Risk Score
Pending analysis
Investment Range
$509,640 - $1,141,016
Franchise Fee
$40,000
Total US Locations
85
Business Summary
Rumble operates fitness studios that provide a boxing-inspired, high-energy workout experience. These studios offer a strategic fusion of boxing, HIIT (High-Intensity Interval Training), and strength training classes, along with related merchandise and services, as part of the Rumble system.
Corporate History
Rumble Franchise SPV, LLC, a Delaware limited liability company, was formed on March 6, 2023. However, Rumble franchises were first offered in 2021 by Rumble Holdings, LLC. In March 2021, H&W Franchise Holdings, LLC acquired the rights to the Rumble franchise system and intellectual property from Rumble Holdings, LLC. Later that same month, H&W contributed these assets to Rumble Franchise, LLC, the immediate predecessor of Rumble Franchise SPV, LLC. Rumble Franchise SPV, LLC began selling franchises for studios on April 4, 2023, following an internal reorganization designed to facilitate future funding opportunities for its parent entities.
Financial Overview
Investment Range
$509,640 - $1,141,016
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$60,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$307,000
Equipment Costs (High)
$815,200
Working Capital
$57,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Rumble Franchise SPV, LLC's financial health is closely tied to its parent, Xponential Fitness LLC (the Member), and its affiliates. The auditor issued an unqualified opinion on the consolidated financial statements of XPOF Assetco, LLC (Rumble's direct parent), but noted an emphasis of matter regarding significant transactions and relationships with the Member, implying that the financial results might not be indicative if the company operated without these affiliations. All of Rumble's assets collateralize the Member's existing debt. As of December 31, 2024, there are net advances of $155,034 thousand to the Member, recorded as a reduction to Member's equity, as there are no plans for these amounts to be repaid to Rumble. In 2024, Rumble's parent also divested the Stride and Row House brands without receiving consideration and wound down the AKT brand. There are pending lawsuits and a regulatory consent order (with a $450,000 penalty) against Rumble and its affiliates related to franchise law compliance, which could impact financial performance.
Financing Details
Rumble Franchise SPV, LLC does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations. While Rumble may refer franchisees to certain third-party lenders, such as Amerifund and Navitas, it does not provide information on the specific terms or availability of financing from these or other lenders.
Performance Metrics
Total US Locations
85
Franchised Units
84
Corporate Units
1
Avg Square Footage
2,200
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
11
Litigation Summary
Rumble Franchise SPV, LLC and its affiliates are involved in several litigation and regulatory matters. As of March 14, 2025, there are multiple lawsuits pending. Five lawsuits have been filed by former franchisees or their owners against Rumble's affiliates (AKT Franchise, LLC, Yoga Six Franchise, LLC, BFT Franchise, LLC, CycleBar Franchising, LLC) and parent company (Xponential Fitness, Inc. and Assetco) and various individuals. These lawsuits allege violations of state franchise investment laws (California, Michigan, Florida, Oklahoma, Minnesota), fraudulent inducement to purchase franchises, breach of implied covenant of good faith and fair dealing, breach of financing/support agreements, negligence, and unfair/deceptive trade practices. These cases seek rescission of franchise agreements, actual and special damages, and attorneys' fees. Hearings on some of these matters are scheduled for April 22, 2025. Separately, Rumble's publicly traded parent company, Xponential Fitness, Inc. (XFI), and certain current and former officers, directors, shareholders, and underwriters are involved in four securities-related lawsuits, which have been consolidated. These cases allege omissions and misstatements of material facts in public documents, violating federal securities laws. There are also shareholder derivative lawsuits alleging breach of fiduciary duties, mismanagement, and unjust enrichment against XFI's officers and directors, which are currently stayed pending resolution of the securities lawsuits. In a California regulatory matter, Rumble's Brand Franchisors and parent entities entered into a negotiated Consent Order with the California Department of Financial Protection and Innovation (DFPI) in November 2024. The DFPI's investigation found, without adjudication, that certain registration applications filed by the Brand Franchisors contained material misrepresentations and omissions. The DFPI Parties agreed to cease violations and pay an administrative penalty of $450,000. Compliance training is also required for certain management and franchise sales personnel.
