About Freedom Boat Club Franchise
Freedom Boat Club is a membership based recreational boating franchise that has been franchising since 2011.
The brand is part of the Brunswick Corporation family and offers members unlimited access to a fleet of boats without the costs and hassles of boat ownership.
Each club location maintains a well equipped fleet and provides training, maintenance, and scheduling through a convenient membership model.
Freedom Boat Club Franchise Cost & Fees
Minimum Investment
$223K
Average Investment
$362K
Maximum Investment
$501K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | The greater of 6% of Gross Revenues or the Minimum Royalty ($1,000 per month for first year, $2,000 per month thereafter) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 0.5% of Gross Revenues (Brand Building Fund Contribution), plus the difference between local advertising spent and 1% of monthly Gross Revenues if requirement not met (Local Advertising Payment), up to 1.25% of Gross Revenues for Local and Regional Advertising Cooperatives (if established), $500 per occurrence for Default Advertising Fee. | National brand fund |
| Total Investment Range | $222,500 – $500,500 | Includes build-out, inventory, working capital |
The investment range of $223K–$501K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (The greater of 6% of Gross Revenues or the Minimum Royalty ($1,000 per month for first year, $2,000 per month thereafter)) and marketing fee (0.5% of Gross Revenues (Brand Building Fund Contribution), plus the difference between local advertising spent and 1% of monthly Gross Revenues if requirement not met (Local Advertising Payment), up to 1.25% of Gross Revenues for Local and Regional Advertising Cooperatives (if established), $500 per occurrence for Default Advertising Fee.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Training Expenses | $2,000 | $4,000 |
| Real Estate | $3,000 | $9,000 |
| Improvements (including Signage) | $1,000 | $3,000 |
| Furniture, Equipment | $2,000 | $3,500 |
| Boat Inventory | $120,000 | $300,000 |
| Professional Fees | $1,500 | $5,000 |
| Insurance | $7,000 | $12,000 |
| Start-up Advertising | $15,000 | $60,000 |
| Deposits, Licenses/Permits | $1,000 | $4,000 |
| Sales and Marketing Support Fee | $0 | $15,000 |
| Additional Funds - Three Months | $20,000 | $35,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 ($1,000 non-refundable deposit) |
| Renewal Fee | 25% of the then-current Initial Franchise Fee, or $10,000 if Franchisor is not offering franchises at time of renewal. |
| Technology Fee | Up to $1,000 per month (Not currently charged) |
| Audit Fee | Cost of audit and inspection, any understated amounts, and any related expenses (estimated between $1,000 and $12,000) |
| Sales and Marketing Support Fee | Varies depending upon services chosen (from $100 to several thousand dollars) |
| Satellite Location Fee | $10,000 (or one-half for social boating/yacht club) |
| Insurance Reimbursement | Our costs plus a twenty percent (20%) administrative fee |
| Additional Training Fee | $150 per person per day, plus tuition, transportation, subsistence, and lodging |
| Boat Expo Exhibitor Fees | Varies (generally $1,000 - $3,500 per year) |
| Customer Issue Resolution | Varies; reasonable costs we incur |
| Payment Service Fee | Up to 4% of total charge (if not EFT) |
| Late Payment | $100 per occurrence, plus the greater of: (a) Prime Rate plus 8%; or (b) 18% per annum |
| Insufficient Funds Fee | $100 per occurrence |
| Failure to Submit Required Report Fee | $100 per occurrence and $100 per week |
| Indemnification | Will vary under circumstances |
| Management Fee | $200 per day, plus costs of transportation, subsistence, and lodging |
| Professional Fees and Expenses | Will vary under circumstances |
| Amendment Fee | Will vary under circumstances |
| Broker Fees | Our actual cost of the brokerage commissions, finder’s fees, or similar charges |
| Liquidated Damages | Will vary under the circumstances (minimum $30,000) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Initial Training Program for up to four people, not exceeding five business days, usually takes place approximately 15 days after Franchise Agreement is signed. |
| Classroom Training | 28 |
| On-the-Job Training | 12 |
| Training Location | Venice, Florida or other location we designate |
| Additional Training | Franchisor may require operating principal and other trained personnel to attend system-wide refresher or additional training courses. Franchisee pays costs for additional training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Territory |
| Exclusive Territory | Yes |
| Territory Size | Generally, an area with a population of approximately 50,000 to 100,000 people. Size may be larger with a Development Addendum, or reduced to a 5-10 mile radius if Development Schedule is not met. |
| Description | An exclusive territory based on geographic area, population properties, and other relevant demographic characteristics. The geographical location itself may impact the size, including the number and size of bodies of water. Franchisor will not establish, operate, or license others to operate an FBC Business within your Protected Territory, as long as you are in compliance. You may only operate one FBC Business within your Protected Territory, but may be allowed to operate Satellite Locations. Franchisor retains rights to operate outside the territory, use marks in alternate channels, use other proprietary marks, engage in transactions with competing businesses (not under Proprietary Marks), use technology in non-franchisee locations, and implement multi-area marketing programs. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Five years |
| Renewal Term | One additional period of five years |
| Renewal Fee | 25% of the then-current Initial Franchise Fee, or $10,000 if Franchisor is not offering franchises for sale. |
| Renewal Conditions | Not in default, satisfactory inspection reports, written notice of election to renew, completion of all steps (including signing successor agreement and ancillary documents, general release, capital improvements, training, satisfying Minimum Renewal Gross Revenue Requirement of $500,000 in final 12 months, and paying successor franchise fee). |
| Transfer Fee | $10,000 ($1,000 non-refundable deposit) |
| Transfer Conditions | Franchisor approval (can be rejected), full compliance with agreement, transferee qualifies (skills, economic resources, creditworthiness, ethical background), financial information provided, transfer documents approved (price/terms not adversely affecting assignee's ability to operate), assignee's financing subordinate to franchisor, general release signed, training completed, all material obligations to franchisor met, assignee executes then-current franchise agreement (without initial fee), franchisee agrees to non-competition/non-solicitation covenants. |
