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iLoveKickboxing.com Franchise ProfileFitness Franchises > Specialty Fitness Classes |
What is the Initial Investment for an iLoveKickboxing.com Franchise?
To open an iLoveKickboxing.com franchise, the initial investment ranges from $218,904 to $499,499. This includes a franchise fee of $49,999, which grants you the rights to operate under the brand. Additionally, prospective franchisees should prepare for ongoing costs, such as a 6% royalty fee on gross sales and a 1% marketing fee. Having a solid financial foundation is crucial, with a net worth requirement of $250,000 to $500,000 and cash readily available to cover startup expenses.
What are the Revenue Potential and Breakeven Timeline for Franchisees?
iLoveKickboxing.com franchises have shown promising revenue potential, with average annual revenue per unit reaching approximately $727,908. The breakeven time for new units is typically around 12 months, making it a relatively quick path to profitability. Franchisees can expect to recoup their initial investment within the same timeframe, provided they effectively manage operations and marketing efforts to attract and retain members.
What Are the Average Expenses for Operating an iLoveKickboxing.com Franchise?
Operating an iLoveKickboxing.com franchise involves various expenses, with total annual operating costs averaging around $561,959. Key expense categories include personnel costs at approximately $265,624, national marketing and advertising expenses around $112,496, and professional services totaling about $109,096. Understanding these costs is vital for franchisees to manage their budgets effectively and maximize profitability.
How Many iLoveKickboxing.com Units Are Currently Operating?
As of the latest data, iLoveKickboxing.com has seen a fluctuation in its franchised units over recent years. In 2019, there were 231 franchised units, which decreased to 105 in 2020 and further to 94 in 2021. The absence of corporate-owned units indicates a strong focus on franchise growth. This trend highlights the importance of robust franchise support and operational strategies to maintain and grow the network of franchisees.
iLoveKickboxing.com 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:
iLoveKickboxing.com Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2019 | 2020 | 2021 |
|---|---|---|---|
| Total Units | 231 | 105 | 94 |
| Net Change YoY | -126 | -11 | |
| Franchised Units | 231 | 105 | 94 |
| Net Change YoY | -126 | -11 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY |
Initial Investment
The iLoveKickboxing.com franchise offers a range of initial investment options, with costs varying from $218,904 to $499,499. This includes a franchise fee of $49,999, making it accessible for aspiring entrepreneurs looking to enter the fitness industry. The cash required to start a franchise falls within the same range, ensuring potential franchisees can adequately prepare for their venture.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $727,908 per unit, with a median revenue reflecting the same figure. However, it's important to note that revenues can vary significantly, with the lowest reported annual revenue being $90,000 and the highest reaching $727,908. This highlights the potential for profitability within the franchise model, depending on location and operational execution.
Fees and Royalties
iLoveKickboxing.com charges a royalty fee of 6% on gross sales, along with a marketing fee of 1%. These fees contribute to the ongoing support and marketing efforts provided by the franchisor, helping franchisees to effectively promote their business and grow their customer base.
Breakeven and Payback
Franchisees can anticipate a breakeven period of approximately 12 months, aligning with the investment payback period. This relatively quick return on investment can be an appealing factor for potential franchisees, indicating that with proper management, they can start seeing profits within their first year of operation.
Franchise Growth
The iLoveKickboxing.com franchise has seen fluctuations in the number of franchised units over recent years. In 2019, there were 231 franchised units, which decreased to 105 in 2020 and further to 94 in 2021. This trend suggests a need for careful market analysis and strategic planning for prospective franchisees to ensure sustainable growth.
Operational Insights
The average operating expenses for an iLoveKickboxing.com franchise total approximately $561,959.95 annually, with key expenses including personnel costs, national marketing, and professional services. Understanding these expenses is crucial for franchisees to effectively manage their financial performance and optimize profitability.
Frequently Asked Questions
The initial investment for an iLoveKickboxing franchise ranges from $218,904 to $499,499. This includes the franchise fee of $49,999 and other startup costs.