UFC Gym is one of the first fitness brands to combine traditional fitness with combat sports. Owned by the renowned MMA brand Ultimate Fighting Championship, UFC Gyms offer a huge range of classes and equipment to their members, including MMA classes for both children and adults, strength and conditioning equipment, cardio, free weights, personal training, and cafés to relax in after a workout.
If you’re interested in opening a UFC Gym franchise near you, it’s important to understand what the UFC Gym brand stands for and what the franchise agreement involves. Let’s explore UFC Gym franchise opportunities and find out what the total UFC Gym franchise cost is to investors.
The Benefits and Opportunities of Becoming
a UFC Gym franchise owner
UFC Gyms offer premium fitness facilities and specialised group classes that are particularly suitable for children and adults interested in learning mixed martial arts. However, they’re not exclusively used for MMA. Some of the unique benefits of owning a UFC Gym franchise are:
- Be part of a fast-growing chain that was established in 2017 and is looking to expand to 105 new locations across the UK over the next 10 years, meaning plenty of opportunities for the right investors
- Benefit from the strong brand appeal of running a UFC Gym that is a brand extension of UFC®, the world’s premier MMA organisation
- Capitalise on a gap in the market by offering a wide selection of MMA classes such as Muay Thai and Youth Jiu-Jitsu, while enjoying broad appeal with traditional fitness classes such as yoga and spin, alongside personal training
- Choose between two models including CLASS UFC or premium UFC GYM to suit your demographic, allowing you to boost your revenue further with additional facilities including cryotherapy chambers
- Enjoy lucrative rewards thanks to higher membership rates, with UFC Gyms in the US currently making up to $3 million in revenue per year, with profit margins of around 30%
How does the UFC Gym franchise model work?
1. There are two tiers to the UFC gym model:
- UFC GYM is the premium tier, offering a wide range of exceptional features and services. Among its offerings are cryotherapy and compression treatments, ensuring a complete wellness experience, alongside additional amenities like a Cafe and retail outlet.
- CLASS UFC GYM introduces a distinctive boutique concept that specialises in high-intensity interval training and boxing classes led by certified coaches in a state-of-the-art fitness studio.
The unique selling point of UFC Gym is its association with the UFC brand. Individuals interested in learning an MMA discipline or training for MMA are often prepared to pay a premium price to train in a gym that’s designed specifically for MMA fighters and enthusiasts. UFC Gyms include premium facilities and features that justify the relatively high membership cost of £79.99 per month.
2. UFC Gym franchise requirements
If you want to become a UFC Gym franchisee, you’ll have to demonstrate that you meet the requirements set out by the franchisor. Some of the primary UFC Gym franchise requirements include:
- You must have experience running a large-scale, consumer-facing business
- You must be able to demonstrate that you have sufficient funding and infrastructure to service your UFC Gym alongside any other non-competing businesses you own
- You will have to show that you have sufficient capital to invest in your new UFC Gym, which could be around £500,000 minimum
3. Minimum cost to buy and own a UFC Gym franchise
UFC Gym doesn’t make it clear how much money they expect investors to pay out when they open a UFC franchise, but it’s possible to estimate the minimum UFC Gym franchise cost by looking at various figures.
It’s thought that the minimum total UFC Gym investment for UK investors starts at £350,000. This should cover the UFC Gym franchise startup fee, as well as the cost of building and fitting out your new gym.
4. Initial UFC Gym franchise start-up fees
The initial UFC Gym franchise start-up fees are likely around £32,000. This fee will essentially buy you the rights to use the UFC brand and allow you to continue on your journey to becoming the owner of a UFC Gym franchise.
After the start-up fee, you will also have to invest money into the building of your gym, as well as spending money on gym equipment, signage, marketing, and staff costs. This is where the rest of the estimated £350,000 cost of opening a UFC Gym will be spent.
