UFC GYM Franchise Costs, Fees & FDD

Year Business Began: 1992

Franchising Since: 2003

Headquarters: Corona, California

Estimated Number of Units: 150

Franchise Description: The franchisor is UG Franchise Operations, LLC. The franchise is to operate a membership-based MMA-oriented, physical fitness gym under the “UFC GYM” name that, depending on the model of gym developed, offers functional fitness training regimens including Daily Ultimate Training, mixed martial arts, cardio boxing, cardio kick boxing, core training, Jiu Jitsu and Muay Thai boxing, utilizing a weight room, a bag area and an octagon with unique construction and design features. Currently, UFC GYM offers five franchise models for sale: Class by UFC GYM, UFC GYM (Core), UFC GYM Jiu Jitsu, UFC GYM (Signature) and UFC FIT.
Training Overview: Currently, the franchisor provides franchisees with three business days of initial training at its training facilities in Newport Beach, California (or at another location it determines in its sole discretion). The trainees must include the owner and the designated manager, and up to three additional trainees. If franchisees or their owner will not be active in the day-to-day activities of the gym, they may designate another person as their designated manager with the franchisor’s prior approval who will be active in the day-to-day activities of the gym to be another trainee. The franchisor must approve all trainees. Initial training includes instruction in owner-operator responsibilities, instructor training, equipment and buildout, membership sales, prospect management, administration, operations, merchandising and marketing, and franchisor relations. Training programs may differ in content and length for the owner, designated managers or employees depending upon their responsibilities at the gym. The franchisor may provide refresher training programs, seminars, or advanced management training for franchisees and their employees at the franchisor’s principal training facility in Newport Beach, California, which must be attended by either the owner or the general manager approved by the franchisor. Refresher or additional training is not required more often than once a year.

Territory Granted: Franchisees will operate the gym at a specific location that the franchisor first must approve. The franchisor will describe the designated territory in the Franchise Agreement, which is typically a radius or population density around the gym that is dependent on the size and type of the UFC GYM franchise business. The franchisor reserves for itself the right to sole determination as to the location, size and delineation of the designated territory. Franchisees will not receive an exclusive territory. Franchisees may face competition from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. The grant of the designated territory is expressly conditioned upon the franchisee’s successful penetration of the market in the designated territory. Franchisees must maintain minimum gross revenues every calendar year during the term of at least 80% of the “designated average” of gross revenues of all UFC GYM businesses, including the gym, except during the first calendar year (partial or full) of the term, when no performance standard is in effect.

Obligations and Restrictions: Franchisees are not the franchisor’s employee but are their own boss subject to certain rights and obligations under the Franchise Agreement. The franchisor encourages franchisees to be active in the operation of the gym but does not require any personal participation on premises by franchisees. The franchisor does not require any personal participation of any specific person affiliated with a corporate or partnership franchisee. However, the franchise for the gym is not a “passive” investment and franchisees or the designated general manager approved by the franchisor must provide day-to-day supervision of the operation of the gym. Franchisees must use the premises only for the operation of the gym. Franchisees must keep the gym open for business and in normal operation for the minimum hours and days as the franchisor reasonably requires in the manuals or otherwise in writing except as may be limited by local law or the landlord's rules and regulations. Franchisees must sell or offer for sale only the products and services that meet the franchisor’s reasonable uniform standards of quality and quantity; have been expressly approved for sale in the manuals or otherwise in writing by the franchisor to consumers only from the gym; not sell any items for redistribution or resale; sell or offer for sale all approved products and services; refrain from any deviation from the franchisor’s standards and specifications for providing or selling the products and services without the franchisor’s written consent; and discontinue selling and offering for sale any products and services that the franchisor reasonably disapproves on a system-wide basis in writing at any time.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years beginning on the agreement date. Franchisees have the right to renew for two additional terms of five years each, if they meet the requirements for renewal and pay the renewal fee equal to 50% of the then current initial franchise fee.

