Premier Martial Arts Franchise Cost & 2022 FDD Data
55/100
Middle tier
55 this brand46 Health & Fitness medianlikely 47–63: narrower with a newer filing (high confidence)
Higher is better · an editorial assessment, not investment advice
#1,376 of 3,068 graded brands
⚠ Grade capped: going-concern (Item 21)
Why a C: Helped by unit growth, scale, legal record and transparency. Held back by financial health. See all six factors
- Total investment
- $184K – $422K
- Avg gross sales
- $316K
- “All Studios (Gross Sales)”, 59 outlets; not profit
- SBA charge-off
- 16.7%
1 in 6 SBA 7(a) loans to Premier Martial Arts owners charged off (6 of 36 resolved loans, approved since FY1991); Health & Fitness median 14.9%. Loans approved FY2020–FY2022: 6 of 35 resolved loans charged off (17.1%); newer loans have not had time to default, so this is not a trend.
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
This data is from a 2022 FDD. Current terms may differ. Always verify with the franchisor's latest disclosure document.
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 · 2022 FDD
Per the 2022 FDD, a Premier Martial Arts franchise requires a total initial investment of $184K – $422K, including a $50K franchise fee. Once open, the ongoing royalty is 7.0%. Per the 2022 FDD, average gross sales were $316K (Item 19 group “All Studios (Gross Sales)”, 59 outlets; gross sales, not profit). SBA 7(a) loans show a 16.7% charge-off rate on 36 resolved loans. Verdict grade: C (Middle tier), an editorial assessment, not investment advice.
Sources: 2022 FDD · SBA 7(a) loan records (FOIA) · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high (issued more than two years ago)
Evidence for the headline figures: 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
Quick verdict · vs Health & Fitness median
Top edge: green = better than the Health & Fitness median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $316K/year (outlet median $286K; Item 19 group “All Studios (Gross Sales)”, 59 outlets; gross sales, not profit), with an estimated 14% cash-on-cash return (based on EBITDA).
- GROWTHThe pipeline has stalled: 201 agreements signed but not yet open against 175 open outlets.
- FLAGAuditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
AT STAKEOne unit at the Item 7 midpoint: $39K a year in payments on assumed SBA 7(a)-style terms.You put in about $61K of your own cash and personally guarantee a $242K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (5)
- The franchisor's auditor expressed doubt that it can continue as a going concern (Item 21, audited financials).
- SBA 7(a) charge-off 16.7% on 36 resolved loans, loans approved since FY1991, above the Health & Fitness median of 14.9% (35 brands).
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- You waive a jury trial in disputes with the franchisor (Item 17, renewal, termination and disputes).
- Item 15 (owner participation) requires the owner, or a principal the franchisor approves, to run the business day to day. Ask how much of the business that principal must own.
Checked and clear: no net loss of franchised outlets in the latest Item 20 years, no pending lawsuit naming the franchisor, no supplier rebates to the franchisor and the full filing on file, and an Item 19 average from 59 units.
What to do next
Step 1: Read the FDD itself.
Free: read the 2022 filing on this site, page by page. The franchisor must also give you its current FDD at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Shortcut: the Premier Martial Arts owner list as a CSV, in the Contacts section.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 28% below the Health & Fitness median ($420K).
Source: FDD 2022 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Premier Franchising Group, LLC (Item 1: 2350 Airport Freeway, Suite 505, Bedford, Texas 76022) and your lender what they require, and keep living costs for the first year outside the deal.
Full Item 7 breakdown18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $49.5K | $49.5K | |
| Lease Payments (Deposits/Prepaids) | $5K | $10K | |
| Leasehold Improvements (before any TI) | $42K | $150K | |
| Licenses, Architectural, Engineering Fee, Bid Assistance | $15.5K | $16.5K | |
| Construction Management Fees | $0 | $18.3K | |
| Wages, Travel & Living expenses during training | $575 | $7K | |
| Furniture, fixtures, and equipment | $17K | $23K | |
| Signs | $7K | $12.5K | |
| Initial Inventory & Supplies | $800 | $25K | |
| Start Up Salaries (two to four months) | $9.9K | $36K | |
| Insurance | $125 | $2K | |
| Computer System & A/V Equipment | $5.3K | $14.8K | |
| 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) | $7.5K | $15K | |
| Total initial investment | $184K | $422K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7; the lines above add to $183,650 to $421,300, $500 at most from the printed total, which is the figure shown. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
Payback period7.2 yrs · from FDD / Item 19
| Fee | Amount |
|---|---|
| RoyaltySet by a formula; paid monthly (Item 6). Minimum: 7% of monthly Gross Sales, subject to a minimum Royalty Fee of $600 per month starting the 13th month | 7.0% of gross sales |
| Marketing / ad fund | 0.0% |
| Technology feeStudio Pro Software Fee: Currently $49 to setup plus $199 per month | $0/month |
| Training feeAdditional training charge listed in Item 6 | $500 |
| Transfer fee | $24,750 |
| Renewal fee | $24,750 |
| Total fee loadbelow the Health & Fitness median of 9.0% (lean) | 7.0% of sales |
A 7.0% total fee load is below the Health & Fitness median of 9.0% (lean). More of each revenue dollar stays with the franchisee.
