In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the iLoveKickboxing.com franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for an iLoveKickboxing.com franchise, based on Item 7 of the company’s 2015 FDD
- Section III – Presentation and analysis of iLoveKickboxing.com’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
- 2014 and 2013 total revenues, total cost of goods sold (fitness supplies, payroll expenses/taxes, promotional material – gloves, apparel), gross profit, total expenses (rent or lease, marketing and advertising, credit card processing fees, health insurance, office expenses, repair and maintenance, gas and electric, telephone and internet, liability insurance, legal and professional fees, payroll service, meals and entertainment), total operating income, total other expenses (New York tax), and net income for 3 iLoveKickboxing.com outlets located in New York, owned and operated by affiliated entities, and open since at least January 1, 2013
Section I – Background Information
Michael Parrella started his own martial arts school back in 1991, but with the dawn of the new millennium, there was a big question taking up a lot of his brain power: “What’s wrong with most workouts…and how can we fix it?”
He was surprised to find out that boredom was the chief problem holding people back from engaging in more workouts. He decided to create the ultimate workout that would be anything but boring, something to really keep people engaged, energized, and enthusiastic, while at the same time meeting and exceeding their fitness goals.
The solution? A bag-hitting, adrenaline-pumping workout that anyone can participate in, regardless of age or fitness level.
Parrella launched iLoveKickboxing.com in 2009, and then started franchising the concept in 2012, which added 45 new franchised locations to the 4 company-owned ones that year. The current number of locations totals 94, with 85 franchised units, 6 company-owned units, and 3 locations outside the U.S.
Here’s how iLoveKickboxing.com has been “kicking” it in the fitness industry:
Feel Like a Fighter
In this workout you put on real gloves and learn how to fight like a pro, without ever actually fighting. But you’ll achieve the leaner, stronger physique enjoyed by so many professional fighters. After learning the basics, you quickly start to feel like you’re a rockstar fighter. What you’re fighting for is a better, healthier, fitter you.
The Fitness Model
The chain did a lot of research into what would make for a real fat-burning and muscle-toning workout, and settled on HIIT – High Intensity Interval Training workouts where the exercise happens during intense bursts of activity followed by short periods of rest. Hands down it produces the best results.
Chris and Kristina Bauge were both looking to make career changes. Chris was ready to walk away from sales and marketing for Global 1000 companies and Kristina had grown weary of the hectic nature of being an actress. They settled on an iLoveKickboxing.com franchise, lured by the chain’s supportive and friendly corporate culture, and haven’t looked back.
They opened a location in Chesapeake, VA and broke even in just three weeks. Needless to say, they’re working on opening a second studio.
A lot of thought has gone into the environment as well. Rather than punching bags hanging from the ceiling, the chain uses heavy bags anchored to the floor. They require little to no maintenance, and avoid the “claustrophobic” feeling where people always have to duck under and around large swinging bags.
A Great Culture
Customers love iLoveKickboxing.com not just for the workout, but also for the culture the chain nurtures at each location. Friendship, support, and motivation are the keystones of the atmosphere. The moment a person walks in the door, they’re hit with a “blast” of energy, positivity, and confidence.
Section II – Estimated Costs
- Please click here for detailed estimates of iLoveKickboxing.com franchise costs, based on Item 7 of the company’s 2015 FDD.