In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the UFC Gym franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a UFC Gym franchise, based on Item 7 of the company’s 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a UFC Gym franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned UFC Gym outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of UFC Gym’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• average, median, high, and low square footage, 2019 and 2020 member counts, 2020 revenue and 2020 revenue derived from member dues, as well as the number of members and monthly dues derived per square foot for UFC Gym’s 11 affiliate-owned UFC Gym Signature model gyms open for the full Measurement Period (January 1, 2020 to December 31, 2020)

• average, median, high, and low square footage, 2019 and 2020 member counts, 2020 revenue and 2020 revenue derived from member dues, as well as the number of members and monthly dues derived per square foot for 3 UFC Gym Signature model gyms that were owned by franchisees for the entire Measurement Period

Section I – Background Information

16 Things You Need to Know About the UFC Gym Franchise

Opens New Concept in Las Vegas

1.  In mid-March 2021, UFC Gym announced that its new fitness concept, UFC Fit, would open two new locations in Las Vegas. The two facilities, located at 5651 Centennial Center Blvd. and 9775 South Maryland Pkwy., opened on Saturday, March 13, and Saturday, March 27, respectively. The two locations represent the second and third UFC Fit concept gyms to open in the United States, following the grand opening of the first location in Puyallup, Washington, in January.

2.  Adam Sedlack, chief executive officer of UFC Gym, said, “We are thrilled to introduce UFC Fit and bring together a community of fitness enthusiasts from across the Las Vegas Valley, the home of UFC. Our Las Vegas UFC Fit locations are premium fitness centers that offer each guest the opportunity to try multiple boutique fitness classes, from boxing to indoor cycling to yoga and more, all under one roof. With a variety of training equipment, a swimming pool, and a basketball court, there’s truly something for everyone. We’re excited to bring our ‘Train Different’ mentality back to Las Vegas and welcome members of all ages and athletic abilities.”

3.  The 50,000-square-foot Centennial and 45,000-square-foot Silverado, each multi-million-dollar facilities, will offer group fitness studios, a weight room, robust cardio equipment, swimming pool, sauna room, full-service locker room, pre- and post-workout recovery services area, indoor basketball court, and much more.

4.  Members will have access to a one-stop shop for any and all fitness needs including studio-quality group fitness classes such as Les Mills BodyPump, HIIT, water aerobics, Zumba, and MMA-inspired group fitness classes such as boxing and kickboxing conditioning. Youth programming for kids ages six through 15, as well as a childcare service, will be offered to support fitness for the whole family.

Announces Exclusive Partnership with PJB Sport Investment GmbH to Expand Global Footprint to Germany

5.  In mid-March 2021, UFC Gym announced a new, exclusive 10-year partnership with PJB Sport Investment GmbH to open more than 70 locations throughout Germany. This groundbreaking partnership will bring UFC Gym’s trademark franchise formats to all fitness enthusiasts while offering full-service fitness, high-quality equipment, coaching, classes, and amenities geared towards all levels.

6.  According to Adam Sedlack, chief executive officer of UFC Gym, “We’re excited to announce our partnership with PJB Sport Investment GmbH to bring UFC Gym to Germany and continue our expansion into the European market. Germany has a significant population of both MMA fans and fitness enthusiasts, which presents a great opportunity to launch our pioneering ‘Train Different’ philosophy, while offering innovative classes and world-class facilities. UFC Gym programs have helped countless members achieve next-level results and it’s an honor to bring our revolutionary style of training to Germany’s fitness community.”

7.  Adrian Bakos, managing director of UFC Gym – Germany, said, “I’m very proud that UFC Gym is finally coming to Germany, as the brand is a worldwide leader in MMA and combat fitness. We’re excited that very soon, our members will be able to train in UFC Gym locations throughout Germany, under the guidance and amazing conditions of world-class coaches!”

