In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a UFC Gym franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a UFC Gym franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned UFC Gym outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the UFC Gym franchise opportunity

Section V – Presentation and analysis of UFC Gym’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• average, median, high, and low square footage, 2022 and 2023 member counts, 2023 revenue and 2023 revenue derived from member dues, as well as the number of members and monthly dues derived per square foot for UFC Gym’s 13 affiliate-owned UFC Gym (Signature)/UFC Fit model gyms open for the full Measurement Period (from January 1, 2022 to December 31, 2022 and from January 1, 2023 to December 31, 2023)

• average, median, high, and low square footage, 2022 and 2023 member counts, 2023 revenue and 2023 revenue derived from member dues, as well as the number of members and monthly dues derived per square foot for the 9 UFC Gym (Signature)/UFC Fit model gyms that were owned by franchisees for the entire Measurement Period

Section VI – Key ratios, comparables, computations, and analyses for the UFC Gym franchise opportunity (exclusive content for Platinum subscribers)

Section I – UFC Gym Franchise Costs

• Initial Fee:  $30,000
• Miscellaneous Supplies:  $500 to $2,000
• Opening Inventory:  $6,000 to $20,000
• Insurance:  $4,500 to $7,500
• Printing Signage and Graphics:  $10,000 to $25,000
• Office Equipment/POS System:  $3,500 to $10,500
• Rent/Security Deposit:  $0 to $15,000
• Initial Advertising (Pre-Sale to Grand Opening):  $15,000 to $31,000
• Leasehold Improvements:  $0 to $115,000
• Equipment:  $100,000 to $125,000
• Music Licensing:  $597
• Software Support Fee:  $1,250
• Utilities Deposits:  $1,500 to $2,500
• Licenses and Permits:  $500 to $2,500
• Legal Review:  $500 to $3,500
• Travel, Lodging, Meals, Etc. for Initial Training:  $500 to $2,500
• MyZone:  $7,295 to $8,590
• Box HIIT Live (BHL):  $15
• Additional Funds for 3-6 Months:  $30,000 to $100,000
• Total Estimated UFC Gym Franchise Costs:  $211,657 to 502,452

Section II – UFC Gym’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Fee:  $30,000 to $50,000
• Royalty Fee (Class by UFC Gym):  6% of Gross Revenues; Royalty Fee (UFC Gym (Core)):  5% of Gross Revenues
• Marketing Contributions to the Marketing Fund:  2% of Gross Revenues
• Regional Cooperative Advertising:  as determined by the Cooperative (not more than 2% of monthly Gross Revenues)
• Advertising:  you must spend at least 5% of Gross Revenues or $2,500 for Class by UFC Gym and $3,500 for UFC Gym (Core) whichever is higher, per month on local marketing

Section III – Number of Franchised and Company-Owned UFC Gym Outlets

Franchised

2021

• Outlets at the Start of the Year:  72
• Outlets at the End of the Year:  65
• Net Change:  -7

2022

• Outlets at the Start of the Year:  65
• Outlets at the End of the Year:  61
• Net Change:  -4

2023

• Outlets at the Start of the Year:  61
• Outlets at the End of the Year:  61
• Net Change:  0

Company-Owned

2021

• Outlets at the Start of the Year:  17
• Outlets at the End of the Year:  20
• Net Change:  +3

2022

• Outlets at the Start of the Year:  20
• Outlets at the End of the Year:  20
• Net Change:  0

2023

• Outlets at the Start of the Year:  20
• Outlets at the End of the Year:  13
• Net Change:  -7

Section IV – News Updates on the UFC Gym Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the UFC Gym Franchise (Item 19, 2024 FDD)

• This Item sets forth certain historical data submitted by UFC Gym’s franchised and company-owned UFC Gym (Signature)/UFC Fit model gyms from January 1, 2022 to December 31, 2022 and from January 1, 2023 to December 31, 2023 (the “Measurement Period”). UFC Gym has excluded all Gyms that have not been open and operating for the full Measurement Period.

• UFC Gym (Signature) facilities are big box fitness centers offering a complete line of fitness offerings that include the same offerings as UFC Gym (Core), but also include a café, pro shop, sauna, kids club, and a group fitness room. UFC Gym (Signature) facilities are typically 20,000 to 40,000 square feet or larger.

• UFC Fit facilities are a complete fitness center model that combines the benefits of a full-service, luxury style fitness club with UFC Gym’s exclusive differentiators to create the ultimate member experience. These facilities are outfitted with additional amenities like functional fitness equipment, basketball courts, and group fitness studios. UFC Fit facilities are typically 20,000 to 40,000 square feet or larger.

• This Item does not include financial information related to Class by UFC Gym or UFC Gym (Core) model Gyms.

• Class by UFC Gym facilities are boutique fitness studios focusing on class-based sales and programming with no octagon, limited fitness equipment, a bag rack, and a functional fitness space. Class by UFC Gym facilities are typically between 2,200 to 3,500 square feet in size and will generally offer class-based physical fitness consisting of boxing and high intensity interval training and will typically utilize a bag rack, turf, functional training equipment, rowers, and bikes.

• UFC Gym (Core) facilities are mid-size fitness centers offering traditional fitness class programming, including boxing, kickboxing and D.U.T., mixed martial arts training, youth classes, private coaching, and Brazilian Jiu-Jitsu. UFC Gym (Core) facilities are typically between 6,000 to 10,000 square feet in size, utilizing a weight room, bag rack, octagon, turf traditional gym, and full-service locker rooms.

