Premier Martial Arts Franchise in 2024: Costs, Fee & FDD

Premier Martial Arts is a leading martial arts franchise founded by Barry Van Over, a seasoned martial artist passionate about making the benefits of martial arts accessible to everyone. The franchise combines traditional martial arts values with modern training techniques, focusing on empowering individuals, building confidence, and promoting fitness in a supportive, community-driven environment.

The franchise offers programs for both children and adults, specializing in disciplines like Karate, Krav Maga, and Kickboxing. Children’s programs emphasize character development and leadership skills, while adult classes focus on self-defense and fitness. Additional services include workshops, birthday parties, and branded merchandise. Premier Martial Arts primarily serves families, targeting children aged 4-12 and adults seeking self-improvement through martial arts.

With over 200 locations across the U.S., Canada, and the U.K., the franchise impacts thousands of customers daily. Franchisees benefit from comprehensive training, ongoing support, tailored marketing strategies, and operational guidance, ensuring they’re set up for success while delivering transformative experiences to their communities.

Premier Martial Arts Franchise Insights

1. Franchisees have access to centralized marketing campaigns, which include digital strategies proven to attract hundreds of leads monthly in local markets.
2. The franchise reported a 90%+ customer satisfaction rate, emphasizing its strong community connection and repeat customer base.
3. The brand’s growth in just a few years highlights its strong appeal in the fitness and sports franchise sector, with established systems supporting franchise success.

Premier Martial Arts Franchise Key indicators

How much does it cost to open a Premier Martial Arts franchise?

Understanding the potential investment size and capital requirements is crucial when considering opening a Premier Martial Arts franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.

Min & Max Investment

Opening a Premier Martial Arts franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a Premier Martial Arts below from the most recent Item 7 below:

Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.

Required Capital

To open a Premier Martial Arts franchise, the required capital involves both the initial investment costs and a net worth requirement set by Premier Martial Arts. Let’s take a closer look below:

• Initial Investment As shown above, the total estimated initial investment ranges from $108,476 to $318,237. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
• Required Capital For Premier Martial Arts, the liquid capital needed is approximately $100,000. This amount is generally needed to cover the franchise fee, initial marketing, working capital, and other start-up costs.
• Net Worth The estimated net worth requirement for this franchise is around $330,000. This is a typical figure for fitness and sports franchises, as it ensures the franchisee has sufficient financial resources to cover long-term operations and unforeseen expenses.

How much does a Premier Martial Arts franchise owner make?

Calculating the salary of a Premier Martial Arts franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Premier Martial Arts franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.

Premier Martial Arts Revenue & Gross Sales

Premier Martial Arts reported a median gross sales figure of $305,081 for its franchise locations based on the most recent data. The brand’s focus on martial arts programs for both children and adults supports its consistent revenue generation, reflecting its position within the fitness and sports franchise market.

Which key factors impact the average revenue performance of Premier Martial Arts franchisees?

The U.S. franchisee median gross sales for Premier Martial Arts are likely influenced by several factors. Increased interest in fitness and personal development, particularly among children and families, has boosted enrollment in martial arts programs. The brand’s focus on offering additional revenue streams, such as merchandise sales, workshops, and events, also contributes to its financial performance. Location-specific factors, including market demographics, competition, and local marketing efforts, can significantly impact sales as well. Additionally, the post-pandemic recovery in the fitness industry and growing awareness of the mental and physical benefits of martial arts likely played a role in driving consistent performance compared to the previous year. Franchisee adherence to the brand’s operational and marketing systems may also help sustain stable financial outcomes across locations.

Premier Martial Arts Franchise Operational Costs

Operational costs for a franchise like Premier Martial Arts are the ongoing expenses required to run the day-to-day operations of the business. These costs are essential for maintaining the business’s functionality and ensuring smooth operations. For a Premier Martial Arts franchise, operational costs include:

• Staff Salaries Costs for instructors and administrative staff, particularly if you plan to hire full-time or part-time employees.
• Facility Rent Leasing costs for the martial arts studio, which can vary significantly depending on the location and size of the space.
• Utilities Monthly expenses for electricity, water, heating/cooling, and internet to keep the facility running smoothly.
• Equipment Maintenance and Replacement Costs for maintaining training gear, mats, and other equipment, as well as replacing worn-out items over time.
• Local Marketing and Promotions Ongoing costs to attract and retain students, such as community events, print advertising, or social media campaigns tailored to your area.
• Insurance Liability and property insurance to protect the business, instructors, and customers.
• Program Materials Costs for uniforms, belts, and other materials included in membership packages or sold to students.

