| Frequently Asked Questions |
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- What upfront investment is required?
- What ongoing fees are required?
- What Return On Investment (ROI) can I expect?
- How quickly can I expect the return on my investment to begin?
- How many employees do I need?
- What type of facility do I need?
- What type of technology (phone, fax, computer, internet) do I need?
- How long has PRO MARTIAL ARTS been in business? Why haven't I heard of you before?
- How much training will I receive?
- How much support will I receive after the initial training, and specifically, how does PRO MARTIAL ARTS support my business?
- What are the benefits of owning my own PRO MARTIAL ARTS Franchise?
- What are the key drivers of the business - the key skills needed?
- What is our competitive differentiation? How are we better than the others?
- Will I receive a protected territory?
- How do I generate income?
- Explain how this business survives - why it has "staying power"?
- What will cause my PRO MARTIAL ARTS Franchise business to grow quickly?
- What dynamics are important to consider in determining if I'm in a good market?
- How do I get started?
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| 1. What upfront investment is required? |
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In addition to the $40,000 Franchise Fee, there are the costs of setting up a basic karate school. There are also costs related to
travel to Berwyn, PA, for a 6-day training program. Total Estimated Single Unit Investment - $99,835 - $114,875 including $15,000 working
capital.
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| 2. What ongoing fees are required? |
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Royalty Fee
You will pay a continuing monthly non-refundable Royalty Fee during the Term equal to 6% of gross revenue.
Advertising Budget
i. 2% of gross revenue for national advertising campaigns. (Currently 2% national advertising not being collected.)
ii. $1,000 local advertising per month.
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| 3. What Return On Investment (ROI) can I expect? |
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Because the actual upfront investment to open a PRO MARTIAL ARTS gym is relatively low and totally dependant on the expectation and
needs of the Franchisee, it is impossible to give you an accurate ROI. However, an immediate source of cash flow is created as new
student-members are pre-enrolled prior to your grand opening so a positive cash flow can be established quickly.
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| 4. How quickly can I expect the return on my investment to begin? |
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As soon as you sign your lease and start pre-selling in your exclusive territory, you can begin to recover your initial investment by
enrolling new student-members. In most cases, how well you follow the marketing plan provided by PRO MARTIAL ARTS determines how quickly
you achieve your desired ROI.
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| 5. How many employees do I need? |
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You can start with as little as two people including yourself, as owner/manager, a salesperson and an instructor. However, Franchisees
who have the funds to hire additional people whose talents complement their own can grow faster.
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| 6. What type of facility do I need? |
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You will need approximately 1,800 to 2,200 sq. ft. for the school and a small office. You will need signage, phone (at least 2 lines plus
a dedicated fax line), fax, PC compatible computer, and high-speed Internet access.
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| 7. What type of experience do I need? |
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No karate training or martial arts experience is necessary to qualify for a PRO MARTIAL ARTS FRANCHISE. General business experience required.
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| 8. How long has PRO MARTIAL ARTS been in business? Why haven't I heard of you before? |
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Although we have operated Grandmaster Samane Karate Schools for over 18 years, the PRO MARTIAL ARTS gyms have been operating in southeast Pennsylvania since 1998. The PRO MARTIAL ARTS franchise company was started in January, 2008 in preparation for a franchise program to be launched worldwide.
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| 9. How much training will I receive? |
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PRO MARTIAL ARTS provides six days of initial training at the company's headquarters in Berwyn, PA. You will be taught the PRO
MARTIAL ARTS Grandmaster Samane karate class curriculum, training program, business system and marketing programs. In addition to
initial training, you are required to complete 4 days or 40 hours of continuing education annually at a location designated by the
Franchisor. Other training is available including periodic regional meetings and an annual National Franchisee Convention at the
option of the Franchisor.
