Live Your Dream With LA Boxing As you search for a business to own, what makes a great opportunity? Freedom to set your own goals and your own pace Solid business model Growing industry A proven system Powerful training and support programs Industry leader If these benefits are at or near the top of your list, you owe it to yourself to explore the LA BOXING Franchise opportunity further. After you have read more about us online, take the next step toward your future with LA BOXING and request an information packet. In addition to the $25,000 Franchise fee, there are the costs of setting up a basic gym. There are costs related to travel to Santa Ana, CA for 3 days of training. What Return On Investment (ROI) can I expect? Because the actual upfront investment to open an LA BOXING gym is relatively low and totally dependant on the wants and needs of the franchisee, it is impossible to give you an accurate ROI. At the same time, an immediate source of cash flow is created as new members are enrolled so a positive cash flow can be very quickly established. How quickly can I expect the return on my investment to begin? As soon as you start selling in your market, you can begin to recover your initial investment by enrolling new members. In most cases, how well you follow the marketing plan provided by LA BOXING determines how quickly you achieve your desired ROI. How many employees do I need? You can start with as little as three people including yourself, a manager, sales person and instructor. However, people that have the funds to hire additional people whose talents complement their own can grow faster. What type of facility do I need? Approximately 3,000 to 3,600 sq. ft. for the gym, office, signage, phone (at least 2 lines plus a dedicated fax line), fax, PC compatible computer, and high-speed Internet access. What type of technology (phone, fax, computer, internet) do I need? PC compatible. Your internet connection should be one of the various high speed options, DSL, cable, etc., Internet Explorer 5.5 or higher. Phone system with at least two lines and a dedicated fax line, plain paper fax machine, and a photocopier. How long has LA BOXING been in business? LA Boxing Franchise Corporation executives have operating LA BOXING gyms in Southern California since 1992. The franchise Company was start in February, 2004, to launch the LA BOXING Franchise opportunity. How much training will I receive? Three days of initial training at the company's headquarters with other new Franchisees will teach you about the LA BOXING business, the system, and the market. Other training is available including regional meetings each year and an International Convention every year. How much support will I receive after the initial training, and specifically, how does LA BOXING support my business? LA BOXING provides the infrastructure to transact the billing and collections for servicing member accounts. The technology provides reports on your gym's activities as well as administrative functions. In addition, LA BOXING provides full member and Franchisee services departments to handle member and franchisee issues. LA Boxing has department heads for the following areas; Director of Real Estate Development, Director of Product Planning, Director of National Training, Director of National sales, Director of Marketing, Director of Finance and a Senior Director of Corporate Compliance, here to service our valued franchisees.As a Franchisee you will have a team of support staff to assist you in the running of your LA BOXING franchise. What are the benefits of owning my own LA BOXING franchise business? Significant income potential Build assets and equity in your business (the equity belongs to you) Retain local control over day-to-day operations Operate using a recognized name Take part in regional marketing campaigns Join a network with thousands of Members Proven systems and support What are the key drivers of the business - the key skills needed? As much fun and as exciting as the LA BOXING Franchise opportunity is - it's not for everyone. You will need to be prepared to commit a full-time effort to this business, and you will be rewarded for your effort. The most successful LA BOXING gyms have been operated by energetic team leaders with solid business and management experience. This is a sales-oriented business where innovation and the ability to create synergy between your members, your own facility staff, and with other LA BOXING franchisees, will bring you the success you deserve. What competition should I expect? There are other established health and fitness chains, but LA BOXING is the Boxing, Kickboxing and Mixed Martial Arts Leader and offers more services and expertise than most at a competitive price point. In addition, there is very little market penetration for the boxing method of health and fitness training and a very large potential audience. Will I receive a protected territory? Yes, you will receive a protected territory. You will be assigned a protected territory based upon population density and whether your location is in a metropolitan or rural area. Generally we will not place another franchise within at least 5 miles of the location of your LA Boxing Franchise, and your protected territory will have a population base of not less than 100,000 people. How do I generate income? Your sales come from four sources: Bringing in New Members for Class Sessions Providing Personal Training for Members