What is the estimated total initial investment range 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 EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM | ||
|---|---|---|---|---|---|---|
| PAYMENT IS MADE | ||||||
| Insurance7 | $1,000 to $2,000 | As incurred | Before Beginning Operations | Insurance Companies | ||
| Signage8 | $2,500 to $5,000 | As incurred | Before Beginning Operations | Suppliers | ||
| Office Equipment & Supplies9 | $1,500 to $5,000 | As incurred | Before Beginning Operations | Suppliers | ||
| Computer Equipment (Hardware, Software, POS System, etc.)10 | $1,500 to $2,000 | As incurred | Before Beginning Operations | Suppliers | ||
| Pre-Opening Expenses11 | $3,000 to $5,000 | As incurred | Before Beginning Operations | Us and/or Suppliers | ||
| Training12 | $1,000 to $3,000 | As incurred | Before Beginning Operations | Airlines, Hotels, and other Suppliers | ||
| Licenses & Permits13 | $1,500 to $2,000 | As incurred | Before Beginning Operations | Licensing Authorities | ||
| Legal & Accounting14 | $1,000 to $2,500 | As incurred | Before Beginning Operations | Attorney, Accountant |
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM | |
|---|---|---|---|---|---|
| PAYME |
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 for a Training Facility franchised business ranges from $196,250 to $418,500. This investment covers various expenses, such as the initial franchise fee, leasehold improvements, real estate/rent, utility deposits, furniture, fixtures, equipment, initial inventory, and a mobile unit.
Breaking down the investment, the initial franchise fee is $50,000. Leasehold improvements range from $15,000 to $50,000, while real estate/rent costs between $2,500 and $8,000. Utility deposits are estimated to be between $250 and $500. Furniture, fixtures, and equipment costs range from $30,000 to $50,000, and the initial inventory investment is between $3,000 and $5,000. The cost for a mobile unit is listed as $0 to $0, indicating it may be optional or included elsewhere.
Additional costs include grand opening advertising, estimated between $2,500 and $3,500, and additional funds for three months, ranging from $50,000 to $75,000. It is important to note that the total investment figure does not include compensation for the franchisee's time or labor, nor does it account for any finance charges, interest, or debt service incurred to finance the investment. Prospective franchisees should also have additional funds available to cover personal living expenses and any operating losses during the initial phase of the business.
Prospective Punch King Fitness franchisees should carefully review these figures with a business advisor before making any decision to purchase the franchise. Understanding the breakdown of these costs and planning for additional, unlisted expenses is crucial for the financial stability of the franchise.