Enhances Member Experience with ABC Fitness Solutions

8.  At the beginning of March 2022, ABC Fitness Solutions, LLC (ABC), the leading provider of technology and related services for the fitness industry, and UFC Gym, the rapidly expanding global fitness franchise and trailblazer of mixed martial arts-inspired fitness, have announced an expanded technology partnership.

9.  In addition to the club management solution implemented in 2021, the technology stack includes the new ABC Ignite Engagement, the club-branded mobile app, and Insights Customize, the Datawarehouse-as-a-Service. ABC Ignite’s open architecture and a flexible design means club operators can easily add and implement new modules as the business needs evolve and operations grow.

10.  Adam Sedlack, chief executive officer of UFC Gym, said, “As we emerge from the pandemic, we see an exciting opportunity to grow and deepen our offering to new and existing members. Technology infrastructure is an essential element to delivering this strategy. After seeing what the integrated suite can do, we have decided to add Ignite Engagement where we can deliver a more personalized mobile experience and Ignite Insights Customize, a robust Datawarehouse that can deliver real-time business intelligence by consolidating all data sources. We are excited about the expansion of our partnership with ABC Fitness Solutions as we look to enhance our member experience with innovation.”

11.  First unveiled in October 2021, ABC Ignite reimagines ABC’s core competencies that the industry has relied on for 40 years within a suite of next-generation intuitive software solutions that are even more powerful and easy to use. ABC Ignite equips club operators of all sizes with the solutions needed to grow and prosper and covers a range of services within six business modules:

• Ignite Sales – Designed with robust segmentation capabilities and triggered-based marketing automation, Ignite Sales helps clubs capture and close leads faster and upsell current members more efficiently with targeted rich emails, texts, and an integrated phone dialer.

• Ignite Membership – Provides gym staff an intuitive interface for viewing and updating member data and activity, freeing them up to focus on the member.

• Ignite Engagement – Unites administrative functionality like scheduling, check-in, payments, and booking with personal training and habits coaching, all in one member-centric mobile fitness experience.

• Ignite Operations – Gyms need technology that helps them manage their teams and facilities as they grow. Ignite Operations streamlines the management of these critical resources to create more efficiency, speed, reliability, and scale.

• Ignite Commerce – ABC is known for its best-in-class payment processing and revenue-cycle management capabilities. Ignite Commerce builds on ABC’s heritage with a new, cloud-based billing platform that allows an extra level of flexibility to create new memberships and offers and more revenue optimizing capabilities to ensure faster conversion of billings to cash.

• Ignite Insights – Visual and on-demand dashboards provide 360° views of the business with one-click analysis for improved decision-making. Option to add Insights Customize, the Datawarehouse-as-a-Service.

12.  Bill Davis, CEO of ABC Fitness Solutions, said, “The fitness industry is ready for the technology evolution that can help them accelerate performance, operate efficiently, and deliver differentiated member experience. ABC Ignite is flexible, scalable, and intuitive so it is easy for operators like UFC Gym to add new modules when they need it, we are excited to be part of their next phase of growth.”

Company History

13.  UFC Gym was founded in 2009 by Mark Mastrov, who also started 24 Hour Fitness, and Adam Sedlak, in collaboration with Ultimate Fighting Championship (UFC) in the East Bay, California area. Mastrov and Sedlak developed a workout routine based on the training of UFC fighters.

14.  Like traditional boxing gyms, UFC Gym offers a vast array of cardio and strength training options. However, UFC Gym differentiates itself from the other box clubs by offering a wide variety of Mixed Martial Arts (MMA) training. The group fitness classes vary from beginning functional fitness to hardcore conditioning and allow anyone to learn real MMA training techniques.

15.  After a few years of growth, UFC Gym began franchising in 2013. That same year, UFC Gym acquired LA Boxing and converted all of the locations to UFC Gym. A few years later, UFC Gym began expanding internationally. Today, there are UFC Gym locations around the U.S., Canada, Chile, China, Egypt, Germany, Japan, India, Mexico, Oman, Pakistan, the Philippines, Russia, Singapore, Taiwan, United Arab Emirates, the United Kingdom, and Vietnam.

