Project Function

Item 7 lays out a mid-tier entry: $256,750 to $337,250 total investment, kicked off by a $40,000 franchise fee for new builds or conversions. Ongoing bites come via Item 6's tiered royalties—15% of gross membership sales plus 10% from personal training revenue, stacking to potentially 20-25% of top line if PT thrives, alongside 2% brand fund, $100 monthly tech fee, and $50-per-machine equipment leases. With just one corporate location since 2025 launch and no Item 19 financial performance reps, buyers lack validated revenue benchmarks, amplifying risk in a market where average fitness studios chase $300K-$500K AUVs elsewhere—here, you'd model breakeven around $400K+ annual sales to cover the fee load.

System vitality per Item 20 shows 16 projected new units, signaling franchisor ambition amid zero historical franchisee data—no terminations or transfers yet, as it's pre-history. This fresh entrant differentiates via biomechanic focus over cardio mills, targeting broad demographics for sticky memberships and upsell PT/products. For cash-flow realism, high royalties demand volume; probe FDD Item 11 on supply costs, trainer retention via certification mandates, and conversion timelines to slash buildout hurdles—key to hitting ROI before fees erode margins.