What is the estimated range for real estate/rent costs for a Punch King Fitness franchise?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
AL INVESTMENT
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM | ||
|---|---|---|---|---|---|---|
| PAYMENT IS MADE | ||||||
| Initial Franchise Fee1 | $50,000 | Lump-sum via Check or Wire | Upon Signing the Franchise Agreement | Us | ||
| Leasehold Improvements | $15,000 to $50,000 | As incurred | Before Beginning Operations | Lessor or Contractors | ||
| Real Estate/Rent2 | $2,500 to $8,000 | As incurred | Before Beginning Operations | Lessor | ||
| Utility Deposits3 | $250 to $500 | As incurred | Before Beginning Operations | Utilities | ||
| Furniture, | $30,000 to $50,000 | As incurred | Before | Suppliers | ||
| Fixtures & | Beginning | |||||
| Equipment4 | Operations | |||||
| Initial Inventory5 | $3,000 to $5,000 | As incurred | Before Beginning Operations | Suppliers | ||
| Mobile Unit6 | $0 to $0 | As incurred | Before Beginning Operations | Suppliers |
| TYPE OF
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–22)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the estimated initial investment for real estate/rent ranges from $2,500 to $8,000. This cost is expected to be incurred before beginning operations and is paid to the lessor.
The FDD also specifies the size of the training facility for the Franchised Business, noting that it can be a 1,500 to 3000 square feet standalone building or space within a shopping center for Boutique Locations, 4,000 to 7,000 square feet space for a Medium Size Location, 7,000 to 10,000 square feet for a Full Fitness location, and 10,000 to 1500 square feet for a Big Box Locations. The document indicates that the upper end of the estimate assumes a higher security deposit in addition to rent, while the lower end reflects a lower security deposit.
Prospective franchisees should confirm local market rates for commercial real estate to refine this estimate. They should also clarify with lessors the terms for security deposit refunds upon cancellation of the lease, if applicable. Understanding these factors will help in accurately budgeting for the initial investment required to start a Punch King Fitness franchise.