Careful planning and budgeting for these operational costs are crucial for the financial health and success of your Premier Martial Arts franchise.

Premier Martial Arts Franchise Fees

Based on the provided data, here are the relevant ongoing fees to consider when operating a Premier Martial Arts franchise:

• Royalty Fees 7% of gross sales, with a minimum of $500 per month starting in the seventh month of operation. This fee is collected monthly via electronic funds transfer (ETF).
• System Development Fee Up to 2% of gross sales (currently set at 1%). This fee is used to support advertising, research, and development, as well as managing e-commerce accounts and other system-wide initiatives.
• Additional Fees There may be other operational fees or charges not explicitly outlined here, such as local marketing costs, software subscriptions, or technology support fees, depending on the franchise agreement and specific business needs.

These fees are standard in franchise operations and support the overall brand and business infrastructure, ensuring a consistent experience across all locations.

Premier Martial Arts Franchise Earnings

The most recent data available for Premier Martial Arts indicates median gross sales of $305,081, with estimated earnings for an owner-operator at $45,762. These figures provide a general understanding of potential financial outcomes but should be viewed as a reference point rather than definitive projections.

Franchise earnings can vary significantly based on factors like location, market conditions, and how effectively the franchisee operates their business. Prospective franchisees should consider these numbers alongside the total investment, ongoing fees, and market conditions in their area.

How to Open a Premier Martial Arts Franchise

Becoming a Premier Martial Arts franchisee is a rigorous process that involves financial scrutiny, extensive training, and thorough evaluation. However, it offers the potential for a lucrative business opportunity backed by a globally recognized brand and comprehensive support system.

The full process for how to open a Premier Martial Arts franchise is outlined below:

1. Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
2. Validation and Research Prospective franchisees are encouraged to speak with current franchisees to learn more about their experiences, challenges, and the support provided by the franchisor.
3. Discovery Day Candidates are invited to visit the franchise headquarters or participate in a virtual discovery session. This includes meeting key team members and getting a deeper understanding of the business operations.
4. Application and Approval Candidates submit a formal application and financial documentation to confirm their eligibility. Once approved, they move forward to signing the franchise agreement.
5. Securing Financing and Location If needed, franchisees secure financing for the investment. They also work with the franchisor to find and approve a suitable location for their Premier Martial Arts studio.
6. Training New franchisees participate in comprehensive training programs covering operations, marketing, and business management. This training ensures they are well-prepared to run their studio.
7. Buildout and Setup The franchise location undergoes construction, equipment installation, and branding according to Premier Martial Arts’ specifications. This phase includes setting up systems and hiring staff.
8. Pre-Opening Marketing The franchisor assists in launching a local marketing campaign to build awareness and attract customers before the grand opening.
9. Grand Opening and Operations Once the studio is ready, the franchisee officially opens the business, with ongoing support from the franchisor to ensure a smooth start and operational success.

Pros & Cons

Pros

Growing Industry: The martial arts and fitness market is expanding, with increasing demand for children’s programs and self-defense classes for adults.

Relatively Low Overhead Costs: Studio sizes are modest (typically 1,500-2,500 sq. ft.), which helps keep rental and operational expenses manageable.

Multiple Revenue Streams: In addition to memberships, franchisees can generate income from merchandise sales, workshops, events, and birthday parties.

Cons

Dependence on Local Demographics: Success can hinge on the availability of a strong target market, such as families with young children, which may vary by location.

Labor-Intensive Business: Recruiting and retaining skilled martial arts instructors can be challenging, especially in competitive markets.

Market Saturation Risk: With 175 U.S. locations, ensuring that your territory is not overly saturated with similar programs may require careful market research.