Premier Martial Arts
Bottom line
- Total investment $184K – $422K including a $50K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $316K/year (median $286K). Estimated payback in 4.0 years.
- Rated MODERATE with a risk score of 58/100. SBA loan default rate of 0.0% across 205 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Premier Martial Arts unit return on the cash you put in?
Unlevered ROIC · per unit
26%
Below typical band (30–60%)
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
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 58 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
94 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Premier Martial Arts · FDD (2022) PDF