What is the estimated total initial investment for a Punch King Fitness franchise?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS MADE | |------------------------|------------------------------|-------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------| | | | | Agreement and | | | | | | 1/2 upon | | | | | | signing the | | | | | | franchise | | | | | | agreement for | | | | | | the additional | | | | | | territory | | | TOTAL | $196,250 | | | | | | to | | | | | | $418,500 | | | | | TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | | TO WHOM | |---|---|---|---|---|---| | | | | | | PAYMENT IS MADE | | Grand Opening Advertising15 | $2,500 to $3,500 | As incurred | Before opening and during the first 3 months of operation | Vendors | | | Additional Funds | $50,000 to $75,000 | As incurred | As Necessary | Us, Vendors, | | | – three months16 | | | | Lessor, Etc. | | | TOTAL | $166,250 to $268,500 | | | | | Before starting your Franchised Business, you must pay Punch King, LLC $30,000 to $150,000 for a Startup Package that includes Punch King Punching bags, training equipment, protective gear, flooring, and a hanging rack system. The amount charged for this Package is uniformly charged all franchisees and is nonrefundable. The total figure listed in the table above does not include compensation for your time or labor. Nor does the total figure take into account any finance charges, interest, debt service, or other costs which you may incur to finance all or any portion of your investment. In addition to the initial investment itemized in the table above, you must have additional monies available, whether in cash or through a line of credit, or have other assets that you can liquidate or against which you can borrow, to cover your personal living expenses and any operating losses sustained during the initial phase of your business. You should review these figures carefully with a business advisor before making any decision to purchase the franchise. We do not offer direct or indirect financing for any of your initial investment. All amounts paid to us are nonrefundable. Typically, amounts paid to third parties will not be refundable unless agreed. If you desire to purchase additional territories and qualify for Area Development Agreement, your additional estimated initial Investment will be as follows.
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 total initial investment to open a training facility franchise ranges from $166,250 to $268,500. This includes several key expenses. The initial franchise fee is $50,000. Leasehold improvements can range from $15,000 to $50,000, while real estate and rent costs are estimated between $2,500 and $8,000. Utility deposits are a smaller expense, estimated at $250 to $500. Furniture, fixtures, and equipment can cost between $30,000 and $50,000. The initial inventory is estimated to cost from $3,000 to $5,000.
Additional costs include grand opening advertising, which is estimated at $2,500 to $3,500. Furthermore, Punch King Fitness requires franchisees to purchase a Startup Package that includes Punch King Punching bags, training equipment, protective gear, flooring, and a hanging rack system, costing between $30,000 and $150,000. Franchisees will also need to budget for additional funds to cover operating expenses for the first three months, estimated at $50,000 to $75,000.
It's important to note that these figures do not include compensation for the franchisee's time or labor, nor do they account for any financing charges or debt service. Franchisees should also have additional funds available to cover personal living expenses and any operating losses during the initial phase of the business. Punch King Fitness does not offer direct or indirect financing for the initial investment.
Prospective franchisees should carefully review these figures with a business advisor and inquire about the refund policies of suppliers and service providers, as many of these expenses are typically non-refundable. The FDD also mentions the possibility of purchasing additional territories under an Area Development Agreement, which would entail a separate estimated initial investment ranging from $196,250 to $418,500.