Do you want to open a martial arts school business by buying Premier Martial Arts franchise? If YES, here is how much it cost to open Premier Martial Arts franchise successfully. If you are looking towards opening a Premier Martial Arts Franchise, it will be nice for you to have a preview of what the company represents before going ahead to make enquiries about the total cost of opening the franchise in your location.
Premier Martial Arts was founded in 2005 and they began franchising in 2005, about 15 years ago. As of the 2019 Franchise Disclosure Document, there are 72 franchised Premier Martial Arts Studio locations in the USA. Based on 2019 FDD data, Premier Martial Arts Studio has franchise locations in 18 states. The largest region is the South with 37 franchise locations.
Premier Martial Arts offers men, women, boys and girls more than just martial arts training. They offer a unique, personal development experience that can’t be provided anywhere else. From fitness and self-defense to character development and confidence, to social interaction and fun, Premier Martial Arts offer so many benefits for all ages.
Premier Martial Arts was one of the first truly national brands to exclusively provide professional quality martial arts training for the entire family. As a Premier Martial Arts business owner, you will have the ability to own a business that capitalizes on a huge market of potential customers and rapidly growing industry.
With over 72 locations open today, Premier Martial Arts is the dominant martial arts business opportunity in the United States. Premier Martial Arts is one of the nation’s leading investment opportunities in this attractive market segment.
They are led by industry experts and martial artists Barry Van Over and Myles Baker, who have spent two decades developing high-performance systems to help more than 100 independent martial arts schools grow from struggling businesses to stable and successful enterprises.
Premier Martial Arts uses this experience — combined with a small-footprint martial arts school and a popular, standard curriculum — to make for an attractive, low-investment and easy-to-operate martial arts school franchise.
After growing the brand to nearly 100 locations across the country, Premier Martial Arts is excited to help entrepreneurs with a passion for martial arts become a meaningful part of their community in a business that has the power to both help people of all ages and make a great living. Here are areas where you are expected to spend money and the cost associated with it;
Financial Investment Required to Open Premier Martial Arts Franchise
1. Initial Investment Range: $143,048 to $209,448
2. Franchise Fee: $49,500
3. Royalty Fee: 7 percent of Gross Sales
Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
4. Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.
Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Premier Martial Arts and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative. If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Premier Martial Arts if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Premier Martial Arts if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Premier Martial Arts is required to defend your unsuccessful claim against it.
- Veteran Incentives: This is open for negotiation with the company.
- Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 5 years.
- Financial Assistance: Premier Martial Arts has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.
In Summary,
- Initial Franchise Fee: $49,500
- Total Investment: $143,048 to $209,448
- Working Capital: $12,000 to $15,000
- Royalty Fee: 7.0%
- Ad Royalty Fee: 1%.