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Premier Martial Arts Franchise ProfileFitness Franchises > Specialty Fitness Classes |
What is the Initial Investment for a Premier Martial Arts Franchise?
The initial investment to open a Premier Martial Arts franchise ranges between $183,650 and $421,800. This includes a franchise fee of $49,500. Potential franchisees should also be prepared for ongoing costs, including a royalty fee of 7% and a marketing fee of 5%. It's essential to have cash available for startup expenses, with a minimum cash requirement of $49,500 and a net worth requirement between $300,000 and $500,000.
What Are the Revenue Potential and Financial Metrics?
Premier Martial Arts franchises demonstrate strong revenue potential, with an average annual revenue of $315,850 per unit. The median revenue is $286,336, while the highest recorded revenue reaches $889,730. The breakeven time for new units is approximately 12 months, and investment payback can be achieved in about 8 months. These figures highlight the franchise's capacity for profitability when managed effectively.
What Are the Average Expenses for Operating a Premier Martial Arts Franchise?
The average annual operating expenses for a Premier Martial Arts franchise total around $197,187. Key expenses include occupancy costs of $50,760, payroll expenses of $86,969, and advertising costs of $23,841. Understanding these expenses is crucial for potential franchisees to accurately project their financial performance and manage their budgets effectively.
How Has Premier Martial Arts Grown in Recent Years?
Premier Martial Arts has shown significant growth over the past few years. In 2019, there were 62 franchised units, which increased to 68 in 2020, and further expanded to 94 units by 2021. This growth reflects the brand's increasing popularity and the successful implementation of its franchise model, making it an attractive opportunity for aspiring franchisees looking to enter the martial arts industry.
Premier Martial Arts 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:
Premier Martial Arts 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 | 66 | 73 | 103 |
| Net Change YoY | 7 | 30 | |
| Franchised Units | 62 | 68 | 94 |
| Net Change YoY | 6 | 26 | |
| Corporate Units | 4 | 5 | 9 |
| Net Change YoY | 1 | 4 |
Investment Overview
The Premier Martial Arts franchise offers a low to high initial investment ranging from $183,650 to $421,800. The initial franchise fee is set at $49,500, with ongoing royalty and marketing fees of 7% and 5% of gross sales, respectively. Prospective franchisees should have a cash requirement of $49,500 and a net worth between $300,000 and $500,000 to qualify for ownership.
Revenue Potential
Franchisees can expect an average annual revenue of $315,850 per unit, with a median of $286,336. The revenue range is quite broad, with the lowest reported annual revenue at $36,516 and the highest reaching $889,730. This demonstrates the potential for profitability, depending on location and management.
Breakeven and Payback
The average breakeven time for a Premier Martial Arts franchise is approximately 12 months, allowing franchisees to recover their initial investments relatively quickly. Investment payback is even more favorable, averaging around 8 months, which indicates strong cash flow potential for new units.
Franchise Growth
The Premier Martial Arts franchise has shown consistent growth over recent years. In 2019, there were 62 franchised units, which increased to 94 by 2021. This upward trend signifies a growing brand presence and potential for new franchisees to join a successful network.
Corporate Structure
Premier Martial Arts operates both franchised and corporate-owned units. As of 2021, there were 94 franchised units and 9 corporate units, reflecting the brand's strategic approach to expansion. The corporate structure supports franchisees with resources and guidance to enhance operational success.
Operational Insights
Average operating expenses for a Premier Martial Arts unit total around $239,900 per year. Key costs include occupancy at $50,760, payroll at $86,969, and advertising at $23,841. Understanding these expenses is crucial for franchisees to effectively manage their financial performance and maximize profitability.
Frequently Asked Questions
The initial investment for a Premier Martial Arts franchise ranges from $183,650 to $421,800, which includes the initial franchise fee of $49,500.