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Considering an iLoveKickboxing.com Franchise? Don’t Overlook These 15 Important Franchise Fees

by Franchise Chatter on July 28, 2017

in Fitness Franchises, Franchise Fees



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Don't Invest in a Franchise Until You Check Out This List

If you are considering an iLoveKickboxing.com franchise, don’t get blindsided by these 15 important franchise fees (from the initial franchise fee, to the royalty fee, to 13 other fees found in Items 5 and 6 of iLoveKickboxing.com’s 2017 FDD).

1.  Initial Franchise Fee:  $49,999 ($100,000 in the New York City borough of Manhattan)



  • If you are acquiring the rights to open only one Outlet, when you sign the Franchise Agreement, you must pay a lump sum initial franchise fee of $49,999.
  • If the Outlet is in the New York City borough of Manhattan (“Manhattan”), in addition to the initial franchise fee, you will also pay a “Territory Surcharge” of $50,001 (making the total initial fees due $100,000).

2.  Development Fee:  (i) $110,000 for 3 Outlets, or (ii) $145,000 for 5 Outlets, or (iii) $145,000 for the first 5 Outlets, plus $17,500 for each additional Outlet thereafter, up to 10 (maximum of $232,500) (higher rates in Manhattan)

  • If you are acquiring the rights to open multiple Outlets anywhere except Manhattan, in addition to the Franchise Agreement for the initial Outlet, you would also sign an MOA and, instead of $49,999, pay iLoveKickboxing.com at that time a non-refundable “Development Fee” (which pays in full the initial franchise fees under the Franchise Agreements for all the Outlets) of (i) $110,000 for 3 Outlets, or (ii) $145,000 for 5 Outlets, or (iii) $145,000 for the first 5 Outlets, plus $17,500 for each additional Outlet thereafter, up to 10 (maximum of $232,500).
  • If you are acquiring the rights to open multiple Outlets in Manhattan, in addition to the Franchise Agreement for the initial Outlet, you would also sign an MOA and, instead of $100,000, pay iLoveKickboxing.com at that time a non-refundable “Development Fee” (which pays in full the initial franchise fees under the Franchise Agreements for all the Outlets) of (i) $220,000 for 3 Outlets, or (ii) $300,000 for 5 Outlets, or (iii) $300,000 for the first 5 Outlets, plus $40,000 for each additional Outlet thereafter, up to 10 (maximum of $500,000).
  • If you choose to move forward on decision day, which is typically within a week of attending day of discovery, iLoveKickboxing.com requires a $10,000 refundable deposit to be applied towards the total initial franchise fee.
  • If you currently operate an existing fitness studio (e.g., martial arts) and elect to convert to an express version of the iLoveKickboxing.com franchise model, you would sign a Franchise Agreement and pay iLoveKickboxing.com at that time a non-refundable fee of $10,000. You would be limited to offering 10 classes per week.
  • The initial franchise fee, territory surcharge, and any Development Fee paid under an MOA, if applicable, are fully earned by iLoveKickboxing.com when paid and are not refundable.

3.  Other Initial Fees:  varies

  • Prior to opening, you must purchase an apparel starter pack from Perfect Fitness Apparel, Inc. (“PFA”), which generally costs between $1,200 and $1,500.
  • Additionally, you must purchase print materials (e.g., window clings, interior signage, ad cards) from iLoveKickboxing.com prior to opening, which generally costs between $500 and $5,000 (e.g., factors include the number of windows per location).
  • Performance IQ Systems (“PIQ”) is iLoveKickboxing.com’s designated supplier of a heart rate monitor offering. This will show performance data for each member who buys a monitor from you. You must participate in this program.
  • You must purchase the heart rate monitor devices from PFA at a cost of $39.99 per unit. Prior to opening, the total cost will generally range between $1,000 and $4,000. You will sell these to your members for $59.99.
  • There are no other initial fees or payments for services or goods received from iLoveKickboxing.com or its affiliates before your Outlet opens.
  • The initial franchise fee constitutes part of iLoveKickboxing.com’s general operating funds and will be used as such in its discretion.

4.  Royalty:  6% of the Gross Revenues received during each calendar month

  • Due Date:  Paid monthly on the 3rd business day of the month.
  • The monthly royalty is payable beginning the 61st day after the Opening Date.
  • Gross Revenues means all revenues, however generated or received, that are derived by you from operating the franchised business at or through your Outlet, excluding only applicable sales or use taxes and legitimate refunds, and not modified for uncollected accounts.