Entrepreneur’s Franchise 500

16.  UFC Gym did not rank on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of UFC Gym franchise costs, based on Item 7 of the company’s 2021 FDD.

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

• Detailed information on UFC Gym’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  91
• Outlets at the End of the Year:  86
• Net Change:  -5

2019

• Outlets at the Start of the Year:  86
• Outlets at the End of the Year:  77
• Net Change:  -9

2020

• Outlets at the Start of the Year:  77
• Outlets at the End of the Year:  63
• Net Change:  -14

Company-Owned

2018

• Outlets at the Start of the Year:  13
• Outlets at the End of the Year:  14
• Net Change:  +1

2019

• Outlets at the Start of the Year:  14
• Outlets at the End of the Year:  14
• Net Change:  0

2020

• Outlets at the Start of the Year:  14
• Outlets at the End of the Year:  14
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• This Item 19 sets forth certain historical data submitted by franchised and company-owned UFC Gym Signature model gyms from January 1, 2019 to December 31, 2019 and from January 1, 2020 to December 31, 2020 (the “Measurement Period”). The franchisor has excluded all Gyms that have not been open and operating for the full Measurement Period.

• UFC Gym Signature facilities are big box fitness centers offering a complete line of fitness offerings that include the same offerings as UFC Gym Core, but also include a café, pro shop, sauna, kids club, and a group fitness room. UFC Gym Signature facilities are typically 18,000 to 40,000 square feet or larger.

• Class UFC Gym facilities are boutique fitness studios focusing on class-based sales and programming with no octagon, limited fitness equipment, a bag rack, and a functional fitness space. Class UFC Gym facilities are typically between 2,200 to 3,500 square feet in size and will generally offer class-based physical fitness consisting of boxing and high intensity interval training and will typically utilize a bag rack, turf, functional training equipment, rowers, and bikes.

• UFC Gym Core facilities are mid-size fitness centers offering traditional fitness class programming, including boxing, kickboxing and D.U.T., mixed martial arts training, youth classes, private coaching, and Brazilian Jiu-Jitsu. UFC Gym Core facilities are typically between 6,000 to 10,000 square feet in size, utilizing a weight room, bag rack, octagon, turf traditional gym, and full-service locker rooms.

• This Item does not include financial information related to Class UFC Gym models or UFC Gym Core models.

• Because UFC Gym Signature facilities are larger and more complex facilities to operate, the franchisor may (at its sole discretion) require you to enter into a Management Services Agreement with its affiliate, UG Management Co., LLC (“UGM”), which will be required to operate your UFC Gym during the term of your Franchise Agreement.

• The franchisor has not audited this information, nor independently verified this information.

Part 1 – Affiliate-Owned UFC Gym Signature Model Gyms

• The table below presents the square footage, the 2019 and 2020 member counts, 2020 revenue and 2020 revenue derived from member dues, as well as the number of members and monthly dues derived per square foot for UFC Gym’s 11 affiliate-owned UFC Gym Signature model gyms open for the full Measurement Period.

• None of the Gyms presented were Gyms using the UFC Fit marks.

High

• Square Footage:  45,388
• Member Count (December 31, 2019):  8,900
• Member Count (December 31, 2020):  6,912
• Average Member Count:  7,906
• Revenue (FY 2020):  $2,655,589
• Revenue Derived from Member Dues (FY 2020):  $1,775,795
• Number of Members Per Square Foot (FY 2020):  0.27
• Monthly Dues Per Square Foot (FY 2020):  $65

