American Rounds Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
American Rounds is a retail franchise operating automated ammunition vending machines for fast, tech-enabled ammo purchases. Franchisees run the machines, managing inventory, compliance, and locations.
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). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $82K – $138K
- 7th pct Retail
- Avg gross sales
- N/A
- Royalty
- 3.0%
- 2nd pct Retail
- Units
- 8
- 8th pct Retail
- SBA charge-off
- N/A
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $82K – $138K including a $30K franchise fee, 3.0% ongoing royalty.
- RETURNSItem 21 / Exhibit F states audited financial statements cover inception (Oct 14, 2024) through Dec 31, 2024 for franchisor American Rounds Franchising LLC, but the financial statement pages (F-2 through F-10) are image-only scans with no machine-readable text in the OCR source, so no balance-sheet or income-statement figures or auditor name could be extracted.
- RISKVerdict D (Below average), verdict score 38/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- American Rounds Franchising LLC
- Parent company
- 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
Overview
About
- CEO
- Grant Magers
- Headquarters
- TX
- Founded
- 2024
- FDD year
- 2025
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 73% below the typical retail franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown13 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
- Top 40% of category vs category
- Liquid capital req'd
- $5K – $10K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 3.0%
- percentage · 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 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $7K – $12K |
| Total fee load | 3.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
American Rounds did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one American Rounds unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
58%
Within the 30–60% "attractive franchise" band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Item 21 / Exhibit F states audited financial statements cover inception (Oct 14, 2024) through Dec 31, 2024 for franchisor American Rounds Franchising LLC, but the financial statement pages (F-2 through F-10) are image-only scans with no machine-readable text in the OCR source, so no balance-sheet or income-statement figures or auditor name could be extracted.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 3.0% — below the Retail average of 8.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Multi-unit rate
Only 13% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Retail averages
How American Rounds Compares
Is the system healthy?
Source: FDD 2025 · Item 20
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
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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.
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
- limited sample (2 loans) — rate not shown below 10
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
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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 required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
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 38 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 3.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | exclusive |
| 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 |
| Arbitration location | Texas (where franchisor headquarters are located) |
| Jury trial waiver | No |
| Governing law | TX |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 7 hrs
- On-the-job training
- 16 hrs
- Training location
- Dallas, TX outlet or designated training center; videos/webinars also available
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Franchisor financing
- Not offered
- Item 10
- POS system
- QuickBooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Online
Item 20 · call current owners
Franchisee Contacts
1 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 Item 19 in the American Rounds FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the American Rounds FDD and qualifies whose outlets they describe.
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 verdict score of 38 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
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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.