Bottom line
- Total investment $369K – $1.9M including a $50K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 26 loans (below the industry average).
- System contracting at -11.4% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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 FITNESS 1440 unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Overview
About
FITNESS 1440 franchisees operate 24-hour fitness facilities offering gym access, group classes, personal training, and wellness services. Day-to-day operations include facility management, staff hiring/training, member retention programs, equipment maintenance, and marketing to drive recurring membership revenue.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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
Declining system with significant capital requirements, zero performance transparency, and insufficient evidence of franchisee profitability creates substantial investment risk.
Score breakdown · what drove the 65 / 100 rating
- 01MINORSystem shrinking 6.1% YoY (36 units) indicates declining franchisee success and brand momentum
- 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and unit economics assessment
- 03MINORHigh capital requirement ($369K-$1.9M) combined with declining unit count suggests poor franchisee profitability
- 04MINORDual royalty structure (6% or $2,495/month minimum) creates cash flow pressure, especially for underperforming locations
- 05MINOR10-year term lock-in is lengthy given system contraction and lack of performance transparency
- 06MINORFitness industry highly competitive with low barriers to entry; franchise model advantages unclear
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
21 numbers
One-time purchase · CSV download · Validation questions included
FDD download
FITNESS 1440 · FDD (2023) PDF