Discover Strength Franchise Cost, Revenue & Review 2026
- Investment
- $529K – $870K
- Disclosed sales
- $873K
- gross sales, not profit
- SBA charge-off
- 0.0%
- on 12 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Discover Strength is a boutique fitness franchise offering efficient, trainer-led strength workouts in 30-minute sessions. Franchisees run the studios, managing certified exercise-science trainers, scheduling, and memberships.
FranchiseVerdict summary · 2026
A Discover Strength franchise requires a total initial investment of $529K – $870K, including a $58K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $873K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 12 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $529K – $870K
- 87th pct Health & Fitn…
- Avg gross sales
- $873K
- Outlet subset30th pct Health & Fitn…
- Royalty
- 6.0%
- 13th pct Health & Fitn…
- Units
- 34
- 64th pct Health & Fitn…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $529K – $870K including a $58K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $873K/year (median $876K) (reported for a subset of outlets rather than the whole system).
- RISKVerdict B (Above average), verdict score 59/100 (higher is better). SBA loan charge-off rate of 0.0% across 12 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +11 franchised outlets in the latest year (11 opened, 0 closed); 22 signed but not yet open (Item 20).
- GROWTHSystem growing at 212.5% CAGR over 3 years with 34 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Discover Strength Franchising LLC
- Predecessor
- Discover Strength Personal Fitness Center, Inc. (DSPFC)
- Prior franchisor entity
- CEO title
- Chief Executive Officer and Founder
- Luke Carlson
- Incorporated in
- Minnesota
- HQ
- 4450 Excelsior Blvd., Suite 490, St. Louis Park, MN 55416
- Auditor
- Baker Tilly US, LLP
- Audited financials
- Franchisor revenue
- $3.2M
- vs $2.1M prior year
Overview
About
- CEO
- Luke Carlson
- Headquarters
- MN
- Founded
- 2020
- FDD year
- 2026
- States available
- 9
Can you afford it, and what does the money buy?
Entry cost runs 78% above the typical health & fitness franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $58K | $58K |
| Working capital (3–6 mo) | $20K | $55K |
| Equipment, build-out, other | $451K | $757K |
| Total initial investment | $529K | $870K |
Source: Discover Strength 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $529K – $870K
- Bottom third — review vs category
- Liquid capital req'd
- $20K – $55K
- Middle of category vs category
- Franchise fee
- $58K – $58K
- Bottom third — review vs category
- Royalty
- 6.0%
- 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 | $250 |
| Training fee | $8K |
| Transfer fee | $29K |
| Renewal fee | $5K |
| Inventory (initial) | $1K – $6K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 83% above the health & fitness norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Discover Strength until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$737K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Discover Strength unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $873K
- Per unit, per year
- Median gross sales
- $876K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical
- Sample size
- 22 outlets
- vs category median 11
- Range (low → high)
- $104K→$1.6MCited, not corroborated — printed on page 37 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 5 / 10
- vs category median 4 / 10 · above
Compared against 173 Health & Fitness brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $873K/year in gross sales. Revenue-to-investment ratio: 1.2x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 8.0% (near the Health & Fitness median).
Disclosure
Transparency score 5/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 212.5% CAGR over 3 years across 34 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Health & Fitness medians
How Discover Strength Compares
Category median of published Health & Fitness brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 34
- Opened
- 11
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 9
- Corporate units in the system
- % franchised
- 74%
- vs corporate-owned
- Net growth (3-yr)
- Outlier (see FDD)
- Likely small-sample artifact
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 22
- 0.65 per open outlet · Item 20 Table 5
- Projected new
- 11
- Franchisor's next-year forecast
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.
Where the owners are · Item 20 owner list
0 current owners across 0 states; 3 former (terminated, transferred or not renewed) listed separately.
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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%
- on 12 loans · 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
- Typical loan rate
- 9.0%
- avg rate to borrowers
- Franchised industry avg
- 15.8%
- brand beats franchise avg ↓
- Jobs supported
- 94
- 1.9 per loan
- Lender concentration
- 33%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Franchise vs independent — in fitness and recreational sports centers, franchised businesses charge off at 15.8% vs 18.2% for independents — franchising is associated with 13% lower SBA default risk in this category.
Top lenders financing Discover Strength franchisees
Showing 3 of 6 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Discover Strength from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 70%
- Avg interest rate
- 8.98%
- Lender concentration
- 33.3%
- Job velocity
- 1.9 per $100K
- NAICS benchmark
- 12.5%
- NAICS 713940
- Jobs supported
- 94
Top SBA lendersTop lender holds 33% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 4 | $1.3M | N/A |
| 2 | Bridgewater Bank | 3 | $1.2M | N/A |
| 3 | Minnwest Bank | 2 | $912K | 0.0% |
| 4 | Security Bank & Trust Company | 1 | $680K | N/A |
| 5 | 21st Century Bank | 1 | $450K | N/A |
| 6 | Old National Bank | 1 | $499K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| MNMinnesota | 4 | 0 | 0.0% |
| COColorado | 2 | 0 | -- |
| NJNew Jersey | 2 | 0 | -- |
| GAGeorgia | 1 | 0 | -- |
| IAIowa | 1 | 0 | -- |
| TXTexas | 1 | 0 | -- |
| WIWisconsin | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
With a 0.0% charge-off rate across 12 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Baker Tilly US, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 59 / 100 verdict
- 01MINORRapid unit growth (75% YoY) with only 22 locations suggests early-stage system with unproven unit economics and high failure risk
- 02MEDNo 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
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 8 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 7 days |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Termination groundsℹ | 13 |
| Curable defaultsℹ | 8 |
| Mandatory arbitration | Yes |
| Arbitration location | County where franchisor headquarters is located (St. Louis Park / Hennepin County, Minnesota) |
| Jury trial waiver | Yes |
| Governing law | State where Studio is located |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 40 hrs
- Training location
- St. Louis Park, Minnesota, or another location designated by the franchisor
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- franchisee (subject to franchisor consent/consulting)
- Franchisor financing
- Not offered
- Item 10
- 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
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 $529K – $870K, 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 $873K. The median is $876K. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Discover Strength?
Discover Strength is franchised by Discover Strength Franchising LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Discover Strength FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Discover Strength FDD and qualifies whose outlets they describe.
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 34 total units in the United States, including 25 franchised units and 9 company-owned units. 11 new units were opened in the latest reporting year.
Is Discover Strength a good franchise to buy?
FranchiseVerdict rates Discover Strength as a B-grade franchise with a verdict score of 59 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.