TITLE BOXING CLUB

Item 7 details the steep entry: $468,698-$944,442 initial investment, including a $49,500 franchise fee, for 2,500-3,500 sq ft studios. Ongoing fees include 7.5% royalties, 1% brand fund, and $697 monthly technology costs—equating to about 8.5% of revenue plus fixed tech burdens on $422,065 average gross sales (Item 19). Median revenue sits at $406,183 across the 90 franchised units, suggesting most studios hover below average without standout performers boosting the mean. At these levels, breaking even requires tight cost control, as EBITDA estimates (not directly disclosed) likely demand 25-30% margins after fees and operations.

System health metrics in Items 20 and 21 reveal contraction: total locations dropped 16% from 107 in 2023 to 90 franchised plus 10 corporate in 2024, with just 2 projected new units. Terminations (5), non-renewals (6), and transfers (6) indicate moderate instability, where owners are exiting or handing off rather than expanding. SBA data shows 98 loans averaging $242,269 but a 13.3% default rate—higher than many fitness peers—highlighting leverage risks in a model sensitive to membership churn. Investors eyeing Title Boxing should weigh the revenue disclosure positively against these red flags signaling potential saturation or economic pressures.