Fitness 1440 Franchise Cost, Revenue & Review 2026
- Investment
- $369K – $1.9M
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 20 loans
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 and an ongoing 6.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. 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: high - issued more than two years ago
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 scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $369K – $1.9M
- 69th pct Health & Fitn…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 13th pct Health & Fitn…
- 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 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 $369K – $1.9M including a $50K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 66/100 (higher is better).
- GROWTHNegative: net -2 franchised outlets in the latest year (2 opened, 4 closed); 8 signed but not yet open (Item 20).
- 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 194% 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
- 6.0%
- Set by a formula · 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% |
| 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one FITNESS 1440 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 annual revenue, 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.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How Fitness 1440 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 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 36
- Opened
- 2
- Last reporting year
- Closed
- 4
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 11.1%
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 1
- Franchisor bought back
- Signed, not yet open
- 8
- 0.22 per open outlet · Item 20 Table 5
- Projected new
- 8
- Franchisor's next-year forecast
- 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.
Where the owners are · Item 20 owner list
21 current owners across 13 states.
- OR 4
- AZ 2
- GA 2
- TN 2
- TX 2
- WI 2
- AL 1
- CO 1
- FL 1
- MD 1
- MN 1
- MS 1
- +1 more states
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.
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
- Limited · 20 loans
- Limited SBA coverage: 20 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 20 loans
- 5-yr charge-off
- Limited · 20 loans
- 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Fitness 1440 from SBA 7(a) FOIA data.
- Principal loss rate
- 3.1%
- Avg SBA guarantee
- 77%
- Avg interest rate
- 7.24%
- Avg chargeoff amount
- $158K
- Lender concentration
- 13.3%
- Job velocity
- 5.6 per $100K
- NAICS benchmark
- 12.5%
- NAICS 713940
- Jobs supported
- 282
Top SBA lendersTop lender holds 13% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Celtic Bank Corporation | 2 | $661K | 0.0% |
| 2 | Stearns Bank National Association | 2 | $406K | 0.0% |
| 3 | Wells Fargo Bank National Association | 2 | $899K | 0.0% |
| 4 | Citizens Bank | 2 | $903K | 100.0% |
| 5 | Byline Bank | 2 | $730K | N/A |
| 6 | Cadence Bank | 1 | $185K | N/A |
| 7 | Simmons Bank | 1 | $700K | N/A |
| 8 | Central State Bank | 1 | $96K | N/A |
| 9 | Newtek Small Business Finance, Inc. | 1 | $243K | N/A |
| 10 | CRF Small Business Loan Company, LLC | 1 | $227K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TNTennessee | 5 | 0 | 0.0% |
| GAGeorgia | 3 | 0 | 0.0% |
| COColorado | 2 | 1 | 50.0% |
| TXTexas | 2 | 0 | 0.0% |
| ALAlabama | 1 | 0 | -- |
| NJNew Jersey | 1 | 0 | -- |
| PAPennsylvania | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
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)
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 is '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.
ⓘ 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 66 / 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 territory |
| 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
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns FITNESS 1440?
FITNESS 1440 is franchised by Fitness 1440, Inc.. Source: FDD Item 1, 2023 filing.
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 B-grade franchise with a verdict score of 66 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.