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| 10. How much support will I receive after the initial training, and specifically, how does PRO MARTIAL ARTS support my business? |
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PRO MARTIAL ARTS provides you with the Web-based infrastructure to transact the billing and collections for servicing student-member
accounts. The technology provides reports for your gym's activities as well as administrative functions. In addition, PRO MARTIAL ARTS
provides various Franchisee service departments to handle Franchisee questions and concerns. As a Franchisee, you will have a team of
support staff to assist you in operating your Franchise.
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| 11. What are the benefits of owning my own PRO MARTIAL ARTS Franchise? |
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- 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 brand name
- Ongoing training
- Market Research
- Inclusion in regional marketing campaigns
- Inclusion in a network of current successful franchisees with student-members
- Proven systems and support
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| 12. What are the key drivers of the business - the key skills needed? |
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As much fun and as exciting as the PRO MARTIAL ARTS Franchise opportunity is, it is certainly not for everyone. You will need to be
involved on a full-time basis, and you will be rewarded for your effort. The most successful PRO MARTIAL ARTS schools have been
operated by energetic team leaders with some business and management experience. Your Franchise agreement requires you to hire PRO
MARTIAL ARTS-approved managers and class instructors. Following the PRO MARTIAL ARTS Franchise system is imperative to success.
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| 13. What is our competitive differentiation? How are we better than the others? |
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The PRO MARTIAL ARTS business opportunity is a family centered karate studio based on the Grandmaster Samane System which upholds
character development as a core characteristic in the instruction of three Korean Karate styles. In addition to the "Fusion of Three"
styles; Tang Soo Do, Tae Kwon Do and Hapkido, studios may hold classes in Yoga, Cardio Kickboxing and Tai Chi, but no other martial arts
styles are taught. This allows the brand to be consistent nationally and the PRO MARTIAL ARTS name is synonymous with the Grandmaster
Samane System. Additionally, PRO MARTIAL ARTS is a membership based studio, allowing Franchisees to continue to have revenue streams
even in slower months.
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| 14. Will I receive a protected territory? |
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Yes, you will receive an exclusive, protected territory. You will be assigned a protected territory based upon at least a
100,000-population density. Generally, we will not place another franchise within 5 miles of the location of your PRO MARTIAL
ARTS Franchise with the exception of major downtown city metropolitan areas.
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| 15. How do I generate income? |
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- Bringing in New Student-members
- Providing Upgraded Classes and Personal Training for Student-members
- Selling PRO MARTIAL ARTS Equipment, Supplies, and Wearing Apparel
- Special Events
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| 16. Explain how this business survives - why it has "staying power"? |
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The best explanation is that the PRO MARTIAL ARTS by Grandmaster Samane business system was started over 18 years ago and has trained
several thousand student-members. Our student-members have joined our PRO MARTIAL ARTS predecessor-type karate schools through good and
bad financial times. Member loyalty and longevity substantially exceeds industry standards and affirms that our PRO MARTIAL ARTS
business has proven to be recession-resistant, and certainly not a fad. In addition, approximately one million people join some type of
fitness club or facility each year, pushing membership to 41.3 million people nationwide and health/fitness gross revenue to $19 billion
annually.
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| 17. What will cause my PRO MARTIAL ARTS Franchise business to grow quickly? |
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Aggressive advertising, regular community outreach activities, sales, and marketing will build a positive, stable business with good
quality student-members who renew their memberships. In addition, following the proven systems provided by PRO MARTIAL ARTS and only
hiring PRO MARTIAL ARTS-approved managers and class instructors will expedite success.
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| 18. What dynamics are important to consider in determining if I'm in a good market? |
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You need a population base of 100,000 people within 5 to 7 miles, average annual household income of at least $60,000, and a mix of
age groups.
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| 19. How do I get started? |
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Complete the Online Request for Information Packet. When you have received your information packet, fill out the Franchise Application
and return it to PRO MARTIAL ARTS via fax (610) 722-5601, or email to
franchise@promartialarts.com. Upon receipt of your Application, we will contact you
and send you a Franchise Disclosure Document (FDD) to continue the franchising process. If there continues to be mutual interest, we will
invite you to the corporate office for a Discovery Day visit.
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