5. Expected UFC Gym franchise revenue
UFC Gym franchises in the US make considerable revenue, making up to the equivalent of £2.5 million in USD. While UK gyms may not necessarily make as much income as this – and it’s likely that the profit your gym will make will depend on how large your UFC Gym is and how much you invest in the gym – this is a good indication that the UFC Gym model is capable of generating high amounts of revenue.
6. Costs associated with running a UFC Gym franchise
The average income of a UFC Gym franchise owner will be much lower than the total revenue because of the costs associated with running a gym. Some of the most considerable costs associated with running a UFC Gym include:
- UFC Gym franchise fees, which include royalty fees of 6% and 5% respectively for UFC classes and Gym core, and marketing fees of 2%
- A monthly music licensing fee
- Expenses to cover the cost of UFC-branded products
- Ground rent and utilities
- Repairs and maintenance costs
- Staff costs in particular represent an important consideration – the specialised nature of the UFC workouts and proposition offering requires specialised trainers too, which come at higher costs than the average gym fitness coach.
The total cost of these outgoings means that the UFC Gym franchise owner’s average profit margin is most often lower when compared with traditional gym franchising models.
7. Predicted average profit of a UFC Gym franchise owner
After covering these costs, successful franchise owners should be left with a healthy annual profit. While the UFC group doesn’t publish average profits for franchise owners in the UK, UFC Gyms in the US currently report average profit margins of 30% ETIDBA, which in the US market will mean profits of around $1 million per year.
While UK UFC Gyms might not report the same levels of revenue, similar profit margins of around 30% should result in a UK UFC Gym franchise owner average profit of at least £10,000 or more per month. Charging £79.99 per month for membership, UFC Gyms with 375 members with a profit margin of 30% can expect to make this much profit per month.
A look at the UFC Gym franchise
agreement and policies
Franchisees will have to agree to the UFC Gym franchise agreement before they can start a UFC Gym franchise. This agreement will set out the rules, boundaries, and obligations of franchise owners for the term of their agreement.
1. Your territory
As is common in franchise agreements, franchisees must agree to operate their UFC Gyms only within specific locations agreed upon with the franchisor. This territory will be designated by the franchisor when you choose a site for your gym, and franchisees are not guaranteed exclusivity within their territory, which means that other UFC Gyms could open in the future nearby.
2. Your performance
Your agreement with UFC also outlines that your UFC Gym must maintain minimum gross revenues every year, and these revenues should be at least 80% of the average gross revenues across the UFC Gym brand. UFC Gyms in their first year of operation are not required to meet this standard.
3. Your role
While some gym franchises allow franchisees to treat their gyms as more of a passive investment, UFC Gym franchisees will be designated the General Manager of their gyms and must take an active role in the daily management of the gym.
What are the franchise terms of agreement and renewal?
The UFC Gym terms of agreement and renewal state that the length of the initial franchise term is 10 years, and franchisees have the right to renew their contract for two additional terms of five years each provided they meet the requirements for renewal and pay an additional renewal fee which will be equal to 50% of the (future) current initial franchise fee.
Is UFC Gym a good fit for you?
It’s important to make sure that the UFC Gym brand is a good fit for you. As well as being passionate about your new business, you’ll have to manage your new gym actively.
1. The target market of the average UFC Gym franchise
UFC Gyms are specialist gyms aimed primarily at the MMA market. The UFC Gym demographic is primarily younger people, including children, teens, families, and adults, who want to improve their overall fitness and strength and practice technical MMA skills. With an average monthly membership fee of £79.99, most UFC Gym members have relatively high amounts of disposable income and work in skilled or professional roles.
2. Is a UFC Gym franchise right for your chosen location?
It’s vital to take the target market of UFC Gyms into consideration when choosing your gym location. Towns and cities with young, affluent populations may be more profitable for the UFC brand than areas with less disposable income or aging populations. It’s also important to look for locations that do not currently have UFC Gyms nearby, which may discount regions with existing gyms like Kent, Reading, Nottingham, and Woking.
