Bottom line
- Total investment $804K – $6.7M including a $35K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $2.8M/year (median $2.5M). Estimated payback in 4.0 years.
- Rated STRONG with a risk score of 39/100. SBA loan default rate of 0.0% across 22 loans (below the industry average).
- System growing at 31.7% CAGR over 3 years with 422 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 Crunch unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Crunch units return on equity?
Equity IRR · 5-yr
22.6%
2.76× MOIC
Year-1 DSCR
4.01×
EBITDA ÷ debt service
Equity required
$41.5M
on $66.4M purchase
Total debt
$24.9M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate fitness facilities offering group exercise classes, cardio/weight training equipment, and membership-based revenue models. Day-to-day operations include managing staff, scheduling classes, maintaining facilities, retaining members, and driving new member acquisition through marketing.
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 · 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).
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
Crunch presents moderate-to-caution risk due to recent litigation over financial misrepresentation, opaque unit economics spanning 8x investment range, and absence of disclosed financial performance data.
Score breakdown · what drove the 39 / 100 rating
- 01HIGHRecent 2024 litigation settlement ($475,000) involving financial performance misrepresentation by area developer raises accuracy concerns about unit economics claims
- 02MINORWide investment range ($804K–$6.7M) suggests inconsistent unit profitability and unclear ROI predictability across locations
- 03MINOR15.6% YoY unit growth, while positive, is modest for fitness sector and may indicate market saturation or franchisee acquisition challenges
- 04HIGHTwo disclosed litigation actions (2017 and 2024) suggest pattern of franchisor-franchisee disputes over territory and financial performance
- 05MEDNo Item 19 (Financial Performance Representations) disclosed limits ability to validate $929,856 average net income claim independently
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
89 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Crunch · FDD (2025) PDF