TITLE Boxing Club Franchise in 2024: Costs, Fee & FDD
Discover why TITLE Boxing Club stands out in the boutique fitness industry! From boxing-based workouts to comprehensive franchise support, explore the costs, revenue insights, and key factors shaping this fitness franchise opportunity.
Table of Contents:
TITLE Boxing Club is a premier boutique fitness franchise that revolutionized the fitness industry by putting boxing at the center of high-energy workouts. Founded in 2008, TITLE Boxing Club has grown into a leading fitness brand, setting the standard for boxing fitness in the U.S. The franchise was built on the vision of creating a unique, motivating, and effective workout experience that would appeal to a wide variety of fitness enthusiasts. It quickly became the go-to destination for those seeking an intense yet rewarding fitness regimen. With its emphasis on boxing, TITLE Boxing Club offers an environment that is not only challenging but empowering, promoting both physical and mental strength.
TITLE Boxing Club offers a range of boxing-based fitness classes designed to cater to individuals of all fitness levels. Their core product is their high-energy boxing classes, which focus on skill development, conditioning, and strength training. These classes include traditional boxing techniques combined with full-body movements that are designed to improve cardiovascular health, endurance, and muscle tone. TITLE Boxing Club’s services also include personal training and specialized classes like “Power Hour” and “Boxing & Strength,” ensuring members have a variety of workout options to stay engaged. The core customer for TITLE Boxing Club includes individuals of all ages who are looking for an intense, results-driven workout. With a strong emphasis on community, the brand attracts both beginners and experienced fitness enthusiasts, as well as those seeking stress relief and mental clarity through boxing.
The franchise has earned a reputation for its consistent, results-oriented classes that keep members coming back. The brand continues to expand its footprint across the country, ensuring that even more communities have access to its life-changing workouts. TITLE Boxing Club serves thousands of customers every day, and its expanding presence shows that boxing fitness remains a popular choice among fitness lovers. With its ability to scale effectively, TITLE Boxing Club has proven to be a strong contender in the fitness industry, appealing to entrepreneurs seeking an established and successful franchise opportunity.
TITLE Boxing Club provides a comprehensive franchise support system, ensuring that franchisees are set up for success. From initial training to ongoing support, the franchise offers resources to help franchise owners launch and grow their businesses. Franchisees receive extensive training through TITLE University, which provides detailed programming, including yearly, monthly, and weekly class structures. This allows coaches to maintain consistency and ensure high-quality fitness instruction. Franchisees also benefit from marketing and operational support, ensuring that each location can thrive in its local market.
Title Boxing Club Franchise Insights
- The franchise’s unique, high-energy boxing classes are designed to keep members engaged, with a yearly curriculum that prevents monotony and promotes long-term member retention.
- TITLE Boxing Club serves thousands of members daily, appealing to individuals looking for both fitness and stress relief, giving franchisees access to a broad and diverse customer base.
- Boxing fitness is a rapidly growing segment within the boutique fitness industry, and TITLE Boxing Club is positioned as one of the pioneers in this space, offering a unique competitive advantage.
- Over the past three years, TITLE Boxing Club has experienced a 29% failure rate, which highlights the challenges of sustaining growth in a competitive fitness market.
Title Boxing Club Franchise Key indicators
Growth YOY (%)
-15%
vs industry 5%
Total U.S. Franchised Units
107
3-Year Failure Rate
29%
vs industry 9%
Sales-to-Investment ratio
0.6:1
How much does it cost to open a Title Boxing Club franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Title Boxing Club 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 Title Boxing Club 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 Title Boxing Club below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial franchise fee | $49,500 | $49,500 |
| Pre-Sales Training Fee | $1,500 | $1,500 |
| Launch Training Fee | $6,000 | $6,000 |
| Travel Costs for Franchisee and Franchisee’s general manager to travel to designated location for Pre-Sales Training | $1,500 | $4,700 |
| Initial Package | $96,674 | $106,760 |
| Delivery for Standard Initial Package | $18,001 | $21,843 |
| Leasehold improvements | $164,000 | $380,000 |
| Architectural and Engineering Services | $9,850 | $52,086 |
| Signage | $17,200 | $19,200 |
| Pre-Opening Marketing | $25,000 | $25,000 |
| Retail Items | $3,500 | $8,250 |
| Security Deposits | $5,000 | $21,000 |
| Rent (3 months) | $0 | $63,000 |
| Business Equipment | $2,000 | $4,000 |
| Office Supplies and Cleaning Supplies | $1,500 | $2,500 |
| Business Licenses | $500 | $3,000 |
| Insurance - 3 months | $2,000 | $3,000 |
| Music Licensing Fee | $1,800 | $2,200 |
| Site Selection Assistance/ Consulting | $0 | $2,000 |
| Additional funds – 3 months | $43,000 | $83,000 |
| Total | $448,525 | $858,539 |
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
When considering opening a TITLE Boxing Club or a similar boutique fitness franchise, understanding the required capital, liquid assets, and net worth is crucial for determining whether you are financially prepared for the investment. Here are the estimated financial requirements:
- Required Capital (Total Investment) The total capital required to open a TITLE Boxing Club ranges from $449,000 to $859,000. This includes expenses such as leasehold improvements, equipment, initial inventory, and working capital to cover initial operations. 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.
