Madabolic Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
MADABOLIC is a boutique strength-training franchise offering interval-based, athletic strength workouts. Franchisees run the gyms, managing coaches, class scheduling, and membership growth.
FranchiseVerdict summary · 2026
A MADABOLIC franchise requires a total initial investment of $296K – $583K, including a $50K franchise fee. Per the 2024 FDD, average unit revenue was $477K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 19 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $296K – $583K
- 56th pct Health & Fitn…
- Avg gross sales
- $477K
- 15th pct Health & Fitn…
- Royalty
- N/A
- Units
- 38
- 66th pct Health & Fitn…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
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 $296K – $583K including a $50K franchise fee.
- RETURNSAverage unit revenue of $477K/year (median $455K). Note: this is gross profit, not take-home income.
- RISKVerdict A (Strongest tier), verdict score 66/100 (higher is better). SBA loan charge-off rate of 0.0% across 19 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHSystem growing at 52.0% CAGR over 3 years with 38 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Madabolic Franchise System, LLC
- Parent company
- Madabolic Holdings, LLC
- Ultimate parent
- ZGrowth Acquisitions 5, LLC
- Predecessor
- Madabolic, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Rick Del Sontro
- Incorporated in
- DE
- HQ
- 2610 South Blvd., Charlotte, North Carolina 28209
- Auditor
- Schild & Co., Inc.
- Audited financials
- Franchisor revenue
- $1.8M
- vs $1.4M prior year
Overview
About
- CEO
- Rick Del Sontro
- Headquarters
- NC
- Founded
- 2019
- FDD year
- 2024
- States available
- 13
Can you afford it, and what does the money buy?
Entry cost runs 23% below the typical health & fitness franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $15K | $42K |
| Equipment, build-out, other | $231K | $491K |
| Total initial investment | $296K | $583K |
Source: MADABOLIC 2024 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
- $296K – $583K
- Middle of category vs category
- Liquid capital req'd
- $15K – $42K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- Prior to 13th month after opening: 6% of monthly Gross Sa…
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.5% of gross sales |
| Technology fee | $700 |
| Training fee | $5K |
| Transfer fee | $10K |
| Renewal fee | $13K |
| Inventory (initial) | $5K – $6K |
| Total fee load | 7.5% of rev |
What do units actually make?
Average unit sales run 22% below the health & fitness norm.
Source: FDD 2024 · 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
$145K
30.5% margin
Unlevered ROIC
31%
EBITDA / total invested capital
Payback
3.2 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
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 MADABOLIC unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
31%
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 MADABOLIC units return on equity?
Equity IRR · 5-yr
43.4%
6.07× MOIC
Year-1 DSCR
2.02×
EBITDA ÷ debt service
Equity required
$2.8M
on $11.2M purchase
Total debt
$8.4M
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: 2024 FDD
Financial Performance
- Avg gross sales
- $477K
- Per unit, per year
- Median gross sales
- $455K
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
- Sample size
- 28 outlets
- vs category median 12 · large
- Range (low → high)
- $200K→$851K
- Cohort dispersion (min → max)
- Quartile band
- $254K→$745K
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2024
- The FDD edition these figures were read from
- Transparency
- 10 / 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 $477K/year in gross sales. Revenue-to-investment ratio: 1.1x.
Fee burden
Total ongoing fee load of 7.5% (near the Health & Fitness average).
Disclosure
Transparency score 10/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 52.0% CAGR over 3 years across 38 units — operators are staying and new ones are joining.
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 Madabolic Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 38
- Opened
- 9
- Last reporting year
- Closed
- 1
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +52.0%
- Net unit change over 3 years
- 3-yr CAGR
- +52.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 9
- Closed (3yr)
- 1
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 19
- Loan volume
- $8.8M
- Median loan
- $402K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 11
- Defaults
- 0
- Typical loan rate
- 8.9%
- avg rate to borrowers
- Franchised industry avg
- 15.8%
- brand beats franchise avg ↓
- Jobs supported
- 138
- 1.6 per loan
- Lender concentration
- 16%
- top lender's share
Borrower mix: 89% went to startups / new businesses, 11% 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 Madabolic franchisees
Showing 3 of 11 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 Madabolic'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 10 states
- Startup risk premium and job creation velocity
- 6-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 19 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Leadership with documented litigation history involving fraud allegations and regulatory violations, combined with unprotected territory, marginal unit economics, and going concern status, creates material risk of underperformance and franchisor instability.
