GOLD'S GYM

Item 7 outlines a steep entry: $40,000 franchise fee plus $1,793,500-$4,537,000 total investment, far above category norms like Anytime Fitness under $800K, covering buildout for full-service gyms with classes, training, and pro shops. Ongoing fees hit 7% (5% royalty, 2% ad fund), standard for health clubs but pressuring margins on median $1,743,000 gross sales—avg $1,963,000 suggests top performers thrive. With bankruptcy history noted in disclosures, prospective investors must scrutinize parent RSG Group's backing since 2021 acquisition.

System health shows stagnation: 159 franchised units (52 corporate) grew just +1% from 158 in 2023, with 11 projected openings signaling modest expansion. Low activity—1 termination, 4 non-renewals, 1 transfer—implies stability, bolstered by 50 SBA loans averaging $1,252,124 and rare 2% default rate versus industry 15-20%. For deep-pocketed operators targeting premium fitness markets, revenues support viability if occupancy and retention hit marks; otherwise, high fixed costs amplify risks in a crowded gym sector.