333kenshin

Hi, I recently moved back to my hometown near Los Angeles and am planning to opening a new dojo under the same name as my sensei's, but fully owned, incorporated, and operated by me - so basically a franchise. He currently operates out of 1 full-time location. The new location is about 12 miles driving distance from the original so both he and some students who live between can visit from time to time, which will really help bootstrapping (an essential reason I'm starting up under his name and not my own). What is a reasonable franchise fee + royalty percentage under such circumstances? He's not big on writing up contracts or logistics and such, so it's up to me to write up the franchise agreement and ensure I'm offering him numbers that are reasonable. His baseline business health: he has 5 stars on both Google and Yelp and is willing to amend his website to include my location so I can piggyback off his SEO due to both the economy and personal losses, his business took a hit over the past year but was recovering nicely in 2018-2019 until COVID hit I have been assisting unpaid at his dojo for the past 2.5 years, re-learning the ropes of teaching (it's been 20 years since I stopped training with him when I left for college), and have in particular put in a lot of hours getting him through COVID I'm considering a one-time franchise fee of $10K, with a recurring royalty of 5% or maybe 10% of gross revenues. The latter depends on whether marketing budget is covered by royalty or separate - at the moment he only spends $300/month on Yelp, but I'm thinking about going for a Spanish-language radio and/or YouTube buy to maximize impact per cost. These numbers are based on what I've read is typical for "normal" franchises, but I'm wondering whether there are customs specific to karate dojos?

@Sensei8, if Coronavirus didn't happen, I'd be doing what you suggest - let him stick with his own methods. In fact, that *was* my initial plan: start my own studio nearby as a franchise, I'll run mine my way, and let him run his his own way. If I find that my innovations are useful without compromising the studio's integrity, I can show him how it works in action and let him decide for himself whether he wants to adopt it. But the fact is CoronaVirus *did* happen, and is the premise of my original question. So not only do I not have the option of doing my own changes in my own separate school, *he* doesn't have the option of carrying on business as usual if the virus comes back this winter. Hence I don't think the logic of business-as-usual applies. If you don't think this situation has raised the stakes of evolve-or-die, then I'm curious whether your city/community has responded to coronavirus differently from where I live (Los Angeles). Cheers, -Dave

Hi folks, Hope you're all safe and healthy. Need some advice. I train and teach at the same karate dojo under the same sensei I started with 30+ years as a kid. I REALLY want the studio to survive. The studio has been chugging along, in the black but not exactly robust (the recession and MMA means we'll never see the 90s heyday). So COVID is an existential threat, and our best shot at survival is to leverage every silver lining possible. Luckily I believe there are some: people are more aware of the need for exercise than ever before, and the type who used to visit big gyms like 24 hour fitness are now open to more stimulating and engaging activities. I've brainstormed a handful of ideas to try to increase student numbers once quarantine lifts. Not saying all my ideas are sound, but that we have to try something, preferably several things, and fast, to see what works before the next quarantine hits come winter. But all this is contingent on getting buy in from my sensei. Thing is, he's a 60+ yo immigrant who for 30+ years has singlehandedly run his own business without almost any change. The concept of "business agility" doesn't exist. Free trial classes, automated online payments, partnerships with things like classpass, etc he digs in his heels at any suggestion. So how do I get his buy in to try these things in an effort to get numbers up to survive the new normal? Please help me help my sensei! Thanks, -Dave

Hi folks, I'm planning to open a new branch of the karate dojo where I currently teach and train, primarily targeting kids. I'm aware that enrolling students is most difficult during the first few months, since most parents are (understandably) hesitant to sign up for program when all they see is an empty class. As such, I've been advised to try to land a gig teaching at an elementary or middle school - either during the day as PE or as an afterschool program onsite. I'm told it's a reliable channel for enrolling new students - my sensei said in the past our dojo would reliably draw at least 5 new student enrollments per session, and their attrition rate would usually be lower. The problem is my sensei's wife, who handled the logistics of setting up the engagements, passed away a few years ago so I don't know how to do this. If anyone with experience in this space could share any knowledge or tips on how to reach out to school, who to speak with, and when are rough timelines, that would be greatly appreciated. Thanks! -Dave