What do units actually make?
Average gross sales are 31% below the Health & Fitness median ($458K).
Source: FDD 2022 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Premier Martial Arts unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $316K (FDD Item 19, p.59), and the royalty and ad fund take about $22K of that a year (Item 6). This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $39K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $303K Item 7 midpoint is a $242K loan, paid over 10 years at 10.5%: $39K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours.
What you put at risk
Your own cash in: about $61K Assumption (the part the loan does not cover of the $303K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $242K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
FDD-reported earnings
The FDD reports $76K as EBITDA. This is a disclosed figure, not our estimate: we publish no modelled profit for Premier Martial Arts.
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Premier Martial Arts unit leave you each year after the loan payment?
Item 19: $315,850 average for 59 outlets (All Studios (Gross Sales)). Use a figure for outlets like yours if yours differ.
Gross sales, not profit: the costs below decide what is left.
The filing also sets a minimum or cap on these fees: “7% of monthly Gross Sales, subject to a minimum Royalty Fee of $600 per month starting the 13th month” (Item 6). This model applies the percentages, so at low sales the real fee can be higher than shown here.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here.
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.
Item 7 midpoint of $184K to $422K
Item 7's $8K to $15K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $242K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
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 · filed by Premier Franchising Group, LLC
Financial performance
- Avg ebitda
- $76K
- The filing's own EBITDA line (Item 19), as it defines it; not comparable with other brands' figures
- Cash-on-cash
- 13.8%
- Based on EBITDA / investment midpoint
- Range (low → high)
- $37K→$890K2022 FDD p.59
- Cohort dispersion (min → max)
- Top and bottom 25%
- $151K→$548K
- Bottom group → top group: the top and bottom 25% as the filing reports them
- Transparency
- 10 / 10
- vs category median 3 / 10 (more detail than most)
Percentile ranks within Health & Fitness
Each rank is among the Health & Fitness brands that report that figure (the count is under each bar).
Item 19 · 3 groups · FDD p.59
Item 19 by group
The 2022 filing reports gross sales for 3 groups of outlets. The headline average on this page is the “All Studios (Gross Sales)” group (59).
| Group | n | Average | Median |
|---|---|---|---|
| All Studios (Gross Sales)headline above | 59 | $316K | $286K |
| Top 15 Studios (Gross Sales) | 15 | $548K | $508K |
| Bottom 15 Studios (Gross Sales) | 15 | $151K | $158K |
Costs and ebitda, as the filing prints them
The filing's “EBITDA” is before debt service, depreciation and owner or manager pay; after royalty and rent. The filing does not say whether it is after ad fund. Gross sales are not profit, and this line is not take-home pay: what it leaves out still has to be paid.
The cost lines for 1 groups (FDD p.59)
| Line, as the filing names it | Bottom 15 Studios (Gross Sales)n=15 |
|---|---|
| Average gross sales | $151K |
| Cost of Goods Sold | $23K |
| Occupancy | $45K |
| Advertising | $21K |
| Payroll | $61K |
| EBITDA | $-16K |
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.
Who are you contracting with?
Premier Franchising Group, LLC, owned by Premier Martial Arts International, Inc. (PMAI).
Item 1 (the franchisor) · 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
- latest fiscal year in the 2022 FDD; $1.9M the year before
- 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.
- Class 101 (grade A)
- Snapology (grade A)
- Sylvan Learning (grade B)
- The Little Gym (grade B)
- Urban Air Adventure Park (grade A)
- XP League (grade B)
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
- Franchised outlets in
- 30 states and territories
- Item 20 Table 3, at year end
- States and territories listed
- 30
- registered or offered in, as the filing lists them (DC and territories included); not where units may open
Is the system healthy?
+98 franchised outlets over the two years to 2021 (68 to 166, +144.1% in total, +56.2% a year compounded).
Source: FDD 2022 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 9
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- 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
Item 20 · franchised units at year end
Franchised units rose from 68 in 2019 to 166 in 2021
Axis does not start at zero.
Source and method
Item 20 (outlet counts) Table 3 · franchised outlets at year end
Where current outlets are
Franchised outlets at year end by state, as the filing's Item 20 Table 3 counts them. Not a list of where the franchisor may sell new units.
