UFC Gym
UFC Gym offers MMA-based fitness facilities with training regimens like Daily Ultimate Training and mixed martial arts under the UFC brand name. Known for high-intensity functional workouts in unique gym designs, it competes in the specialized fitness franchise market.
UFC Gym franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment for opening an UFC GYM business ranges widely depending on the model. For a UFC GYM Jiu Jitsu, it ranges from $155,388 to $573,738 [p.N]. For Class by UFC GYM, the range is between $252,457 and $566,500 [p.N]. The UFC GYM (Core) model requires an investment from $601,896 to $1,641,489 [p.N], while the UFC GYM (Signature) or UFC FIT model ranges from $2,170,577 to $6,211,970 [p.N].
What is the initial franchise fee?
The initial franchise fee is paid by Franchisee in consideration of administrative and other expenses incurred by Franchisor, as well as for Franchisor's lost or deferred opportunity to franchise others. This fee is accounted for as a single performance obligation and recognized as revenue on a straight-line basis over the term of the respective franchise agreement. [p.88, p.203, p.216, p.189]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is processed daily for UFC GYM (Core) and UFC GYM (Signature) models and monthly for Class by UFC GYM models. Additionally, there is an ongoing Marketing Contribution required, though specific amounts are not detailed in these excerpts. [p.24]
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is for at least 10 years, with an option to renew for two additional 5-year terms [p.169]. You can renew the franchise agreement, but you must also engage Manager's services for the renewal term, subject to their consent [p.236].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can transfer your franchise contract to another party for a fee. This activity is considered a stand-alone performance obligation satisfied upon granting the transfer and releasing the previous franchisee from the terms of the agreement [p.189, p.216]. However, the franchisor has the right to refuse such transfers except for good cause, which includes but is not limited to specific reasons [p.6].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement on any grounds available by law [p.244]. Additionally, termination may be influenced by Illinois state laws (815 ILCS 705/19 and 705/20) as noted in pages [p.232] and [p.233].
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a franchisee, you must meet the minimum net worth requirements specified by UFC GYM at the time of your application [p.115]. Additionally, you are required to have adequate additional funds (working capital) to keep the gym operational for 3-6 months and cover various expenses before it becomes profitable [p.7, p.99, p.28, p.38, p.31]. This working capital should be sufficient to cover operating expenses, including payroll, rent, utilities, and other normal business operations during the start-up period.
Do I get an exclusive or protected territory?
You receive a protected territory which may vary in size and dimensions from that of other System franchisees. However, you do not have an exclusive territory; you may face competition from other franchisees, outlets owned by the company, or other competitive brands controlled by them within your designated territory [p.53, p.81].
What training and ongoing support does the franchisor provide?
This isn't specified in the excerpts.
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The provided FDD excerpts do not give specific numbers for the total number of franchised outlets or those that have closed or been terminated.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information if there is a reasonable basis for it, as detailed in Item 19 [p.65]. However, other than this specified information, the franchisor does not make any financial performance representations and does not authorize its employees or representatives to do so either orally or in writing [p.66], [p.176].
What am I restricted to selling, and where must I buy supplies?
You must sell or offer for sale only the products and services that meet the franchisor's reasonable uniform standards of quality and quantity, as approved in writing by them [p.61]. You are not restricted as to the customers to whom you may sell approved products or services, but you must buy or lease items from the franchisor or a limited group of suppliers they designate, which may be more expensive than similar items purchased elsewhere [p.4].