UFC GYM

Franchising for two decades, UFC GYM grew from 61 franchised locations in 2023 to 66 in 2024—an 8% uptick—with 10 projected new units signaling steady but not explosive momentum. Yet red flags dot the FDD: 9 terminations amid just 2 transfers, plus litigation primarily involving fraud, breach of contract, and unfair practices claims from former franchisees, all settled with payments to plaintiffs (Item 20). Item 7 outlines five models from compact Jiu Jitsu studios to expansive Signature gyms, tying into 31 SBA loans averaging $562,090 but marred by a 25.8% default rate—far above industry norms and hinting at franchisee cash flow strains.

Financials hit hard without Item 19 earnings disclosure, leaving prospective owners guessing on top-line potential in a saturated fitness market. Entry demands $374,600-$725,000 total investment atop a $40,000 franchise fee, with ongoing 6% royalties, 2% brand/ad fund, and $364-$761 monthly software/billing fees (Item 6). No validated revenues mean relying on anecdotes or benchmarks, but high SBA defaults and legal payouts underscore viability questions—growth persists yet system stability wavers, warranting deep diligence before committing.