Part 1 – Affiliate-Owned UFC Gym (Signature)/UFC Fit

• The table below presents the square footage, the 2022 and 2023 member counts, 2022 revenue and 2023 revenue derived from member dues, as well as the number of members and monthly dues derived per square foot for UFC Gym’s 13 affiliate-owned UFC Gym (Signature)/UFC Fit model gyms open for the full Measurement Period.

• The table excludes: (i) 4 affiliate-owned Gyms that were sold to franchisees in 2023 and therefore were not open and operating under the same ownership for the full Measurement Period; and (ii) 3 affiliate-owned Gyms that closed in 2023.

High

• Square Footage:  44,619
• Member Count (December 31, 2022):  7,243
• Member Count (December 31, 2023):  6,962
• Average Member Count:  7,103
• Revenue (FY 2023):  $5,647,651
• Dues (FY 2023):  $3,068,351
• Number of Members Per Square Foot (FY 2023):  0.25
• Monthly Dues Per Square Foot (FY 2023):  $112

Low

• Square Footage:  20,354
• Member Count (December 31, 2022):  2,221
• Member Count (December 31, 2023):  2,195
• Average Member Count:  2,208
• Revenue (FY 2023):  $1,631,315
• Dues (FY 2023):  $779,615
• Number of Members Per Square Foot (FY 2023):  0.09
• Monthly Dues Per Square Foot (FY 2023):  $33

Average

• Square Footage:  35,937
• Member Count (December 31, 2022):  4,891
• Member Count (December 31, 2023):  5,123
• Average Member Count:  5,007
• Revenue (FY 2023):  $3,620,899
• Dues (FY 2023):  $1,995,816
• Number of Members Per Square Foot (FY 2023):  0.14
• Monthly Dues Per Square Foot (FY 2023):  $55

Median

• Square Footage:  39,183
• Member Count (December 31, 2022):  5,001
• Member Count (December 31, 2023):  5,239
• Average Member Count:  5,120
• Revenue (FY 2023):  $3,411,218
• Dues (FY 2023):  $1,829,350
• Number of Members Per Square Foot (FY 2023):  0.14
• Monthly Dues Per Square Foot (FY 2023):  $47

Part 2 – Franchisee-Owned UFC Gym (Signature)/UFC Fit

• The table below presents the square footage, the 2022 and 2023 member counts, 2022 revenue and 2023 revenue derived from member dues, as well as the number of members and monthly dues derived per square foot for 9 UFC Gym (Signature)/UFC Fit model gyms that were owned by franchisees for the entire Measurement Period.

• UFC operated these Gyms pursuant to a management services agreement during the Measurement Period.

• The table excludes seven franchisee owned Gyms that operate under a management agreement but opened in 2023 and therefore were not open for the full Measurement Period. The table also excludes franchisee-owned UFC GYM (Signature)/UFC FIT model gyms that did not operate under a management services agreement.

High

• Square Footage:  40,000
• Member Count (December 31, 2022):  5,304
• Member Count (December 31, 2023):  6,275
• Average Member Count:  5,790
• Revenue (FY 2023):  $5,113,240
• Dues (FY 2023):  $2,889,624
• Number of Members Per Square Foot (FY 2023):  0.24
• Monthly Dues Per Square Foot (FY 2023):  $134

Low

• Square Footage:  15,367
• Member Count (December 31, 2022):  2,643
• Member Count (December 31, 2023):  2,629
• Average Member Count:  2,636
• Revenue (FY 2023):  $2,491,859
• Dues (FY 2023):  $1,252,884
• Number of Members Per Square Foot (FY 2023):  0.09
• Monthly Dues Per Square Foot (FY 2023):  $53

Average

• Square Footage:  27,726
• Member Count (December 31, 2022):  3,697
• Member Count (December 31, 2023):  4,194
• Average Member Count:  3,946
• Revenue (FY 2023):  $3,625,959
• Dues (FY 2023):  $2,043,923
• Number of Members Per Square Foot (FY 2023):  0.13
• Monthly Dues Per Square Foot (FY 2023):  $68

Median

• Square Footage:  25,200
• Member Count (December 31, 2022):  3,869
• Member Count (December 31, 2023):  3,999
• Average Member Count:  3,934
• Revenue (FY 2023):  $3,801,696
• Dues (FY 2023):  $2,007,601
• Number of Members Per Square Foot (FY 2023):  0.14
• Monthly Dues Per Square Foot (FY 2023):  $72

• This analysis does not contain complete information concerning the operating costs and expenses that you will incur in operating your Gym. Operating costs and expenses may vary substantially from Gym to Gym. The above figures exclude:

• start-up expenses;
• advertising;
• costs of goods sold;
• insurance, payroll costs, taxes, administrative expenses, as well as the cost of labor;
• owner compensation/salary;
• healthcare and employee benefits costs;
• utilities expenses;
• the cost of equipment, inventory, and supplies;
• travel and entertainment expenses;
• license and permit fees and professional services expenses;
• taxes;
• financing expenses, interest expense, interest income, depreciation and amortization expenses; and
• related expenses which you will incur as a franchisee.

Section VI – UFC Gym Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️