MadabolicFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A MADABOLIC franchise requires a total initial investment of $298K – $603K, including a $50K franchise fee. Per the 2024 FDD, average unit revenue was $415K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 19 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $298K – $603K
- 58th pct Health & Fitn…
- Avg gross sales
- $415K
- 20th pct Health & Fitn…
- Royalty
- N/A
- Units
- 30
- 63rd pct Health & Fitn…
- SBA default
- 0.0%
- system-wide median varies by category
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
Only 0.0% of 19 SBA loans charged off, well below the 16% franchise average.
The system grew 23% year-over-year. Fast growth means demand, but can strain support.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $298K – $603K including a $50K franchise fee.
- Average unit revenue of $415K/year (median $479K), with an estimated 13% cash-on-cash return (based on Gross Margin). Note: this is gross profit, not take-home income.
- Verdict A (Top Quintile) with a risk score of 51/100. SBA loan charge-off rate of 0.0% across 19 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Madabolic Franchise System, LLC
- Parent company
- Madabolic Holdings, LLC
- Incorporated in
- DE
- HQ
- 2610 South Blvd., Charlotte, North Carolina 28209
- Auditor
- Schild & Co., Inc.
- Audited financials
- Franchisor revenue
- $997K
- vs $1.4M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
Overview
About
MADABOLIC operates fitness/wellness studios (likely boutique fitness concept based on branding) where franchisees manage day-to-day class scheduling, member retention, trainer/staff management, facility maintenance, and retail/supplement sales. Revenue is primarily membership fees and class packages, with ancillary income from personal training, merchandise, and nutritional products.
- CEO
- Rick Del Sontro
- Headquarters
- NC
- Founded
- 2011
- FDD year
- 2024
- States available
- 13
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 | $233K | $511K |
| Total initial investment | $298K | $603K |
Source: MADABOLIC 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$127K
30.5% margin
Unlevered ROIC
26%
EBITDA / total invested capital
Payback
3.8 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $298K – $603K
- Near category avg vs category
- Liquid capital req'd
- $15K – $42K
- Better than avg vs category
- Franchise fee
- $43K – $50K
- Near category avg vs category
- Royalty
- Greater of (a) 6% of monthly Gross Sales or (b) $1,500 pe…
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
- Payback period
- 8.0 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.5% of gross sales |
| Technology fee | $805 |
| Transfer fee | $10K |
| Renewal fee | $13K |
| Total fee load | 7.5% of rev |
Financial Performance
- Avg gross sales
- $415K
- Per unit, per year
- Median gross sales
- $479K
- Avg gross margin
- $56K
- Reported as Gross Margin in FDD Item 19
- Cash-on-cash
- 12.5%
- Based on Gross Margin / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 22 units
- vs category median 11
- Range (low → high)
- $180K→$778K
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 180 Health & Fitness brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Health & Fitness averages
How Madabolic Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 30
- Opened
- 5
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 90%
- vs corporate-owned
- Net growth (yr3)
- +22.7%
- Net unit change last year
- 3-yr CAGR
- +92.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 8 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
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Audited financials (Item 21)
Yes · Schild & Co., Inc.⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 51 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Minimum Population |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | North Carolina |
| Litigation count | 3 |
Items 10, 11
Training & Operations
- Classroom training
- 17 hrs
- On-the-job training
- 13 hrs
- POS system
- Not specified
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Not specified
Item 20 · call current owners
Franchisee Contacts
51 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 $298K – $603K, 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 $415K. The median is $479K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 30 total units in the United States, including 14 franchised units and 3 company-owned units. 5 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 risk score of 51 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.
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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.