Bottom line
- Total investment $472K – $839K including a $58K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $848K/year (median $1.1M).
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 26 loans (below the industry average).
- 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
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 Discover Strength unit return on the cash you put in?
Unlevered ROIC · per unit
37%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Discover Strength units return on equity?
Equity IRR · 5-yr
29.8%
3.69× MOIC
Year-1 DSCR
2.70×
EBITDA ÷ debt service
Equity required
$8.6M
on $19.5M purchase
Total debt
$10.8M
SBA $5.0M + senior + seller note
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.
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 · 5 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
Early-stage fitness franchise with aggressive expansion, undisclosed unit-level profitability, and franchisor going concern issues presents meaningful capital risk despite growth metrics.
Score breakdown · what drove the 54 / 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
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
27 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Discover Strength · FDD (2025) PDF