UFC GYM Franchise in 2024: Costs, Fee & FDD
Explore the dynamic world of UFC Gym, combining MMA-inspired training with mainstream fitness. Learn about the costs, opportunities, and challenges of investing in this globally recognized fitness franchise.
Table of Contents:
UFC Gym was launched in 2009 as a partnership between the Ultimate Fighting Championship (UFC) and fitness industry leader Mark Mastrov, the founder of 24 Hour Fitness. This franchise represents the fusion of high-performance MMA training with mainstream fitness, carving a unique niche in the industry. By bringing the energy, discipline, and rigorous training of the UFC into a welcoming fitness environment, UFC Gym has made martial arts-inspired fitness accessible to the general public while appealing to both fitness enthusiasts and MMA fans.
At its core, UFC Gym offers a dynamic mix of products and services, including group fitness classes, personal training, youth programs, and functional fitness training. Signature classes like “Daily Ultimate Training” (DUT) combine elements of strength, cardio, and conditioning in high-energy, full-body workouts. The franchise also caters to a wide audience, ranging from beginners looking to get fit to seasoned athletes and martial arts enthusiasts who want to sharpen their skills. Its services are designed to promote a healthy, balanced lifestyle for individuals and families alike.
UFC Gym has grown into a global brand, boasting more than 150 locations across 37 countries, including the U.S., Canada, Australia, and the Middle East. It serves thousands of members daily, making it one of the most recognized names in the fitness franchise world. With facilities ranging from compact boutique-style gyms to sprawling flagship locations equipped with octagons, weightlifting areas, and cardio machines, UFC Gym provides versatility in terms of franchise format and community reach.
Franchisees benefit from robust support, including site selection assistance, marketing tools, and comprehensive training programs for operations and fitness management. UFC Gym also emphasizes ongoing development, providing franchisees access to proprietary fitness programming, an established brand with strong global recognition, and tools to build a loyal membership base. Combined with the marketing power of the UFC brand, these features make UFC Gym an exciting option for entrepreneurs looking to enter the fitness industry.
UFC Gym Franchise Insights
- Established Brand with a Growing Presence: UFC Gym, founded in 2004, now operates 74 U.S. locations, including 61 franchised units and 13 corporate locations, showcasing a solid foothold in the fitness market.
- Unique Offering: UFC Gym combines MMA-inspired training with mainstream fitness services, appealing to both fitness enthusiasts and martial arts fans—a rare blend in the fitness industry that differentiates it from traditional gyms.
- Brand Strength: UFC Gym benefits from its connection to the UFC, one of the most recognizable names in sports, providing built-in marketing power and a competitive advantage in attracting members.
- Youth Programs: The inclusion of youth fitness and MMA programs provides an opportunity to build long-term customer loyalty by engaging entire families, a feature that sets UFC Gym apart from many competitors.
- Higher Than Average 3-Year Failure Rate: UFC Gym has a 3-year failure rate of 39%, which is significantly higher than the industry average, suggesting potential challenges in franchisee sustainability and market penetration.
UFC Gym Franchise Key indicators
Growth YOY (%)
0%
vs industry 5%
Total U.S. Franchised Units
61
3-Year Failure Rate
39%
vs industry 12%
Sales-to-Investment ratio
1.3:1
How much does it cost to open afranchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a UFC Gym 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 UFC Gym 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 UFC Gym below from the most recent Item 7 below:
Type of Expenditure
Minimum Investment
Maximum Investment
Initial Fee
$30,000
$30,000
Misc. Supplies
$500
$2,000
Opening Inventory
$6,000
$20,000
Insurance
$4,500
$7,500
Printing Signage and Graphics
$10,000
$25,000
Office Equipment/P.O.S. System
$3,500
$10,500
Rent/Security Deposit
$0
$15,000
Initial Advertising (Pre-Sale to Grand Opening)
$15,000
$31,000
Leasehold Improvements
$0
$115,000
Equipment
$100,000
$125,000
Music Licensing
$597
$597
Software Support Fee
$1,250
$1,250
Utilities Deposits
$1,500
$2,500
Licenses and Permits
$500
$3,500
Legal Review
$500
$2,500
Travel, Lodging, Meals, Etc. for Initial Training
$500
$2,500
MyZone
$7,295
$8,590
Box HIIT Live (BHL)
$15
$15
Additional Funds (3-6 months)
$30,000
$100,000
Total
$211,657
$502,452
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 UFC Gym franchise, the required capital involves both the initial investment costs and a net worth requirement set by UFC Gym. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial investment ranges from $211,657 to $502,452. 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.
- Liquid Assets For franchises in this investment range, it is common to require $100,000 to $150,000 in liquid assets to ensure you have sufficient cash for upfront costs and working capital.
- Net Worth Franchisors typically expect a minimum net worth of $500,000 to $750,000, which demonstrates financial stability to support operations.
How much does a UFC Gym franchise owner make?
Calculating the salary of a UFC Gym 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 UFC Gym 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.
UFC Gym Revenue & Gross Sales
UFC Gym’s recent revenue performance demonstrates its strong market presence and customer demand, with a median gross sales figure of $3,801,696. This impressive number reflects the franchise’s ability to attract a broad membership base and leverage its reputation as a fitness and training powerhouse. As a premium fitness center offering diverse services, UFC Gym caters to a wide range of customers, from casual fitness enthusiasts to professional athletes. Prospective franchisees can view this performance as a benchmark for the brand’s earning potential while factoring in operational costs and market conditions for a comprehensive assessment.
