UFC Gym Franchise Image

Intro to the UFC Franchise

In Brief:

      • In 2009, Mark Mastrov, founder of 24 Hour Fitness and the Ultimate Fighting Championship (UFC), decided to combine the two and open a gym in the East Bay area.
      • The gym provides customers with a range of mixed martial arts training — group condition and training classes, functional training, personal training, coaching, and family classes — all in a supportive environment.
      • Franchisees benefit from a brand with global recognition, multiple revenue streams, and three business model options.
      • The following case study goes through the story behind the franchise, as well as a breakdown of the numbers in the financial summary.

Financial Summary:

  • Initial Franchise Fee: $30,000
  • Startup Costs: $199,000 – $346,000
  • Royalty: 5.0% – 6.0%
  • Revenue Range: $3,502,063 – $7,317,033

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UFC Gym History

In 2009, Mark Mastrov, founder of 24-Hour Fitness, and the Ultimate Fighting Championship (UFC) decided to collaborate and create a gym together in the East Bay area. At the time, the UFC had begun to gain traction as a popular spectator sport. Considering the growth in popularity, the franchise’s founders wanted to give fans the opportunity to involve themselves physically in the sport they loved to watch on TV.

“It’s going to have something for everyone in the family, from traditional mixed martial arts classes to all-around fitness classes, personal training, and a gym just for kids,” Dana White, UFC President, told MMA Mania prior to the first location opening. “We are going to redefine the fitness industry and get everyone excited about fitness again, starting with the first UFC Gym franchise in Concord California.”

UFC Gym franchise locations work to emulate the training programs and settings that real UFC fighters experience. The UFC Gym often features state-of-the-art fitness equipment and even a large UFC octagon. The gym offers various training classes, including functional strength training, boxing, Muay Thai, Brazilian jiu-jitsu, and kickboxing. The UFC Gym franchise even offers youth boxing, jiu-jitsu, and wrestling classes, among others.

With its classes, the UFC Gym franchise facilities work to create a family-friendly setting. Alongside youth classes, the gyms also offer women-only lessons in various self-defense categories. The franchise recognizes that not all gym-goers love mixed martial arts. The company appeals to all types of training styles, offering personal training programs and high-level cardio equipment.

The franchise founders sought to prioritize equipment but also amenities in their franchise facilities. UFC Gym franchise locations feature spacious locker rooms with dry saunas. Locations also include “The Arm Bar,” a café-style portion of the gym where patrons can relax and buy protein shakes or snacks.

Why You Should Enter the Ring with the UFC Franchise

Now that you know the background of UFC, it’s time for you to join the action and the rapidly growing fitness industry. Here are a few reasons why this opportunity may be perfect for you:

1. Global Recognition

MMA fighting is becoming more popular in the sports world and UFC Gym is contributing to the $87 billion fitness industry. As MMA fighting grows, so does the number of consumers who want to learn. The UFC brand boasts 284 million fans worldwide and there are over 70 million health club consumers. It’s the right time to consider owning a fitness franchise.

2. Multiple Revenue Streams

There are three different business models UFC offers to franchisees: Class UFC Gym, Core UFC Gym, or UFC Gym Signature. Each model gives franchisees the opportunity to drive revenue from multiple sources.  UFC gym helps you discover and delve into options to secure additional funds year after year. Here are examples of the models offered to franchisees:

  • Class UFC Gym:

    • Results-based, class-centric boutique
    • A modern twist on traditional boxing and high-intensity interval training classes in a high-energy environment
    • Easy market entry with low operating costs
  • Core UFC Gym:

    • A variety of classes for the whole family
    • UFC Gym branding and programming
  • UFC Gym Signature

    • The ultimate “big gym” experience
    • Full-service premium facility packed with equipment, amenities, and classes
    • Management Services Agreement available

3. Broad Appeal

The gym offers a full range of exercise courses for any age: this ranges from group conditioning and technique focused classes, to functional training, to personal training, traditional martial arts coaching

UFC GYM offers a full range of group conditioning and technique focused classes, functional training, personal training, traditional martial arts coaching plus fitness, youth and family classes – all in a supportive and motivating environment.

