OsteoStrongFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 3.6% charge-off rate across 55 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $276K – $616K
- 55th pct Health & Fitn…
- Avg gross sales
- N/A
- 59th pct Health & Fitn…
- Royalty
- 7.0%
- 28th pct Health & Fitn…
- Units
- 153
- 85th pct Health & Fitn…
- SBA default
- 3.6%
- 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
Bottom line
- Total investment $276K – $616K including a $35K franchise fee, 7.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 36/100. SBA loan charge-off rate of 3.6% across 55 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 15.9% CAGR over 3 years with 153 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- OsteoStrong Franchising, Inc.
- Parent company
- Blue Ocean International, Inc. (“BOI”)
- Incorporated in
- DE
- HQ
- 8524 Highway 6 North, # 310, Houston, Texas 77095
- Auditor
- A&G LLP
- Audited financials
- Franchisor revenue
- $8.7M
- vs $11.3M prior year
Overview
About
OsteoStrong franchisees operate boutique fitness studios offering specialized strength-training workouts (primarily leveraging bone density and muscle development through high-intensity, low-impact exercise). Day-to-day operations include managing class schedules, member enrollment and retention, personal training delivery, facility maintenance, and local marketing to build membership base in protected territories.
- CEO
- Kyle Zagrodzky
- Headquarters
- TX
- Founded
- 2012
- FDD year
- 2025
- States available
- 36
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
- Near category avg vs category
- Liquid capital req'd
- $34K – $54K
- Below avg, review vs category
- Franchise fee
- $32K – $35K
- Better than avg vs category
- Royalty
- 7.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- 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 |
| Transfer fee | $21K |
| Renewal fee | $5K |
| Total fee load | 8.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Health & Fitness averages
How OsteoStrong Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 153
- Opened
- 13
- Last reporting year
- Closed
- 3
- Turnover rate
- 2.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +7.0%
- Net unit change last year
- 3-yr CAGR
- +15.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 8
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.
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
- 3.6%
- 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
Vintage analysis
OsteoStrong charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into OsteoStrong'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 15 states
- Startup risk premium and job creation velocity
- 12-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Audited financials (Item 21)
Yes · A&G LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 36 / 100 rating
- 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
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 | Pre-determined geographic area |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 6 |
Items 10, 11
Training & Operations
- Classroom training
- 48 hrs
- On-the-job training
- 26 hrs
- 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
FDD download
OsteoStrong · FDD (2025) PDF
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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is OsteoStrong's franchise failure rate?
Based on SBA 7(a) loan data, OsteoStrong has a charge-off rate of 3.6% across 55 loans, meaning 3.6% 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 123 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 A-grade franchise with a risk score of 36 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.