Which key factors impact the average revenue performance of UFC Gym franchisees?
The strong performance of UFC Gym franchisee median gross sales can be attributed to several key factors. First, the franchise’s diverse range of offerings, including high-energy group classes, youth programs, personal training, and martial arts instruction, has allowed it to appeal to a wide demographic. The UFC brand’s global recognition and association with high-performance fitness continue to attract members who value a premium fitness experience. Additionally, the rising popularity of functional and mixed martial arts-inspired workouts has driven increased customer engagement. Strategic marketing campaigns and a focus on community-building through local events and member engagement programs have further supported franchisees in attracting and retaining customers. However, external factors such as economic conditions and local competition may also influence individual franchise performance, emphasizing the importance of operational excellence and tailored marketing strategies.
UFC Gym Franchise Operational Costs
If you were to open a Wow Wow Hawaiian Lemonade franchise, here are the key primary ongoing operational costs to consider:
- Staffing Costs Salaries and wages for gym staff, including personal trainers, fitness instructors, front desk associates, and managerial roles. Additional costs may include recruitment, training, and employee benefits.
- Facility Maintenance Regular cleaning, equipment repairs, and routine maintenance to ensure the gym remains in top condition. This includes costs for HVAC servicing, flooring repairs, and other upkeep.
- Utilities High utility expenses, including electricity, water, and internet, which power lighting, HVAC systems, and fitness equipment.
- Equipment Leasing or Upgrades Monthly payments for leased equipment and periodic upgrades or replacements to maintain competitive and appealing fitness offerings.
- Technology and Software Subscriptions Membership management software, scheduling platforms, and proprietary fitness apps or systems provided by UFC Gym.
- Local Marketing and Promotions Expenses for advertising campaigns, promotional events, and community outreach to attract and retain members in your area.
- Insurance Comprehensive business insurance, including liability, property, and workers’ compensation coverage, to protect the gym and its staff.
- Cleaning and Sanitation Supplies Ongoing costs for cleaning supplies, sanitization stations, and potentially professional cleaning services to maintain hygiene standards.
These costs vary by location, so a detailed business plan is crucial for managing them effectively.
UFC Gym Franchise Fees
Operating a UFC Gym involves several ongoing fees that contribute to maintaining brand consistency, marketing support, and franchise resources. Here are the key ongoing fees based on the provided data:
- Royalty Fee 5.5% of gross revenues, payable monthly, supporting access to franchise resources, training, and operational systems.
- Marketing Fund Fee 2% of gross revenues, payable daily or as specified, funding brand-wide promotional campaigns, advertising materials, and marketing initiatives to support customer acquisition.
- Potential Additional Fees Other fees may apply for specific services, technology upgrades, or supplementary marketing efforts depending on the franchise agreement and operational needs.
Understanding these fees is crucial for effective financial planning and ensuring compliance with franchise agreements. Prospective franchisees should also consult the FDD for a comprehensive breakdown of all potential costs.
UFC Gym Franchise Earnings
The most recent median gross sales for UFC Gym franchise locations were reported at $3,801,696, reflecting the strong revenue-generating potential of the brand. This figure highlights the franchise’s ability to attract a loyal customer base with its unique fitness offerings and strong branding. Prospective franchisees should consider the operational factors and market dynamics that influence these numbers, as well as consult with the franchisor and existing franchisees for a detailed understanding of performance expectations in their target market. The reported revenue showcases the brand’s continued growth and market appeal in the fitness industry.
How to Open a UFC Gym Franchise
The process of becoming a Wow Wow Hawaiian Lemonade franchisee involves several structured steps designed to ensure franchisees are well-prepared for ownership and operational success:
- 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).
- Discovery Day Attend a Discovery Day to meet the leadership team, experience the brand’s culture, and gain in-depth insights into the business model. This is an opportunity for mutual evaluation and understanding of the franchise system.
- Site Selection and Lease Negotiation Work with UFC Gym’s team to select a location that aligns with brand standards and negotiate lease terms. The franchisor provides guidance to ensure the site meets operational and marketing requirements.
- Training Program Complete an extensive training program covering operations, marketing, customer service, and fitness programs. Training includes hands-on sessions at designated UFC Gym facilities and corporate office guidance.
- Build-Out and Pre-Opening Preparations Oversee the gym’s construction, equipment installation, and branding. Launch pre-opening marketing campaigns to generate excitement and attract members ahead of the grand opening.
- Grand Opening and Operations Oversee the gym’s construction, equipment installation, and branding. Launch pre-opening marketing campaigns to generate excitement and attract members ahead of the grand opening.
Pros & Cons
Pros
Strong Brand Recognition: UFC Gym benefits from the global popularity of the UFC brand, attracting fitness enthusiasts and martial arts fans alike.
Diverse Revenue Streams: With offerings such as fitness classes, personal training, youth programs, and merchandise sales, franchisees can capitalize on multiple income channels.
High Median Gross Sales: Recent data indicates a median gross sales figure of $3,801,696, showcasing strong earning potential for well-managed locations.
Broad Target Audience: The gym appeals to a wide range of demographics, from beginners to advanced athletes, creating opportunities for consistent membership growth.
Cons
High 3-Year Failure Rate: The franchise has a 39% failure rate, which is significantly above the industry average and may indicate challenges in achieving long-term sustainability.
Intensive Labor Requirements: Managing a fitness center requires hiring and retaining skilled trainers and staff, which can be difficult in competitive labor markets.
Operational Complexity: The need to manage various programs, equipment maintenance, and member engagement may require significant time and operational expertise.