- Liquid Assets Franchisees typically need to have between $150,000 and $200,000 in liquid assets. These assets can be in the form of cash, readily available investments, or savings that can be used for the initial setup costs and operational needs before the business begins to generate significant revenue.
- Net Worth Franchisees are generally required to have a net worth of at least $500,000 to $1,000,000. This ensures that they have the financial stability to support the ongoing expenses of running the business and to cover any unforeseen challenges.
How much does a Title Boxing Club franchise owner make?
Calculating the salary of a Title Boxing Club 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 Title Boxing Club 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.
Title Boxing Club Revenue & Gross Sales
TITLE Boxing Club has shown strong revenue performance, with a reported median gross sales of $401,490. The franchise’s ability to generate consistent revenue across its locations demonstrates the brand’s strong market position and appeal in the growing boutique fitness industry.
Which key factors impact the average revenue performance of Title Boxing Club franchisees?
The performance of TITLE Boxing Club’s U.S. franchisee median gross sales can be attributed to several key factors. First, the brand’s unique focus on boxing as a fitness method sets it apart from other fitness concepts, appealing to a diverse demographic looking for high-intensity, results-driven workouts. Additionally, the franchise’s well-established reputation and proven business model provide a strong foundation for success, offering franchisees comprehensive support, training, and marketing resources. The growing demand for boutique fitness experiences, coupled with the effective use of consistent and engaging class programming, has helped retain members and drive revenue. Finally, TITLE Boxing Club’s ability to foster a strong sense of community and empowerment among its members likely contributes to customer loyalty and repeat business, which is vital for maintaining healthy sales.
Title Boxing Club Franchise Operational Costs
When considering opening a TITLE Boxing Club franchise, it’s important to account for the key ongoing operational costs beyond the general franchise-related fees. Here are the primary ongoing operational costs to consider:
- Rent/Lease Payments Commercial lease costs will be one of your largest ongoing expenses. The location of your franchise will significantly impact these costs, as prime real estate in high-traffic areas tends to come at a premium.
- Staff Wages This includes salaries for trainers, front desk personnel, and management staff. As the business grows, you may need to expand your staff to meet customer demand.
- Equipment Maintenance and Replacement Regular maintenance and occasional replacement of fitness equipment like punching bags, boxing gloves, and other gear are essential for keeping the facility in top condition.
- Utility Costs Ongoing utility expenses for electricity, water, heating, and cooling are necessary to maintain the club’s operations and provide a comfortable environment for members.
- Insurance You will need insurance coverage, including general liability, workers’ compensation, and property insurance, to protect the business and its employees.
By accounting for these ongoing operational costs, you can develop a more accurate financial plan for running a successful TITLE Boxing Club franchise.
Title Boxing Club Franchise Fees
When considering the financial structure of TITLE Boxing Club, it’s essential to understand the key ongoing fees associated with running the franchise. They are integral to maintaining the consistency and quality that TITLE Boxing Club is known for. Here are the primary fees to keep in mind:
- Royalty Fee The royalty fee is 7.5% of your monthly Gross Revenue, which is standard for many franchises. However, this fee is subject to an adjustment based on your franchise’s performance. If your monthly gross revenue falls below the required Minimum Performance Standard, which is set at $23,600 for the second year and $29,500 for the third year onward, the royalty fee is recalculated accordingly. This ensures that the franchisee is contributing to the ongoing success of the brand in relation to their business performance.
