Premier Martial Arts Franchise Cost, Revenue & Review 2026
- Investment
- $184K – $422K
- Disclosed sales
- $316K
- gross sales, not profit
- SBA charge-off
- 16.7%
- on 103 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Premier Martial Arts is a fitness franchise teaching karate, kickboxing, and self-defense to kids and adults. Franchisees run a studio managing instructors, class programs, memberships, and retail.
FranchiseVerdict summary · 2026
A Premier Martial Arts franchise requires a total initial investment of $184K – $422K, including a $50K franchise fee and an ongoing 7.0% royalty[2]. Per the 2022 FDD, average unit revenue was $316K[2]. SBA 7(a) loans show a 16.7% charge-off rate across 103 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $184K – $422K
- 33rd pct Health & Fitn…
- Avg gross sales
- $316K
- 9th pct Health & Fitn…
- Royalty
- 7.0%
- 37th pct Health & Fitn…
- Units
- 175
- 87th pct Health & Fitn…
- SBA charge-off
- 16.7%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $184K – $422K including a $50K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $316K/year (median $286K), with an estimated 14% cash-on-cash return (based on EBITDA8 $75,95011).
- RISKVerdict C (Average), verdict score 55/100 (higher is better). SBA loan charge-off rate of 16.7% across 103 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative, pipeline stalled: 201 agreements signed but not yet open against 175 open outlets (Item 20).
- FLAGAuditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Premier Franchising Group, LLC
- Parent company
- Premier Martial Arts International, Inc. (PMAI)
- FDD Item 1, page 8 of the 2022 FDD
- Ultimate parent
- Unleashed Brands, LLC (parent: UA Holdings, LLC)
- FDD Item 1, page 8 of the 2022 FDD
- Predecessor
- Premier Martial Arts International, Inc. (PMAI) / Licensed PMA Schools
- Prior franchisor entity
- CEO title
- Founder and Chief Executive Officer
- Barry Van Over
- CEO experience
- 18 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- Tennessee
- HQ
- 2350 Airport Freeway, Suite 505, Bedford, Texas 76022
- Auditor
- LBMC, PC
- Audited financials
- Franchisor revenue
- $4.3M
- vs $1.9M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2022
- Status as of 2022; may have been resolved in a later filing we don't yet have.
Same owner · FDD Item 1, page 8
6 other brands on this site name Unleashed Brands, LLC (parent: UA Holdings, LLC) as parent or ultimate parent in their own FDD.
Portfolio: Unleashed Brands
Grouped by the owner's name as each filing prints it (this page: the 2022 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Barry Van Over
- Headquarters
- TX
- Founded
- 2018
- FDD year
- 2022
- States available
- 30
Can you afford it, and what does the money buy?
Entry cost runs 23% below the typical health & fitness franchise.
Source: FDD 2022 · Items 5–7
Full Item 7 breakdown18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $50K | $50K | |
| Lease Payments (Deposits/Prepaids) | $5K | $10K | |
| Leasehold Improvements (before any TI) | $42K | $150K | |
| Licenses, Architectural, Engineering Fee, Bid Assistance | $16K | $17K | |
| Construction Management Fees | $0 | $18K | |
| Wages, Travel & Living expenses during training | $575 | $7K | |
| Furniture, fixtures, and equipment | $17K | $23K | |
| Signs | $7K | $13K | |
| Initial Inventory & Supplies | $800 | $25K | |
| Start Up Salaries (two to four months) | $10K | $36K | |
| Insurance | $125 | $2K | |
| Computer System & A/V Equipment | $5K | $15K | |
| Software (Studio Pro, Franchise Resource Accounting) | $700 | $1K | |
| Legal & Accounting Fees | $2K | $14K | |
| Optional Pre-Sale/Grand Opening Coordinator | $0 | $1K | |
| Digital Footprint | $750 | $750 | |
| Grand Opening Advertising | $20K | $25K | |
| Additional Funds (3 months) | $8K | $15K | |
| Total initial investment | $184K | $421K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $184K – $422K
- Top 40% of category vs category
- Liquid capital req'd
- $8K – $15K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- 7.0%
- Set by a formula · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 12.3%
- vs 9–13% typical
- Payback period
- 7.2 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Technology fee | $0 |
| Training fee | $500 |
| Transfer fee | $25K |
| Renewal fee | $25K |
| Inventory (initial) | $800 – $25K |
| Total fee load | 12.3% of rev |
At 12.3% total fee load, roughly $39K per year goes to the franchisor before you pay a single operating expense.
