CrunchFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Crunch franchise requires a total initial investment of $804K – $6.7M, including a $35K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.8M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 15 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $804K – $6.7M
- 91st pct Health & Fitn…
- Avg gross sales
- $2.8M
- 58th pct Health & Fitn…
- Royalty
- 5.0%
- 1st pct Health & Fitn…
- Units
- 422
- 96th pct Health & Fitn…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.7x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Only 0.0% of 15 SBA loans charged off, well below the 16% franchise average.
The system grew 16% year-over-year. Fast growth means demand, but can strain support.
25% cash-on-cash return (based on Operating Income). Within the 15-30% range most franchise investors consider acceptable.
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), with an estimated 25% cash-on-cash return (based on Operating Income).
- Verdict A (Top Quintile) with a risk score of 5/100. SBA loan charge-off rate of 0.0% across 15 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- Legal entity
- Crunch Franchising, LLC
- Parent company
- Crunch Holdings, LLC
- Incorporated in
- DE
- HQ
- 155 Riveredge Dr., Suite 250, Dallas, Texas 75207
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $63.6M
- vs $84.4M prior year
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.
- CEO
- James P. Rowley
- Headquarters
- TX
- Founded
- 2009
- FDD year
- 2025
- States available
- 41
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $25K | $800K |
| Equipment, build-out, other | $744K | $5.9M |
| Total initial investment | $804K | $6.7M |
Source: Crunch 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$857K
31.0% margin
Unlevered ROIC
21%
EBITDA / total invested capital
Payback
4.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $804K – $6.7M
- Below avg, review vs category
- Liquid capital req'd
- $25K – $800K
- Near category avg vs category
- Franchise fee
- $35K – $50K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
- Payback period
- 4.0 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $75 |
| Transfer fee | $10K |
| Renewal fee | $15K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $2.8M
- Per unit, per year
- Median gross sales
- $2.5M
- Avg operating income
- $930K
- Reported as Operating Income in FDD Item 19
- Cash-on-cash
- 24.7%
- Based on Operating Income / investment midpoint
- Item 19 type
- Actual Revenue and Cash Operating Profit
- Sample size
- 303 units
- vs category median 11 · large
- Range (low → high)
- $560K→$7.3M
- Cohort dispersion (min → max)
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 180 Health & Fitness brands
Revenue is only 0.7x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Health & Fitness averages
How Crunch Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 422
- Opened
- 67
- Last reporting year
- Closed
- 11
- Turnover rate
- 2.6%
- Company-owned
- 8
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- +15.6%
- Net unit change last year
- 3-yr CAGR
- +31.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 25
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 40 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 15
- Loan volume
- $32.2M
- Median loan
- $2.0M
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Crunch's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 8 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 6-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 15 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
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.
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 5 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 3 |
| Territory type | Population-based |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 2 |
Items 10, 11
Training & Operations
- Classroom training
- 44 hrs
- On-the-job training
- 200 hrs
- POS system
- ABC Financial Services, Inc.
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ABC Financial Services, Inc.
Item 20 · call current owners
Franchisee Contacts
402 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Crunch · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Crunch franchise?
The total investment to open a Crunch franchise ranges from $804K – $6.7M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Crunch franchise owners earn?
According to Item 19 of the Crunch FDD, the average gross sales per unit is $2.8M. The median is $2.5M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Crunch's franchise failure rate?
Based on SBA 7(a) loan data, Crunch has a charge-off rate of 0.0% across 15 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Crunch franchise locations are there?
As of their most recent FDD filing, Crunch has 422 total units in the United States, including 315 franchised units and 8 company-owned units. 67 new units were opened in the latest reporting year.
Is Crunch a good franchise to buy?
FranchiseVerdict rates Crunch as a A-grade franchise with a risk score of 5 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.