JOHN SAHAKIAN

Owner Title Boxing Club Units: 2 Age: 52 Years in franchising: 6 Years in current position: 6

John Sahakian operates two Title Boxing Clubs in Maryland—or at least he did until Covid-19 shut them both. He’s received PPP and county money to help him pay employees at both clubs, but missed out on additional aid from the state when the funding ran out. His franchisor has helped keep members engaged by making Title Boxing Club on Demand available free, and by reducing royalties—but will it be enough?

HOW HAS COVID-19 AFFECTED YOUR BUSINESS?

Dramatically. We have a few members at each club opting in to keep paying us more for support, but I would say 90% to 95% drop-off.

WHAT ARE YOU DOING RIGHT NOW TO GET THROUGH THIS?

I am paying my two managers as we are still doing things through social media for both clubs to try to keep members engaged. We are paying a few trainers to tape classes from home that we are posting. Otherwise I personally am using what I have in my savings to pay my own bills.

IS YOUR FRANCHISOR HELPING KEEP YOU AFLOAT?

Their help is minor. They gave us a 30% reduction in royalties about a week or two before things got really bad and everyone closed. They have stayed at that percentage. They will give it to us for another 4 weeks after we reopen. I felt it could have been more. They did give us Title Boxing Club on Demand, which was an app the company already had running. They gave our members free access to it temporarily, which was very helpful.

WHAT ARE YOU DOING TO HELP YOUR EMPLOYEES THROUGH THIS?

There was only so much I could do at the beginning. I have a few of them teaching classes and I bought everyone a nice dinner for two at a local restaurant to support small businesses, but also to do something nice for the employees. I did pay my two mangers as there was still work to be done, but it is limited. I recently got approved for the PPP money for both clubs, so will start paying my employees again.

WHAT ARE YOU DOING FOR YOUR CUSTOMERS?

We are doing virtual classes with our trainers, but also giving them Title Boxing Club on Demand so they can still work out from home. Otherwise, just a lot of social media engagement and asking them to tag us.

HOW ARE YOU WORKING WITH YOUR SUPPLIERS?

We have no supply issues.

WHAT ARE YOU DOING ABOUT CASH FLOW, PPP?

As I said, I got the PPP money, but have already used up half of it while closed. With the changing of the rules, I will use the rest when I am open. We could really use another round of funding. I applied to the SBA for a $50,000 SBA loan for both clubs, and to the state for $10,000 in grant money, but nothing will come from the state as they ran out of money. I applied for $10,000 in grant money from the county and got one of the clubs approved for it so far. There needs to be some other kind of next CARES Act for the small-business owner when we actually get open.

WHAT ELSE WOULD YOU LIKE TO SEE FROM YOUR FRANCHISOR OR GOVERNMENT?

I would have liked a bigger discount on the royalties from the franchisor, and I think it should go for 90 days after we open, not one month, as it will take time to ramp things back up. I think the government should have something that helps the business owner more with the rents than anything. The landlords have still been not very understanding. They are only willing to do a deferral in rent and want to be whole by mid-next year. That is really going to be tough.

ARE YOU PLANNING TO REOPEN AND REBUILD YOUR BUSINESS POST–COVID-19?

Yes, that is the game plan for both clubs. 