OHM Fitness (Unit)

Item 7 lays out the initial investment range of $378,500 to $890,000 for a unit franchise, covering build-out, equipment, and EMS suits, with the $49,000 franchise fee upfront (Item 5). Ongoing fees hit hard: 6% royalty on gross revenues, 1% brand/ad fund (or $300/month minimum), plus $450-$999 monthly technology fee and $250/month CRM software—potentially 8%+ of sales in total outflows. No Item 19 disclosure means no average revenue or profit benchmarks, a red flag for a system franchising since 2022, forcing reliance on private conversations with the 15 franchisees or corporate's two outposts for earnings intel.

System health shines in Item 20's growth trajectory: from 2 franchise locations in 2023 to 15 in 2024 (+650%), with 11 projected new units signaling aggressive expansion from Scottsdale HQ. Five SBA loans averaging $589,520 suggest franchisees are leveraging debt for builds, but low unit count (17 total) and youth raise validation risks like high failure rates in fitness. For investors eyeing efficient EMS niches targeting busy 23-57-year-olds, the model's innovation tempts, but opaque earnings and fee stack demand scrutiny—strong growth doesn't guarantee your studio thrives amid competition.