FranchiseVerdict
AWATFIT logo
FV-00214·CAUTIONExcellent86FDD 2022

Awatfit

Health & FitnessFranchising since 2020Website
Investment
$107K – $281K
19th pct Health & Fitn…
Avg revenue
$279K
8th pct Health & Fitn…
Royalty
Units
2
12th pct Health & Fitn…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $107K – $281K including a $55K franchise fee.
  • Average unit revenue of $279K/year. Estimated payback in 0.9 years.
  • Rated CAUTION with a risk score of 69/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
AWAT Fitness Inc.
Incorporated in
Delaware
HQ
3000 Lawrence Street, Denver, Colorado 80205
Auditor
Alfred J. Lutfy, CPA
Audited financials
Franchisor revenue
$279K
vs $122K 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 AWATFIT unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $278,847
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: $107K–$281K
Working capital
$
FDD reports $10K–$30K

Unlevered ROIC · per unit

39%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$84K
EBITDA margin
30.0%
Total invested
$214K
Payback
31 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 AWATFIT 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

$1.3M

on $6.4M purchase

Total debt

$5.1M

SBA $3.2M + senior + seller note

Overview

About

AWATFIT franchisees operate fitness facilities (likely boutique fitness or personal training studios) focused on specialized training or wellness services. Day-to-day operations include managing member enrollment, conducting fitness classes or training sessions, maintaining facility equipment, handling billing/membership administration, and ensuring compliance with franchisor standards and protocols.

CEO
Richard Decker
Founded
2019
FDD year
2022
States available
2

Item 7 · what it costs

The Vitals

Total investment
$107K – $281K
All-in to open one unit
Liquid capital
$10K – $30K
Cash you must have on hand
Franchise fee
$55K
Royalty
Greater of 6% of Gross Sales or Minimum Monthly Royalty F…
Ad fund
2.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical
Payback period
0.9 yrs
From v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$279K
Per unit, per year
Median gross sales
Item 19 type
Company Owned Outlet
Sample size
1 units
vs category median 12 · small
Range (low → high)
$279K$279K
Cohort dispersion
Transparency
6 / 5
vs category median 4 / 5 · above
Revenue rank8th
vs Health & Fitness peers
Investment cost rank19th
Lower investment ranks lower (better)
Royalty rate rank69th
Lower royalty = lower percentile (better)
Unit count rank12th
vs Health & Fitness peers
Risk score rank80th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
2
Opened
1
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
1
Corporate units in the system
% franchised
50%
vs corporate-owned
2020
1+1
Franchised units
2021
0
Franchised units
2022
0
Franchised units

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

Item 12 · 2 states reported

The Territory Map

FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.

2

states with franchisees (per FDD Item 12)

Government records

SBA Loan Data

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

Total loans
2
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

69
Risk · 0-100
CAUTION69 / 100

AWATFIT is an extremely early-stage, unproven franchise system with only 2 units, no earnings substantiation, and unclear growth potential—high risk for franchisees seeking established brand validation.

Score breakdown · what drove the 69 / 100 rating

  1. 01MINOROnly 2 operating units with unknown growth trajectory indicates an extremely underdeveloped franchise system with minimal proof of scalability
  2. 02HIGHNo Item 19 financial performance representations (Going Concern: False) means franchisor provides no earnings claims—claimed $222,978 net income cannot be independently verified
  3. 03MINORHigh minimum royalty fee structure (6% or minimum monthly fee) creates cash flow pressure; unclear if $278,847 average revenue can consistently support both royalty and operational costs
  4. 04MINORMinimal franchisee base (2 units) limits ability to validate realistic unit economics or identify systemic operational issues
  5. 05MINORWide investment range ($107k–$280.5k) suggests inconsistent build-out costs and undefined operational scope

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
Population
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
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
Required
Governing law
Colorado

Item 11

Training & Operations

Classroom training
31 hrs
On-the-job training
12 hrs
POS system
Glofox
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.

No franchisee contacts available for AWATFIT. This brand's FDD Item 20 did not include a contactable franchisee list.

FDD download

AWATFIT · FDD (2022) PDF

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