The idea of a boxing legend turning businessman was an attractive one to James Williams, a British-born Wharton grad who previously worked as a corporate lawyer and as a business consultant for Bain & Company. He met Floyd Mayweather in 2013 and was amazed that the fighter, then near the peak of his boxing career, was an untapped brand. “We were all very impressed by Floyd’s charisma and the huge following he had,” said Williams, the CEO of Mayweather Fitness and Boxing, which launched in 2017, the year Mayweather fought mixed martial arts star Conor McGregor in one of boxing’s most lucrative superfights. A 2023 financial filing says Mayweather owns 31.45 percent of parent company MW Fitness Holdings. Williams acknowledged that the chain has struggled, but attributed its difficulties to the problems in the broader fitness market. “Some customers have found it’s kind of easier to step away from those more niche studio memberships, as they are more likely to view them as complementary,” said Anton Severin, vice president of research at the Health and Fitness Association. Ten franchisees who spoke to Business Insider acknowledged those broader challenges. They also blame Mayweather and company executives for the poor performance. They said they believed the 48-year-old former prizefighter, with a social media following in the tens of millions and status as one of boxing’s most recognizable champions, had the power to break through, much like George Foreman did with his famous electric grill in the mid-1990s. However, some franchisees said that Mayweather showed a lack of involvement that was obvious and, in some instances, galling. They said that the boxer’s commitment to promoting the brand was not as robust as they had hoped. “He had never taken a major licensing, sponsorship, or endorsement deal,” said Williams, who met Mayweather in 2013 and was amazed that the fighter, then near the peak of his boxing career, was an untapped brand. With Williams as CEO, Mayweather Fitness and Boxing launched in 2017, the year Mayweather fought mixed martial arts star Conor McGregor in one of boxing’s most lucrative superfights. Williams provided a screen recording of hundreds of publicity photos and videos of Mayweather taken for the purpose of marketing the gyms and creating online and studio content. The pictures and videos depict Mayweather on a handful of occasions, including a visit to a gym in Torrance, California, and another location in Kansas City, Missouri, that was owned by Mayweather’s brother-in-law. Both studios have since closed. However, some franchisees said that Mayweather did not follow up on his promises to visit their gyms. He made a big show of promising to visit gyms that were in need of a boost of publicity, but he did not follow through on many of those visits. “He personally told me that he would visit one of my gyms,” said Sara McSpedon, a franchisee who opened two Mayweather Boxing and Fitness gyms in Chicago, one in 2020 and the other in 2022. “But when I followed up in the months after the event, the corporate team ignored me.”
Some franchisees said that Mayweather did visit some gyms, but his appearances did not have a significant impact on membership numbers. “If he showed up, it would be probably a three-hour high where people would gather — boxing enthusiasts, Floyd enthusiasts — not people that are paying $150 a month or $160 a month,” said Kerry Hamilton-Gannaway, a franchisee who owns a gym in Melbourne, Florida. Mayweather Boxing and Fitness faced a number of challenges in its early years, including high overhead costs and intense competition in the boutique fitness market. However, the company’s troubles are not just due to external factors. Franchisees have also accused Mayweather and company executives of making false promises and failing to provide adequate support. The company’s financial statements show that it has struggled to make ends meet. In 2021, the company reported a net loss of $3.7 million, and in 2022, it reported a net loss of $3.3 million. Revenue declined by $2.2 million in 2022, and royalty payments from franchises doubled. In addition to the financial struggles, franchisees have also accused the company of misrepresenting the potential for success in the business. Some have said that they were told that the company would buy their locations if they struggled, but that is not the case. “The single-modality boutique fitness market has suffered significantly in the past five years,” said Bobby Samini, an attorney for Mayweather and the business. “The challenges are widespread across the entire category.”
The company has also been accused of taking money from franchisees. In 2019, Sunny Dharni purchased the rights for 10 franchises in Northern California for $120,000 and opened two studios, in Elk Grove and Folsom, California, in 2021 and 2023, respectively. However, Dharni said that he has struggled to pay back roughly $700,000 in business loans he took out to help launch the studios. He said that he has lost his entire investment and is now facing eviction from one of his studios. The situation is not unique to Dharni. Several other franchisees have also lost financially, and some have even sued the company, Mayweather, and its cofounders. The lawsuit, which is ongoing, claims that the plaintiffs “lost over $8,000,000 due to defendants’ misrepresentations and misleading statements” and seeks financial restitution. Mayweather Boxing and Fitness denied the allegations in an answer to the complaint. “We categorically reject their claims,” Williams wrote in an email. “They are spurious and unfounded, and we are defending against them vigorously.”
Despite the financial struggles and allegations of misrepresentation, Mayweather still maintains that he made $3 million in royalties in a legal letter to Williams, Wilks, and the fitness company in May as part of a dispute over the operations of the business. “Mr. Mayweather has not participated in management, operations, or strategic oversight of these entities,” the letter read. “Despite his limited involvement as a brand ambassador, your organizations have continually and improperly exploited his name, image, and likeness for financial gain while simultaneously embroiling him in lawsuits and negative press,” the letter said. Williams told TMZ: “My team and I have consistently operated Mayweather Fitness with integrity and in full compliance with all applicable laws and regulations, and we look forward to that being clearly reflected through current proceedings. “I’ve always had a great relationship with Floyd, and want to make clear that the letter is correct in stating that I oversee and am responsible for all operational aspects of the business. Floyd is not involved in the day-to-day operations.”
The financial struggles of Mayweather Boxing and Fitness are a cautionary tale for franchisees who buy into a retail franchise. If the business begins to falter, franchisees have little leeway to adjust the product offering, design elements, or business model without corporate approval. “It’s not a fungible asset,” said Ben Lawrence, professor of franchise entrepreneurship at Georgia State University’s J. Mack Robinson College of Business. “You build to the specifications of the brand, and then you invest your life in that brand.”
In the end, the success of Mayweather Boxing and Fitness will depend on its ability to adapt to the changing fitness market and provide a high-quality product and service to its customers. However, the company’s financial struggles and allegations of misrepresentation have raised questions about its viability and the role that Mayweather plays in its success.
