In this FDD Talk 2016 post, you’ll learn the following:
- Section I – Background information on the iLoveKickboxing franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for an iLoveKickboxing franchise, based on Item 7 of the company’s 2016 FDD
- Section III – Presentation and analysis of iLoveKickboxing’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- 2015 average annual gross volume (for the highest 25%, second 25%, third 25%, lowest 25%, and all franchised outlets in the sample); membership amounts paid to franchisees; breakdown of memberships sold, by program type; contracts per outlet; breakeven point; top 5 franchised outlets to breakeven; top 10 performing outlets; number of trial memberships; conversion ratio (trial members to full memberships) for the 27 iLoveKickboxing franchised outlets with full class schedules that were open for 12 months or longer as of May 9, 2016
Section I – Background Information
iLoveKickboxing Surpasses 100 Locations, Continues Growth
People looking for workout routines that are never boring are finding their way to iLoveKickboxing, which strives to make its workouts fun and challenging. Just three years after beginning franchising, the chain surpassed 100 locations in 2015 and is continuing growth in 2016.
Almost Real Kickboxing
Participants use real boxing gloves, hit real bags and build real adrenaline in their workouts. The company offers both private and group classes. The group classes contain students from beginners to advanced. Workouts combine cardio and resistance training to help participants burn fat and increase muscle tone in a relatively short time.
Diet and nutrition are also covered, both in classes and in private when participants have specific questions for which they need answers.
Classes are offered six days a week. Most members train between one and three times each week. iLoveKickboxing encourages a sense of community among participants.
Founder Joined Industry in 1991
Michael Parrella got his start in martial arts when he opened his own school in 1991. He went on to form iLoveKickboxing in 2009 and franchised the concept in 2012.
Parrella’s approach was to incorporate the energy and engagement of kickboxing while making it accessible to people of all ages. Participants don’t actually fight, but they do wear the gloves and learn the fighting moves while working toward a strong, lean physique.
High intensity interval training, with intense bursts of activity followed by short rest periods, forms the core of the workouts at iLoveKickboxing. Extensive research into methods to burn fat and tone muscle helped the chain develop its workouts, which feature moves from professional kickboxers.
Open, Spacious Locations Good for Franchisees, Members
The facilities are minimalist in a spacious, open environment. For franchisees, the design means the place is easy to keep up; for members, it means more space to move around in and have passionate workouts.
The design also reflects the shorter list of equipment compared to traditional gyms. Since the main equipment involves heavy bags (mounted on the floor instead of hanging from the ceiling) and padded floors, there’s a lot more room for people and moving around, and not a lot of materials to buy (and maintain and repair) for the franchisee.
Chain is No. 388 on Franchise 500
Entrepreneur put iLoveKickboxing at No. 388 in the 2016 Franchise 500 list. iLoveKickboxing surpassed 100 locations in 2015, finishing the year with 136 U.S. franchises, three outside the United States, and eight company-owned units.
45 Day Transformation Contest
iLoveKickboxing kicked off its 45 Day Transformation Contest in September 2016. Participants attend at least 15 classes in the 45-day period, follow a healthy meal plan, provide before-and-after photos, and create a 3-minute video sharing the story of their journey.
Winners are selected on three main criteria: physical transformation, pounds lost and personal story.
The grand-prize winner gets $20,000, while $3,000 goes to second place and $1,000 is awarded for third. Four honorable-mention winners get $250 apiece. The contest is in its third year, and thousands of participants have lost more than 5,000 pounds collectively in that time.
A private Facebook group helps participants stay connected and support one another. The company shares diet and workout info through social media and shared videos.
Section II – Estimated Costs
- Please click here for detailed estimates of iLoveKickboxing franchise costs, based on Item 7 of the company’s 2016 FDD (updated).