Risk Score
Pending analysis
Investment Range
$149,440 - $5,671,191
Franchise Fee
$30,000
Min Cash Required
$15,000
Total US Locations
69
Business Summary
UFC GYM operates membership-based, MMA-oriented physical fitness facilities. Depending on the gym model, UFC GYM offers various functional fitness training regimens, including Daily Ultimate Training, mixed martial arts, cardio boxing, cardio kickboxing, core training, Jiu Jitsu, and Muay Thai boxing. These facilities utilize a weight room, a bag area, and an octagon with unique construction and design features.
Corporate History
UG Franchise Operations, LLC, doing business as UFC GYM, was formed as a California Limited Liability Company on February 27, 2004. Initially, the company offered franchises under the LA Boxing brand from 2004 until December 31, 2012, with many current UFC GYM locations being converted from former LA Boxing sites. UFC GYM began offering franchises under its current brand on January 1, 2013. Its affiliates started operating UFC GYM businesses in 2009. The company is part of a larger family of private equity-funded entities that own, operate, and invest in fitness gyms and health clubs globally, with its indirect parent, NEFC, holding ownership interests in various domestic and international health club businesses and fitness companies.
Financial Overview
Investment Range
$149,440 - $5,671,191
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$15,000
Minimum Net Worth
$300,000
Royalty %
4%
Marketing %
2%
Equipment Costs (Low)
$55,000
Equipment Costs (High)
$4,247,443
Working Capital
$432,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition, as reflected in its financial statements, calls into question UFC GYM's ability to provide services and support to its franchisees. The balance sheet for 2024 shows a significant amount due from parent and affiliates ($31,343,104), which is substantial compared to the total assets.
Financing Details
UFC GYM does not offer any direct or indirect financing to its franchisees. This means that UFC GYM will not provide loans, payment plans, or guarantee any financial obligations for its franchisees. Franchisees are responsible for securing their own funding from third-party sources.
Performance Metrics
Total US Locations
69
Franchised Units
66
Corporate Units
3
Avg Square Footage
11,188
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
3
Litigation Summary
UFC GYM has disclosed three past litigation cases in Item 3 of its Franchise Disclosure Document, all of which have been settled. The first case, Jeffrey Mathews et al v. UG Franchise Operations, LLC et al, was filed in May 2016 and settled for $275,000. The second case, James Biggs, Lucky Duck Enterprises, LLC v. UG Franchise Operations, LLC, involved an arbitration filed in 2019 by a former franchisee and settled for $125,000. The third case, UG Franchise Operations, LLC v. Frank Carranza, et. Al., was a declaratory judgment action filed in December 2020, with a counterclaim filed in March 2021, and subsequently settled for $30,000. No current or recent litigation is reported.
Bankruptcy History
UFC GYM has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their UFC GYM franchise, franchisees must be in substantial compliance with their Franchise Agreement and meet minimum gross revenue standards during the last two years of the initial term, achieving at least 80% of the designated average gross revenues of all similar UFC GYM Businesses. Franchisees must also provide timely notice of their intent to renew, pay a renewal fee equal to 50% of the then-current initial fee, maintain possession of the gym or secure an approved substitute location, remodel the gym to meet UFC GYM's current standards (regardless of cost), and sign UFC GYM's then-current Franchise Agreement and any other required documents, including a legal release if permitted by law. The new agreement may include materially different terms, such as a reduced designated territory or increased fees.
Training & Support Program
Franchisor Assistance
UFC GYM provides comprehensive assistance to its franchisees. Before opening, UFC GYM assists with site selection, provides standard floor plans and design specifications for the gym's layout, and offers business planning guidance. They also provide access to a confidential operations manual and lists of required equipment and approved suppliers. Franchisees must complete an initial training program, typically 3 business days, at UFC GYM's training facilities in Newport Beach, California, which covers operations, sales, marketing, and administration. After opening, UFC GYM offers ongoing accounting services through a designated supplier, provides field visits when deemed necessary, and offers telephone support for operational and marketing queries. Franchisees receive advice on local advertising, promotional materials, and access to pre-approved radio and TV commercials. UFC GYM also conducts research and development for new products and services, and offers refresher training programs and access to an online university, ClubConnect.
Initial Training Hours
71
Training Location
Newport Beach, California
Ongoing Support
After opening, UFC GYM franchisees receive various forms of ongoing support. This includes accounting services and gym management software through a designated supplier. UFC GYM provides periodic field visits from representatives and offers telephone assistance for operations, sales, advertising, and business methods. Franchisees benefit from general advertising and public relations campaigns, and receive advice on local advertising and promotional materials. UFC GYM continues research and development for new equipment, products, and services, and may offer pre-approved radio and television commercials. Refresher training programs, seminars, or advanced management training are available, typically not more than once a year, at the franchisee's expense. Franchisees are also required to subscribe to ClubConnect, UFC GYM's online university, for ongoing training and assistance.
Franchise Requirements
Ideal Candidate Profile
UFC GYM seeks qualified franchisees who possess strong financial, management, business, and marketing skills, coupled with a willingness to work hard. Ideal candidates should have substantial financial resources, capable of meeting the minimum net worth requirements (which vary by gym model from $300,000 to $1,500,000). Franchisees or their designated General Manager must be able to provide day-to-day supervision of the gym's operations, as the investment is not passive. Candidates must demonstrate good character and successfully complete UFC GYM's initial training program.
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
Staff Count
5
Territory Size Requirements
UFC GYM territories are defined based on the chosen gym model. For Class by UFC GYM and UFC GYM Jiu Jitsu facilities, territories typically encompass a 50,000 person population density or a 2-mile radius around the gym. UFC GYM (Core) facilities are granted a designated territory with a 100,000 person population density or a 3-mile radius. For UFC GYM (Signature) and UFC FIT facilities, territories typically cover a 150,000 population density or a 4-mile radius around the gym. UFC GYM retains the sole right to determine the location, size, and delineation of these territories.
Staffing Notes
UFC GYM franchisees are responsible for maintaining a competent and conscientious staff, including a General Manager, Class Instructors, and Private Coaches, sufficient to meet anticipated business volume and system goals. Initial training is provided for one General Manager and three Instructors. The General Manager or Managing Owner must provide day-to-day supervision. All coaches must complete UFC GYM's private coach training and CPR certification. UFC GYM specifies various position types, including Assistant General Manager, Membership Specialist, Fitness Director, Operations Manager, Front Desk staff, and Maintenance Technicians, with recommendations for the number of coaches (3+ persons) depending on gym size and volume. Franchisees are responsible for all employment decisions, including hiring, firing, and compensation, and must comply with UFC GYM's dress code policies.