American RoundsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A American Rounds franchise requires a total initial investment of $82K – $138K, including a $30K franchise fee and an ongoing 3.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $82K – $138K
- 6th pct Retail
- Avg gross sales
- N/A
- 21st pct Retail
- Royalty
- 3.0%
- 1st pct Retail
- Units
- 8
- 6th pct Retail
- SBA default
- N/A
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $82K – $138K including a $30K franchise fee, 3.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below Average) with a risk score of 77/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- AMERICAN ROUNDS FRANCHISING LLC
- Ultimate parent
- American Rounds, LLC
- CEO title
- CEO
- Grant Magers
- Incorporated in
- TX
- HQ
- 2109 Wheaton Dr., Richardson, TX 75081
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
American Rounds franchisees operate ammunition retail and/or shooting-related service locations. Day-to-day operations likely include inventory management, customer service, point-of-sale transactions, compliance with firearms regulations, and potentially range/safety instruction services, depending on the specific business model variant.
- CEO
- Grant Magers
- Headquarters
- TX
- Founded
- 2024
- FDD year
- 2025
- States available
- 0
FDD Item 7 · 2025 filing · 13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $30K | $30K | |
| Traveling and Living Expenses while Training | $2K | $2K | |
| Vehicle | $5K | $40K | |
| Initial Equipment (AR Machine)not refundable | $25K | $30K | |
| Initial Inventorynot refundable | $7K | $12K | |
| Host Location | $0 | $1K | |
| Computer Hardware & Software | $500 | $3K | |
| Grand Opening Advertising | $2K | $2K | |
| Licenses, Permits, and Certifications | $1K | $2K | |
| Insurance (3 Months) | $2K | $3K | |
| Professional Fees | $3K | $4K | |
| Additional Funds (3 months) | $5K | $10K | |
| Area Development Feenot refundable | $60K | $90K | |
| Total initial investment | $142K | $228K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $82K – $138K
- Better than avg vs category
- Liquid capital req'd
- $5K – $10K
- Better than avg vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 3.0%
- Gross Revenue · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 3.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 3.0% of gross sales |
| Technology fee | $500 |
| Training fee | $500 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 3.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Retail averages
How American Rounds Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 8
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 8
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Multi-unit owners
- 12.5%
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 24
- Franchisor's next-year forecast
- Ceased ops
- 12.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $287K
- Median loan
- $144K
- 50th percentile
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into American Rounds's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
American Rounds is a micro-franchise with inadequate financial disclosure, unproven unit economics, and unclear growth momentum—suitable only for investors willing to pioneer an emerging concept with significant due diligence.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 77 / 100 rating
- 01MINOROnly 8 units system-wide indicates extremely small, unproven franchise model with minimal track record
- 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and raises transparency concerns
- 03MINORHigh initial investment ($81.7K–$137.5K) relative to system size creates disproportionate risk for early franchisees
- 04MINOR5-year term is shorter than industry standard (10 years), suggesting franchisor uncertainty or high turnover risk
- 05MINORUnknown unit growth trajectory suggests stagnation or inconsistent expansion messaging
- 06MED3% royalty on undisclosed gross revenue creates uncertainty about true ongoing cost burden
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 2 mi |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 16 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- POS system
- QuickBooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Online
Item 20 · call current owners
Franchisee Contacts
7 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
American Rounds · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a American Rounds franchise?
The total investment to open a American Rounds franchise ranges from $82K – $138K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do American Rounds franchise owners earn?
American Rounds does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is American Rounds's franchise failure rate?
SBA 7(a) loan charge-off data is not available for American Rounds (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many American Rounds franchise locations are there?
As of their most recent FDD filing, American Rounds has 8 total units in the United States, including 0 franchised units and 8 company-owned units.
Is American Rounds a good franchise to buy?
FranchiseVerdict rates American Rounds as a D-grade franchise with a risk score of 77 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.