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Koko FitClub Franchise ProfileFitness Franchises > Gyms |
What Are the Initial Investment Costs for a Koko FitClub Franchise?
To open a Koko FitClub franchise, you can expect an initial investment ranging from $203,369 to $396,312. This includes a franchise fee of $39,000, which is a one-time cost for using the brand's name and system. Additionally, franchisees should prepare for ongoing fees such as a 3% royalty on gross sales and a 2% marketing fee. Having adequate cash reserves is crucial, with a required cash amount between $203,369 and $396,312 to cover startup costs and initial operating expenses.
What Are the Financial Performance Metrics for Koko FitClub?
Koko FitClub franchises have the potential to generate significant revenue, with an average annual revenue of $546,231 per unit. However, the revenue can vary widely, with the lowest reported annual revenue at $20,000 and the highest at $1,189,000. On average, it takes about 15 months to break even, and franchisees can expect to recoup their initial investment within 24 months. Understanding these financial metrics can help potential franchisees assess the viability of their investment.
What Are the Running Expenses for a Koko FitClub Franchise?
Operating a Koko FitClub franchise involves various expenses that need to be factored into financial planning. Average annual running expenses total approximately $163,400, which includes rent at $108,000 and utilities at $8,400. Other costs include marketing and advertising at $10,000, insurance at $3,000, and legal and accounting services at $2,000. This breakdown helps franchisees understand their financial obligations and plan accordingly to ensure profitability.
Is Koko FitClub a Suitable Franchise Opportunity for You?
Koko FitClub offers a unique fitness model that emphasizes personalized training through technology, appealing to health-conscious consumers. If you have a passion for fitness and a desire to help others achieve their health goals, this franchise might be a good fit. While prior experience in the fitness industry is beneficial, it is not mandatory, as Koko FitClub provides comprehensive training and ongoing support to franchisees. Assessing your alignment with the brand's mission and your readiness for the financial commitment will be key in determining if this opportunity is right for you.
Koko FitClub 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:
Koko FitClub Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 | |
| Franchised Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
Koko FitClub offers a franchise opportunity with a low initial investment ranging from $203,369 to $396,312. The initial franchise fee is set at $39,000, with ongoing royalty fees of 3% and a marketing fee of 2%. Prospective franchisees should have a net worth between $500,000 and $1,000,000 to qualify for this investment.
Revenue Potential
The average annual revenue per Koko FitClub unit is approximately $546,231, with a median annual revenue of $144,000. This revenue potential varies significantly, with the lowest reported annual revenue at $20,000 and the highest at $1,189,000. Such figures indicate a promising opportunity for franchisees who can effectively manage and market their locations.
Operational Metrics
Koko FitClub units typically achieve breakeven within 15 months, allowing franchisees to recover their initial investment within approximately 24 months. These metrics suggest a favorable operational environment for franchisees, provided they adhere to the brand's standards and operational guidelines.
Franchise Growth
As of 2023, Koko FitClub has not yet established any franchised or corporate units. This presents a unique opportunity for early investors to join a brand at the ground level, potentially benefiting from first-mover advantages as the franchise expands its footprint.
Financial Performance
The average profit and loss metrics for Koko FitClub indicate a gross profit margin of 82.3%. With average operating expenses around $120,000, franchisees can expect an EBITDA of approximately $43,000, equating to 21.7% of revenue. This financial performance underscores the potential for profitability in the fitness franchise sector.
Ongoing Support
Koko FitClub provides its franchisees with ongoing support, including marketing strategies and operational guidance. This support is essential for franchisees to navigate the challenges of running a fitness business and to maximize their revenue potential through effective brand alignment and community engagement.
Frequently Asked Questions
The initial investment for a Koko FitClub franchise ranges from $203,369 to $396,312, which includes the franchise fee and other startup costs.