In this FDD Talk 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 2018 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a TITLE Boxing Club franchise, based on Items 5 and 6 of the company’s 2018 FDD

• Section IV – Number of franchised and company-owned TITLE Boxing Club outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD

• Section V – Presentation and analysis of TITLE Boxing Club’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:

• 2017 average, median, high, and low monthly pricing (annual/monthly membership) for the top quartile, second quartile, third quartile, and bottom quartile of the 144 TITLE Boxing Club Fitness Facilities (affiliate-owned and franchised) that were in operation during the entire Measurement Period

• 2017 average, median, high, and low gross revenue for the top quartile, second quartile, third quartile, and bottom quartile of the 144 TITLE Boxing Club Fitness Facilities that were in operation during the entire Measurement Period

• 2017 average value of a membership to the member by type of membership for the 144 TITLE Boxing Club Fitness Facilities that were in operation during the entire Measurement Period

• 2017 percentage of memberships purchased by members by type of membership for the 144 TITLE Boxing Club Fitness Facilities that were in operation during the entire Measurement Period

Section I – Background Information

13 Things You Need to Know About the TITLE Boxing Club Franchise

Looks Forward to Greater Success in 2018 Following a Strong Year of Growth

1.  TITLE Boxing Club started off 2018, which marks the brand’s 10th anniversary, on a high note following a strong year of growth and development. According to the company, TITLE Boxing Club is fully equipped and ready for further growth after the implementation of a strategic area developer plan and its recent international expansion that brought the brand to Latin America. In 2017, the brand saw a double-digit average increase in unit volume growth, which was driven by TITLE’s high quality product and service offerings as well as favorable unit economics for franchise partners.

2.  Susan Boresow, president of TITLE Boxing Club, said, “The demand for boutique fitness concepts is at an all-time high and will only continue to increase as people seek fun, empowering activities that fuel a healthy lifestyle. TITLE Boxing Club is primed more than ever for growth, and we look forward to sharing our premium values-driven fitness concept with healthy-minded individuals across the globe.”

3.  One of the biggest reasons for TITLE Boxing Club’s recent growth was the launch of the brand’s regional development model in 2017. This development model is designed to guide tactical site selection and strong leadership support, which will help the brand ramp up its growth. TITLE Boxing Club opened 29 clubs in 2017 and announced targeted expansion in high-impact markets including Chicago, Denver, Austin, Atlanta, Houston, St. Louis, Seattle, Portland, Las Vegas, Phoenix, Indianapolis, and the Northeast, specifically New York City, Pennsylvania, Maryland, and metro Washington, D.C.

4.  In addition to domestic growth, TITLE Boxing Club is ready for international growth after it signed franchise deals in Latin America leading to TITLE’s debut in the Dominican Republic in December 2017 and in Mexico City in January of 2018. The brand has plans to expand into Canada, Panama, Columbia, Australia, Japan, Brazil, South Africa, Columbia, Peru, Chile, Dubai, and China. These international expansion plans are part of TITLE’s overall goal of opening more than 45 clubs by the end of 2018.

Appoints New Director of Franchise Development

5.  In a strategic effort to further ignite domestic and international expansion, TITLE Boxing Club announced, in early March 2018, the addition of its new director of franchise development, Todd Haavid. Haavid comes to the brand with over 20 years of multi-unit sales, franchise development, and process enhancement experience, having worked worked throughout the franchise industry for companies such as Beeline Bikes, Mrs. Fields, TCBY, Homewatch CareGivers International, Quiznos, and Cici’s Pizza, among others. Prior to joining TITLE Boxing Club, Haavid most recently served as vice president of franchise sales for Dickey’s Barbecue Restaurants.

6.  Susan Boresow, president of TITLE Boxing Club, said, “We are excited to welcome Todd to the TITLE Boxing Club team and are confident that his wealth of knowledge in the franchising space, paired with his passion for fitness is the perfect fit to help ignite continued brand growth. 2017 represented a milestone year of growth for TITLE and we look forward to further accelerating our brand footprint into 2018 with the senior leadership addition of Todd.”

