FranchiseVerdict
Burn Boot Camp logo
FV-00426·STRONGExcellent100

Burn Boot Camp

Health & FitnessFranchising since 2015Website
Investment
$282K – $645K
54th pct Health & Fitn…
Avg revenue
$681K
35th pct Health & Fitn…
Royalty
6.0%
9th pct Health & Fitn…
Units
365
94th pct Health & Fitn…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $282K – $645K including a $60K franchise fee, 6.0% ongoing royalty.
  • Average unit revenue of $681K/year (median $638K). Estimated payback in 4.1 years.
  • Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 236 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Kline Franchising, Inc.
Parent company
Burn Holdings, LLC
Incorporated in
North Carolina
HQ
17036 Kenton Dr., Suite 100, Cornelius, North Carolina 28031
Auditor
BGW CPA, PLLC
Audited financials
Franchisor revenue
$21.4M
vs $25.5M 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 Burn Boot Camp unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $680,997
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: $282K–$645K
Working capital
$
FDD reports $10K–$30K

Unlevered ROIC · per unit

42%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$204K
EBITDA margin
30.0%
Total invested
$484K
Payback
28 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 Burn Boot Camp units return on equity?

Edit assumptions

Equity IRR · 5-yr

33.3%

4.21× MOIC

Year-1 DSCR

2.43×

EBITDA ÷ debt service

Equity required

$6.0M

on $15.7M purchase

Total debt

$9.7M

SBA $5.0M + senior + seller note

SBA 7(a) request ($7.8M) exceeds the $5M program cap. Excess capped automatically; backfill via conventional or equity.

Overview

About

Franchisees operate high-intensity interval training (HIIT) fitness studios, managing group fitness classes, personal training services, and member retention programs. Day-to-day responsibilities include staff scheduling, class instruction/oversight, member acquisition and retention marketing, facility maintenance, and managing recurring membership revenue typically ranging $99-199/month per member.

CEO
Morgan Kline
Founded
2014
FDD year
2025
States available
39

Item 7 · what it costs

The Vitals

Total investment
$282K – $645K
All-in to open one unit
Liquid capital
$10K – $30K
Cash you must have on hand
Franchise fee
$60K
Royalty
6.0%
Gross Revenues · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical
Payback period
4.1 yrs
From v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$681K
Per unit, per year
Median gross sales
$638K
Item 19 type
Historical Financial Performance
Sample size
278 units
vs category median 12 · large
Range (low → high)
$147K$1.6M
Cohort dispersion
Transparency
7 / 5
vs category median 4 / 5 · above
Revenue rank35th
vs Health & Fitness peers
Investment cost rank54th
Lower investment ranks lower (better)
Royalty rate rank9th
Lower royalty = lower percentile (better)
Unit count rank94th
vs Health & Fitness peers
Risk score rank10th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
365
Opened
29
Last reporting year
Closed
6
Turnover rate
1.6%
Company-owned
9
Corporate units in the system
% franchised
98%
vs corporate-owned
Net growth (yr3)
+6.3%
Net unit change last year
3-yr CAGR
+12.7%
Compounded over last 3 years
2023
356+21
Franchised units
2024
335
Franchised units
2025
316
Franchised units

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

Item 20 · 18 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
Registered · 18 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
236
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

46
Risk · 0-100
STRONG46 / 100

Burn Boot Camp presents moderate-to-cautionary risk: regulatory history, slow unit growth, undocumented financial claims, and thin margins relative to investment size warrant deeper franchisee validation before committing.

Score breakdown · what drove the 46 / 100 rating

  1. 01HIGH2016 litigation for unregistered franchise sales in Virginia shows regulatory compliance issues and raises questions about disclosure practices across other states
  2. 02MINORModest unit growth of 6.3% YoY is sluggish for fitness/wellness sector; suggests market saturation or brand maturation challenges
  3. 03MINORNo Item 19 (Financial Performance Representations) in FDD limits ability to validate the stated $114,287 average net income figure
  4. 04MINORHigh initial investment ($281K-$645K) against $114K average net income yields 2.5-5.6 year payback period with thin margins
  5. 05MINOR6% royalty on gross revenues (not net) creates cash flow pressure during slow months; combined with overhead-heavy fitness model, profitability is vulnerable

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 based on population
Protected territory
Yes
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
North Carolina

Item 11

Training & Operations

Classroom training
62 hrs
On-the-job training
64 hrs
POS system
Not specified
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

76 numbers

Locked
(704) 712-••••
NC
(480) 254-••••
AZ
(919) 506-••••
NC

One-time purchase · CSV download · Validation questions included

FDD download

Burn Boot Camp · FDD (2025) PDF

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