FranchiseVerdict
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FV-00152·STRONGExcellent100

Anytime Fitness

Health & FitnessFranchising since 2021Website
Investment
$398K – $973K
73rd pct Health & Fitn…
Avg revenue
$442K
20th pct Health & Fitn…
Royalty
Units
2,310
99th pct Health & Fitn…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $398K – $973K including a $43K franchise fee.
  • Average unit revenue of $442K/year (median $389K). Estimated payback in 6.1 years.
  • Rated STRONG with a risk score of 47/100. SBA loan default rate of 0.0% across 1520 loans (below the industry average).
  • System contracting at -150% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).

Item 1 · who you're contracting with

The Franchisor

Legal entity
ANYTIME FITNESS FRANCHISOR LLC
Parent company
Purpose Brands Holdings, LLC
Incorporated in
Delaware
HQ
111 Weir Drive, Woodbury, MN 55125
Auditor
Redpath and Company, LLC
Audited financials
Franchisor revenue
$172.1M
vs $184.1M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Anytime Fitness unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $441,894
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: fitness
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $398K–$973K
Working capital
$
FDD reports $46K–$48K

Unlevered ROIC · per unit

18%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$128K
EBITDA margin
29.0%
Total invested
$732K
Payback
69 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Anytime Fitness units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$1.9M

on $9.7M purchase

Total debt

$7.8M

SBA $4.9M + senior + seller note

Overview

About

Franchisees operate 24/7 self-service fitness facilities, managing membership sales, facility maintenance, equipment upkeep, and member retention. Day-to-day duties include staffing front desk/cleaning, managing HVAC/security systems, marketing memberships, and handling member support—typically with 1-3 full-time employees.

CEO
Thomas Leverton
Founded
2021
FDD year
2024
States available
50

Item 7 · what it costs

The Vitals

Total investment
$398K – $973K
All-in to open one unit
Liquid capital
$46K – $48K
Cash you must have on hand
Franchise fee
$43K
Royalty
$799 per month
Ad fund
$600
Payback period
6.1 yrs
From v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$442K
Per unit, per year
Median gross sales
$389K
Item 19 type
Franchised unit revenues and company-owned unit P&L
Sample size
1530 units
vs category median 12 · large
Range (low → high)
$37K$1.8M
Cohort dispersion
Transparency
8 / 5
vs category median 4 / 5 · above
Revenue rank20th
vs Health & Fitness peers
Investment cost rank73th
Lower investment ranks lower (better)
Royalty rate rank69th
Lower royalty = lower percentile (better)
Unit count rank99th
vs Health & Fitness peers
Risk score rank11th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
2,310
Opened
47
Last reporting year
Closed
67
Turnover rate
2.9%
Company-owned
12
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
-0.9%
Net unit change last year
3-yr CAGR
-1.5%
Compounded over last 3 years
2022
2,298-20
Franchised units
2023
2,318
Franchised units
2024
2,334
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 8 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Available · 8 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
1,520
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

47
Risk · 0-100
STRONG47 / 100

Anytime Fitness presents moderate-to-cautionary risk: a mature, contracting system with litigation clouds, thin unit economics, and no Item 19 disclosure to validate earnings claims.

Score breakdown · what drove the 47 / 100 rating

  1. 01MINORSystem declining: -0.9% YoY unit contraction signals market saturation or franchisee struggles despite 2,310 locations
  2. 02HIGHLitigation exposure: Spain franchisee breach-of-duty lawsuit on appeal + affiliate regulatory actions (Illinois/New York) indicate FDD disclosure and compliance vulnerabilities
  3. 03MINORThin margins: $112,687 avg net income on $441,894 revenue (25.5% net margin) leaves minimal buffer for underperformance or unexpected costs
  4. 04MEDHigh initial investment relative to margins: $397k-$973k entry cost requires 3.5-8.6 years to recoup at avg net income, assuming zero growth/decline

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
6 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
3
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Minnesota

Item 11

Training & Operations

Classroom training
39 hrs
On-the-job training
24 hrs
POS system
Club Operating Software / Club Management Software
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

91 numbers

Locked
(479) 877-••••
RI
(479) 431-••••
RI
(518) 473-••••
VA

One-time purchase · CSV download · Validation questions included

FDD download

Anytime Fitness · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above