What do units actually make?
Average unit sales run 34% below the health & fitness norm.
Source: FDD 2022 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Premier Martial Arts until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$314K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings
The FDD reports $76K as EBITDA8 $75,95011. This is a disclosed figure, not our estimate — we publish no modelled profit for Premier Martial Arts.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Premier Martial Arts unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2022 FDD
Financial Performance
- Avg gross sales
- $316K
- Per unit, per year
- Median gross sales
- $286K
- Avg ebitda8 $75,95011
- $76K
- Reported as EBITDA8 $75,95011 in FDD Item 19
- Cash-on-cash
- 13.8%
- Based on EBITDA8 $75,95011 / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 59 outlets
- vs category median 11 · large
- Range (low → high)
- $37K→$890KCited, not corroborated — printed on page 59 of the 2022 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $151K→$548K
- Bottom 25% → top 25%
- Reporting year
- 2021
- Fiscal year the figures cover
- Source filing
- FDD 2022
- Disclosed in the 2022 filing, covering 2021
- Transparency
- 10 / 10
- vs category median 4 / 10 · above
Compared against 173 Health & Fitness brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $316K/year in gross sales. Revenue-to-investment ratio: 1.0x.
Fee burden
Total ongoing fee load of 12.3% — above the Health & Fitness median of 9.0%.
Disclosure
Transparency score 10/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 144.1% CAGR over 3 years across 175 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Health & Fitness medians
How Premier Martial Arts Compares
Category median of published Health & Fitness brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 175
- Opened
- 75
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 9
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (3-yr)
- +144.1%
- Net unit change over 3 years
- 3-yr CAGR
- +144.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 6
- Reacquired
- 3
- Franchisor bought back
- Signed, not yet open
- 201
- 1.15 per open outlet · Item 20 Table 5
- Projected new
- 129
- Franchisor's next-year forecast
- Transfer rate
- 3.4%
- Owners selling to other franchisees
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 29 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
153 current owners across 30 states.
- TX 35
- FL 13
- GA 13
- NC 10
- PA 9
- CO 7
- MA 7
- TN 7
- MI 5
- MO 5
- KS 4
- SC 4
- +18 more states
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 103
- Loan volume
- $19.7M
- Median loan
- $192K
- average
- Charge-off rate
- 16.7%
- on 103 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 21
- Defaults
- 6
Vintage analysis
Premier Martial Arts charge-off rate by loan vintage
Top lenders financing Premier Martial Arts franchisees
Showing 3 of 21 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Premier Martial Arts from SBA 7(a) FOIA data.
Top SBA lenders
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 44 | $6.7M | 30.8% |
| 2 | Cadence Bank | 17 | $3.9M | 0.0% |
| 3 | Newtek Small Business Finance, Inc. | 6 | $1.2M | 0.0% |
| 4 | KeyBank National Association | 5 | $1.6M | 0.0% |
| 5 | Midwest Regional Bank | 5 | $1.3M | 0.0% |
| 6 | United Midwest Savings Bank National Association | 5 | $735K | 0.0% |
| 7 | Brookline Bank, a Division of Beacon Bank and Trust | 3 | $192K | 0.0% |
| 8 | PlainsCapital Bank | 2 | $662K | 0.0% |
| 9 | Wells Fargo Bank National Association | 2 | $228K | N/A |
| 10 | U.S. Bank, National Association | 2 | $340K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 16 | 1 | 16.7% |
| COColorado | 10 | 1 | 20.0% |
| GAGeorgia | 8 | 0 | 0.0% |
| OHOhio | 8 | 3 | 75.0% |
| FLFlorida | 7 | 0 | 0.0% |
| CACalifornia | 4 | 0 | 0.0% |
| MAMassachusetts | 4 | 0 | 0.0% |
| NCNorth Carolina | 4 | 0 | 0.0% |
| NJNew Jersey | 4 | 0 | -- |
| NYNew York | 4 | 0 | -- |
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
⚠ Grade capped at C: the auditor disclosed a going-concern note (FDD Item 21). The verdict score reflects the underlying financials before that cap.
