TITLE Boxing Club Franchise Costs, Fees & Owner Salary (2023)

Initial Franchise Fee

The initial franchise fee is $49,500, which is due in a lump sum at the signing of the Franchise Agreement. This fee is reduced to $33,166 for each Franchise Agreement signed simultaneously for the development of three or four Fitness Facilities or when signing an Area Development Agreement for the same number.

For the development of five or more Fitness Facilities, the initial franchise fee is further reduced to $29,900.

Royalty Fee

The royalty fee is 7.5% of monthly Gross Revenue, subject to a monthly royalty fee adjustment based on a required Minimum Performance Standard of $23,600 monthly Gross Revenue in the second year and $29,500 monthly Gross Revenue in the third and subsequent years.

This fee is payable weekly, and the franchisor may require payment to be made by Electronic Funds Transfer with 30 days written notice.

Marketing Fund Contribution

The Marketing Fund Contribution is not specified in the exact amount but is implied to be part of the local advertising expenditures with a minimum monthly expenditure of $2,000 required for local advertising and public relations activities after the first anniversary of opening. Any deficiency in local marketing must be contributed to the Marketing Fund.

Regional or Local Advertising Cooperative

Franchisees must contribute a minimum of $1,500 and a maximum of $3,000 per month to the Regional or Local Advertising Cooperative, as determined by the Cooperative, subject to increase upon unanimous agreement.

Initial Training Program

This program must be completed at least 10 days before the opening of the Fitness Facility. The initial training program is continuous throughout the year and can be requested by the franchisee.

A one-time initial training fee of $5,000 is payable at the time the Franchise Agreement is signed. The training includes classes and on-the-job training at one of the affiliate-owned Fitness Facilities. If purchasing an existing Fitness Facility, the new owner must attend training prior to taking over operations.

Supplemental Training

All supplemental training will be furnished at a time and place designated by the franchisor and for a duration determined at the time the training is required or requested.

The franchisee must pay the then-current supplemental training fee, which is currently $400 per day and will not exceed $1,000 per day, plus reimburse the franchisor for expenses, including transportation, hotel, and meals for the employees providing such training.

Additional Training for New General Managers

The franchisor reserves the right to train any new general manager of the franchisee's Fitness Facility and may assess reasonable charges for this additional training.  In such cases, the franchisee must pay additional training fees of $400 a day, plus reimbursement for the travel, room, and meals of the franchisor's employees providing the training.

The franchise does provide territory protection to its franchisees, ensuring that they have exclusive rights to operate within a specified area as long as they adhere to the terms of the Franchise Agreement.

TITLE Boxing Club franchise can potentially be run as a passive investment, but it is clear that the franchisor recommends active involvement for optimal operation.