| Termination for Cause | Franchisor can terminate for various material defaults, some with opportunity to cure (e.g., nonpayment, failure to comply with laws, failure to operate, failure to pay others, default under lease/sublease - 10 or 30 days to cure), and some without opportunity to cure (e.g., bankruptcy, abandonment, misrepresentation, reputation harm, criminal misconduct, duplication of system, failure to pay third parties resulting in franchisor action, under-reporting, repeated defaults, transfer without consent, loss of FBC location, intellectual property misuse, loss of license, failure to open, danger to public health, brand covenants). |
| Non-Compete Period | During the term of the Franchise Agreement and for a period of two years immediately following its expiration, non-renewal or termination. |
| Non-Compete Details | During term: Franchisee, principal owners, immediate family members cannot participate in a diverting business, own interest in, loan money to, or perform services for a competitive business anywhere; cannot interfere with franchisor/other franchisees; cannot solicit customers. Post-term: Owners cannot have an interest in any competing business for two years at or within 50 miles of any FBC Franchise (opened or under development). Owners may not solicit any customer of the Franchise or any FBC Franchise for two years. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisee must directly operate the FBC Business. If an entity, an 'Operating Principal' must be designated, have at least 25% equity interest, and devote full time, energy, and best efforts to management and operation. Operating Principal and other required persons must successfully complete training. All owners and their spouses must sign an Owners Agreement, making them jointly and severally liable for obligations. |
| Required Suppliers | Franchisor designees, approved suppliers, or franchisor/affiliates for products, services, supplies, fixtures, equipment, inventory, computer hardware and software, and real estate. Specific approved suppliers include Brunswick, Brunswick Family Boat Co, Inc., Boston Whaler, Inc., Brunswick Leisure Boat Company, LLC, Thunder Jet Boats, Inc., Lund Boat Company for boats; Brunswick for engines; Land 'N' Sea Distributing, Inc. for parts and accessories; Freedom Business Services, LLC for bookkeeping and fleet management vendors; Boateka, Inc. for used boats/inventory; Brunswick Product Protection Corporation for extended warranties. |
| Supply Restrictions | Franchisee must operate according to franchisor's System and specifications, including purchasing/leasing from designees, approved suppliers, or franchisor/affiliates. Fleet exclusivity agreement may restrict purchasing boats from anyone besides franchisor/affiliates. Franchisor reserves the right to designate itself or affiliates as the *only* approved supplier in the future. Computer hardware and software must be periodically designated by franchisor. |
| Franchisor Revenue from Suppliers | During last fiscal year (ended Dec 31, 2021), affiliates realized revenues totaling $27,726,413 from sale/lease of products/services to franchisees. Franchisor itself did not derive revenue from sale/lease of products/services to franchisees. Franchisor may receive promotional allowances, volume discounts, and other payments from suppliers, and vendors exhibiting at the annual conference pay a fee. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Brunswick Acceptance Company, LLC (BAC), a joint venture between Brunswick Corporation and Wells Fargo Commercial Distribution Finance, LLC, may offer customized financing to certain franchisees for the purchase of Covered Boat inventory. Financing terms (interest rate up to 18% per annum, security requirements including perfected priority security interest in financed boats and all other assets of franchisee, and guaranties from owners) are negotiated between BAC and the franchisee. BAC may sell, assign, or discount the amount financed to a third party. Franchisor does not offer direct or indirect financing and does not guarantee promissory notes, leases, or other obligations, though Brunswick Corporation or its affiliates may guarantee certain franchisee financing obligations or provide an agreement to BAC to repurchase Covered Boats. |
Freedom Boat Club Franchise Earnings — Item 19
Freedom Boat Club does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Freedom Boat Club does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Freedom Boat Club Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Freedom Boat Club System Growth
Total Units
301
Franchised
244
Company-Owned
57
Freedom Boat Club currently operates 244 franchised locations and 57 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 39 | 1 | 211 |
| 2020 | 45 | 4 | 252 |
| 2021 | 82 | 33 | 301 |
Transfers: 17 | Closures: 38
State Registrations
Registered in 10 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, Rhode Island, Washington, Wisconsin
Franchisor Financials (Item 21)
Revenue
$8.5M
Net Income
$2.7M
Total Assets
$6.3M
Audited by RGR CPA, LLC for year ending December 31st.
Freedom Boat Club Franchise — FAQ
The total investment to open a Freedom Boat Club franchise ranges from $222,500 to $500,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $50,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Freedom Boat Club charges a royalty fee of The greater of 6% of Gross Revenues or the Minimum Royalty ($1,000 per month for first year, $2,000 per month thereafter) of gross sales, plus a 0.5% of Gross Revenues (Brand Building Fund Contribution), plus the difference between local advertising spent and 1% of monthly Gross Revenues if requirement not met (Local Advertising Payment), up to 1.25% of Gross Revenues for Local and Regional Advertising Cooperatives (if established), $500 per occurrence for Default Advertising Fee. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Freedom Boat Club Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Freedom Boat Club to ensure you have the most up-to-date version.
Freedom Boat Club does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Freedom Boat Club has been franchising since 2011. The FDD shows an investment range of $222,500-$500,500, a The greater of 6% of Gross Revenues or the Minimum Royalty ($1,000 per month for first year, $2,000 per month thereafter) royalty, and no Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $50,000 and the total investment ranges from $222,500 to $500,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Freedom Boat Club and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Freedom Boat Club or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com