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Title Boxing Club Franchise ProfileFitness Franchises > Gyms |
What is the Initial Investment for a Title Boxing Club Franchise?
To open a Title Boxing Club franchise, you should prepare for a significant initial investment ranging from $217,600 to $615,700. This includes a franchise fee of $49,500. Additionally, you will need to demonstrate a net worth of between $300,000 and $500,000, along with cash reserves of $217,600 to $585,700. Understanding these financial requirements is crucial for aspiring franchisees to ensure they are adequately prepared for the financial commitment involved.
What Are the Ongoing Fees for Title Boxing Club Franchisees?
Once you're established, Title Boxing Club franchisees are required to pay a royalty fee of 7.5% on their gross sales, along with a marketing fee of 1%. These ongoing fees are essential for maintaining brand standards and supporting national marketing efforts. Being aware of these costs will help you budget effectively and ensure that your franchise remains profitable in the long run.
What Are the Revenue Expectations for a Title Boxing Club Franchise?
Title Boxing Club franchises have shown promising financial performance, with an average annual revenue of $433,609 per unit. While the median annual revenue stands at $397,039, some units have reported revenues as low as $79,477 and as high as $984,847. Understanding these revenue ranges can help potential franchisees gauge the potential profitability of their investment and set realistic financial goals.
What Is the Breakeven Timeline for a Title Boxing Club Franchise?
Franchisees can expect to reach their breakeven point within approximately 12 months of operation. Furthermore, the investment payback period is around 36 months. This timeline is important for franchisees to consider, as it provides insight into when they can expect to start seeing returns on their investment, helping them plan their financial strategy and operational growth effectively.
Title Boxing Club 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:
Title Boxing Club 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 | 175 | 155 | 141 |
| Net Change YoY | -20 | -14 | |
| Franchised Units | 173 | 153 | 139 |
| Net Change YoY | -20 | -14 | |
| Corporate Units | 2 | 2 | 2 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Title Boxing Club franchise presents a range of investment options, with an initial investment ranging from $217,600 to $615,700. The franchise fee is set at $49,500, and franchisees are required to maintain a cash reserve between $217,600 and $585,700. Additionally, a net worth of $300,000 to $500,000 is necessary to qualify for ownership, making it a viable option for aspiring entrepreneurs with adequate financial backing.
Revenue Potential
Title Boxing Club franchises have shown promising revenue potential, with an average annual revenue per unit of $433,609. The median annual revenue is slightly lower at $397,039, while revenues can vary significantly, ranging from a low of $79,477 to a high of $984,847. This wide revenue spectrum highlights the potential for profitability based on location and management effectiveness.
Fees and Royalties
Franchisees are subject to a royalty fee of 7.5% on gross sales, along with a marketing fee of 1%. These fees contribute to the ongoing support and promotional efforts provided by the franchisor, helping franchisees to maintain a competitive edge in the fitness industry.
Breakeven and Payback Period
The Title Boxing Club franchise boasts a breakeven time of approximately 12 months, allowing franchisees to recover their initial investment relatively quickly. The investment payback period is estimated at 36 months, indicating a potential for steady cash flow and profitability within the first few years of operation.
Franchise Growth
The Title Boxing Club has experienced fluctuations in its franchised units, with 173 units in 2019, decreasing to 139 by 2021. Despite this decline, the franchise continues to maintain a small number of corporate-owned units, ensuring a balance between franchised and corporate locations that can support brand consistency and operational efficiency.
Operational Expenses
On average, Title Boxing Club franchisees can expect annual running expenses to total around $113,200. Key expense categories include rent, utilities, marketing and advertising, and management salaries. Understanding these costs is crucial for potential franchisees to effectively plan and manage their financial performance.
Frequently Asked Questions
The initial investment for a Title Boxing Club franchise ranges from $217,600 to $615,700, which includes the franchise fee, equipment, and other startup costs.