Premier Martial ArtsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $184K – $422K
- 33rd pct Health & Fitn…
- Avg gross sales
- $316K
- 13th pct Health & Fitn…
- Royalty
- 7.0%
- 28th pct Health & Fitn…
- Units
- 175
- 88th pct Health & Fitn…
- SBA default
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 166 to 68 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
25% cash-on-cash return (based on EBITDA). Within the 15-30% range most franchise investors consider acceptable.
Bottom line
- Total investment $184K – $422K including a $50K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $316K/year (median $286K), with an estimated 25% cash-on-cash return (based on EBITDA).
- Verdict A (Top Quintile) with a risk score of 40/100.
- Auditor 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
- Legal entity
- Premier Franchising Group, LLC
- Parent company
- Unleashed Brands, LLC
- Ultimate parent
- Premier Martial Arts International, Inc. (PMAI)
- 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
- TN
- 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
Franchisees operate brick-and-mortar martial arts training studios offering classes in karate, taekwondo, and mixed disciplines to youth and adult students. Day-to-day operations include instructor scheduling, student recruitment, class instruction oversight, member retention programs, and retail sales of uniforms and equipment.
- CEO
- Barry Van Over
- Headquarters
- TX
- Founded
- 2018
- FDD year
- 2022
- States available
- 30
FDD Item 7 · 2022 filing · 20 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.
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
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $184K – $422K
- Better than avg vs category
- Liquid capital req'd
- $8K – $15K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Near category avg 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
- 4.0 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.
Financial Performance
- Avg gross sales
- $316K
- Per unit, per year
- Median gross sales
- $286K
- Avg ebitda
- $76K
- Reported as EBITDA in FDD Item 19
- Cash-on-cash
- 25.1%
- Based on EBITDA / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 59 units
- vs category median 11 · 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
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 180 Health & Fitness brands
vs Health & Fitness averages
How Premier Martial Arts Compares
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 (yr3)
- +76.6%
- Net unit change last year
- 3-yr CAGR
- +144.1%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 6
- Transfer rate
- 3.4%
- Owners selling to other franchisees
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 23 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
- 205
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
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
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Growing martial arts franchise with meaningful regulatory history, active fraud litigation from franchisees, and unprotected territories that pose execution and profitability risks despite positive unit growth and operating margins.
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 40 / 100 rating
- 01HIGHActive multi-state franchisee lawsuit alleging fraud and franchise practice violations by affiliate UATP Management suggests systemic operational or disclosure issues
- 02MINOR2021 California consent order for unregistered franchise sales indicates prior regulatory non-compliance by predecessor; unclear if issues were fully remediated
- 03MINORUnprotected territory creates direct competition risk; with 175 units and no territorial exclusivity, same-brand cannibalization could compress individual unit economics
- 04MINORNet income of $75,950 on $315,850 revenue (24% margin) must support $49,500 franchise fee + 7% royalties + operating costs; tight ROI timeline
- 05HIGH76.6% YoY unit growth masks potential quality control concerns given litigation—rapid growth + lawsuits suggest recruitment may outpace support
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 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
94 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 Premier Martial Arts's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Premier Martial Arts (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
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 A-grade franchise with a risk score of 40 out of 100, 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.
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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.