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Considering a TITLE Boxing Club Franchise? Don’t Overlook These 23 Important Franchise Fees

by Franchise Chatter on November 6, 2016

in Fitness Franchises, Franchise Fees



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TITLE Boxing Club 4

If you are considering a TITLE Boxing Club franchise, don’t get blindsided by these 23 important franchise fees (from the initial franchise fee, to the royalty fee, to 21 other fees found in Items 5 and 6 of TITLE Boxing Club’s 2016 FDD).

1.  Initial Franchise Fee:  $29,000 to $35,000

  • You must pay TITLE Boxing Club an initial franchise fee in a lump sum. Its standard initial franchise fee is $35,000, which must be paid to it at the time you sign your Franchise Agreement.
  • The initial franchise fee is reduced to $29,000 per Franchise Agreement if you sign Franchise Agreements for three or more Fitness Facilities at the same time or if you enter into an Area Development Agreement to develop three or more Fitness Facilities.
  • For example, if you sign three Franchisee Agreements at the same time, the initial franchise fee for each Fitness Facility equals $29,000, and the total initial franchise fees paid upon signing equals $87,000.

2.  Initial Area Development Fee:  $29,000 to $35,000 per facility to be developed (to be credited toward the initial franchise fees)

  • If you qualify, you may sign an Area Development Agreement under which TITLE Boxing Club will grant you the right to develop a certain number of Fitness Facilities in a designated area according to a Development Schedule attached to the Area Development Agreement.
  • According to the Area Development Agreement, if you agree to open three or more Fitness Facilities, you must pay TITLE Boxing Club an initial area development fee of $29,000 per Fitness Facility to be developed at the time you sign the Area Development Agreement.
  • If you agree to open two Fitness Facilities, you must pay TITLE Boxing Club an area development fee of $35,000 per Fitness Facility.
  • The area development fee applicable to each Fitness Facility will be credited toward the initial franchise fee due under the Franchise Agreement for each Fitness Facility.

3.  Initial Training Fee:  $5,000



  • You must pay TITLE Boxing Club a one-time initial training fee in the amount $5,000 for initial classroom training for you and your general manager.
  • The initial training fee is due at the time you sign the Franchise Agreement.

4.  Standard Initial Package:  $67,456 to $89,027

  • In addition to the initial fees described, you must pay TITLE Boxing Club for the cost of the initial equipment, materials, and products listed in Exhibit L of the Franchise Agreement, which are the items that TITLE Boxing Club requires for you to open your Fitness Facility (the “Standard Initial Package”).
  • The cost of the Standard Initial Package is $67,456 to $89,027, depending on the square footage of your Fitness Facility, of which $45,000 must be paid within 30 days after you receive site approval from TITLE Boxing Club and the remaining balance must be paid before the Standard Initial Package is shipped to you.
  • You are prohibited from opening a Fitness Facility until the initial fees described above for that Fitness Facility have been paid by you to TITLE Boxing Club.
  • The initial franchise fee according to the Franchise Agreement and the initial development fee according to the Area Development Agreement are not refundable under any circumstance.
  • The initial franchise fee and the initial development fee are charged uniformly to all new franchisees and developers, except TITLE Boxing Club offers a $1,500 discount for the first Franchise Agreement signed by an honorably discharged veteran of the United States military that purchases through the VetFran program.

5.  Royalty Fee:  7.5% of monthly Gross Revenue, subject to a monthly royalty fee adjustment that is calculated based on a required Minimum Performance Standard of $23,000 monthly gross revenue in the second year and $29,500 monthly gross revenue in the third year and in each subsequent year multiplied by 7.5%

  • When payable:  Payable weekly by check or by the point of sale approved vendor.
  • TITLE Boxing Club may require payment to be made by Electronic Funds Transfer on 30 days written notice to you.
  • “Gross Revenue” includes all revenue from the operation of the Fitness Facility, except for (1) revenue received by you from the retail sale of products and merchandise purchased by you from the approved supplier, Title Boxing, LLC and (2) the sale of drinks, vitamin supplements, or other consumables purchased from a supplier approved by TITLE Boxing Club.

6.  Marketing Fund Contribution:  currently you must contribute 1% of your Gross Revenue to the Marketing Fund

  • When payable:  Payable weekly on Tuesday for the preceding week by Electronic Funds Transfer.
  • TITLE Boxing Club has the right to require you to increase the amount of contributions to the Marketing Fund, but in no event will you be required to contribute more than 2% of Gross Revenue to the Marketing Fund.
  • You must contribute 1% of Gross Revenue to the Marketing Fund upon commencement of the operation of your Fitness Facility.
  • TITLE Boxing Club may increase the amount you must contribute to the Marketing Fund upon written notice to you in an amount not to exceed 2% of Gross Revenue.
  • Contributions to the Marketing Fund must be paid by Electronic Funds Transfer.

7.  Local Advertising:  minimum of $60,000 before the first anniversary of your Fitness Facility opening; after the first anniversary, a minimum monthly expenditure of $2,000 is required

  • When payable:  Paid monthly by you for local advertising.
  • If requested, you must furnish proof of local advertising expenditures to TITLE Boxing Club.
  • Any deficiency in local marketing by you must be contributed to the Marketing Fund.
  • After the first anniversary, a minimum monthly expenditure of $2,000 is required for local advertising and public relations activities.
  • Included in this calculation would be any contribution made to a Cooperative approved by TITLE Boxing Club.

