House of CoreFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A House of Core franchise requires a total initial investment of $211K – $326K, including a $50K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $440K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $211K – $326K
- 41st pct Health & Fitn…
- Avg gross sales
- $440K
- 21st pct Health & Fitn…
- Royalty
- 5.0%
- 1st pct Health & Fitn…
- Units
- 1
- 2nd pct Health & Fitn…
- SBA default
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $211K – $326K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $440K/year.
- Verdict A (Top Quintile) with a risk score of 42/100.
- Revenue data based on only 1 reporting unit. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Morning Management LLC
- CEO title
- Chief Executive Officer
- Wendy Wilcox
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 2934 ½ Beverly Glen Circle No. 108, Los Angeles, CA 90077
- Auditor
- Divine, Blalock, Martin & Sellari, LLC
- Audited financials
- Franchisor revenue
- $22K
- Most recent fiscal year
Overview
About
House of Core appears to be a boutique fitness or wellness studio (likely core/pilates-based given the name) where franchisees operate a membership-driven fitness facility. Day-to-day operations likely include class instruction, member management, facility maintenance, marketing, and staff supervision in a studio environment.
- CEO
- Wendy Wilcox
- Headquarters
- CA
- Founded
- 2024
- FDD year
- 2025
- States available
- 0
FDD Item 7 · 2025 filing · 22 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Construction and Leasehold Improvements | $8K | $50K | |
| Lease Deposit and Rent - Three Months | $14K | $31K | |
| Furniture, Fixtures and Equipment | $2K | $13K | |
| Studio Equipment | $65K | $75K | |
| Signage | $500 | $3K | |
| Grand Opening Marketing | $2K | $2K | |
| Initial Retail Starter Package | $4K | $4K | |
| Initial Lobby Area Package | $3K | $3K | |
| Initial Bathroom Package | $1K | $1K | |
| Initial Studio Area Package | $2K | $2K | |
| Initial Retail Area Package | $4K | $4K | |
| Initial Props Package | $2K | $2K | |
| Technology Package | $4K | $4K | |
| Technology Fee | $2K | $2K | |
| Opening Inventory and Supplies | $500 | $500 | |
| Utility Deposits | $100 | $350 | |
| Insurance Deposits - Three Months | $375 | $500 | |
| Training Expenses | $0 | $1K | |
| Professional Fees | $3K | $16K | |
| Total initial investment | $211K | $326K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$141K
32.0% margin
Unlevered ROIC
44%
EBITDA / total invested capital
Payback
27 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $211K – $326K
- Near category avg vs category
- Liquid capital req'd
- $45K – $60K
- Below avg, review vs category
- Franchise fee
- $20K – $50K
- Near category avg vs category
- Royalty
- 5.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $475 |
| Training fee | $500 |
| Transfer fee | $10K |
| Renewal fee | $25 |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $440K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 1 units
- vs category median 11 · small
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 180 Health & Fitness brands
vs Health & Fitness averages
How House of Core Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- 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
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Multi-unit owners
- 1.0%
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 1
- Franchisor's next-year forecast
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 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.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
High-risk opportunity with critical transparency gaps: a single-unit system, undisclosed profitability, franchisor going concern issues, and escalating royalties create substantial uncertainty about franchisee ROI and franchisor stability.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Divine, Blalock, Martin & Sellari, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- 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 42 / 100 rating
- 01HIGHGoing Concern status is FALSE — franchisor may have financial viability issues or undisclosed structural problems
- 02MEDNet Income not disclosed — inability to assess actual profitability despite $439K average revenue; royalty escalation to 9% by year 6 could compress margins significantly
- 03MEDOnly 1 unit in system — suggests either brand is brand new, failed to scale, or data is incomplete; impossible to validate growth trajectory or system health
- 04MINORRoyalty structure escalates 80% (5% to 9%) — franchisee profitability deteriorates materially in years 4-6, creating retention/sustainability risk
- 05HIGHNo litigation disclosed but Going Concern is FALSE — suggests potential undisclosed disputes, regulatory issues, or franchisor financial stress
- 06MINORUnknown unit growth — no historical AUV trends, no disclosure of openings/closures; cannot assess market viability
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Online sales rights | 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 |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Los Angeles County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 70 hrs
- On-the-job training
- 45 hrs
- Training location
- On-site and corporate
- Time to open
- 6 mo
- From signing to launch
- POS system
- Walla
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Walla
Item 20 · call current owners
Franchisee Contacts
5 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
House of Core · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a House of Core franchise?
The total investment to open a House of Core franchise ranges from $211K – $326K, 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 House of Core franchise owners earn?
According to Item 19 of the House of Core FDD, the average gross sales per unit is $440K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is House of Core's franchise failure rate?
SBA 7(a) loan charge-off data is not available for House of Core (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 House of Core franchise locations are there?
As of their most recent FDD filing, House of Core has 1 total units in the United States, including 0 franchised units and 1 company-owned units.
Is House of Core a good franchise to buy?
FranchiseVerdict rates House of Core as a A-grade franchise with a risk score of 42 out of 100, 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
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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.