Current outlets (count on the tile) · 30 statesNo current outlet
166 franchised outlets at year end in 30 states (Item 20 Table 3).
Government records
SBA loan data
Lenders charged off 16.7% of 36 resolved SBA 7(a) loans, above the 14.9% category median. 7(a) is the SBA's main small-business loan; a resolved loan was paid in full or charged off.
- Loans on file
- 103
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $19.7M
- Average loan
- $192K
- loan volume divided by loans
- Charge-off rate
- 16.7%
- 6 of 36 resolved loans
- Paid in full
- Not on file
- Charge-off, loans approved FY2020–FY2022
- 17.1%
- 6 of 35 resolved loans; newer loans have not had time to default, so this is not a trend
- Lenders
- 21
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Benchmark: the median Health & Fitness brand charges off 14.9% (35 brands with a published rate, same cumulative window and source). This brand is 1.8 points above it.
The approval-year breakdown covers 35 of the 36 resolved loans and 6 of the 6 charge-offs (FY2020 to FY2022).
SBA 7(a) · charge-off rate by approval year
Premier Martial Arts: above all franchise loans in each of the 2 rated years
Hollow rings on the axis: years with fewer than 10 resolved loans, not rated (recent years: too early to judge while loans are still being repaid). Their numbers are in the table.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 2020 | 6 | 1 | Too early |
| 2021 | 18 | 3 | 16.7% |
| 2022 | 11 | 2 | 18.2% |
Dashed line: all franchise 7(a) loans approved the same year.
Source and method
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Premier Martial Arts from SBA 7(a) FOIA loan records.
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| The Huntington National Bank | ||
| 44 | $6.7M | 30.8%13 resolved |
| Cadence Bank | ||
| 17 | $3.9M | Too few7 resolved |
| Newtek Small Business Finance, Inc. | ||
| 6 | $1.2M | Too few3 resolved |
| KeyBank National Association | ||
| 5 | $1.6M | Too few1 resolved |
| Midwest Regional Bank | ||
| 5 | $1.3M | Too few1 resolved |
| United Midwest Savings Bank National Association | ||
| 5 | $735K | Too few1 resolved |
| Brookline Bank, a Division of Beacon Bank and Trust | ||
| 3 | $192K | Too few2 resolved |
| PlainsCapital Bank | ||
| 2 | $662K | Too few1 resolved |
| Wells Fargo Bank National Association | ||
| 2 | $228K | Too few0 resolved |
| U.S. Bank, National Association | ||
| 2 | $340K | Too few0 resolved |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| TX Texas | 16 | 1 | Too few6 resolved |
| CO Colorado | 10 | 1 | Too few5 resolved |
| GA Georgia | 8 | 0 | Too few3 resolved |
| OH Ohio | 8 | 3 | Too few4 resolved |
| FL Florida | 7 | 0 | Too few2 resolved |
| CA California | 4 | 0 | Too few2 resolved |
| MA Massachusetts | 4 | 0 | Too few2 resolved |
| NC North Carolina | 4 | 0 | Too few1 resolved |
| NJ New Jersey | 4 | 0 | Too few0 resolved |
| NY New York | 4 | 0 | Too few0 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
What are the risks?
The auditor flagged going-concern doubt (Item 21), the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade C: Middle tier, 55/100 (category median 46); the full grade is at the top of the page.
How the grade is built
⚠ 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%.
Why a C, factor by factor
- Financial health Weighs on it, weakest dimensionAudited financials; auditor going-concern doubt
- Unit economics NeutralAvg gross sales $316K on a $303K investment midpoint, 1.0x (gross sales, not profit); an Item 19 earnings figure of $76K also counts
- Unit growth Helps+98 franchised outlets over the two years to 2021 (68 to 166, +144.1% in total, +56.2% a year compounded); turnover 1.7%
- Scale Helps166 franchised units, +9 company-owned (175 in all); franchising since 2018
- Legal Helps1 matter naming the franchisor among the Item 3 matters we list (0.6 per 100 outlets)
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (-11 points)SBA loan record: the SBA charge-off rate (16.7% on 36 resolved loans) is between 10% and 20%, a range the score counts against a brand, so it took 6 points off. The score uses fixed ranges, not the category median, so a rate below its category median can still cost points.Filing age: the newest filing on file is from 2022, and older filings may no longer describe the system, so it took 5 points off.
- Grade capped at C: the auditor disclosed a going-concern note (FDD Item 21). The verdict score reflects the underlying financials before that cap.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
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)
The revenue figures are in the Franchisor tab, under The franchisor.