Bankruptcy History
Xponential's Chief Operating Officer of North America, Timothy Weiderhoft, and his wife filed a personal Chapter 7 bankruptcy petition in August 2023. This was due to an unrelated restaurant venture failing because of the COVID-19 pandemic. The bankruptcy was granted a discharge in December 2023. No other bankruptcy is required to be disclosed for Rumble Franchise SPV, LLC.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew the franchise agreement, Rumble franchisees must be in good standing and substantially comply with the existing agreement and other agreements with the franchisor. They need to provide written notice of their intent to renew 90 to 180 days before the term expires, pay a $10,000 successor franchise fee, and sign the then-current form of franchise agreement (which may have different terms). Additionally, franchisees must renovate and modernize their studio to meet current brand standards and sign a general release of claims against the franchisor.
Training & Support Program
Franchisor Assistance
Rumble Franchise SPV, LLC provides extensive assistance to its franchisees. Before opening, Rumble helps with site selection by providing guidelines and potentially connecting franchisees with local real estate brokers, though the franchisee is responsible for securing the location. They offer specifications for studio layout, design, and equipment. Franchisees and their designated managers must complete proprietary Franchise Partner Training, and all trainers must complete New Trainer Onboarding. Rumble also assists with establishing a pre-opening sales plan and an Opening Support Program. On an ongoing basis, Rumble specifies or approves equipment and suppliers and provides continuing advisory assistance through directives, bulletins, meetings, seminars, phone, email, fax, and personal visits. The franchisor administers a Brand Development Fund for regional and national advertising campaigns and requires franchisees to meet local advertising requirements and participate in marketing programs. They also provide technology services, including a required POS/inventory system and business management software, and may offer additional optional training.
Initial Training Hours
18
Training Location
Corporate headquarters in Irvine, CA or virtually from another designated location
Ongoing Support
After opening, Rumble franchisees receive continuing advisory assistance and information from the franchisor as deemed appropriate. This support may be delivered through various channels such as directives, system bulletins, meetings, seminars, telephone, email, fax, personal visits, newsletters, or online manuals. The franchisor also maintains and administers a Brand Development Fund, utilizing it for advertising and promotional activities for the entire system. Franchisees are required to contribute to this fund and must also fulfill local advertising requirements. Rumble may provide or require franchisees and their management personnel to attend up to five days of additional training each year at a designated facility, with no training fee charged for mandatory training. Remedial training may also be mandated if the studio is not compliant with standards. All instructors must complete ongoing New Trainer Onboarding. The franchisor specifies or approves equipment and suppliers and provides technology services, including a mandatory POS/inventory system and business management software, with provisions for system upgrades and maintenance.
Franchise Requirements
Ideal Candidate Profile
Rumble seeks franchisees (or their operating principals) who are of good moral character and reputation, have no conflicting interests, possess a good credit rating, and have sufficient and competent business experience, aptitude, and financial resources. While personal supervision of the studio is recommended, it is not required if a Franchisor-approved Designated Manager (who has completed Studio Management Training and potentially New Trainer Onboarding) is appointed. All individuals with 10% or more ownership and their spouses must provide a guarantee.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Rumble's Designated Territory for each studio is generally an area with a population of at least 15,000 people, based on data from the U.S. Census Bureau or other governmental and commercial sources. The actual size and shape of the territory will vary, depending on the specific location and demographics surrounding the studio. Boundaries can be defined by zip codes, streets, natural or man-made landmarks, or county lines, and may also be delineated on a map.
Staffing Notes
Rumble Studios must at all times be managed by and staffed with a sufficient number of qualified, competent personnel. At least one individual who has successfully completed the Studio Management Training must be present. If the franchisee (or Operating Principal) chooses not to personally manage day-to-day operations, they must appoint a Designated Manager who has completed the required training. All individuals providing Approved Services at the studio must be Authorized Trainers who have completed Rumble's New Trainer Onboarding. Franchisees are solely responsible for hiring, disciplining, discharging, and establishing wages, hours, benefits, and other employment terms for their employees and independent contractors, in compliance with all applicable laws.