DISCOVER STRENGTH

Item 7 outlines initial investment from $472,000 to $838,500, including a $58,000 franchise fee, driven by build-out for specialized studio formats. Ongoing fees hit 6% royalty plus 2% brand fund, plus fixed $400/month tech and $199/month scheduling app charges—totaling around 8% of sales plus extras. With only 14 franchise locations (plus 8 corporate) as of 2024 FDD, growth surged 75% from 8 units in 2023, projecting 18 new ones ahead; 13 SBA loans averaging $410,662 signal lender confidence despite the youth. This expansion from a St. Louis Park, MN base shows healthy traction in a competitive field, but low unit count means limited economies of scale.

Item 19 shines brightly: average gross revenue $847,648, median $1,050,164 across units—strong for a startup system, implying top performers drive medians higher. Estimated profits range $293,352-$378,117, a solid 35-45% margin on avg sales, rewarding efficient operators in strength-focused niches. No major red flags in terminations or transfers noted, but the franchise's brevity (5 years) and small footprint demand scrutiny—high projected growth could dilute support if not managed well, yet revenue heft suggests viability for fitness-savvy investors chasing upscale studio returns.