grand opening with fully integrated marketing campaigns to help spread the word about your club in the local community. And most importantly, how to sell memberships!

CONTINUED GROWTH

Year-round promotional support and marketing campaigns keep your club in the public eye all year long, while our dedicated operations support team is available to help you manage your marketing, sales, and operational questions as well has helping you create the ideal training environment for members and staff whenever you need.

ONGOING EDUCATION

In addition, we offer a comprehensive Online Portal with tools, tips, and training resources for ongoing education, monthly webinars, quarterly face-to-face trainings, an annual Lift Brands Summit and weekly business meetings with a dedicated support member.

You’re never alone with 9Round. Owning your own business may seem like a daunting process, but we help you every step of the way. From the moment you request franchise information, we’re here to walk you through every decision that comes with being a franchisee.

The 9Round Franchise team will support you in sourcing and securing the right location for your club. By utilizing this service, it also provides both parties:

› Greater overall covenant strength

› Increased supply of properties

› More favourable lease terms

› Greater rent-free periods and incentives

› Greater confidence in the brand

› Greater business success

SITE ACQUISITION SUPPORT

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9ROUND.COM.AU +64 27 672 2312

PPOWERMAN@LIFTBRANDS.COM