5.  Royalty:  $797 fixed fee

  • Due Date:  Paid monthly on the 3rd business day of the month.
  • This fixed fee royalty is only applicable to existing fitness studios (e.g., martial arts) that elect to convert to an express version of the iLoveKickboxing.com franchise model.
  • This monthly royalty is payable beginning the 61st day after the effective date of your Franchise Agreement.
  • Your offering is limited to 10 classes per week.

6.  Marketing and Promotion Fee:  1% of monthly Gross Revenues

  • Due Date:  Paid monthly on the 3rd business day of the month following the month in which the Gross Revenues were received.
  • Gross Revenues means all revenues, however generated or received, that are derived by you from operating the franchised business at or through your Outlet, excluding only applicable sales or use taxes and legitimate refunds, and not modified for uncollected accounts.
  • On a regional or system-wide basis, iLoveKickboxing.com may also impose an additional assessment upon some or all franchisees for one-time advertising or promotional activities if 2/3 of all affected franchised Outlets agree to such additional assessment by affirmative vote.

7.  New Customer Lead Generation Fees:  up to 100% of initial vendor payments



  • Due Date:  Within 30 days after a vendor relationship is established.
  • You must participate in all “Lead Generation Programs” iLoveKickboxing.com sets up with groupon.com and other designated third-party promotional companies.
  • iLoveKickboxing.com will retain all one-time upfront revenues paid by the third-party promotional company to cover iLoveKickboxing.com’s expenses incurred in setting up and managing the Lead Generation Program.
  • After that, you will be able to use a conversion program for new client leads to transfer the client directly to you, allowing you to receive all subsequent revenues from that new client.

8.  Transfer Fee:  $10,000

  • Due Date:  Not later than 10 days before the transfer.
  • The transfer fee covers iLoveKickboxing.com’s costs in reviewing the qualifications of the assignee and providing initial franchise training to the assignee.
  • There is no transfer fee if franchise is transferred to a corporation owned solely by you. No fee is due if franchise is transferred to your personal representative, conservator, or heir upon your death or legal disability (if you are an individual) or dissolution (if you are an entity).

9.  Renewal Fee:  $750

  • Due Date:  Not later than 30 days before the expiration date of your Franchise Agreement.
  • You are qualified for renewal if you are in full compliance with your operating requirements, all fees due iLoveKickboxing.com are paid, and you are not in breach of any term of your Franchise Agreement.

10.  Directory Listing Service Monthly Fee:  $97

  • Due Date:  Paid monthly on the 3rd business day of the month.
  • You must use the directory listing service. The directory listing service is payable to FCOM on a monthly basis.

11.  Fine for Unauthorized or Unreported Cash Payment:  $500 per occurrence

  • Due Date:  On demand.
  • You must not accept cash payments from customers at the Outlet which are not reported to iLoveKickboxing.com or incorrectly reported. If this occurs, iLoveKickboxing.com can levy a fine of $500 each time it happens and declare you in material default of the Franchise Agreement for fraud and subject to immediate termination.

12.  Heart Rate Performance Monitor Monthly Fee:  $125

  • Due Date:  Paid monthly on the 3rd business day of the month.
  • PIQ is iLoveKickboxing.com’s designated supplier of a heart rate monitor offering. This will show performance data for each member who buys a monitor from you. You must participate in this program.
  • The fee for the service needed to track the data for the monitors is $125 per month payable to iLoveKickboxing.com at the same time as the royalty.

13.  Heart Rate Monitor Devices:  $39.99



  • Due Date:  When purchased.
  • You must purchase the heart rate monitor devices from PFA at a cost of $39.99 per unit. You will sell these to your members for $59.99.

14.  Fine for Loss or Unauthorized Copying of Operations Manual:  $1,000

  • Due Date:  On demand.
  • If you lose or allow the unauthorized copying of the Confidential Operations Manual (the “Manual”) or any other confidential manuals or proprietary materials loaned to you by iLoveKickboxing.com, you may be required to pay iLoveKickboxing.com a penalty of up to $1,000 within 30 days after its demand for payment, and you will be deemed to be in violation of the Franchise Agreement and all other agreements you have with iLoveKickboxing.com and its affiliated entities.

15.  Late Payment Penalty:  5% of the delinquent amount plus interest

  • Due Date:  Immediately upon demand for payment.
  • You must also reimburse iLoveKickboxing.com immediately upon demand for all reasonable costs of collection relating to delinquent amounts.

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