Bottom line
- Total investment $209K – $856K including a $35K franchise fee, 7.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 NexGen Fitness unit return on the cash you put in?
Unlevered ROIC · per unit
38%
In Yale's "attractive" band (30–60%)
Overview
About
NexGen Fitness franchisees operate fitness facilities offering gym memberships, personal training, and group fitness classes. Day-to-day operations include managing staff, maintaining equipment, member retention, and driving new membership sales while paying 7% royalties or a $1,750 monthly minimum to the franchisor.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 27 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
NexGen Fitness presents meaningful investment risk due to complete lack of financial transparency (no Item 19), tiny system size with unclear growth, and aggressive royalty structure relative to undisclosed unit economics.
Score breakdown · what drove the 64 / 100 rating
- 01MEDNo Item 19 (Average Revenue/Net Income) disclosed - impossible to assess actual profitability or ROI
- 02MINOROnly 18 units systemwide with unknown growth trajectory - suggests struggling or very early-stage system
- 03MINORWide investment range ($208.5K-$856.4K) indicates unclear cost structure or high variability in build-out
- 04MINORMinimum royalty of $1,750/month ($21K annually) creates break-even pressure on low-revenue locations
- 05HIGHGoing Concern status is FALSE (ambiguous wording) - potential financial instability at franchisor level
- 06HIGHNo litigation disclosed but 18-unit size makes this less meaningful than established brands
- 07MINORHigh royalty rate (7%) combined with unknown average revenue creates unpredictable profitability
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
44 numbers
One-time purchase · CSV download · Validation questions included
FDD download
NexGen Fitness · FDD (2025) PDF