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CKO Kickboxing Franchise ProfileFitness Franchises > Specialty Fitness Classes |
What Is the Initial Investment for a CKO Kickboxing Franchise?
The initial investment for a CKO Kickboxing franchise ranges from $125,012 to $251,862. This includes a franchise fee of $35,000, which is part of the startup costs. Potential franchisees should also be prepared for ongoing fees, including a 7% royalty fee and a 1% marketing fee. It's crucial to assess your financial readiness for both the initial and ongoing expenses before diving in.
What Are the Financial Expectations for CKO Kickboxing Franchisees?
CKO Kickboxing franchisees can expect an average annual revenue of approximately $926,176, with a median revenue of $661,832. The lowest reported annual revenue per unit is $50,000, while the highest can reach up to $1,623,837. With a breakeven time of about 12 months and an investment payback period of 24 months, franchisees can start seeing returns relatively quickly, provided they manage their operations effectively.
What Ongoing Costs Should Franchisees Anticipate?
Franchisees should be aware of various ongoing costs that can impact profitability. Average operating expenses total around $759,800 annually, which includes management fees, marketing, consulting, and professional fees. These costs must be carefully monitored to ensure that the franchise remains financially viable and can achieve the desired EBITDA of approximately 2% of revenue.
How Has CKO Kickboxing Grown Over the Years?
CKO Kickboxing has experienced fluctuations in its number of franchised units over recent years. In 2018, there were 86 franchised units, which decreased to 66 by 2020. Notably, the company owned one unit in 2019 but has not expanded its corporate units since then. This trend indicates that potential franchisees should assess market conditions and the brand's growth strategy when considering their investment.
CKO Kickboxing Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
CKO Kickboxing Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2018 | 2019 | 2020 |
|---|---|---|---|
| Total Units | 86 | 85 | 66 |
| Net Change YoY | -1 | -19 | |
| Franchised Units | 86 | 85 | 66 |
| Net Change YoY | -1 | -19 | |
| Corporate Units | 0 | 1 | 0 |
| Net Change YoY | 1 | -1 |
Investment Overview
The CKO Kickboxing franchise offers a low to moderate initial investment range between $125,012 and $251,862. The initial franchise fee is set at $35,000, with ongoing royalty fees of 7% and a marketing fee of 1%. Aspiring franchisees should prepare for a cash requirement that aligns with the total investment range, alongside a net worth requirement of $100,000.
Revenue Potential
Franchisees can expect average annual revenues of approximately $926,176 per unit, with a median revenue of $661,832. The revenue spectrum shows a lowest annual revenue of $50,000 and a highest of $1,623,837, illustrating significant earning potential across the franchise network.
Breakeven and Payback Period
CKO Kickboxing franchises typically reach breakeven within 12 months of operation. The investment payback period is estimated at 24 months, allowing franchisees to recoup their initial investments relatively quickly compared to other franchise models.
Franchise Growth
The CKO Kickboxing franchise has seen fluctuations in its growth, with 86 franchised units in 2018, decreasing to 66 units by 2020. This trend indicates a need for strategic planning and support to stabilize and expand the franchise network in future years.
Operational Expenses
Average annual operating expenses for CKO Kickboxing units total around $759,800, which is approximately 82% of revenue. Key expense categories include management fees, marketing, and professional services, highlighting the importance of effective cost management for profitability.
Financial Performance
The average EBITDA for CKO Kickboxing franchises stands at $18,158, reflecting a modest 2% of revenue. This figure, combined with a gross profit margin of 84%, underscores the necessity for franchisees to focus on maximizing revenue while controlling operational costs to enhance overall financial performance.
Frequently Asked Questions
The initial investment for a CKO Kickboxing franchise ranges from $125,012 to $251,862, which includes the franchise fee and other startup costs.