Risk Score
Pending analysis
Investment Range
$213,200 - $445,500
Franchise Fee
$18,750
Total US Locations
6
Business Summary
Impact-X Performance training facilities focus on group personal coaching using a proprietary business system. Impact-X Performance offers franchises to various qualified individuals, including those with no prior experience in the fitness industry. The business model involves operating a fitness facility that provides a variety of fitness-related services, adhering to specific building designs, layouts, equipment, training, and operational standards. Facilities are typically between 4,000 and 6,000 square feet, often located in suburban areas, business districts, and lifestyle centers.
Corporate History
Journey 333, LLC was formed in New York on February 22, 2018. From its inception until the FDD issuance date, Impact-X Performance operated and sold franchises under its former principal trademark, "Journey 333." Currently, the company operates under its name and "Impact-X Performance." Its parent company, Destiny Faith, LLC, was formed in November 2023. An affiliate, Journey Fitness Coaching, LLC, owns and operates one training facility, while Durkin Health & Wellness, Inc., another affiliate, provides life coaching certification services and is an approved supplier.
Financial Overview
Investment Range
$213,200 - $445,500
Franchise Fee (Low)
$18,750
Franchise Fee (High)
$50,000
Royalty %
5.5%
Marketing %
2%
Equipment Costs (Low)
$98,000
Equipment Costs (High)
$260,000
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The FDD highlights concerns about Impact-X Performance's financial condition, stating that it calls into question the franchisor's financial ability to provide services and support to franchisees. The company has a history of losses in 2021 and 2022, with net losses of $12,438 and $25,536, respectively, before posting a net income of $28,935 in 2023. Impact-X Performance has a members' deficit, meaning its total liabilities exceed its total assets, including a deficit of $21,135 in 2023.
Financing Details
Impact-X Performance does not offer direct or indirect financing to its franchisees, nor does it guarantee any notes, leases, or obligations.
Performance Metrics
Total US Locations
6
Franchised Units
5
Corporate Units
1
Avg Square Footage
5,000
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Impact-X Performance has no litigation history to report as no litigation is required to be disclosed in Item 3 of this FDD document.
Bankruptcy History
Impact-X Performance has no bankruptcy history to report as no bankruptcy information is required to be disclosed in Item 4 of this FDD document.
Agreement Terms
Initial Term
7 years
Renewal Term
7 years
Renewal Conditions
Impact-X Performance franchisees can renew their agreement for two additional seven-year terms. To qualify, franchisees must provide 90 to 180 days' notice before the term ends, sign the then-current franchise agreement (which may have materially different terms and increased fees), be in full compliance with their current agreement and all financial obligations to Impact-X Performance and its affiliates, hold all necessary licenses, complete all required modifications and upgrades to their facility and systems, have no more than two material defaults, prove their right to occupy the location for the renewal term, and sign a general release of claims against Impact-X Performance. Franchisees must also meet all general requirements applicable to new franchisees.
Training & Support Program
Franchisor Assistance
Impact-X Performance provides franchisees with a digital copy of its proprietary Manual and specifications for products and suppliers before opening. The franchisor reviews the franchisee's marketing plan for grand opening events. Impact-X Performance assists with site selection by approving or rejecting proposed locations and provides prototypical specifications for construction, remodeling, and interior design. Initial training for franchisees, operations managers, and head coaches includes 83 hours of classroom instruction and 25 hours of on-the-job training, which may be conducted virtually. Ongoing assistance includes updates to the System and Manual, additional training for new managers and employees (for a fee), and a mandatory annual convention (with a registration fee). The franchisor also manages a Brand Fund, requires specific local advertising expenditures and participation in pre-opening marketing and grand opening events. Franchisees must use designated computer hardware and software, including systems for booking, workout tracking, heart rate monitoring, billing, and Microsoft Office, and participate in an intranet system for communication and online training.
Initial Training Hours
108
Training Location
Sayre, Pennsylvania, or another location Impact-X Performance designates
Ongoing Support
Impact-X Performance provides ongoing advisory assistance through telephone, facsimile, intranet communication, and optional on-site visits (for an additional fee). Impact-X Performance reserves the right to modify its System and Manual, requiring franchisees to implement new operational requirements and techniques. Franchisees must ensure their Operations Managers complete ongoing manager-specific training when new managers are appointed. Franchisees are required to attend annual conventions and may be subject to a registration fee. Impact-X Performance may, if legally permissible, designate pricing for services and products and require participation in various member and promotional programs. The franchisor maintains a System Website, may develop mobile applications, and provides access to and requires the use of designated computer hardware and software systems for business operations and data reporting. Impact-X Performance also administers a Brand Fund and sets requirements for local advertising, grand opening events, and pre-opening marketing.
Franchise Requirements
Ideal Candidate Profile
Impact-X Performance seeks qualified individuals, including those who currently operate independent fitness facilities, personal trainers, nutritionists, and even those with no prior experience in the fitness industry. The ideal Impact-X Performance franchisee should possess strong entrepreneurial and managerial abilities, demonstrate a keen focus on customer service, and be committed to adhering to the franchise's standards and guidelines.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
non-exclusive
Territory Size Requirements
Impact-X Performance defines its franchise territories as either a 5-mile radius around the facility location if in a rural area, or a 10-block radius if in an urban area. Impact-X Performance reserves the right to grant smaller territories and deviate from this formula at its sole discretion.
Staffing Notes
Impact-X Performance franchisees must appoint an approved Operations Manager to oversee daily operations, who must dedicate their full time and best efforts to the business and successfully complete initial training. Franchisees also need to hire and train at least one Head Coach before opening the facility and ensure a properly trained Coach is always on staff. Franchisees are responsible for all employment decisions and ensuring their managers and employees comply with confidentiality and non-competition agreements.