Selling LA BOXING Equipment, Supplies, and Wearing Apparel Fight Night Events Supplements and Energy Drinks If this is such a great opportunity, why haven't I heard of you before? LA BOXING is just beginning to market the Franchise opportunity and we expect substantial growth in the next year. Explain why this business and the fitness industry will survive a?? why does it have the necessary a??staying power"? The best explanation is that LA BOXING was started over 15 years ago and currently has thousands of members. Our members joined LA BOXING through both good and bad financial times, which explains why our business has proven to be recession-resistant. The statistics for the fitness industry are convincing. In 1987, an estimated 13.7 million people were members of health club facilities.1 By 2000, the number grew to 29 million, a growth of 112 percent. As of January, 2004 the number of US health club members is 39.4 million. The most current revenue figures available reflect 2003 total US Fitness Industry Revenues of $14.1 billion. Information received from the International Health Racquet and Sports Club Association What will cause my LA BOXING franchise business to grow quickly? Aggressive sales and marketing to build a positive, stable business with good quality members who renew their membership as quickly as possible. Also, relying on the opportunities and systems provided by Corporate and networking throughout the local community are vital to the success, long and short-term, of all Franchisee businesses. What dynamics are important to consider in determining if I'm in a good market? A population base of 100,000 (or more), middle to upper middle income range, and a mix of age groups are generally recommended, but, based on your personal goals for your franchise, business can thrive in smaller markets. HOW DO I GET STARTED? LA BOXING is seeking franchisees who are self-starters and who understand the strong upward trend in the health and fitness membership club industry. You have to believe in the value of the LA BOXING system. You have to know, and convey, the health and lifestyle benefits people will receive from becoming an LA BOXING member. Most of all, you have to see and believe in the global vision that is LA BOXING. Whether you are an individual franchise owner or a multi-unit owner with a large, fully-staffed operation with sales staff and Regional Directors, you will be responsible for all aspects of your business. Here is how you can get started in pursuing your dream with LA BOXING: The first step in buying an LA BOXING franchise is for you to contact us by telephone or complete an application form online. An LA BOXING representative will then telephone you to explain the franchise program. If there is mutual interest after our telephone conversation, we will then mail you an information pack that will provide a full description of the franchise opportunity. Once we have received your completed application form, and you have read the franchise literature, and your interest continues to be strong, we will send you a second package. The second package will include the Uniform Franchise Offering Circular (UFOC) document which includes the Franchise Agreement for your review. Upon your receipt of the UFOC document, the laws governing franchise sales require that LA BOXING receive a signed and dated Uniform Franchise Offering Circular receipt page back from you. This receipt page is the very last page of the UFOC document. It does not obligate you in any way, nor does it obligate LA BOXING to sell you a franchise; it is merely a matter of evidence that we have complied with all the franchise laws and provided you with complete and full disclosure of the LA BOXING franchise opportunity. After reading the UFOC, if you are still interested in proceeding with your investigation of the franchise opportunity, you will be invited to visit the LA BOXING corporate office in Santa Ana, California, and meet with our franchise senior executive team. You must bear the cost of travel to our corporate office. This is a chance to spend several hours meeting us and learning more about LA BOXING and for us to evaluate whether we feel you have the qualifications to be a successful LA BOXING franchisee. You will undoubtedly want to talk to some of our other LA BOXING owners and franchisees to determine their satisfaction with the LA BOXING training and ongoing support. We recommend that talking to LA BOXING franchisees be delayed until the date for your visit to our corporate office has been established, since our owners and franchisees are busy operating their businesses and we only want them to spend time with people who are sincere about becoming an LA BOXING franchisee. During your visit to the LA BOXING corporate office, you will meet our senior executives and various department heads. They will be available to answer any remaining questions you may have concerning operating an LA BOXING franchise, including information that you will need to talk to potential landlords for site selection. At the close of the time spent at our office, we will mutually agree upon how we wish to proceed with granting you an LA BOXING franchise. At that time we can set up your training date and counsel you on all the preliminary steps leading up to training, including signing the franchise agreement, the payment of the initial franchise fee, and the procedure for site selection, which is subject to our approval.