OsteoStrong Franchise Cost, Revenue & Review 2026
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]. 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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $276K – $616K
- 54th pct Health & Fitn…
- Avg gross sales
- N/A
- Royalty
- 7.0%
- 30th pct Health & Fitn…
- Units
- 153
- 83rd pct Health & Fitn…
- SBA charge-off
- 3.6%
- % 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 $276K – $616K including a $35K franchise fee, 7.0% ongoing royalty.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict A (Strongest tier), verdict score 59/100 (higher is better). SBA loan charge-off rate of 3.6% across 55 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- 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.
- 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 22% below 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%
- 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 did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one OsteoStrong unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
46%
Within the 30–60% "attractive franchise" band
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
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
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 average of 8.4%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How OsteoStrong Compares
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
- 1
- 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
3-year detail · Item 20
- Opened (3yr)
- 13
- Closed (3yr)
- 1
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 8
- Reacquired (3yr)
- 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.
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)
- 96.4%
- 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.
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.
What could kill this investment?
SBA loans charge off at 3.6% — 78% 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)
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).
Largest disclosed settlement: $150,000
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 59 / 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 |
| 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
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 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 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 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 A-grade franchise with a verdict score of 59 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
Are you the franchisor?
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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.