Ufc GymFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A UFC GYM franchise requires a total initial investment of $209K – $5.0M, including a $30K franchise fee and an ongoing 6.0% royalty[2]. Per the 2023 FDD, average unit revenue was $3.7M[2]. SBA 7(a) loans show a 38.1% charge-off rate across 31 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $209K – $5.0M
- 40th pct Health & Fitn…
- Avg gross sales
- $3.7M
- 58th pct Health & Fitn…
- Royalty
- 6.0%
- 8th pct Health & Fitn…
- Units
- 81
- 78th pct Health & Fitn…
- SBA default
- 38.1%
- system-wide median varies by category
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
38.1% of SBA loans charged off across 31 loans, above the 16% franchise average.
The system contracted 6% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $209K – $5.0M including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $3.7M/year (median $3.6M).
- Verdict F (Bottom Quintile) with a risk score of 81/100. SBA loan charge-off rate of 38.1% across 31 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System contracting at -15.3% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- UG Franchise Operations, LLC
- Parent company
- Ultimate NeV, LLC
- CEO title
- CEO and President
- Adam Sedlack
- Incorporated in
- CA
- HQ
- 1501 Quail Street, Suite 100, Newport Beach, CA 92660
- Auditor
- Baker Tilly US, LLP
- Audited financials
- Franchisor revenue
- $9.4M
- vs $9.9M prior year
Overview
About
UFC GYM franchisees operate branded fitness facilities featuring mixed martial arts training, strength and conditioning, group fitness classes, and personal training. Day-to-day operations include managing staff, member retention, equipment maintenance, coordinating with UFC brand partnerships, and meeting 6% (Class) or lower royalty payment obligations on all gross revenues.
- CEO
- Adam Sedlack
- Headquarters
- CA
- Founded
- 2004
- FDD year
- 2023
- States available
- 17
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $18K | $700K |
| Equipment, build-out, other | $161K | $4.3M |
| Total initial investment | $209K | $5.0M |
Source: UFC GYM 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$1.1M
30.0% margin
Unlevered ROIC
38%
EBITDA / total invested capital
Payback
32 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $209K – $5.0M
- Near category avg vs category
- Liquid capital req'd
- $18K – $700K
- Better than avg vs category
- Franchise fee
- $30K – $50K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $25K |
| Renewal fee | $50 |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $3.7M
- Per unit, per year
- Median gross sales
- $3.6M
- Item 19 type
- gross_sales
- Sample size
- 14 units
- vs category median 11
- Range (low → high)
- $2.4M→$5.5M
- Cohort dispersion (min → max)
- Reporting year
- 2022
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 180 Health & Fitness brands
vs Health & Fitness averages
How Ufc Gym Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 81
- Opened
- 13
- Last reporting year
- Closed
- 17
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 21.0%
- Company-owned
- 20
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
- Net growth (yr3)
- -6.2%
- Net unit change last year
- 3-yr CAGR
- -15.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 2
- Transfer rate
- 2.5%
- Owners selling to other franchisees
- Termination rate
- 3.7%
- Franchisor-initiated terminations
- Ceased ops
- 22.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 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
- 31
- Loan volume
- $17.4M
- Median loan
- $350K
- 50th percentile
- Charge-off rate
- 38.1%
- 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)
- 61.9%
- 5-yr charge-off
- 50.0%
- Loans approved 2021+
- Active lenders
- 23
- Defaults
- 8
Vintage analysis
Ufc Gym charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Ufc Gym'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 14 states
- Startup risk premium and job creation velocity
- 9-year lending trend
Instant access. No subscription.
A 38.1% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining unit base, settlement history involving fraud allegations, undisclosed profitability, and absence of Item 19 data create substantial risk in a contracting franchise system.
Litigation (Item 3)
Three cases: (1) Jeffrey Mathews et al v. UG Franchise Operations, LLC - fraud, DTPA violation, breach of contract, unfair competition - settled $275,000; (2) James Biggs v. UG Franchise Operations, LLC - breach of contract, rescission, declaratory relief - settled $125,000; (3) UG Franchise Operations, LLC v. Frank Carranza - declaratory judgment with counterclaim for fraud and unfair trade practices - settled $30,000
Largest disclosed settlement: $275,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Baker Tilly US, LLP
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 81 / 100 rating
- 01MINORUnit count declining 6.2% YoY (81 units) signals contracting system despite $3.7M avg revenue
- 02HIGHThree settled litigation cases involving fraud and unfair trade practices indicate governance and disclosure problems
- 03MEDNet income not disclosed despite $3.7M avg gross revenue — suggests profitability concerns or franchisor opacity
- 04MINORHigh initial investment range ($209K–$5M) with royalties up to 6% creates significant breakeven burden
- 05HIGHNo 'Going Concern' statement (False) missing; unclear if franchisor provided Item 19 financial performance representations
- 06MINORFranchise fee ($30K) low relative to build-out costs, suggesting underpriced entry masking real capital requirements
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 |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 3 |
View Item 3 litigation summary
Three cases: (1) Jeffrey Mathews et al v. UG Franchise Operations, LLC - fraud, DTPA violation, breach of contract, unfair competition - settled $275,000; (2) James Biggs v. UG Franchise Operations, LLC - breach of contract, rescission, declaratory relief - settled $125,000; (3) UG Franchise Operations, LLC v. Frank Carranza - declaratory judgment with counterclaim for fraud and unfair trade practices - settled $30,000
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 71 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- POS system
- Gym Management System and POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Gym Management System and POS
Item 20 · call current owners
Franchisee Contacts
81 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
UFC GYM · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a UFC GYM franchise?
The total investment to open a UFC GYM franchise ranges from $209K – $5.0M, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do UFC GYM franchise owners earn?
According to Item 19 of the UFC GYM FDD, the average gross sales per unit is $3.7M. The median is $3.6M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is UFC GYM's franchise failure rate?
Based on SBA 7(a) loan data, UFC GYM has a charge-off rate of 38.1% across 31 loans, meaning 38.1% 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 UFC GYM franchise locations are there?
As of their most recent FDD filing, UFC GYM has 81 total units in the United States, including 61 franchised units and 20 company-owned units. 13 new units were opened in the latest reporting year.
Is UFC GYM a good franchise to buy?
FranchiseVerdict rates UFC GYM as a F-grade franchise with a risk score of 81 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.