3. Other factors to consider when deciding whether a UFC Gym franchise is right for you
There are relatively few UFC Gyms open in the UK at the moment – currently only four – which means the brand is somewhat untested in this market. However, the UFC brand is well-known in the UK, and the UFC group is intending to launch gyms across the country over the next 10 years, which shows the brand’s investment in the UK market.
Are you a good fit for the UFC Gym franchise?
As well as thinking about whether UFC is a good fit for you, it’s important to think about whether you’re a good fit for the UFC brand. The UFC group is looking for franchisees that will play an active role in the management of their gyms, as well as experienced managers with a proven track record of managing a customer-facing business.
If you’ve got no interest in MMA or combat fitness, the UFC brand may not be right for you.
The process of starting a UFC Gym franchise
If you’re interested in starting a UFC Gym franchise, you’ll have to follow the steps below.
1. Register your interest with UFC
The first step to opening a UFC Gym franchise is contacting the franchisor to register your details and let them know more about you. UFC has outsourced this aspect of the process to Accentia Franchise consultants, who have 13 offices across the UK and Ireland.
2. Pay a 10% deposit to hold your territory
After signing an NDA, you’ll be invited to meet various professionals from Accentia and UFC to discuss your franchise plans and the location where you want to open a gym. If both parties want to go ahead, you’ll pay a 10% deposit to hold your chosen territory and sign a contract.
3. Plan and build your UFC Gym
After you’ve signed the contract, you’ll have to take steps to make your UFC Gym a reality. This means choosing and paying for your new site, designing the gym, buying gym equipment, installing signage, and hiring a team.
4. Market and launch
Before you launch your new UFC Gym, you’ll have to market it locally. While you’ll pay advertising fees to cover the cost of national and international marketing, you’ll be responsible for marketing your specific franchise to local members. Ideally, you should aim to have a healthy membership base in place before launch day.
Conclusion
Investors interested in starting a gym franchise with a growing UK brand that has already proven itself in overseas markets may want to consider UFC Gyms. The UFC brand is synonymous with MMA, and it’s this international recognition that no doubt sets UFC Gyms apart from their competitors. While the total cost to buy and own a UFC Gym franchise is relatively high, the potential profits of UFC Gym owners are equally promising.
FAQs
If you want to know more about starting a UFC Gym franchise in the UK, read some of our most frequently asked questions below.
1. How to start a UFC Gym franchise
You can start a UFC Gym franchise by:
- Contacting the UFC Gym group online
- Discuss your proposal with the Accentia head office team
- Choose and agree on a territory for your gym
- Sign the agreement and pay a 10% deposit
- Build, kit out, and market your UFC Gym
- Launch the gym
2. How much does owning a UFC Gym franchise cost?
The minimum UFC Gym franchise startup cost is around £350,000, although it’s possible that some of this investment can be financed through third parties. It will also cost money to run a UFC Gym, although most of the fees and running costs of your gym should be able to come from the income that your gym makes.
3. Is a UFC Gym franchise profitable?
UFC Gym franchise opportunities in the US have proven themselves to be very profitable, and while there’s less data available for UK franchisees, the UFC brand is very respected in the UK which makes it very likely that UFC Gyms in the UK will also turn a profit. Maintaining profit margins of the US average of 30% should see most UFC Gyms in the UK turn a profit of at least £5,000 to £10,000 per month.
4. What questions to ask when buying a UFC Gym franchise?
If you’re considering buying a UFC Gym franchise, make sure you find out everything you need to know about the franchise terms before you sign. Important questions to ask include:
- How much support will I receive from the UFC group?
- What is the total UFC gym franchise price and cost to run?
- Do I need experience in fitness, gym management, or UFC?
- When can I put up my UFC Gym franchise for sale?
- What are my obligations as a franchisee?