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
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Franchisor takes supplier rebates: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Notes from the filing review · not the score inputs
- 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
Litigation case detail3 matters · Item 3
Litigation cases
The franchisor
Concluded (1)
The Commissioner of Financial Protection and Innovation v. Premier Franchising Group, LLC doing business as Premier Martial Arts International and/or Premier Martial Arts
concludedGovernment or regulatory action · filed 2021-11-18 · California Commissioner of Financial Protection and Innovation
“The Commissioner of Financial Protection and Innovation v. Premier Franchising Group, LLC doing business as Premier Martial Arts International and/or Premier Martial Arts.”Page 13 of the 2022 FDD, Item 3
Parent, affiliates, master franchisor and subfranchisor
Pending (2)
Adventure Park Hamilton LLC, Adventure Quest, Inc., Adventure Park Manchester LLC, and TBSM Adventure Corporation vs. UATP Management LLC, Michael O. Browning, Jr., Alix Wren, and James Crowley
pendingBrought by a franchisee · UATP Management LLC (our affiliate) and its officers · filed 2020-10-22 · District Court of Tarrant County, Texas (originally Superior Court of New Jersey, Bergen County) · 017-325200-21; BER-L-006331-20
“… District Court of Tarrant County, Texas Case No. 017-325200-21.”Page 14 of the 2022 FDD, Item 3
UATP Management, LLC v. Leap of Faith Adventures, LLC
pendingBrought by the franchisor · UATP Management, LLC (our affiliate) · filed 2018-07-09 · District Court of Tarrant County, Texas · 017-300796-18
“… District Court of Tarrant County, Texas Case No. 017-300796-18. On July 9, 2018, UATP filed this lawsuit (“Petition”) against the defendant Leap of Faith Adventures, LLC (“LOFA”), that, at the time of filing, was a distributor and installer of attractions used in Urban Air Adventure Parks.”Page 14 of the 2022 FDD, Item 3
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Allowed renewals | 2 |
|---|---|
| Protected territory | Yes |
| Exclusive territory | No |
| Territory population | 8,000 |
| Online sales rights | Reserved by franchisor |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | The owner, or a principal the franchisor approves, must run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 25 mi |
| Right of first refusal | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination grounds | 17 |
| Curable defaults | 17 |
| Mandatory arbitration | Yes |
| Arbitration location | Texas |
| Jury trial waiver | Yes |
| Governing law | Texas |
Items 10 (financing), 11 (training and support)
Training and operations
- Classroom training
- 56 hrs
- On-the-job training
- 2 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 10–12 mo
- From signing to launch (FDD p.35)
- 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 (initial fees) & 11 (training and support)
Franchisor support
Item 20 (outlet counts) · call current owners
Franchisee contacts
Who can you call before you sign?
154 current outlets listed
Records carry a phone number and state (state on 153 of 154). 137 of 154 also name the franchisee. No cities. 154 records. From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list covers 154 of the 166 franchised outlets Item 20 counts at year end; the owner exhibit prints the rest without a usable phone number, or omits them.
For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.
One-time · CSV download · full refund within 7 days if the data does not match the FDD. Some numbers, especially for former owners, may be outdated.
Frequently asked questions
How much does it cost to open a Premier Martial Arts franchise?
Per the 2022 FDD, the total investment to open a Premier Martial Arts franchise ranges from $184K to $422K, with an initial franchise fee of $50K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Premier Martial Arts franchise owners earn?
According to Item 19 of the Premier Martial Arts FDD, average gross sales were $316K (Item 19 group “All Studios (Gross Sales)”, 59 outlets; gross sales, not profit). The median is $286K. What an owner keeps depends 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' franchise failure rate?
There is no published franchise failure rate. What is measurable is Premier Martial Arts' SBA charge-off rate: 16.7% on 36 resolved loans. Put plainly: 1 in 6 SBA 7(a) loans to Premier Martial Arts owners charged off (6 of 36 resolved loans, approved since FY1991); loans approved FY2020–FY2022: 6 of 35 resolved loans charged off (17.1%); newer loans have not had time to default, so this is not a trend. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. A franchisee can repay and close, or default and keep trading.
How many Premier Martial Arts franchise locations are there?
Per the 2022 FDD, Premier Martial Arts has 166 franchised units and 9 company-owned (175 in all). The pipeline has stalled: 201 agreements signed but not yet open against 175 open outlets.
Is Premier Martial Arts a good franchise to buy?
FranchiseVerdict gives Premier Martial Arts a C Verdict grade (Middle tier) with a verdict score of 55 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by unit growth (+98 franchised outlets over the two years to 2021: 68 to 166, +144.1% in total, +56.2% a year compounded), scale, legal record and transparency. Held back by financial health (audited financials). The “Why a C” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
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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.