Bottom line
- Total investment $361K – $544K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $544K/year (median $509K). Estimated payback in 2.6 years.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 7 loans (below the industry average).
- System contracting at -20.0% 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 Iron Tribe Fitness unit return on the cash you put in?
Unlevered ROIC · per unit
33%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Iron Tribe Fitness units return on equity?
Equity IRR · 5-yr
37.8%
4.96× MOIC
Year-1 DSCR
2.20×
EBITDA ÷ debt service
Equity required
$4.1M
on $13.1M purchase
Total debt
$8.9M
SBA $5.0M + senior + seller note
Overview
About
Iron Tribe Fitness franchisees operate boutique fitness studios offering group strength training, conditioning, and functional fitness classes. Daily operations include managing class schedules, coaching certification oversight, member retention programs, facility maintenance, and front-desk/billing administration to drive recurring membership revenue.
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 · 25 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
A contracting fitness franchise with undisclosed financial performance claims, franchisor stability concerns, and declining unit economics that warrant careful validation before $360K+ investment.
Score breakdown · what drove the 64 / 100 rating
- 01MEDUnit count declined 13.0% YoY (29 units), indicating system contraction and potential franchisee struggles
- 02MEDNo Item 19 financial performance representations disclosed; average revenue/net income figures cannot be verified as representative
- 03HIGHGoing Concern status is FALSE, suggesting potential financial instability or uncertainty at franchisor level
- 04MINORHigh initial investment ($360,750–$544,250) paired with declining unit count raises ROI sustainability questions
- 05MINOR6% royalty on gross sales limits franchisee profitability, especially if average net income of $173,588 is overstated
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
47 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Iron Tribe Fitness · FDD (2024) PDF