About CKO Kickboxing Franchise
CKO Kickboxing is a membership based fitness franchise offering kickboxing classes and a signature 10 week training program for adults of all ages and fitness levels.
Programs are also available for children aged 4 to 17.
The brand has been franchising since 2008, and the franchise fee is $35,000.
CKO Kickboxing Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 7% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of gross revenues (National and Regional Marketing Fund, not currently in place, but reserved); Maximum 2% of gross revenues (Advertising Cooperative, not enacted at present, but reserved); 5% of gross revenues (Local Advertising, if market warrants) | National brand fund |
| Total Investment Range | $125,012 – $251,862 | Includes build-out, inventory, working capital |
The investment range of $125K–$252K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Gross Revenues) and marketing fee (1% of gross revenues (National and Regional Marketing Fund, not currently in place, but reserved); Maximum 2% of gross revenues (Advertising Cooperative, not enacted at present, but reserved); 5% of gross revenues (Local Advertising, if market warrants)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (1) | $35,000 | $35,000 |
| Equipment (2) | $25,000 | $50,000 |
| Furniture & Fixtures (2) | $1,500 | $5,000 |
| Sound Proofing (2) | $3,500 | $14,000 |
| Real Property (3 months) (3) | $16,000 | $40,000 |
| Leasehold Improvements; Construction Costs (4) | $7,000 | $15,000 |
| Signage (5) | $2,000 | $5,000 |
| Opening Inventory and supplies (6) | $3,000 | $5,000 |
| Pre-Sale and Grand Opening Advertising (7) | $6,500 | $15,000 |
| Travel and Initial Training (8) | $2,500 | $3,000 |
| Insurance (3 month) (9) | $900 | $1,500 |
| Utilities | $300 | $2,000 |
| Security Deposits (10) | $1,800 | $12,000 |
| Blue Prints, Business Licenses and Permits | $1,000 | $3,000 |
| POS/Check-in System (3 months) | $537 | $537 |
| Computer System | $2,000 | $3,000 |
| Website Fee – 3 months | $225 | $225 |
| Professional Fees (11) | $1,000 | $3,000 |
| Third Party Training Expense | $100 | $100 |
| Sound System | $700 | $4,000 |
| Music Licensing | $500 | $1,000 |
| Surety Bond, if required by your state | $750 | $2,500 |
| Automated External Defibrillator (AED), if required by your state | $1,200 | $2,000 |
| Additional Funds (12) (3 months) | $12,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 (Franchise Agreement); $25,000 (Area Development Agreement) |
| Renewal Fee | $5,000 (Successor Agreement Fee) |
| Technology Fee | $179 per month (POS/Check-in System); $75 per month (Website Fee) |
| Audit Fee | Amount of deficiency; if understatement by 2% or more or non-reporting, then cost of inspection ($1,000 - $5,000) |
| Additional Training | $500 per day plus transportation and lodging |
| Refresher Training Program | Out of pocket expenses only |
| Interest on Late Payments | Lesser of 18% per annum or highest rate allowed by law |
| Late Charge | $250 |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Liquidated Damages | Average monthly Continuing Service Fees for 12 months preceding termination multiplied by 24 or remaining months, whichever is higher |
| Manual Replacement Fee | $500 |
| Supplier Evaluation | Our costs and expenses (not to exceed $500) |
| Refurbishment | Will vary under circumstances (not more frequently than every five years) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately eight days |
| Classroom Training | 35 |
| On-the-Job Training | 33 |
| Training Location | Our headquarters in Hoboken, New Jersey and virtually |
| Additional Training | Additional training programs, refresher courses, or 'on-the-job' training are available at a mutually convenient time for $500 per day plus expenses. Mandatory refresher training classes (2-5 days, 3-4 times a year) and regional/national meetings may also be required, with franchisees covering their own travel, lodging, meals, and wages. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Approximately 50,000 people or a 5-mile radius around your Facility, whichever is less |
| Description | The exclusive territory is based on population size and delineated by zip codes, county lines, or street names. Franchisor will not establish or allow another franchisee to establish a Facility within this area. However, franchisor reserves rights to operate or franchise similar businesses outside the territory, acquire competitive businesses (even within the territory, with options to sell to franchisee or operate under different brands), be acquired by a competitor, and engage in other business activities. Franchisee may only relocate within the exclusive territory with prior written approval. Online sales are restricted to within the territory unless no other facility is nearby, and franchisor may engage in electronic commerce and offer orders to franchisee. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 5 years |
| Renewal Fee | $5,000 |
| Renewal Conditions | Provide notice (9-6 months prior), compliance with Franchise Agreement, sign new Franchise Agreement, sign a general release. New agreement may have materially different terms, but territory boundaries and fees (not greater than those for similarly situated renewing franchisees) will remain the same. |
| Transfer Fee | $10,000 (Franchise Agreement); $25,000 (Area Development Agreement) |
| Transfer Conditions | Payment of money owed, non-default, sign release, transferee qualifies and signs new agreement, payment of transfer fee. Transferee/owners cannot operate a Similar Business. Franchisor can match any offer (right of first refusal). |
| Termination for Cause | Breach of Franchise Agreement and other grounds, such as failure to pay fees, misuse of Proprietary Marks, sale of unapproved service, bankruptcy, material judgment, felony conviction, unauthorized transfer, failure to submit reports, failure to complete training, or four or more default notices. Some breaches allow a 30-day cure period. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the agreement, franchisee cannot directly or indirectly carry on, be engaged in, or be interested in any 'Similar Business' (group fitness, boxing, kickboxing, punching bag activities). Following termination, expiration, or transfer, this prohibition extends for two years within a 100-mile radius of the former Premises or any other unit in the System. Also prohibits soliciting employees of franchisor or other franchisees for two years after termination/expiration/transfer. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisee must at all times directly supervise the operation of the Facility or employ a manager for this purpose. Direct, on-premises supervision is recommended. The Facility must have constant supervision by the franchisee or a manager who has satisfactorily completed the franchisor's training program. If the franchisee is an individual, they are recommended to be the fully trained manager. The manager does not need an equity interest but must be approved after training. If the business is an entity, all owners must sign the Franchise Agreement as a Principal. A married individual's spouse must sign a Personal Guaranty. |
| Required Suppliers | ClubReady (POS and front desk software, full-service billing platform, PIQ App and Heart Rate Monitor); Fuji Sports (mats and gloves); Asian World or Century Martial Arts (heavy bags); Hoboken Steel, Vita Fitness, and Monster Racks (racks); Cybermark (website); Go Daddy (email access). |
| Supply Restrictions | Franchisee must operate according to franchisor's standards and specifications for interior design, equipment, materials, and supplies. Must purchase and install the required computer system and approved software. Must purchase all products, materials, and supplies only from franchisor-approved distributors or suppliers. Franchisor may approve a single supplier for any product. If using an unapproved supplier, written approval is required, and franchisor may charge for evaluation. Franchisee must offer only approved services and products. |
| Franchisor Revenue from Suppliers | In fiscal year 2021, no monies were collected for required purchases from approved suppliers. Franchisor may negotiate purchase arrangements and receive consideration (rebates, commissions) from suppliers, which may be used for any purpose. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or any other obligation. |
CKO Kickboxing Franchise Earnings — Item 19
CKO Kickboxing does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
CKO Kickboxing Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
CKO Kickboxing System Growth
CKO Kickboxing currently operates 63 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 3 | 5 | 86 |
| 2020 | 0 | 20 | 66 |
| 2021 | 6 | 9 | 63 |
Transfers: 11 | Closures: 34
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
CKO Kickboxing Franchise — FAQ
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