7.  In his new role as director of franchise development, Haavid will be tasked with providing strategic leadership and direction for the franchise sales division, in addition to streamlining the lead generation process that will improve the overall franchise sales process. Haavid said that he is looking to further develop the brand in urban markets, including Chicago, Denver, Austin, Atlanta, Houston, St. Louis, Seattle, Portland, Las Vegas, New Jersey, Pennsylvania, Los Angeles, Phoenix, and Washington, D.C. His growth goals include signing more than 50 franchise agreements in 2018.

Aims to Add 23 New Locations in San Francisco

8.  As TITLE Boxing Club continues to expand across the U.S., the brand has recently started signing several multi-unit franchise deals. Most recently, in April 2018, TITLE Boxing Club announced that it had plans to bring 23 clubs to the San Francisco Bay Area. TITLE Boxing Club is increasing its domestic growth through its strategic regional development model, which is designed to help guide tactical site selection and strong leadership support.

9.  Susan Boresow, president of TITLE Boxing Club, said, “Our regional development model has been created to provide an infrastructure to help grow and support local market franchisees with the proper operations, marketing guidance and ongoing training needed to ensure their success. Demand for TITLE’s diverse fitness service offering is on the rise and we are looking forward to finding the right partner to help meet the demand for our brand’s premium product in San Francisco.”

Company History

10.  The idea for TITLE Boxing Club was birthed by Danny Campbell – a former professional fighter, professional trainer, world-class referee, ring announcer for HBO, and promoter – after he grew tired of the boxing business, which he said was “seedy.” After leaving the industry, Campbell decided to pursue the general manager position at an LA Boxing facility in Littleton, Colorado.

11.  Around 2008, Campbell moved home to the Kansas City area to open his own boxing club. Campbell partnered with Tom Lyons, David Hanson, and Tony Carbajo to start TITLE Boxing Club in the suburban neighborhood of Overland Park, Kansas. Their new business was named after Hanson and Carabajo’s other business, Title Boxing LLC, which is a kickboxing, boxing, and mixed martial arts (MMA) equipment company also headquartered in the Kansas City area.

12.  The first TITLE Boxing Club location was a success and a second club opened later that year. In 2009, Campbell and his business partners opened their third TITLE Boxing Club and the success of these three locations led to franchising. TITLE Boxing Clubs opened in other suburban areas in Kansas and eventually spread to other states, including Missouri, Ohio, Illinois, and Texas. TITLE Boxing Club has continued to expand and now has a presence across the United States.

Entrepreneur’s Franchise 500

13.  TITLE Boxing Club did not rank on Entrepreneur’s 2018 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of TITLE Boxing Club franchise costs, based on Item 7 of the company’s 2018 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on TITLE Boxing Club’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

• Outlets at the Start of the Year:  139
• Outlets at the End of the Year:  149
• Net Change:  +10

2016

• Outlets at the Start of the Year:  149
• Outlets at the End of the Year:  149
• Net Change:  0

2017

• Outlets at the Start of the Year:  149
• Outlets at the End of the Year:  168
• Net Change:  +19

Company-Owned

2015

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  3
• Net Change:  +1

2016

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

2017

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

Part 1 – 2017 Pricing and Gross Revenue

• As of April 28, 2017, TITLE Boxing Club mandated minimum monthly membership pricing in the amount of $109 per month for all new fitness facilities (“Premium Pricing”). Premium Pricing will apply to all franchisees entering into a Franchise Agreement pursuant to the 2018 Disclosure Document.

• As of December 31, 2017, there were 168 franchised locations and 3 affiliate-owned locations.

• The tables below include the average monthly membership prices (shown in monthly amounts) as well as the average Gross Revenue achieved during the Measurement Period for 144 locations that were in operation during the entire Measurement Period.

• Even though 171 locations were in operation as of December 31, 2017, only the 144 that were in operation during the entire Measurement Period have been included in these tables.

• All of the information below is based upon the amounts reported to TITLE Boxing Club through its point-of-sale software.

• The first table includes information for the top quartile, the second and third tables include the same information for the middle quartiles, and the fourth table includes the same information for the lowest quartile.

• The quartiles were derived by taking the 144 locations and dividing them into four groups of 36 with the Fitness Facilities achieving the highest Gross Revenue being in the top quartile, the next highest 36 locations being in the second quartile, and so forth.

2017 Pricing and Gross Revenue for Locations in the Top Quartile

Monthly Pricing (Annual/Monthly Membership)