Risk Score
Pending analysis
Investment Range
$342,700 - $567,900
Franchise Fee
$60,000
Total US Locations
24
Business Summary
USA Ninja Challenge is a fitness-based program that utilizes obstacle course equipment and various programs designed to challenge participants' skills and knowledge. USA Ninja Challenge is targeted towards boys and girls primarily aged 3 to 17. The business offers full gym franchises, with locations typically ranging from 3,600 to 5,000 square feet, and provides programs on an individual monthly membership basis, as well as party and event services.
Corporate History
USA Ninja Challenge Franchising, LLC was formed on August 21, 2015, as a New Hampshire Limited Liability Company. The company began offering franchises in August 2015. An affiliate, USA Ninja Challenge, LLC, operated a USA Ninja Challenge business in Hooksett/Manchester, New Hampshire, from January 2015 to September 2018.
Financial Overview
Investment Range
$342,700 - $567,900
Franchise Fee (Low)
$60,000
Franchise Fee (High)
$60,000
Royalty %
7.5%
Marketing %
1.5%
Equipment Costs (Low)
$195,400
Equipment Costs (High)
$378,600
Working Capital
$52,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements of USA Ninja Challenge Franchising, LLC for 2023 and 2022 received an unqualified opinion from the independent auditor, indicating they are presented fairly. As of December 31, 2023, the company reported positive cash of $563,767 and members' equity of $508,868. A note in the financial statements references the global COVID-19 pandemic declared in March 2020, stating that uncertainties have arisen which are likely to negatively impact net income, though the specific financial impacts remain unknown and unquantified.
Financing Details
USA Ninja Challenge Franchising, LLC does not offer any direct or indirect financing options to its franchisees. The franchisor also does not guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
24
Franchised Units
24
Corporate Units
0
Avg Square Footage
4,250
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
USA Ninja Challenge Franchising, LLC has no litigation to disclose in this item, indicating a clean legal history.
Bankruptcy History
USA Ninja Challenge Franchising, LLC has no bankruptcy history to disclose in this item.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, USA Ninja Challenge franchisees must provide advance written notice to the franchisor within a specific timeframe (not less than 9 months nor more than 12 months prior to the agreement's end). They must be in full compliance with all material provisions of their agreement, have the right to remain at an approved location or a suitable substitute, and make any necessary capital expenditures to align their business with the franchisor's then-current standards and specifications. Franchisees must also satisfy all monetary obligations to the franchisor, not be in default under any agreement, meet the franchisor's current qualifications for a new franchise, agree to any new training requirements, and sign the franchisor's then-current form of franchise agreement. Additionally, they must execute a general release of claims against the franchisor, its affiliates, and associated individuals, unless prohibited by applicable law.
Training & Support Program
Franchisor Assistance
USA Ninja Challenge Franchising, LLC provides franchisees with pre-opening and post-opening assistance. Before opening, USA Ninja Challenge helps with site review and advice, providing standard building plans and specifications. It offers suggested staffing and hiring guidelines, initial training (which includes operational instructions from the Manual), and advises on the pre-opening business plan and market introduction plan. The franchisor also provides at least four days of on-site support for the business opening. After opening, USA Ninja Challenge offers advice via phone or electronic communication for improving and developing the business and resolving operating problems. The franchisor also provides recommended prices and procedures for administrative, bookkeeping, accounting, and inventory control. USA Ninja Challenge administers a Brand Development Fund and maintains a brand website that includes franchisee business information. Franchisees are required to use a specific point-of-sale and computer system and must upgrade or update systems as determined by the franchisor.
Initial Training Hours
70
Training Location
Concord, NH
Ongoing Support
After opening, USA Ninja Challenge Franchising, LLC provides ongoing support to franchisees through advice (by telephone or electronic communication) regarding business improvement, development, and resolving operating problems, as deemed reasonable by the franchisor. If in-person support is requested, a daily fee plus expenses may be charged. The franchisor administers the Brand Development Fund and maintains the brand website. Franchisees are required to use specified computer and point-of-sale systems and must upgrade or update these systems as determined by the franchisor. The franchisor may also provide ongoing training programs or seminars, which the Designated Manager or Lead Instructor may be required to attend without a fee, though franchisees are responsible for travel and living expenses.
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
Supervisory
Territory Type
exclusive
Territory Size Requirements
Each USA Ninja Challenge franchise territory is typically based on a population of up to 100,000 people, with flexibility for smaller markets as determined by USA Ninja Challenge Franchising, LLC.
Staffing Notes
USA Ninja Challenge Franchising, LLC provides suggested staffing levels, suggested guidelines for hiring employees, and operational instructions in its Manual for franchisees to use in training new employees. All hiring decisions and employment conditions are the sole responsibility of the franchisee. The franchised business must at all times be under the direct supervision of either the franchisee or a Designated Manager who has completed the required initial training program. This Designated Manager must devote at least 30 hours per week to the day-to-day operation of the business. Franchisee personnel must also comply with dress attire, uniform, personal appearance, and hygiene standards set forth in the Manual, and uniforms must be purchased from an Approved Supplier. Franchisees are solely responsible for their personnel's terms and conditions of employment, and neither the franchisee nor the franchisor are considered joint employers.