UFC Gym Franchise Costs $209K – $5.0M (+ 2024 Profits)

The UFC Gym franchise, established in 2009, merges the intensity and discipline of mixed martial arts (MMA) with fitness training, offering a unique workout experience. It leverages the renowned Ultimate Fighting Championship® (UFC®) brand, recognized globally for its association with elite athletes and MMA. The headquarters of UFC Gym is situated in Newport Beach, California.

The franchise started offering franchising opportunities in 2003, expanding its reach to entrepreneurs passionate about fitness and combat sports. UFC Gym provides a broad spectrum of fitness services and classes, including group fitness, personal training, and specialized MMA training suitable for all ages and fitness levels.

This approach to fitness allows members to train like professional athletes in a supportive and inclusive environment. The franchise offers various models for potential franchisees, including UFC GYM, CORE UFC GYM, and CLASS UFC GYM, catering to different market needs and investment capabilities.

Type of Expenditure	Amount (Class by UFC GYM)
Initial Fee	$30,000
Misc. Supplies	$500 – $1,500
Opening Inventory	$13,000 – $20,000
Insurance	$4,500 – $7,500
Printing Signage and Graphics	$5,000 – $10,000
Office Equipment/P.O.S. System	$1,000 – $3,500
Rent/Security Deposit	$0 – $11,000
Initial Advertising (Pre-Sale to Grand Opening)	$15,000 – $31,000
Leasehold Improvements	$0 – $98,000
Equipment	$110,500 – $195,000
Music Licensing	$600
Software Support Fee	$1,050
Utilities Deposits	$1,500 – $2,500
Licenses and Permits	$500 – $2,500
Legal Review	$500 – $3,500
Travel, Lodging, Meals, Etc. for Initial Training	$500 – $2,500
MyZone	$7,300 – $8,600
Box HIIT Live (BHL)	$15
Additional Funds (3-9 months)	$18,000 – $70,000
TOTAL	$210,000 – $499,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

The Initial Fee for a Class by UFC GYM is $30,000, and for UFC GYM (Core), it is $40,000. This fee is due upon signing the franchise agreement.

Royalty Fee

Franchisees are charged a royalty fee equal to 4-6% of the franchisee’s monthly gross revenues.

Marketing/Advertising Fee

Franchisees contribute to the Marketing Fund based on a percentage of their monthly gross revenues. Specifically, franchisees must spend at least 5% of their gross revenues or $10,000, whichever is higher, per month on local marketing. This fee is intended to support marketing and advertising efforts on behalf of the franchise network.

Technology Fee

The Management Services and Back Office Support Fee ranges from $0 to $13,000 per month, which includes a $3,000 back office accounting support fee and a $10,000 management services fee.

Transfer Fees

A Transfer Fee of $25,000 is charged at the time of transfer of the franchise agreement.

Renewal Fees

The Renewal Fee is 50% of the then-current Initial Fee when a franchisee elects to acquire a successor franchise.

Management Fees

The Management Fee includes a $10,000 management services fee and a $3,000 back office accounting support fee, due monthly in advance. This fee covers the basic support provided by the Manager.

Franchise pros and cons

The Pros:

• Multiple revenue streams: Franchisees get income through group fitness classes, private MMA training, and personal and group training. 
• Wide demographic base: a premier fitness center for kids, men, women and anyone seeking the benefits of MMA-inspired training. 
• Low investment cost: the franchisor attracts low entry barriers with high-income potential. Reduced fitness space with low labor and a simple operating model makes it an appealing franchise opportunity. 
• Brand popularity: UFC is one of the most popular sporting events in the world. Franchisees can leverage the brand’s popularity to capitalize on the already established market base. 
• Initial training: 2 business days of initial training at the California HQ covering the administration, merchandising, franchisor relations and marketing helps franchisees familiarize themselves with the business operations. 
• Territory granted: franchisees operate at designated territories, free from competition against other UFC Gym clubs. 
• Financial assistance: the franchisor has strong relations with third-party financial sources to help business owners cover the franchise fee, inventory, equipment, account receivables and trade fixtures. 
• Allows semi-absentee ownership: franchisees can pursue other business interests and operate several locations because UFC Gym allows semi-absentee ownership. 

The Cons:

• Can’t run from home/as a mobile unit: fitness clubs must be operated within the designated locations. 
• Not a part-time business: franchisees must agree to a full-time, long-term commitment and get involved in the business operations. 
• Minimum employee requirement: 3-5 employees to start and operate a UFC Gym franchise. 
• Competition: Crunch Fitness, Planet Fitness and 24 Hour Fitness.

How to open A UFC Gym franchise

Opening a UFC Gym franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a UFC Gym franchise.

1. Research and Understand the Brand

• Start by learning about the UFC Gym franchise, its history, brand values, and the unique fitness experience it offers.
• Familiarize yourself with the different franchise models available, such as UFC GYM, CORE UFC GYM, and CLASS UFC GYM, to determine which best suits your interests and investment capabilities.

2. Evaluate Financial Requirements

• Review the financial requirements for opening a UFC Gym franchise, including the initial investment, franchise fees, and the required liquid capital.
• Assess your financial resources to ensure you meet the minimum financial requirements for the desired franchise model.

3. Submit an Inquiry

• Visit the official UFC Gym franchise website and fill out the inquiry form to express your interest in becoming a franchisee.
• Provide necessary personal and financial information as required in the inquiry form.

4. Participate in Discovery Process

• Engage in the discovery process with a UFC Gym franchise representative who will provide detailed information about the franchise opportunity.
• Ask questions and discuss any concerns you may have regarding the franchise operations, support, and potential returns.

5. Review Franchise Disclosure Document (FDD)

• Carefully review the Franchise Disclosure Document (FDD) provided by UFC Gym, which outlines the legal and financial obligations of the franchisee.
• Consider consulting with a franchise attorney to understand the terms and conditions of the franchise agreement.

6. Attend Discovery Day

• Attend a Discovery Day event at UFC Gym’s headquarters or a designated location to gain deeper insights into the franchise’s operations and culture.
• Meet with key personnel, tour a facility, and get a firsthand look at the day-to-day operations of a UFC Gym.

7. Secure Financing

• If necessary, secure financing to meet the investment requirements of opening a UFC Gym franchise.
• Explore different financing options, including loans, investors, or personal savings, to fund your franchise investment.

8. Select a Location

• Work with UFC Gym to identify and secure a suitable location for your franchise, adhering to the brand’s site selection criteria and market analysis.
• Ensure the chosen location meets the size and demographic requirements for the desired gym model.

9. Complete Training Program

• Participate in UFC Gym’s comprehensive training program for franchisees, which covers all aspects of running a gym, including operations, marketing, sales, and fitness programming.
• Ensure any designated managers or key employees also complete the required training.

Disclaimer

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