Los Campeones

Item 7 lays out the massive initial investment range of $296,500 to $2,550,500, driven by real estate choices from modest leaseholds to larger builds, plus a flat $50,000 franchise fee. Ongoing fees hit 6% of gross sales royalty, with a potential up to $100 monthly technology add-on (waived for now). Item 19 provides median gross sales data across units, showing viability for muscle-focused gyms targeting adults, though profitability hinges on location size and trainer utilization—expect 15-20% margins at scale after covering high equipment and rent costs. Five SBA loans averaging $1,014,840 signal franchisees betting big, but monitor default risks in this capital-intensive category.

System health shows modest expansion: 13 total locations in 2024 to 14 in 2025 (+8% growth), with only 6 franchise-owned versus 9 corporate, and just 1 projected new unit. Low franchise count since 2020 suggests cautious rollout amid fitness sector churn, with minimal terminations but few transfers. For investors, this means strong corpor ate backing reduces some risk, yet limited peer data makes vetting tougher—high investment ceiling suits experienced operators with $1M+ liquidity, but shy away if seeking quick multi-unit growth in a post-pandemic gym shakeout.