OsteoStrong Franchise Cost, Revenue & Review 2026
- Investment
- $276K – $616K
- Disclosed sales
- not disclosed
- SBA charge-off
- 8.7%
- on 55 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
OsteoStrong is a wellness franchise offering a quick, weekly bone- and muscle-strengthening session on specialized resistance equipment. Franchisees run compact studios on a membership model, coaching members through sessions.
FranchiseVerdict summary · 2026
A OsteoStrong franchise requires a total initial investment of $276K – $616K, including a $35K franchise fee and an ongoing 7.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 8.7% charge-off rate across 55 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $276K – $616K
- 55th pct Health & Fitn…
- Avg gross sales
- N/A
- Royalty
- 7.0%
- 37th pct Health & Fitn…
- Units
- 153
- 83rd pct Health & Fitn…
- SBA charge-off
- 8.7%
- % 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 median · 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 $276K – $616K including a $35K franchise fee, 7.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 53/100 (higher is better). SBA loan charge-off rate of 8.7% across 55 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +10 franchised outlets in the latest year (13 opened, 3 closed) (Item 20).
- GROWTHSystem growing at 15.9% CAGR over 3 years with 153 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- OsteoStrong Franchising, Inc.
- Parent company
- Blue Ocean International, Inc.
- FDD Item 1, page 8 of the 2025 FDD
- CEO title
- Chief Executive Officer
- Kyle Zagrodzky
- Incorporated in
- DE
- HQ
- 8524 Highway 6 North, # 310, Houston, Texas 77095
- Auditor
- AG LLP (Richardson/Dallas, TX)
- Audited financials
- Franchisor revenue
- $11.3M
- vs $8.7M prior year
Overview
About
- CEO
- Kyle Zagrodzky
- Headquarters
- TX
- Founded
- 2012
- FDD year
- 2025
- States available
- 36
Can you afford it, and what does the money buy?
Entry cost runs 14% above the typical health & fitness franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $34K | $54K |
| Equipment, build-out, other | $207K | $527K |
| Total initial investment | $276K | $616K |
Source: OsteoStrong 2025 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
- $276K – $616K
- Middle of category vs category
- Liquid capital req'd
- $34K – $54K
- Bottom third — review vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- 7.0%
- Set by a formula · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 0.1%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $250 |
| Training fee | $6K |
| Transfer fee | $21K |
| Renewal fee | $5K |
| Total fee load | 0.1% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
OsteoStrong makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one OsteoStrong unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 0.1% — below the Health & Fitness median of 9.0%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System expanding at 15.9% CAGR over 3 years across 153 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 medians
How OsteoStrong Compares
Category median of published Health & Fitness brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 153
- Opened
- 13
- Last reporting year
- Closed
- 3
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +15.9%
- Net unit change over 3 years
- 3-yr CAGR
- +15.9%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 2
- Not renewed
- 0
- Transferred
- 8
- Reacquired
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 37 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.
Where the owners are · Item 20 owner list
165 current owners across 37 states.
- CA 26
- FL 18
- TX 12
- NC 11
- CO 8
- MO 8
- OH 8
- NY 7
- AL 6
- AZ 5
- NJ 4
- NV 4
- +25 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 55
- Loan volume
- $12.5M
- Median loan
- $230K
- 50th percentile
- Charge-off rate
- 8.7%
- on 55 loans · 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)
- 91.3%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 28
- Defaults
- 2
- Typical loan rate
- 8.1%
- avg rate to borrowers
- Franchised industry avg
- 15.8%
- brand beats franchise avg ↓
- Jobs supported
- 299
- 2.4 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.
Vintage analysis
OsteoStrong charge-off rate by loan vintage
Top lenders financing OsteoStrong franchisees
Showing 3 of 28 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for OsteoStrong from SBA 7(a) FOIA data.
