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Tiger-Rock Martial Arts Franchise ProfileFitness Franchises > Specialty Fitness Classes |
What Are the Initial Investment Requirements for a Tiger-Rock Martial Arts Franchise?
To open a Tiger-Rock Martial Arts franchise, potential franchisees should be prepared for an initial investment ranging from $133,600 to $270,700. This includes a franchise fee of $25,000. Additionally, franchisees need to meet a net worth requirement of $150,000 to $300,000 and should have cash available in the same range to cover startup costs and initial operating expenses. Understanding these financial commitments is crucial for aspiring owners as they explore this franchise opportunity.
What Are the Ongoing Fees Associated with Tiger-Rock Martial Arts?
Franchisees of Tiger-Rock Martial Arts must pay ongoing fees that include a royalty fee of 7% of gross sales and a marketing fee of 5%. These fees are essential for maintaining brand standards and supporting national marketing efforts. Franchisees should factor these fees into their financial planning to ensure they can sustain profitability while adhering to the franchise's operational guidelines.
What Is the Average Revenue Potential for Tiger-Rock Martial Arts Franchisees?
The average annual revenue per unit for Tiger-Rock Martial Arts franchises is approximately $66,000, with a range that can vary significantly from $20,000 to as high as $793,557. This wide range indicates that location, management, and local market demand play critical roles in revenue generation. Franchisees should conduct thorough market research to assess potential earnings based on their specific circumstances.
How Long Does It Take to Break Even with a Tiger-Rock Martial Arts Franchise?
Franchisees can expect to reach the break-even point within about 18 months of operation. With an investment payback period of approximately 24 months, it's essential for new franchisees to have adequate working capital to cover expenses during the initial phase. Understanding these timelines can help franchisees set realistic financial goals and prepare for the challenges of starting a new business.
Tiger-Rock 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:
Tiger-Rock 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 | 2017 | 2018 | 2019 |
|---|---|---|---|
| Total Units | 127 | 111 | 98 |
| Net Change YoY | -16 | -13 | |
| Franchised Units | 127 | 111 | 97 |
| Net Change YoY | -16 | -14 | |
| Corporate Units | 0 | 0 | 1 |
| Net Change YoY | 1 |
Initial Investment
The initial investment for a Tiger-Rock Martial Arts franchise ranges from $133,600 to $270,700. This includes the franchise fee of $25,000, which grants you access to the brand and its support systems. Potential franchisees should be prepared for additional costs that may arise during the setup and operation of their studio.
Revenue Potential
Tiger-Rock Martial Arts franchises have shown varied revenue performance. The average annual revenue per unit is approximately $793,557, with a median of $66,000. However, revenues can range significantly, with the lowest at $20,000 and the highest reaching $793,557. This variability highlights the importance of location, management, and community engagement in driving success.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 7% of gross sales, along with a marketing fee of 5%. These fees contribute to the ongoing support and promotional efforts provided by the franchisor, ensuring that franchisees benefit from a strong brand presence and marketing initiatives.
Financial Requirements
To qualify for a Tiger-Rock Martial Arts franchise, potential owners must demonstrate a net worth of $150,000 to $300,000. Additionally, they should have cash reserves of at least $133,600 to cover initial investments and operational costs. These financial benchmarks are crucial for ensuring franchisee stability and long-term success.
Breakeven and Payback Period
The average breakeven time for a Tiger-Rock Martial Arts franchise is estimated at 18 months, with an investment payback period of around 24 months. This timeline indicates that franchisees can expect to recover their initial investment within two years, provided they effectively manage their operations and marketing efforts.
Franchise Growth
Since its inception, Tiger-Rock Martial Arts has seen fluctuations in its franchised units. In 2017, there were 127 franchised units, which decreased to 111 in 2018, and further to 97 in 2019. This trend suggests a need for strategic growth planning and support to stabilize and expand the franchise network in future years.
Frequently Asked Questions
The initial investment for a Tiger-Rock Martial Arts franchise ranges from $133,600 to $270,700, depending on various factors such as location and setup requirements.