In this FDD Talk 2016 post, you’ll learn the following:
- Section I – Background information on the TITLE Boxing Club franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a TITLE Boxing Club franchise, based on Item 7 of the company’s 2016 FDD
- Section III – Presentation and analysis of TITLE Boxing Club’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- 2014, 2015, and 2016 total first quarter (i.e. January to March) gross revenue for all TITLE Boxing Club facilities operating during the first quarter of 2014, 2015, and 2016, respectively
- average gross revenue per month for the TITLE Boxing Club facilities operating during the first quarter of 2014, 2015, and 2016, as well as the median and the number above and below the average for those facilities
- average growth in gross revenue per TITLE Boxing Club facility (same store sales growth) during (i) the first quarter of 2015 versus the first quarter of 2014 (2015 vs. 2014) and (ii) the first quarter of 2016 versus the first quarter of 2015 (2016 vs. 2015), as well as the median and the number above and below the average for those facilities
- average gross revenue (upfront payments/down payments, monthly memberships, personal training, and retail sales of products) per month for the TITLE Boxing Club facilities who achieved results in the top 25% of all of the facilities (Top Quartile) during the first quarter of 2016 and (ii) the average gross revenue per month for the TITLE Boxing Club facilities who achieved results in the bottom 25% of all of the facilities (Bottom Quartile) during the first quarter of 2016
- average royalty, ad fund, rent, staff labor, local marketing, and operating margin percentages for the 49 TITLE Boxing Club facilities that opened on or before January 1, 2015 and submitted responses to a voluntary profitability survey sent by the franchisor, but excluding those facilities whose responses contained obvious errors, unfilled blanks, or nonsensical responses
Section I – Background Information
TITLE Boxing Club Offers Gym Alternative
For those looking for a boutique fitness club with targeted workouts, TITLE Boxing Club provides a gym alternative that focuses more on fitness than weight loss.
The Overland Park, Kansas-based chain, which specializes in boxing and kickboxing group workout classes, offers high-intensity boxing and kickboxing classes that are designed so participants can burn up to 1,000 calories.
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Boxing classes include a warmup featuring shadow boxing, stretching, calisthenics and cardio drills, followed by numerous rounds on the heavy bags with a variety of punch combinations. Kickboxing classes start with stretching and lead into rounds on the heavy bags with both kick and punch techniques. Both boxing and kickboxing classes round out with core and cool-down exercises.
Along with the signature 60-minute Power Hour classes, TITLE Boxing Club offers a quick 30-minute Calorie Crusher class or a 75-minute Super Session, as well as training or work on specific goals.
TITLE, Everlast Team Up for Expansion
TITLE Boxing Club in February 2016 partnered with Everlast, which sells boxing, mixed martial arts and fitness products, to form an international fitness franchise, Everlast Fitness, and offer boxing products from Everlast in TITLE Boxing Club locations.
As a new international franchise concept, Everlast Fitness will offer members the same boxing and kickboxing fitness classes provided by TITLE Boxing Club, focusing on aggressive worldwide expansion, starting in Mexico.
Elite Fitness Brands will be the holding company for both TITLE Boxing Club and Everlast Fitness.
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NFL Star Drew Brees Joins Ownership Team
Former NFL star Drew Brees became a part-owner of TITLE Boxing Club in May 2016. Brees, MVP-winning quarterback for the New Orleans Saints, led his team to the Super Bowl championship in 2009 and has won many awards. He brings franchising experience to the ownership team as a franchisee for Jimmy John’s.
Brees is joined by new owners David Barr, Shelly and J.D. Sun, and Doc Cohen, all experienced business owners and franchisees who have been active in the International Franchise Association.
Barr is founder and chairman of PMTD Restaurants and its affiliates, which own and operate 23 KFC and Taco Bell locations. Shelly and J.D. Sun co-founded BrightStar Care, a healthcare staffing company headed by Shelly, the CEO. Cohen is a franchise industry veteran who has been a franchisee with Great American Cookies, Pretzelmaker and others.
The new owners join TITLE Boxing Club owners John Rotche, Tom Lyons, Rick Washburn and Danny Campbell, and President Susan Boresow.
Members Can Try Before They Buy
People can ease into membership with a tryout session or the purchase of a single class or a warm-up card good for two weeks of unlimited classes. A member can get an annual membership or go month to month with the option of switching to a more inexpensive annual membership at any time. Members can attend any club in the U.S. and Mexico at a discounted day rate.
A family membership covers everyone in the family who is 8 or older.
Chain Sparked By Pro Boxer
Former professional boxer Danny Campbell, also a referee, announcer and promoter, opened the first TITLE Boxing Club location in 2008, joined by Tom Lyons and owners of TITLE Boxing, a boxing, kickboxing and mixed martial arts equipment company.
Along with group boxing and kickboxing classes, TITLE Boxing Club locations also offer personal training and apparel and equipment sales.
Members have used TITLE Boxing Club to become stronger, leaner and healthier; to tone up for special events, including sculpting arms for weddings; and even to battle disorders such as Parkinson’s.
Chain No. 1 Among Fastest-Growing Franchises
TITLE Boxing Club was No. 1 on the 2015 Inc. list of the 10 fastest-growing franchises in the United States, with three-year growth of 1,774 percent and a rank of 250 on the Inc. 5000 list for 2015. The chain dropped to No. 1,607 on the 2016 Inc. 5000 list with a three-year growth rate of 234 percent.
Fitness Chain Drops Off Franchise 500 List
TITLE Boxing Club was ranked 230 on Entrepreneur’s Franchise 500 list for 2015 but dropped off the list for 2016. The chain finished 2015 with 151 franchised U.S. locations, one franchised location outside the U.S., and three corporate locations. This is just two more net locations than the company had at the end of 2014, following several years of steady growth.
Section II – Estimated Costs
- Please click here for detailed estimates of TITLE Boxing Club franchise costs, based on Item 7 of the company’s 2016 FDD (updated).