- Principal loss rate
- 1.1%
- Avg SBA guarantee
- 71%
- Avg interest rate
- 8.12%
- Avg chargeoff amount
- $68K
- Lender concentration
- 16.4%
- Job velocity
- 2.4 per $100K
- NAICS benchmark
- 12.5%
- NAICS 713940
- Jobs supported
- 299
Top SBA lendersTop lender holds 16% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Stearns Bank National Association | 9 | $1.7M | 0.0% |
| 2 | JPMorgan Chase Bank, National Association | 6 | $405K | 16.7% |
| 3 | The Huntington National Bank | 6 | $1.1M | N/A |
| 4 | First Bank | 4 | $1.0M | 0.0% |
| 5 | UMB Bank, National Association | 2 | $145K | 0.0% |
| 6 | Belgrade State Bank | 2 | $599K | N/A |
| 7 | Alerus Financial, National Association | 2 | $457K | 0.0% |
| 8 | KeyBank National Association | 2 | $612K | N/A |
| 9 | Midwest Regional Bank | 2 | $504K | N/A |
| 10 | Old National Bank | 2 | $869K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| OHOhio | 10 | 1 | 16.7% |
| CACalifornia | 9 | 0 | 0.0% |
| MOMissouri | 6 | 0 | 0.0% |
| FLFlorida | 4 | 0 | 0.0% |
| MNMinnesota | 4 | 0 | 0.0% |
| COColorado | 3 | 1 | 50.0% |
| TXTexas | 3 | 0 | -- |
| AZArizona | 2 | 0 | 0.0% |
| SDSouth Dakota | 2 | 0 | -- |
| UTUtah | 2 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 8.7% — 46% 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
OsteoStrong presents elevated investment risk due to active multi-party litigation, regulatory compliance issues, opaque financial performance data, and slow system growth in a niche market segment.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
One pending consolidated federal action in S.D. Tex. with former franchisees/regional developers (Simpson parties) alleging FDD misrepresentation/omission and breach of regional development agreements, with franchisor counterclaims for defamation/conspiracy (in discovery). Five past actions: a 2025 California DFPI consent order (franchisor paid $10,500 in penalties and agreed to refund affected investors over unregistered franchise broker agreements); Albrecht/JDG-OS (settled, $67,500 paid by insurer); Rhodes/OsteoFit international trademark/development disputes (settled, $125,000 paid by insurer); Partlow/Bio Strength (settled, $150,000 paid by insurer); and Baird/K&L Wellness (transferred and consolidated into the Simpson case).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · AG LLP (Richardson/Dallas, TX)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 53 / 100 verdict
- 01HIGHMultiple active litigation cases involving misrepresentation and breach of contract allegations from former franchisees and regional developers
- 02MINORCalifornia regulatory consent order regarding failure to register franchise broker agreements, indicating compliance lapses
- 03MEDHigh initial investment ($275k–$615k) with no disclosed average revenue or net income data (Item 19) prevents ROI validation
- 04MEDSlow unit growth (7.0% YoY) on small base (153 units) suggests limited system momentum and market traction
- 05MINORRoyalty structure floor of $1,500/month ($18k annually) creates significant breakeven threshold for low-revenue locations
- 06MINOR10-year term locks franchisee into relationship with company facing active legal disputes
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 0.1% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · 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 territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Harris County, Texas |
| Jury trial waiver | Yes |
| Governing law | TX |
| Litigation count | 6 |
View Item 3 litigation summary
One pending consolidated federal action in S.D. Tex. with former franchisees/regional developers (Simpson parties) alleging FDD misrepresentation/omission and breach of regional development agreements, with franchisor counterclaims for defamation/conspiracy (in discovery). Five past actions: a 2025 California DFPI consent order (franchisor paid $10,500 in penalties and agreed to refund affected investors over unregistered franchise broker agreements); Albrecht/JDG-OS (settled, $67,500 paid by insurer); Rhodes/OsteoFit international trademark/development disputes (settled, $125,000 paid by insurer); Partlow/Bio Strength (settled, $150,000 paid by insurer); and Baird/K&L Wellness (transferred and consolidated into the Simpson case).
Items 10, 11
Training & Operations
- Classroom training
- 48 hrs
- On-the-job training
- 26 hrs
- Training location
- A designated training center determined by franchisor, or web-based courses
- Ongoing training
- Required
- POS system
- iGo Figure
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: iGo Figure
Item 20 · call current owners
Franchisee Contacts
165 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a OsteoStrong franchise?
The total investment to open a OsteoStrong franchise ranges from $276K – $616K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do OsteoStrong franchise owners earn?
OsteoStrong makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns OsteoStrong?
OsteoStrong is franchised by OsteoStrong Franchising, Inc.. Its parent company is Blue Ocean International, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the OsteoStrong 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 OsteoStrong FDD and qualifies whose outlets they describe.
What is OsteoStrong's franchise failure rate?
Based on SBA 7(a) loan data, OsteoStrong has a charge-off rate of 8.7% across 55 loans, meaning 8.7% 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 OsteoStrong franchise locations are there?
As of their most recent FDD filing, OsteoStrong has 153 total units in the United States, including 153 franchised units and 0 company-owned units. 13 new units were opened in the latest reporting year.
Is OsteoStrong a good franchise to buy?
FranchiseVerdict rates OsteoStrong as a B-grade franchise with a verdict score of 53 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.