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THE LITTLE GYM
The Little Gym franchises operate businesses providing physical fitness, recreational gymnastics, motor skills development, and other programs for children under proprietary trademarks and systems. Franchisees must develop a minimum of two gyms, following operational standards, using approved equipment, supplies, and merchandise, with a business model centered on multi-unit development agreements. The target market is parents and families seeking non-competitive, motivational environments to enhance children's physical and mental growth.
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Franchise Costs
8% royalty (min $2,500/mo) + 1% NAF + $119/mo technology + $80-$120/mo call center
Financial Performance
Item 19 Financial Performance
Data Based On: 140 franchised outlets open for at least a full year, as of December 31, 2024.
* Average Gross Revenue, Average EBITDA, and Average EBITDA Margin % were calculated as the simple average of the 'Avg.' values from each of the four quartiles, as each quartile represents an equal number of units (35 units * 4 quartiles = 140 total units). Median Gross Revenue was calculated as the average of the 'Median' Gross Sales from the 2nd and 3rd quartiles. Revenue Top Quartile is the Average Gross Sales of the Top Quartile. Revenue Bottom Quartile is the Average Gross Sales of the 4th Quartile. Best Guess Profit High was calculated by multiplying the overall Average Gross Revenue ($699,057.0) by the maximum average EBITDA % observed across the quartiles (39.6% from the Top Quartile). Best Guess Profit Low was calculated by multiplying the overall Average Gross Revenue ($699,057.0) by the minimum average EBITDA % observed across the quartiles (-16.4% from the 4th Quartile).
Extracted Item 19 Section
Avg. Revenue: $699,057
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Unlock financial performance dataTHE LITTLE GYM Franchise Analysis
For over three decades, The Little Gym has built a niche in child fitness, but its path under new parent Unleashed Brands sparks questions about momentum. Item 19 finally discloses revenue and profit snapshots, while SBA financing history hints at franchisee staying power amid rising terminations. Does this multi-unit mandate deliver the family-focused returns parents demand, or signal growing pains?
Franchising since 1992, The Little Gym expanded from 185 locations in 2023 to 218 in 2024—a solid 18% growth—with 32 projected new units signaling confidence. Yet system health shows cracks: 30 terminations and 15 non-renewals last year, plus 22 transfers, outpacing typical stability for a mature brand. Item 19 reveals average gross revenue of $699,057 (median $686,624), but EBITDA margin at 0% underscores razor-thin profits, with estimated range from -$114,645 loss to $276,827 gain—highly variable, demanding top-quartile performance. Multi-unit development (minimum two gyms) per Item 7 fits the $519,265-$756,995 initial investment, including $59,500 franchise fee.
Ongoing fees bite at 8% royalty (minimum $2,500/month), 1% ad fund, $119/month tech, and $80-$120/month call center—potentially 10%+ of sales for underperformers. SBA data shines: 141 loans averaging $321,326 with just 1.4% default rate, better than many peers, suggesting viable financing. Litigation in Item 20 flags breach and non-compete disputes with ex-franchisees, a red flag for operational friction. For investors eyeing education-fitness, this data trajectory means scrutinizing location potential and parent support before committing to the kid-centric model.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How THE LITTLE GYM Compares
Key Insights
- Higher investment than 79% of Specialized Fitness franchises
- Top 10 largest franchise system in Specialized Fitness
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
THE LITTLE GYM Current | $519K – $757K | $60K | 8.0% | 218 |
| JAZZERCISE | $2K – $3K | $1K | 20.0% | 5,251 |
| Orangetheory | $765K – $1.1M | $60K | 8.0% | 1,209 |
| F45 Training | $294K – $719K | $60K | 7.0% | 789 |
| Stretch Lab | $269K – $610K | $65K | 8.0% | 485 |
| Stretch Zone | $139K – $320K | $60K | 7.0% | 377 |
Specialized Fitness Average 34 franchises | $314K – $650K | $51K | 7.5% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 34 Specialized Fitness franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+23 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for THE LITTLE GYM franchisees (2010 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
141 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
237 franchisee contacts on file from official FDD filings.
237 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Breach of franchise agreement, post-term non-compete enforcement, and unfair competition against a former franchisee.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a THE LITTLE GYM franchise ranges from $519,265 to $756,995. This includes a franchise fee of $59,500. Ongoing royalty fees are 8.0% of gross sales.
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