Low

• Square Footage:  27,456
• Member Count (December 31, 2019):  4,156
• Member Count (December 31, 2020):  4,089
• Average Member Count:  4,177
• Revenue (FY 2020):  $1,248,522
• Revenue Derived from Member Dues (FY 2020):  $533,447
• Number of Members Per Square Foot (FY 2020):  0.10
• Monthly Dues Per Square Foot (FY 2020):  $13

Average

• Square Footage:  38,188
• Member Count (December 31, 2019):  6,313
• Member Count (December 31, 2020):  5,432
• Average Member Count:  5,873
• Revenue (FY 2020):  $1,836,848
• Revenue Derived from Member Dues (FY 2020):  $998,689
• Number of Members Per Square Foot (FY 2020):  0.16
• Monthly Dues Per Square Foot (FY 2020):  $28

Median

• Square Footage:  39,811
• Member Count (December 31, 2019):  5,611
• Member Count (December 31, 2020):  5,219
• Average Member Count:  5,387
• Revenue (FY 2020):  $1,832,804
• Revenue Derived from Member Dues (FY 2020):  $761,528
• Number of Members Per Square Foot (FY 2020):  0.14
• Monthly Dues Per Square Foot (FY 2020):  $18

Part 2 – Franchisee-Owned UFC Gym Signature Model Gyms

• The table below presents the square footage, the 2019 and 2020 member counts, 2020 revenue and 2020 revenue derived from member dues, as well as the number of members and monthly dues derived per square foot for 3 UFC Gym Signature model gyms that were owned by franchisees for the entire Measurement Period.

• UFC operated these Gyms pursuant to a management services agreement during the Measurement Period.

• None of the Gyms presented were Gyms using the UFC Fit marks.

High

• Square Footage:  31,460
• Member Count (December 31, 2019):  6,823
• Member Count (December 31, 2020):  5,109
• Average Member Count:  5,966
• Revenue (FY 2020):  $3,155,837
• Revenue Derived from Member Dues (FY 2020):  $1,647,941
• Number of Members Per Square Foot (FY 2020):  0.19
• Monthly Dues Per Square Foot (FY 2020):  $71

Low

• Square Footage:  15,367
• Member Count (December 31, 2019):  2,064
• Member Count (December 31, 2020):  2,766
• Average Member Count:  2,415
• Revenue (FY 2020):  $1,964,630
• Revenue Derived from Member Dues (FY 2020):  $908,860
• Number of Members Per Square Foot (FY 2020):  0.16
• Monthly Dues Per Square Foot (FY 2020):  $52

Average

• Square Footage:  22,250
• Member Count (December 31, 2019):  4,191
• Member Count (December 31, 2020):  3,631
• Average Member Count:  3,911
• Revenue (FY 2020):  $2,476,032
• Revenue Derived from Member Dues (FY 2020):  $1,324,284
• Number of Members Per Square Foot (FY 2020):  0.17
• Monthly Dues Per Square Foot (FY 2020):  $61

Median

• Square Footage:  19,924
• Member Count (December 31, 2019):  3,686
• Member Count (December 31, 2020):  3,017
• Average Member Count:  3,352
• Revenue (FY 2020):  $2,307,630
• Revenue Derived from Member Dues (FY 2020):  $1,416,051
• Number of Members Per Square Foot (FY 2020):  0.17
• Monthly Dues Per Square Foot (FY 2020):  $59

• This analysis does not contain complete information concerning the operating costs and expenses that you will incur in operating your Gym. Operating costs and expenses may vary substantially from Gym to Gym. The above figures exclude:

• start-up expenses;
• advertising;
• costs of goods sold;
• insurance, payroll costs, taxes, administrative expenses, as well as the cost of labor;
• owner compensation/salary;
• healthcare and employee benefits costs;
• utilities expenses;
• the cost of equipment, inventory, and supplies;
• travel and entertainment expenses;
• license and permit fees and professional services expenses;
• taxes;
• financing expenses, interest expense, interest income, depreciation and amortization expenses; and
• related expenses which you will incur as a franchisee.

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