Bottom line
- Total investment $224K – $545K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $541K/year.
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 31 loans (below the industry average).
- System growing at 120.0% CAGR over 3 years with 22 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
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 btone FITNESS unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 btone FITNESS units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$758K
on $3.8M purchase
Total debt
$3.0M
SBA $1.9M + senior + seller note
Overview
About
Franchisees operate boutique fitness studios offering specialized group fitness classes (likely tone/strength training or similar modality). Daily operations include class scheduling, instructor management, member retention, facility maintenance, and revenue generation through membership fees and ancillary services.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 6 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).
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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
btone FITNESS presents meaningful caution due to undisclosed profitability, franchisor going concern status, and insufficient system maturity to validate franchise unit economics.
Score breakdown · what drove the 54 / 100 rating
- 01MINORNo net income disclosure (Item 19) prevents ROI validation despite $541k avg revenue
- 02HIGHGoing Concern status indicates franchisor financial instability or operational uncertainty
- 03MINORRapid unit growth (37.5% YoY) may reflect aggressive recruitment masking unit economics problems
- 04MINORWide investment range ($223k-$545k) suggests inconsistent buildout costs or disclosure clarity issues
- 05MINORFranchise fee ($50k) combined with 6% royalty is moderate-to-high relative to fitness industry benchmarks
- 06MEDOnly 22 units system-wide indicates early-stage franchise with limited track record and operational maturity
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
btone FITNESS · FDD (2025) PDF