Ultimate Ninjas logo

Ultimate Ninjas Franchise

Audited Financials
FitnessEst. 2020Naperville, IL
www.ultimateninjas.com

Risk Score

Pending analysis

Investment Range

$35,000 - $1,190,000

Franchise Fee

$27,000

Total US Locations

10

Business Summary

Ultimate Ninjas operates franchised businesses that offer obstacle fitness, classes, parties, and open play. These businesses are provided in two formats: a larger Ultimate Ninjas Center located in a sizable facility, or a smaller Ultimate Ninjas Academy found in a retail location.

Corporate History

Ultimate Ninjas Franchise Group, LLC was formed as an Illinois Limited Liability Company on January 24, 2020. The company began offering Ultimate Ninjas franchises on March 13, 2020. Prior to franchising, Ultimate Ninjas had been operating obstacle fitness centers through its affiliates since 2016 in Illinois, Indiana, and Missouri. These affiliate-owned locations are substantially similar to the franchised businesses now offered.

Financial Overview

Investment Range

$35,000 - $1,190,000

Franchise Fee (Low)

$27,000

Franchise Fee (High)

$45,000

Royalty %

6%

Equipment Costs (Low)

$152,000

Equipment Costs (High)

$937,000

Working Capital

$30,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Ultimate Ninjas Franchise Group, LLC has experienced consistent net losses, with $(68,769) in 2024 and $(92,746) in 2023. The company also reported a negative members' equity (deficit) of $(2,838) in 2022, though it has since recovered to $29,197 in 2024. The cash balance has remained low, at $31,476 in 2024. The FDD includes a special risk disclosure noting that Ultimate Ninjas Franchise Group, LLC's financial condition, as reflected in its financial statements, calls into question its financial ability to provide services and support to franchisees.

Financing Details

Ultimate Ninjas Franchise Group, LLC does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any notes, leases, or other obligations of its franchisees.

Performance Metrics

Total US Locations

10

Franchised Units

5

Corporate Units

5

Avg Square Footage

8,000

Franchising Since

2020

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their Ultimate Ninjas franchise, franchisees must meet several conditions. They must ensure that Ultimate Ninjas Franchise Group, LLC is still offering franchises at the time of renewal and provide written notice of their intent to renew between 6 months and 1 year before the current term ends. Franchisees must not be in default under any agreements with Ultimate Ninjas Franchise Group, LLC or its affiliates and must have substantially complied with all terms throughout their current agreement. They need to have the right to possess their current site or an approved substitute location for the entire renewal term. Additionally, franchisees must refurbish their Ultimate Ninjas business to meet current brand standards, sign Ultimate Ninjas Franchise Group, LLC's then-current franchise agreement (which may have different terms and conditions, but won't require a new initial franchise fee), pay a Successor Franchise Fee equal to 10% of the then-current Initial Franchise Fee, and comply with current qualification and training requirements.

Training & Support Program

Franchisor Assistance

Ultimate Ninjas Franchise Group, LLC provides comprehensive support to its franchisees. Before opening, Ultimate Ninjas Franchise Group, LLC offers building specifications, design plans, and review of franchisee design plans, though franchisees must retain a licensed architect. Ultimate Ninjas Franchise Group, LLC provides a list of designated and approved suppliers for all necessary equipment, inventory, and materials, and is the exclusive supplier for point of service software and branded retail merchandise. Ultimate Ninjas Franchise Group, LLC provides one week of free onsite assistance upon opening. Franchisees and their Designated Manager must complete an initial tuition-free training program covering orientation, human resources, customer service, running classes, marketing, operations, birthday overview, and open gym. After opening, Ultimate Ninjas Franchise Group, LLC continues to provide assistance with relocation site approval and design review, updated standards for equipment and products, an updated list of approved products and services, initial training for replacement staff, additional and ongoing training, and may organize annual conferences. Ultimate Ninjas Franchise Group, LLC offers marketing consultation, general advertising strategy, promotional planning, and budgeting, and reviews all franchisee advertising materials.

Initial Training Hours

60

Training Location

Naperville, Illinois

Ongoing Support

After opening, Ultimate Ninjas Franchise Group, LLC provides ongoing support to its franchisees. This includes maintaining and providing updated standards, specifications, and a list of designated and approved suppliers for equipment and products. Ultimate Ninjas Franchise Group, LLC also provides an updated list of authorized products and services that franchisees may offer. Support includes initial training for replacement staff and managers, and may include additional and ongoing training programs. Ultimate Ninjas Franchise Group, LLC may organize an annual conference, which franchisees are required to attend. If a franchisee fails to resolve a client dispute, Ultimate Ninjas Franchise Group, LLC may investigate and resolve the matter. Franchisees receive continuing advisory assistance with technical, operational, sales, personnel, accounting, and other daily business issues, and will be provided with updates and changes to the Ultimate Ninjas Operating Manual. Ultimate Ninjas Franchise Group, LLC reviews franchisee advertising materials and provides recommended pricing, requiring participation in System programs. For marketing, Ultimate Ninjas Franchise Group, LLC offers consultation, general advertising strategy, promotional planning, and budgeting. Franchisees must also participate in regional advertising cooperatives if established by Ultimate Ninjas Franchise Group, LLC.

Franchise Requirements

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Retail

Owner Participation

Absentee Allowed

Territory Type

Protected

Territory Size Requirements

Ultimate Ninjas Franchise Group, LLC defines its Protected Territory as an area surrounding the franchised business site that contains at least 30,000 people according to the most recent census data. However, if there are at least 30,000 people within a 15-mile radius of the premises, the protected territory will be a 15-mile radius. This means territories are defined by population, with a potential minimum radius if the population density supports it.

Staffing Notes

Ultimate Ninjas Franchise Group, LLC requires franchisees to maintain a designated full-time manager for the franchised business. This manager must be approved by Ultimate Ninjas Franchise Group, LLC, dedicate their full time and energy to the business, and successfully complete the initial training program. The manager must also sign a confidentiality, non-solicitation, and non-competition agreement. Franchisees are responsible for hiring and training additional staff to adequately service customers, ensuring at least one trained manager or supervisory employee is on duty during all operating hours, and that all employees comply with Ultimate Ninjas Franchise Group, LLC's dress code and maintain good customer relations. Ultimate Ninjas Franchise Group, LLC does not directly select or hire franchisee employees.