Fitness 1440 Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Fitness 1440 is a full-service gym franchise offering 24-hour access, group classes, and personal training in a community setting. Franchisees run the clubs, managing memberships, staff, equipment, and personal training.
FranchiseVerdict summary · 2026
A FITNESS 1440 franchise requires a total initial investment of $369K – $1.9M, including a $5K – $50K franchise fee. The 2023 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $369K – $1.9M
- 69th pct Health & Fitn…
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 36
- 65th pct Health & Fitn…
- SBA charge-off
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness avg · 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 $369K – $1.9M including a $50K franchise fee.
- RETURNSFigures from the AUDITED Consolidated Financial Statements of Fitness 1440, Inc. and Subsidiaries, for the year ended December 31, 2022 (with 2021 comparative), audited by Bielau, Tierney, Coon & Company, P.C. (Pittsburgh, PA), opinion dated May 10, 2023. Statements presented in whole US dollars (no scaling). Total revenues 2022 = Franchise fees 204,207 + Royalties 799,470 + Other 322,717 = 1,326,394 (yr2 2021 = 1,253,005). other_revenue = 'Other' line of 322,717. Balance sheet reconciles: Total Assets 2,375,011 = Total Liabilities 1,905,773 + Total Shareholders' Equity 469,238 (Common stock 422,024 + Retained earnings 497,214 - Treasury stock 450,000). The unaudited 'Summary Balance Sheet' and 'Profit & Loss' pages (Fitness 1440 Inc, cash basis, as of/through Mar 31, 2023) carry an explicit 'prepared without an audit' disclaimer and were NOT used.
- RISKVerdict A (Strongest tier), verdict score 59/100 (higher is better).
- DECLINESystem 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
Corporate structure & franchisor financials
- Legal entity
- Fitness 1440, Inc.
- CEO title
- President
- Steven Beach
- Incorporated in
- PA
- HQ
- 870 East Williams Field Road, Gilbert, AZ 85295
- Auditor
- Bielau, Tierney, Coon & Company, P.C.
- Audited financials
- Franchisor revenue
- $1.3M
- vs $1.3M prior year
Overview
About
- CEO
- Steven Beach
- Headquarters
- AZ
- Founded
- 2009
- FDD year
- 2023
- States available
- 10
Can you afford it, and what does the money buy?
Entry cost runs 101% above the typical health & fitness franchise.
Source: FDD 2023 · Items 5–7
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $45K | $150K |
| Equipment, build-out, other | $274K | $1.7M |
| Total initial investment | $369K | $1.9M |
Source: FITNESS 1440 2023 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
- $369K – $1.9M
- Bottom third — review vs category
- Liquid capital req'd
- $45K – $150K
- Bottom third — review vs category
- Franchise fee
- $5K – $50K
- Middle of category vs category
- Royalty
- Greater of 6% of Gross Sales or $2,495 per month
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | greater of 6% of Gross Sales or $2,495 per month |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $299 |
| Training fee | $500 |
| Transfer fee | $25K |
| Renewal fee | $13K |
| Inventory (initial) | $40K – $400K |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FITNESS 1440 did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one FITNESS 1440 unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
18%
Below the 30–60% attractive-franchise band
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: 2023 FDD
Financial Performance
Figures from the AUDITED Consolidated Financial Statements of Fitness 1440, Inc. and Subsidiaries, for the year ended December 31, 2022 (with 2021 comparative), audited by Bielau, Tierney, Coon & Company, P.C. (Pittsburgh, PA), opinion dated May 10, 2023. Statements presented in whole US dollars (no scaling). Total revenues 2022 = Franchise fees 204,207 + Royalties 799,470 + Other 322,717 = 1,326,394 (yr2 2021 = 1,253,005). other_revenue = 'Other' line of 322,717. Balance sheet reconciles: Total Assets 2,375,011 = Total Liabilities 1,905,773 + Total Shareholders' Equity 469,238 (Common stock 422,024 + Retained earnings 497,214 - Treasury stock 450,000). The unaudited 'Summary Balance Sheet' and 'Profit & Loss' pages (Fitness 1440 Inc, cash basis, as of/through Mar 31, 2023) carry an explicit 'prepared without an audit' disclaimer and were NOT used.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Health & Fitness average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -11.4% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
Only 13% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 averages
How Fitness 1440 Compares
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 36
- Opened
- 2
- Last reporting year
- Closed
- 3
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 32.3%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 86%
- vs corporate-owned
- Multi-unit owners
- 12.5%
- Net growth (3-yr)
- +3.0%
- Net unit change over 3 years
- 3-yr CAGR
- -11.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 11
- Closed (3yr)
- 9
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 5
- Reacquired (3yr)
- 1
- Franchisor bought back
- Ceased ops
- 8.3%
- Units that stopped operating
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 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
- 20
- Loan volume
- $7.1M
- Median loan
- $243K
- 50th percentile
- Charge-off rate
- N/A
- no resolved loans yet — rate needs a terminal outcome
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 10
- Defaults
- 1
- Typical loan rate
- 7.2%
- avg rate to borrowers
- Franchised industry avg
- 15.8%
- n=7,965 loans
- Jobs supported
- 282
- 5.6 per loan
- Lender concentration
- 13%
- top lender's share
Borrower mix: 50% went to startups / new businesses, 50% 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 Fitness 1440 franchisees
Showing 3 of 10 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.
Premium insight
SBA Lending Report
Deep-dive into Fitness 1440's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
- 8-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Declining system with significant capital requirements, zero performance transparency, and insufficient evidence of franchisee profitability creates substantial investment risk.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Bielau, Tierney, Coon & Company, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 59 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Maricopa County, Arizona |
| Jury trial waiver | No |
| Governing law | AZ |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 20 hrs
- Training location
- At or near franchisor headquarters in Gilbert, Arizona
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
21 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
FITNESS 1440 · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a FITNESS 1440 franchise?
The total investment to open a FITNESS 1440 franchise ranges from $369K – $1.9M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do FITNESS 1440 franchise owners earn?
FITNESS 1440 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the FITNESS 1440 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 FITNESS 1440 FDD and qualifies whose outlets they describe.
What is FITNESS 1440's franchise failure rate?
SBA 7(a) loan charge-off data is not available for FITNESS 1440 (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many FITNESS 1440 franchise locations are there?
As of their most recent FDD filing, FITNESS 1440 has 36 total units in the United States, including 31 franchised units and 5 company-owned units. 2 new units were opened in the latest reporting year.
Is FITNESS 1440 a good franchise to buy?
FranchiseVerdict rates FITNESS 1440 as a A-grade franchise with a verdict score of 59 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent FITNESS 1440, you can request corrections or provide updated information.
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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.