Hi folks, I'm a 2nd dan karate instructor aspiring to open a branch studio of the school where I currently teach and train. I've seen 2 common refrains I've heard across several discussion boards about starting up a studio: 1) start small by renting a room per hour in say a school, gym, or church to build up numbers before signing a lease for dedicated store space. This totally makes sense from a cash flow perspective - paying for capacity you're not in position to use is just burning through savings. 2) the most cost-effective way to draw in more clientele is location conducive to foot traffic with compelling signage. Ideally next to an anchor like a supermarket or bookstore Unfortunately (1) and (2) seems to contradict one another, since a rented room in a school/gym/church limits you on both foot traffic and signage. One method I've heard of squaring that circle is where the studio has a back room or attic space where the instructor actually lives in order to save on rent. I wouldn't want to do this long term, but could imagine doing it for the first year or so of operations while the business is finding its legs and getting enrollment numbers up. Can anyone comment on the concerns with regards to legality, logistics, ethics, and perception in such an arrangement? Anecdotes of both successful and failed instances, and what were decisive (and perhaps unforeseen) factors would be great. Thanks! -Dave PS: I'm mindful of the fact that, given the recent bankruptcy of Boy Scouts of America, there is an added need for vigilance against any form of impropriety where kids are involved. The space will be marked Private, remain locked during all business hours, and accessible to only myself.

Whew, fantastic feedback sensei8, thanks! Addressing your questions about my background... MA experience: I'm a 2nd dan black belt in my primary studio which teaches karate meshed with TKD. I've also trained in Aikido, Capoeira, Wing Chun, Northern Shaolin, and just started BJJ, but none to the level of black belt or equivalent. teaching experience: I've taught 4 non-consecutive years, alternating with other black belts between taking roles of lead and assistant instructor. The master of our studio is chief instructor and sets the curriculum, standards, and assesses readiness for promotion. Over the past year I've received positive feedback from my master, other black belts, and several parents on the quality of my teaching, which has encouraged me to consider opening a studio of my own Why buy a business rather than build from scratch: I've been advised that starting from scratch is the typical path and generally fewer ways for things to go wrong. Also many folks have pointed out that if I'm trying to pay my way out of doing hard work or having good teaching skills, I'm probably gonna fail. All the points raised are valid, and in fact I have a unique reason for wanting to buy rather than start from scratch, distinct from any of the failure modes above. Namely, I'm developing a way of teaching academic topics - science, history, linguistics, pedagogy - *through* martial arts classes. The tricky thing is, this secondary curriculum can only be taught to fairly advanced students, whose age, maturity, and skills are sufficient that they can handle the novelty of this secondary curriculum. Whereas beginners are too busy getting a handle on the fundamentals of punching, kicking, blocking, to handle the distraction. Hence the preference to buy a studio, whose advanced students will be able to start picking up the new curriculum right away, rather than start my own studio full of white belts who I won't be able to work on this new material with for years yet. Hope that clarifies! -Dave

Hi, I'm a black belt karate instructor looking to opening a studio of my own to teach full time. I live in a large city that is already pretty densely packed with martial arts schools, so competition is a big concern. At the same time, I believe many traditional martial arts schools are struggling financially and in a slow-motion death spiral as the popularity of MMA rises and as modern tech, social media, and culture makes "traditional" studios hard to relate to, especially if run by a 1st-generation Korean or Japanese master with weak English. As such, I would like to identify and approach such struggling businesses to buy or partner with. As a younger, US-born instructor with real-world experience beyond martial arts (I'm a software engineer and have lived abroad twice) I think I can articulate the case for traditional martial arts to younger students and their parents, rejuvenating some of these struggling older studios. The challenges: - how to identify such struggling schools - how to approach them respectfully Any suggestions would be welcome. Thanks! -Dave