Iron Tribe Fitness Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Iron Tribe Fitness is a boutique fitness franchise offering coached, small-group functional and strength training. Franchisees run the gyms, managing coaches, class scheduling, and membership growth.
FranchiseVerdict summary · 2026
A Iron Tribe Fitness franchise requires a total initial investment of $361K – $544K, including a $50K franchise fee and an ongoing 6.0% royalty[2]. Per the 2023 FDD, average unit revenue was $544K[2]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $361K – $544K
- 67th pct Health & Fitn…
- Avg gross sales
- $544K
- Incl. company outlets19th pct Health & Fitn…
- Royalty
- 6.0%
- 10th pct Health & Fitn…
- Units
- 29
- 59th 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 $361K – $544K including a $50K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $544K/year (median $509K) (includes company-owned outlets), with an estimated 21% cash-on-cash return (based on Gross Sales Less Certain Costs). Note: this is gross profit, not take-home income.
- RISKVerdict C (Average), verdict score 46/100 (higher is better).
- DECLINESystem 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
Corporate structure & franchisor financials
- Legal entity
- Iron Tribe Franchise, LLC
- CEO title
- CEO
- Forrest Walden
- Incorporated in
- AL
- HQ
- 300 27th Street South, Birmingham, Alabama 35233
- Auditor
- Horton, Lee, Burnett, Peacock, Cleveland & Grainger, P.C.
- Audited financials
- Franchisor revenue
- $1.3M
- vs $1.4M prior year
Affiliated brands
- ITF
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Forrest Walden
- Headquarters
- AL
- Founded
- 2011
- FDD year
- 2023
- States available
- 7
Can you afford it, and what does the money buy?
Entry cost runs 21% below 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) | $40K | $75K |
| Equipment, build-out, other | $271K | $419K |
| Total initial investment | $361K | $544K |
Source: Iron Tribe Fitness 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
- $361K – $544K
- Bottom third — review vs category
- Liquid capital req'd
- $40K – $75K
- Bottom third — review vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
- Payback period
- 4.7 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $600 |
| Training fee | $4K |
| Transfer fee | $8K |
| Renewal fee | $5K |
| Inventory (initial) | $9K – $10K |
| Total fee load | 7.0% of rev |
What do units actually make?
Average unit sales run 11% below the health & fitness norm.
Includes company-owned outlets
Source: FDD 2023 · Item 19
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
$169K
31.0% margin
Unlevered ROIC
33%
EBITDA / total invested capital
Payback
3.0 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $174K as Gross Sales Less Certain Costs. Our model estimates $169K SLEBITDA from the same revenue using category-average cost assumptions. These numbers differ because Gross Sales Less Certain Costs deducts different expense categories than our model.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Iron Tribe Fitness unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
33%
Within the 30–60% "attractive franchise" band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
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
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
Includes company-owned outlets
- Avg gross sales
- $544K
- Per unit, per year
- Median gross sales
- $509K
- Avg gross sales less certain costs
- $174K
- Reported as Gross Sales Less Certain Costs in FDD Item 19
- Cash-on-cash
- 21.1%
- Based on Gross Sales Less Certain Costs / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales and expenses
- Sample size
- 19
- vs category median 12
- Range (low → high)
- $305K→$960K
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2022
- Fiscal year the figures cover
- Source filing
- FDD 2023
- Disclosed in the 2023 filing, covering 2022
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 173 Health & Fitness brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $544K/year in gross sales. Revenue-to-investment ratio: 1.2x. Includes company-owned outlets.
Fee burden
Total ongoing fee load of 7.0% — below the Health & Fitness average of 8.4%.
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -20.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Iron Tribe Fitness Compares
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 29
- Opened
- 1
- Last reporting year
- Closed
- 1
- Turnover rate
- 5.0%
- Company-owned
- 9
- Corporate units in the system
- % franchised
- 69%
- vs corporate-owned
- Net growth (3-yr)
- -20.0%
- Net unit change over 3 years
- 3-yr CAGR
- -20.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 3
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 7 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
7
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $1.1M
- Median loan
- $323K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (4 loans) — rate not shown below 10
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
- 3
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
A contracting fitness franchise with undisclosed financial performance claims, franchisor stability concerns, and declining unit economics that warrant careful validation before $360K+ investment.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $130,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Horton, Lee, Burnett, Peacock, Cleveland & Grainger, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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
Score breakdown · what drove the 46 / 100 verdict
- 01MEDUnit count declined 13.0% YoY (29 units), indicating system contraction and potential franchisee struggles
- 02HIGHGoing Concern status is FALSE, suggesting potential financial instability or uncertainty at franchisor level
- 03MINORHigh initial investment ($360,750–$544,250) paired with declining unit count raises ROI sustainability questions
- 04MINOR6% 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
What are you signing up for?
Ongoing fees run about 7.0% 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 |
| Allowed renewalsℹ | 1 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 3 mi |
| Territory population | 25,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Termination groundsℹ | 4 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Arbitration location | Jefferson County, Alabama |
| Jury trial waiver | No |
| Governing law | AL |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 14 hrs
- On-the-job training
- 13 hrs
- Training location
- Birmingham, Alabama, or another location designated by franchisor
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- ClubReady
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ClubReady
Item 20 · call current owners
Franchisee Contacts
34 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Iron Tribe Fitness · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Iron Tribe Fitness franchise?
The total investment to open a Iron Tribe Fitness franchise ranges from $361K – $544K, 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 Iron Tribe Fitness franchise owners earn?
According to Item 19 of the Iron Tribe Fitness FDD, the average gross sales per unit is $544K. The median is $509K. Important context: Includes company-owned outlets. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Iron Tribe Fitness 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 Iron Tribe Fitness FDD and qualifies whose outlets they describe.
What is Iron Tribe Fitness's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Iron Tribe Fitness (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 Iron Tribe Fitness franchise locations are there?
As of their most recent FDD filing, Iron Tribe Fitness has 29 total units in the United States, including 20 franchised units and 9 company-owned units. 1 new units were opened in the latest reporting year.
Is Iron Tribe Fitness a good franchise to buy?
FranchiseVerdict rates Iron Tribe Fitness as a C-grade franchise with a verdict score of 46 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?
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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.