Multiple concerns: financial_distress flagged, three matters including a 2021 CA consent order ($10,000 penalty) for unregistered franchise sales plus litigation. Low avg gross sales of $315,850 per unit despite 175 units, though growth is strong at +144.1%.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Three litigation matters disclosed: (1) California Commissioner consent order against PMAI for unregistered franchise sales and omissions in registration applications, resulting in $10,000 penalty and ongoing disclosure requirements; (2) UATP v. LOFA in Texas District Court (pending) involving breach of contract, tortious interference, fraud claims seeking $6.5M+ damages, with counterclaims by LOFA for conversion, breach of contract, and business interference; (3) Four franchisees (three current, one former) v. UATP and principals in New Jersey Superior Court alleging fraudulent inducement, unauthorized financial performance representations, breach of franchise agreements, and violations of multiple state consumer/franchise protection acts.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · LBMC, PC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor 2021 Total Revenue was $4,329,788 (referenced in Item 8 rebate disclosure, not Item 21 financial statement figures)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 55 / 100 verdict
- 01MINOR3 matters incl. CA consent order ($10K penalty)
- 02MINORLow avg gross sales $315,850
- 03MINORStrong +144.1% growth (offsetting)
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 12.3% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory population | 8,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 17 |
| Curable defaultsℹ | 17 |
| Mandatory arbitration | Yes |
| Arbitration location | Texas |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 3 |
View Item 3 litigation summary
Three litigation matters disclosed: (1) California Commissioner consent order against PMAI for unregistered franchise sales and omissions in registration applications, resulting in $10,000 penalty and ongoing disclosure requirements; (2) UATP v. LOFA in Texas District Court (pending) involving breach of contract, tortious interference, fraud claims seeking $6.5M+ damages, with counterclaims by LOFA for conversion, breach of contract, and business interference; (3) Four franchisees (three current, one former) v. UATP and principals in New Jersey Superior Court alleging fraudulent inducement, unauthorized financial performance representations, breach of franchise agreements, and violations of multiple state consumer/franchise protection acts.
Items 10, 11
Training & Operations
- Classroom training
- 56 hrs
- On-the-job training
- 2 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Site selection
- franchisor approval of franchisee-proposed site within Site Selection Area
- Franchisor financing
- Not offered
- Item 10
- POS system
- Studio Pro
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Studio Pro
Item 20 · call current owners
Franchisee Contacts
154 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Premier Martial Arts franchise?
The total investment to open a Premier Martial Arts franchise ranges from $184K – $422K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Premier Martial Arts franchise owners earn?
According to Item 19 of the Premier Martial Arts FDD, the average gross sales per unit is $316K. The median is $286K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Premier Martial Arts?
Premier Martial Arts is franchised by Premier Franchising Group, LLC. Its parent company is Premier Martial Arts International, Inc. (PMAI). The ultimate parent named in the FDD is Unleashed Brands, LLC (parent: UA Holdings, LLC). Source: FDD Item 1, 2022 filing.
What is Item 19 in the Premier Martial Arts FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Premier Martial Arts FDD and qualifies whose outlets they describe.
What is Premier Martial Arts's franchise failure rate?
Based on SBA 7(a) loan data, Premier Martial Arts has a charge-off rate of 16.7% across 103 loans, meaning 16.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Premier Martial Arts franchise locations are there?
As of their most recent FDD filing, Premier Martial Arts has 175 total units in the United States, including 166 franchised units and 9 company-owned units. 75 new units were opened in the latest reporting year.
Is Premier Martial Arts a good franchise to buy?
FranchiseVerdict rates Premier Martial Arts as a C-grade franchise with a verdict score of 55 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.