Financial Assistance: The franchisor does not offer direct or indirect financing, and it does not guarantee a franchisee’s note, lease, or other financial obligations.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$30,000	$40,000
Misc. Supplies	$2,500	$4,500
Opening Inventory	$8,000	$30,000
Insurance	$4,500	$10,500
Printing, Signage and Graphics	$15,000	$45,500
Office Equipment/P.O.S. System	$3,500	$10,500
Rent/Security Deposit	$0	$50,000
Initial Advertising (Pre-Sale to Grand Opening)	$15,000	$50,000
Leasehold Improvements	$0	$500,000
Equipment	$110,000	$500,000
Music Licensing	$621	$621
Software Support Fee (Class by UFC GYM only)	$1,110	$1,110
Software Licensing/Support Fee (UFC GYM (Core) only)	$1,080	$1,080
Utilities Deposits	$1,500	$5,000
Licenses and Permits	$500	$15,000
Legal Review	$1,000	$8,500
Travel, Lodging, Meals, Etc. for Initial Training	$2,000	$6,500
MyZone	$7,295	$9,089
Box HIIT Live (BHL)	$0	$100
Additional Funds (3-6 months)	$30,000	$300,000
ESTIMATED TOTAL*	$232,526	$1,586,860

*The estimated initial investment range covers from a Class by UFC GYM (2,000 to 3,000 square feet) up to a UFC GYM (Core) (8,000 to 12,000 square feet). Costs and fees for other UFC GYM types are available in the FDD.

 
Other Fees for Class by UFC GYM and UFC GYM (Core)

Type of Fee	Amount
Royalty Fee: Class by UFC GYM	6% of monthly gross revenues.
Royalty Fee: UFC GYM (Core)	5% of monthly gross revenues.
Marketing Contributions to the Marketing Fund	2% of monthly gross revenues.
Music Licensing Fee (for Class by UFC GYM and UFC GYM (Core))	Currently, approximately $207/month with fit radio.
Regional Cooperative Advertising	As determined by the cooperative (not more than 2% of monthly gross revenues).
UFC GYM Products	As set by the franchisor or its affiliate, or required vendor.
Billing Services Fees (for Class by UFC GYM and UFC GYM (Core))	Currently $370 per month, plus credit card transaction and interchange fees.
Billing Services and Lead Management Fees (UFC GYM (Core))	Currently, $150 per month for DataTrak software fee, $200 per month for Gym Sales/Ignite software fee, plus a fee equal to 3.40% on all recurring revenues for the provider software, processing and support, and a 2.5% transaction fee for all credit/debit retail merchant service transactions.
ClubConnect, the Online UFC GYM University	Currently $184 a month per gym for unlimited users.
Training Fees	As set by the franchisor or its affiliate.
Additional Training or Assistance	Sales & Operations Training – currently up to $800 per day, plus all travel and lodging expenses. Group Fitness Training, BJJ Training or Private Coach Training (minimum 4 days) – currently up to $800 per day, plus travel and lodging expenses. CPR certification fees (currently $50 per coach).
Fees for Special Assistance	As set by the franchisor or its affiliate.
Construction Assistance	The amount will depend on the level of assistance requested.
Insurance Coverage	Cost of the insurance, interest on the monies the franchisor advances and a reasonable fee.
Reimbursement of Audit Costs	Actual cost to the franchisor.
Deficiencies	Actual cost to the franchisor.
Advertising	Franchisees must spend at least $2,500 for Class by UFC GYM and $3,500 for UFC GYM (Core) whichever is higher, per month on local marketing.
Renewal Fee	50% of the then current initial franchise fee.
Transfer Fee	$15,000 for a CLASS by UFC GYM location. $20,000 for a UFC GYM (Core) location.
Fee for Lost Manuals	$250 for each manual.
Fee for Failure to Provide Financial Reports	$350 for each occurrence.
Interest on Late Payments	The lesser of: (i) 18% per annum; or (ii) the maximum rate of interest permitted by law.
Late Charge	$250
Liquidated Damages for Premature Termination of Franchise Agreement	A lump sum equal to the total of all royalty fees for 24 months, or if franchisees fail to open, a lump sum equal to the average royalty fees paid by similar gyms in the prior trailing 12-month period.
Liquidated Damages for Violation of Covenant Not to Compete	$2,000 per week.
Indemnification	Actual cost to the franchisor.
Enforcement Costs	Actual cost to the franchisor.
Management Fee	Franchisees must reimburse the franchisor its costs and expenses.
Testing	Costs of testing.
Taxes	Franchisees must reimburse the franchisor its costs and expenses.
Removal of Signage	Franchisees must reimburse the franchisor its costs and expenses.

The above information has been compiled from the FDD of UFC Gym. Year of FDD: 2025.
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