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).
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 37 loans (below the industry average).
- 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
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 UFC GYM unit return on the cash you put in?
Unlevered ROIC · per unit
38%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 UFC GYM units return on equity?
Equity IRR · 5-yr
22.0%
2.70× MOIC
Year-1 DSCR
4.20×
EBITDA ÷ debt service
Equity required
$55.3M
on $86.2M purchase
Total debt
$30.8M
SBA $5.0M + senior + seller note
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.
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 · 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 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
Declining unit base, settlement history involving fraud allegations, undisclosed profitability, and absence of Item 19 data create substantial risk in a contracting franchise system.
Score breakdown · what drove the 63 / 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
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
81 numbers
One-time purchase · CSV download · Validation questions included
FDD download
UFC GYM · FDD (2023) PDF