4. Business Model for Any Entrepreneur

Entrepreneurs have the choice of any of the three business models listed above. It is important to find a model that fulfills your budget and business goals — UFC works with you in finding your best fit.

5. Stellar Training and Assistance

The UFC Gym provides franchisees with 5 business days of Initial Training for up to 5 different trainees at the franchisor’s training facility. Trainees must include either the managing owner or the designated general manager and instructors. All trainees must be approved by the franchisor.

The initial training program includes instruction in owner-operator responsibilities, equipment instruction, membership sales, product sales and marketing, and administration. All necessary tools for the training program, including the instructors, facilities, manuals, and tools, will be provided by the franchisor.

The franchisee is expected to pay all expenses of the trainees attending the initial training. This includes travel, lodging, meal expenses and the CPR certification costs for trainers. If the franchisee desires to bring additional trainees, all of the costs and expenses are the responsibility of the franchisee.

The UFC Gym franchise also provides refresher training programs and seminars over time. These seminars must be attended by either the managing owner or the designated general manager. Often, these refresher courses are not scheduled more than once a year. However, in the instance that the franchisee receives an unsatisfactory inspection report or fails to remedy deficiencies, managers must attend refresher training immediately.

All coaches employed by the franchisee must successfully complete the UFC Gym franchise’s private coach training program. This can be done at either the franchisee’s facility or the principal training facility in Newport Beach, CT. This program must be completed within a reasonable time after hiring. The franchisee is expected to pay all of the fees associated with this training program.

FDD Summary

Initial Franchise Fee: $30,000 – $50,000

The Initial Franchise fee is non-refundable under any circumstance upon payment. This fee is based on the size of the UFC Gym that the prospective franchisee will develop and the number of locations purchased.

  • Class by UFC Gym: The initial fee for a CLASS BY UFC GYM franchise is $30,000. This fee must be paid upon signing the Franchise Agreement via wire payment, cashier’s check, or another form of payment approved by the franchisor.
  • UFC Gym Core: The initial fee for a UFC GYM CORE franchise is $40,000. This fee must be paid upon signing the Franchise Agreement via wire payment, cashier’s check, or another form of payment approved by the franchisor.
  • UFC Gym Signature: The initial fee for a UFC GYM SIGNATURE franchise is $50,000. This fee must be paid upon signing the Franchise Agreement via wire payment, cashier’s check, or another form of payment approved by the franchisor. If the franchisee purchases a UFC GYM SIGNATURE franchise, the franchisor may require that they enter into a Management Services Agreement (MSA).

Royalty: 5.0% – 6.0%

Estimated Initial Investment: $199,000 – $346,000

Name of Fee Low High
Initial Franchise Fee $30,000 $50,000
Misc. Supplies $500 $1,500
Opening Inventory $12,500
Insurance (Monthly) $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) $12,000 $20,000
Leasehold Improvements $0 $3,500
Equipment $113,500 $138,500
Music Licensing $1,000
Software Support Fee $1,500
Utilities Deposits $1,000 $2,000
License and Permits $500 $2,500
Legal Review $500 $3,500
Travel, Lodging, Meals, Etc. for Initial Training $500 $2,500
Additional Funds (3-6 months) $15,000 $45,000
Total $199,000 $346,000

Revenue Range: $3,502,063 – $7,317,033

The revenue range is the estimated gross revenue a franchisee may obtain while in business. These numbers represent the lowest and highest gross revenue in 2018. Gross Revenue is defined as all revenues and receipts of every kind derived from operating the Gym any but excludes any refunds, rebates, discounts, and credits of a similar nature, given, paid or returned in the ordinary course of business.

UFC Gym is not your normal gym. They go above and beyond the word fitness with their myriad of training programs and calorie-burning classes. The gym appeals to everyone and is the perfect entrepreneurial opportunity for any potential franchisee.

Disclaimer: The above information was derived from the year 2019 FDD of UFC. This data may not reflect the most current information. AskMrFranchise and affiliates are not responsible for any act or failure to act in reliance upon this report, article, data, and/or information. None of the information mentioned above should be used to substitute or replace consultation with legal or other professionals.

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