- Brand Creative Fund Contribution Franchisees are required to contribute 1% of their gross revenue to the Brand Creative Fund. This fund helps support marketing and promotional efforts to enhance the visibility and appeal of TITLE Boxing Club nationwide. While the current contribution rate is 1%, the franchisor reserves the right to increase this to as much as 2% if necessary.
- Additional Fees There are additional fees for ongoing training programs, technology support, and other resources provided by TITLE Boxing Club.
By understanding these fees, you can better plan your ongoing expenses and assess the financial sustainability of owning a TITLE Boxing Club franchise.
Title Boxing Club Franchise Earnings
The earnings of a TITLE Boxing Club franchise owner can vary depending on several factors, such as location, sales volume, and management efficiency. Based on the most recent data, the median gross sales for a TITLE Boxing Club franchise are approximately $401,490. For owner-operators, the estimated earnings are around $72,000, reflecting an operating profit margin of 18%. This suggests that franchise owners who take an active, hands-on role in managing their clubs have the potential to generate a solid income, particularly as the business scales and customer loyalty increases.
While the income potential can differ based on individual circumstances, these figures highlight the opportunity for profitability within the TITLE Boxing Club franchise system. By maintaining operational efficiency, effectively managing costs, and driving consistent membership growth, franchise owners can benefit from a rewarding business model with healthy profit margins.
How to Open a Title Boxing Club Franchise
Becoming a franchisee for TITLE Boxing Club involves a structured process designed to ensure both the franchisee and the franchisor are well-prepared for a successful partnership. From the initial inquiry to the opening of the business, each step is focused on thorough evaluation, training, and support to set you up for long-term success.
Here are the steps involved in becoming a TITLE Boxing Club franchisee:
- 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).
- Franchise Application and Interview After conducting your research, you will submit an application. The franchisor will then schedule an interview to discuss your experience, goals, and qualifications to ensure you’re a good fit for the brand.
- Discovery Day If you’re a strong candidate, you’ll be invited to a Discovery Day. This in-person event allows you to meet with the corporate team, tour existing franchises, and get an in-depth look at the operations.
- Franchise Agreement After reviewing the FDD, which outlines all the financial obligations and operational details. You’ll then sign the Franchise Agreement, confirming your commitment.
- Financing and Location Selection With your franchise agreement in place, you will secure financing if needed and begin the process of finding the perfect location. TITLE Boxing Club’s team may assist in identifying potential sites that meet their criteria.
- Training and Set-Up Once your location is secured, you’ll undergo extensive training at TITLE University. This includes operational training, marketing strategies, and customer service practices. Your site will be set up with equipment, branding, and all necessary operational tools.
- Grand Opening and Operations After final preparations, you’ll launch your TITLE Boxing Club with a grand opening event. From there, you’ll continue to run daily operations with the ongoing support and guidance from the franchisor to ensure a successful and smooth operation.
Pros & Cons
Pros
Proven Business Model: TITLE Boxing Club has been operating since 2008 and has grown to over 100 locations, demonstrating its success in the fitness industry. The franchise model is well-established and offers a strong foundation for new owners.
Strong Brand Recognition: As the first major boxing fitness brand, TITLE Boxing Club enjoys strong recognition in the fitness market, which can make it easier to attract customers and gain a competitive edge in a crowded market.
Growth Potential: The company is expanding across the U.S., offering opportunities in untapped markets, making it an attractive choice for entrepreneurs looking to capitalize on a growing fitness trend.
Cons
Competitive Market: The boutique fitness industry is highly competitive, with numerous other fitness concepts targeting similar customers. While TITLE Boxing Club has a strong brand, it may face stiff competition from newer or niche fitness studios.
Location Sensitivity: The success of a fitness franchise heavily depends on location. Franchisees will need to carefully select sites that can draw a consistent customer base, and high lease costs in prime areas can cut into profits.
Recent Failure Rate: The franchise system has seen a 29% failure rate over the last three years, which may raise concerns for potential franchisees. This indicates that a significant number of franchisees have struggled to meet performance expectations or maintain profitability, which could be indicative of challenges in the market or issues with site selection, operational efficiency, or local competition.
