Discover StrengthFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Discover Strength franchise requires a total initial investment of $472K – $839K, including a $58K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $848K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 12 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $472K – $839K
- 83rd pct Health & Fitn…
- Avg gross sales
- $848K
- 43rd pct Health & Fitn…
- Royalty
- 6.0%
- 8th pct Health & Fitn…
- Units
- 22
- 56th 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
Only 0.0% of 12 SBA loans charged off, well below the 16% franchise average.
Bottom line
- Total investment $472K – $839K including a $58K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $848K/year (median $1.1M).
- Verdict A (Top Quintile) with a risk score of 21/100. SBA loan charge-off rate of 0.0% across 12 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 366.7% CAGR over 3 years with 22 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Discover Strength Franchising LLC
- Incorporated in
- MN
- HQ
- 4450 Excelsior Blvd., Suite 490, St. Louis Park, MN 55416
- Auditor
- Baker Tilly US, LLP
- Audited financials
- Franchisor revenue
- $915K
- vs $2.0M prior year
Overview
About
Discover Strength franchisees operate strength training studios focused on 30-minute machine-based workouts with personalized coaching. Daily operations include managing membership sales, conducting client onboarding and training sessions, facility maintenance, and staff scheduling. Revenue derives from membership fees, personal training packages, and retail product sales.
- CEO
- Luke Carlson
- Headquarters
- MN
- Founded
- 2020
- FDD year
- 2025
- States available
- 5
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $58K | $58K |
| Working capital (3–6 mo) | $20K | $40K |
| Equipment, build-out, other | $394K | $741K |
| Total initial investment | $472K | $839K |
Source: Discover Strength 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
$254K
30.0% margin
Unlevered ROIC
37%
EBITDA / total invested capital
Payback
32 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $472K – $839K
- Below avg, review vs category
- Liquid capital req'd
- $20K – $40K
- Better than avg vs category
- Franchise fee
- $34K – $58K
- Below avg, review vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $400 |
| Transfer fee | $29K |
| Renewal fee | $5K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $848K
- Per unit, per year
- Median gross sales
- $1.1M
- Item 19 type
- Individual Store Performance
- Sample size
- 12 units
- vs category median 11
- Range (low → high)
- $223K→$1.2M
- Cohort dispersion (min → max)
- Transparency
- 5 / 5
- vs category median 4 / 5 · above
Compared against 180 Health & Fitness brands
vs Health & Fitness averages
How Discover Strength Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 22
- Opened
- 6
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 8
- Corporate units in the system
- % franchised
- 64%
- vs corporate-owned
- Net growth (yr3)
- +75.0%
- Net unit change last year
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 12
- Loan volume
- $5.1M
- Median loan
- $458K
- 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
- 6
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Discover Strength's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 12 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage fitness franchise with aggressive expansion, undisclosed unit-level profitability, and franchisor going concern issues presents meaningful capital risk despite growth metrics.
Audited financials (Item 21)
Yes · Baker Tilly US, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 21 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — unable to verify profitability claims or validate ROI against $472k-$838.5k investment
- 02MINORRapid unit growth (75% YoY) with only 22 locations suggests early-stage system with unproven unit economics and high failure risk
- 03MINORHigh franchise fee ($58k) relative to total investment and average revenue ($847.6k) indicates fee-heavy model with 6.9% royalty burden
- 04HIGHGoing Concern flag indicates financial instability at franchisor level — raises questions about support, marketing fund viability, and long-term survival
- 05HIGHNo litigation disclosed is neutral, but combined with early-stage status and missing profitability data creates opacity
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 | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Population |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1.5 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 104 hrs
- POS system
- Mindbody
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Mindbody
Item 20 · call current owners
Franchisee Contacts
3 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Discover Strength · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Discover Strength franchise?
The total investment to open a Discover Strength franchise ranges from $472K – $839K, with an initial franchise fee of $58K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Discover Strength franchise owners earn?
According to Item 19 of the Discover Strength FDD, the average gross sales per unit is $848K. The median is $1.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Discover Strength's franchise failure rate?
Based on SBA 7(a) loan data, Discover Strength has a charge-off rate of 0.0% across 12 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 Discover Strength franchise locations are there?
As of their most recent FDD filing, Discover Strength has 22 total units in the United States, including 6 franchised units and 8 company-owned units. 6 new units were opened in the latest reporting year.
Is Discover Strength a good franchise to buy?
FranchiseVerdict rates Discover Strength as a A-grade franchise with a risk score of 21 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.