Litigation (Item 3)
CEO Rick Del Sontro named in federal mortgage fraud civil action (settled 2018, $150K payment). Del Sontro also named defendant in 8 Zippy Shell franchisee arbitrations over territorial exclusivity violations; 7 settled in 2022 totaling ~$15.15M, 1 resulted in $1.46M award against Del Sontro and others. Washington State issued 3 consent orders against Madabolic, ZGrowth, Del Sontro and Mendoza for offering franchises prior to registration and using unregistered brokers; $6,000 investigative costs paid.
Largest disclosed settlement: $7,375,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Schild & Co., Inc.
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: Yes
- Kickbacks from required suppliers: Yes
- 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
- 01HIGHCEO has pattern of litigation across multiple ventures (2015 mortgage crisis civil action, 2020 Zippy Shell arbitration for fraudulent induction and territory breach, 2023 Washington State unregistered broker consent orders)
- 02MINORNo protected territory despite high initial investment ($297.5K-$602.5K) and royalty floor of $1,500/month creating direct competition risk
- 03MINORSmall system size (30 units) with modest YoY growth (22.7%) limits brand recognition, supplier leverage, and franchisee support infrastructure
- 04MINORProfitability concern: average net income of $56,272 on $415,149 revenue (13.5% net margin) barely exceeds $18,000 annual royalty obligation, leaving minimal buffer for operational variability
- 05HIGHGoing concern notation suggests financial instability at franchisor level, potentially impacting support, marketing, and system viability
- 06MINORZippy Shell arbitration pattern suggests CEO may repeat territorial/inducement issues in current franchise system
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 20,000 |
| 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 | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Arbitration location | Mecklenburg County, North Carolina |
| Jury trial waiver | No |
| Governing law | NC |
| Litigation count | 3 |
View Item 3 litigation summary
CEO Rick Del Sontro named in federal mortgage fraud civil action (settled 2018, $150K payment). Del Sontro also named defendant in 8 Zippy Shell franchisee arbitrations over territorial exclusivity violations; 7 settled in 2022 totaling ~$15.15M, 1 resulted in $1.46M award against Del Sontro and others. Washington State issued 3 consent orders against Madabolic, ZGrowth, Del Sontro and Mendoza for offering franchises prior to registration and using unregistered brokers; $6,000 investigative costs paid.
Items 10, 11
Training & Operations
- Classroom training
- 33 hrs
- On-the-job training
- 13 hrs
- Training location
- Remote/Online (16-week program), Charlotte, NC (Fitness Instructor Training), and onsite at franchisee's Facility
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Not specified
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Not specified
Item 20 · call current owners
Franchisee Contacts
60 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
MADABOLIC · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a MADABOLIC franchise?
The total investment to open a MADABOLIC franchise ranges from $296K – $583K, 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 MADABOLIC franchise owners earn?
According to Item 19 of the MADABOLIC FDD, the average gross sales per unit is $477K. The median is $455K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the MADABOLIC 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 MADABOLIC FDD and qualifies whose outlets they describe.
What is MADABOLIC's franchise failure rate?
Based on SBA 7(a) loan data, MADABOLIC has a charge-off rate of 0.0% across 19 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many MADABOLIC franchise locations are there?
As of their most recent FDD filing, MADABOLIC has 38 total units in the United States, including 38 franchised units and 0 company-owned units. 9 new units were opened in the latest reporting year.
Is MADABOLIC a good franchise to buy?
FranchiseVerdict rates MADABOLIC as a A-grade franchise with a verdict score of 66 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
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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.