Premier Martial Arts Franchise Cost, Revenue & Review 2026
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 →
Data last verified · figures per the 2022 FDD issuance
Overview
- Investment
- $184K – $422K
- 33rd pct Health & Fitn…
- Avg gross sales
- $316K
- 7th pct Health & Fitn…
- Royalty
- 7.0%
- 30th 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 avg · 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 53/100 (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).
- 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)
- Ultimate parent
- Unleashed Brands, LLC (parent: UA Holdings, LLC)
- 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.
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 47% below the typical health & fitness franchise.
Source: FDD 2022 · Items 5–7
Full Item 7 breakdown20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Lease Payments (Deposits/Prepaids)not refundable | $5K | $10K | |
| Leasehold Improvements (before any TI)not refundable | $42K | $150K | |
| Licenses, Architectural, Engineering Fee, Bid Assistancenot refundable | $16K | $17K | |
| Construction Management Feesnot refundable | $0 | $18K | |
| Wages, Travel & Living expenses during trainingnot refundable | $575 | $7K | |
| Furniture, fixtures, and equipmentnot refundable | $17K | $23K | |
| Signsnot refundable | $7K | $13K | |
| Initial Inventory & Suppliesnot refundable | $800 | $25K | |
| Start Up Salaries (two to four months)not refundable | $10K | $36K | |
| Insurancenot refundable | $125 | $2K | |
| Computer System & A/V Equipmentnot refundable | $5K | $15K | |
| Software (Studio Pro, Franchise Resource Accounting)not refundable | $700 | $1K | |
| Legal & Accounting Feesnot refundable | $2K | $14K | |
| Optional Pre-Sale/Grand Opening Coordinatornot refundable | $0 | $1K | |
| Digital Footprintnot refundable | $750 | $750 | |
| Grand Opening Advertisingnot refundable | $20K | $25K | |
| Additional Funds (3 months)not refundable | $8K | $15K | |
| Development Fee (Development Agreement)not refundable | $94K | $134K | |
| Legal, Accounting, and Other Fees (Development Agreement)not refundable | $5K | $10K | |
| Total initial investment | $283K | $565K |
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%
- Gross Sales · typical 6–8%
- Ad fund
- 5.0%
- 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 | 5.0% of gross sales |
| Technology fee | $0 |
| Training fee | $500 |
| Transfer fee | $25K |
| Renewal fee | $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 48% below the health & fitness norm.
Source: FDD 2022 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$82K
26.0% margin
Unlevered ROIC
26%
EBITDA / total invested capital
Payback
3.8 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $76K as EBITDA8 $75,95011. Our model estimates $82K SLEBITDA from the same revenue using category-average cost assumptions. These numbers differ because EBITDA8 $75,95011 deducts different expense categories than our model.
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real 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?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
26%
Below the 30–60% attractive-franchise band
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Premier Martial Arts units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.2M
on $6.0M purchase
Total debt
$4.8M
SBA $3.0M + senior + seller note
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 12 · large
- Range (low → high)
- $37K→$890K
- 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 average of 8.4%.
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 averages
How Premier Martial Arts Compares
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
- 0.0%
- 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
3-year detail · Item 20
- Opened (3yr)
- 75
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 6
- Reacquired (3yr)
- 3
- Franchisor bought back
- 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.
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%
- 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.
Premium insight
SBA Lending Report
Deep-dive into Premier Martial Arts's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 20 states
- Startup risk premium and job creation velocity
Instant access. No subscription.
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)
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)
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 53 / 100 verdict
- 01MINORfinancial_distress=true
- 02MINOR3 matters incl. CA consent order ($10K penalty)
- 03MINORLow avg gross sales $315,850
- 04MINORStrong +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 | Radius/Zip Codes |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory population | 8,000 |
| Online sales rights | 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 |
| 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
- 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
FDD download
Premier Martial Arts · FDD (2022) PDF
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.
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 53 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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
Are you the franchisor?
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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.