8.  Regional or Local Advertising Cooperative:  minimum of $1,500 and maximum of $3,000 per month as determined by Cooperative; subject to increase upon unanimous vote of all members of the Cooperative

  • When payable:  Paid monthly.
  • Contributions to the Cooperative are credited to your obligation to spend a minimum in local advertising.

9.  Transfer:  $10,000

  • When payable:  Before the date of closing of the transfer of the Franchise Agreement or Area Development Agreement.
  • Paid if you assign or transfer the rights to the Area Development Agreement or Franchise Agreement or make other specified transfers to someone other than an entity controlled by you or to your immediate family member.

10.  Related Party Assignment Fee:  first assignment is free and each subsequent assignment is $500

  • When payable:  10 days after billing.
  • Paid only if you assign your Area Development Agreement or Franchise Agreement to an entity controlled by you or to your immediate family member.
  • This fee would cover TITLE Boxing Club’s administrative costs.

11.  Supplemental Training Fee:  $300 per day, plus TITLE Boxing Club’s out-of-pocket expenses including travel, lodging, and meals

  • When payable:  Within 10 days of billing.
  • TITLE Boxing Club may provide you and your employees, in its discretion or as you request, required additional training.
  • You must pay TITLE Boxing Club a supplemental training fee of $300 per day plus reimbursement of its expenses for providing such supplemental training, including costs of transportation, meals, and lodging for its employees or representatives providing such training.
  • TITLE Boxing Club will not require such training more than once per year unless you are in default.

12.  Renewal:  $10,000

  • When payable:  At the time you request renewal.
  • You must give TITLE Boxing Club written notice of your election to renew the Franchise Agreement not less than 7 months nor more than 12 months before the end of the initial term.

13.  Relocation:  $5,000



  • When payable:  At the time relocation is requested.
  • Paid only if you request relocation of your Fitness Facility.

14.  Technology Fee:  $99 per month

  • When payable:  Payable monthly by the 10th day of the month, commencing on the date of the Franchise Agreement.
  • TITLE Boxing Club may require payment to be made by Electronic Funds Transfer on 30 days written notice to you.

15.  Online Scheduling Charge:  $100 per month

  • When payable:  To be retained by TITLE Boxing Club from Gross Revenue generated from online scheduling transactions; net amount remitted to you on a monthly basis.
  • Uniformly charged to all franchisees and company-owned locations.
  • Amount of charge changes if online scheduling provider changes amount of fees it charges TITLE Boxing Club.

16.  Equipment Setup Fee:  $2,000, plus out-of-pocket expenses incurred by TITLE Boxing Club

  • When payable:  Payable by the 10th day of the month after such services are provided to you.
  • You must pay TITLE Boxing Club a one-time fee equal to $2,000 plus all out-of-pocket costs incurred by it for (1) travel and lodging of its personnel who provide such services and (2) any labor required to be provided by third parties at the Fitness Facility to prepare the Fitness Facility to open for business.

17.  Grand Opening Trainer Fee:  $900, plus out-of-pocket expenses incurred by TITLE Boxing Club

  • When payable:  Payable by the 10th day of the month after such services are provided to you.
  • You must pay TITLE Boxing Club a one-time fee equal to $900 plus all out-of-pocket costs incurred by it for travel and lodging of an approved trainer who provides services during the Grand Opening.

18.  Site Score Fee:  $25 to $100 per real estate site score requested

  • When payable:  30 days after billing.
  • If you request site scores for potential site locations, TITLE Boxing Club reserves the right to charge a fee for each site score requested.

19.  Interest:  greater of 1.5% per month or 3% over prime rate per annum, not to exceed maximum allowed by law

  • When payable:  30 days after billing.
  • Interest is charged on any unpaid royalty, advertising, transfer, and other fees not received by the date due.

20.  Audit:  delinquency of royalty and advertising contributions, plus interest from the date due. In addition, if there is an understatement of Gross Revenue which exceeds 2%, you must pay the cost of the audit.

  • When payable:  Within 15 days after receipt of the audit report.
  • Interest is due if there is an understatement in the royalty and advertising contributions.
  • You must pay the cost of the audit if understatement of royalty and advertising contributions exceeds 2% of Gross Revenue for the previous 12 months.

21.  Public Offering Fee:  $3,500

  • When payable:  At the time you request review of public or private offering.
  • Paid to TITLE Boxing Club for costs associated with review.

22.  Liquidated Damages:  three times the greater of (i) royalty fees and other fees which became due to TITLE Boxing Club from you during the 12 months immediately preceding such termination of the Franchise Agreement and (ii) the Minimum Royalties that would be due under the applicable Performance Standards for the 12 months immediately after such termination

  • When payable:  Within 15 days after termination of the Franchise Agreement by TITLE Boxing Club for cause.
  • If the Franchise Agreement is terminated, you agree to pay TITLE Boxing Club liquidated damages.

23.  Management Fee:  8% of the Gross Revenue of your Franchised Business during the period of time TITLE Boxing Club or its representative manages your Franchised Business on your behalf (the “Management Fee”), plus the costs and expenses it incurs

  • When payable:  As incurred.
  • The Management Fee will only be due to TITLE Boxing Club if (a) you are in material default under your Franchise Agreement or become disabled (and unable to perform as the “Franchisee” under your Franchise Agreement), and (b) it exercises its right to temporarily operate your Franchised Business in an effort to assist in getting the operations of the Franchised Business back into compliance with the Franchise Agreement and  System standards.

If you are looking for information on the estimated initial investment for a TITLE Boxing Club franchise, check out this post:   Franchise Costs:  Detailed Estimates of TITLE Boxing Club Franchise Costs



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