Retrofitness Franchise Cost & 2026 FDD Data
48/100
Second tier
48 this brand46 Health & Fitness medianlikely 44–52 (high confidence)
Higher is better · an editorial assessment, not investment advice
#1,869 of 3,068 graded brands
Why a B: Helped by financial health, scale and transparency. Held back by unit economics, unit growth and legal record. See all six factors
- Total investment
- $832K – $3.2M
- Avg gross sales
- $1.2M
- “100% (Average Gross Sales)”, 74 outlets; not profit
- SBA charge-off
- 7.1%
1 in 14 SBA 7(a) loans to Retrofitness owners charged off (6 of 85 resolved loans, approved since FY1991); Health & Fitness median 14.9%. Loans approved FY2014–FY2019: 5 of 54 resolved loans charged off (9.3%); newer loans have not had time to default, so this is not a trend.
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
Retro Fitness is a gym franchise offering full-service, affordable health clubs with cardio, weights, classes, and training. Franchisees operate clubs built on recurring memberships and add-on services.
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Retrofitness franchise requires a total initial investment of $832K – $3.2M, including a $29K franchise fee. Once open, the ongoing royalty is 5.0%. Per the 2026 FDD, average gross sales were $1.2M (Item 19 group “100% (Average Gross Sales)”, 74 outlets; gross sales, not profit). SBA 7(a) loans show a 7.1% charge-off rate on 85 resolved loans. Verdict grade: B (Second tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · SBA 7(a) loan records (FOIA) · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: 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 scored8 of 8 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Health & Fitness median
Top edge: green = better than the Health & Fitness median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $1.2M/year (outlet median $1.0M; Item 19 group “100% (Average Gross Sales)”, 74 outlets; gross sales, not profit).
- GROWTHIn the latest Item 20 year, the number of franchised outlets fell by 5 (1 opened, 6 closed).
- DECLINE-10 franchised outlets over the two years to 2025 (86 to 76, -11.6% in total, -6.0% a year compounded). Ask whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
AT STAKEOne unit at the Item 7 midpoint: $264K a year in payments on assumed SBA 7(a)-style terms.You put in about $407K of your own cash and personally guarantee a $1.6M loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (6)
- Net -5 franchised outlets in 2025 (Item 20, outlet counts). Ask owners why outlets closed.
- 4 pending matters name the franchisor in Item 3 (litigation). Pending claims are allegations, not findings.
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- You waive a jury trial in disputes with the franchisor (Item 17, renewal, termination and disputes).
- The franchisor receives rebates or payments from suppliers you buy from (Item 8, required suppliers).
- Item 15 (owner participation) requires the owner, or a principal the franchisor approves, to run the business day to day. Ask how much of the business that principal must own.
Checked and clear: no auditor doubt that the franchisor can keep operating, SBA charge-off rate 7.1%, below the 14.9% category median and the full filing on file, and an Item 19 average from 74 units.
What to do next
Step 1: Read the FDD itself.
Free: read the 2026 filing on this site, page by page. The franchisor must also give you its current FDD at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Shortcut: the Retrofitness owner list as a CSV, in the Contacts section.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 4.9× the Health & Fitness median ($420K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Retrofitness, LLC (Item 1: 1601 Belvedere Road, Suite E-500, West Palm Beach, FL 33406) and your lender what they require, and keep living costs for the first year outside the deal.
Full Item 7 breakdown22 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $29K | $29K | |
| Opening Advertising- Pre-sales | $30K | $50K | |
| Marketing Kit | $12K | $15K | |
| Trailer Rental (if needed) | $0 | $30K | |
| Office Supplies | $1K | $2K | |
| Computer Equipment | $5K | $7K | |
| Branded Key Tags | $216 | $216 | |
| Opening Inventory | $10K | $15K | |
| Insurance and Bond | $6K | $24K | |
| Signage | $24K | $50K | |
| Equipment and Furnishings | $140K | $195K | |
| Prepaid Rent and Security Deposit | $0 | $75K | |
| Lease Review Fee | $2.5K | $2.5K | |
| Turnkey Build-Out Service Fee | $20K | $55K | |
| Architectural fees/Surveys | $0 | $65.3K | |
| Leasehold Improvements/Fit out | $450K | $2.2M | |
| Utility Deposits | $0 | $3.5K | |
| Licenses and Permits | $500 | $63.5K | |
| Fictitious Name Registration and/or Incorporation and Legal Review | $0 | $1.5K | |
| Travel, Lodging, Meals Etc. for Initial Training | $0 | $3.5K | |
| Total initial investment | $832K | $3.2M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross revenues |
| Technology feeThen-current "Retro-techno" software/support fee, currently $750.00 per month | $720/month |
| Transfer fee | $15,000 |
| Renewal fee | $20,000 |
| Total fee loadbelow the Health & Fitness median of 9.0% (lean) | 7.0% of sales |
A 7.0% total fee load is below the Health & Fitness median of 9.0% (lean). More of each revenue dollar stays with the franchisee.
What do units actually make?
Average gross sales are 2.7× the Health & Fitness median ($458K).
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Retrofitness unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $1.2M (FDD Item 19, p.60), and the royalty and ad fund take about $87K of that a year (Item 6). This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $264K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $2.0M Item 7 midpoint is a $1.6M loan, paid over 10 years at 10.5%: $264K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Retrofitness' past SBA 7(a) loans averaged 6.2% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $407K Assumption (the part the loan does not cover of the $2.0M Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $1.6M.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Retrofitness unit leave you each year after the loan payment?
Item 19: $1,243,660 average for 74 outlets (100% (Average Gross Sales)). Use a figure for outlets like yours if yours differ.
Gross sales, not profit: the costs below decide what is left.
The filing also sets a minimum or cap on these fees: “Greater of 2% of gross revenues per month or $400 per month, payable to Retrofitness Advertising Fund” (Item 6). This model applies the percentages, so at low sales the real fee can be higher than shown here.
Item 6, as stored, a year. A fixed fee, so it comes off EBITDA as dollars, not a share of sales.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners.
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.
Item 7 midpoint of $832K to $3.2M
Item 7's $100K to $350K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $1.6M at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
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: 2026 FDD · filed by Retrofitness, LLC
Financial performance
- Range (low → high)
- $352K→$3.7M2026 FDD Item 19, p.62
- Cohort dispersion (min → max)
- Top and bottom 25%
- $678K→$2.1M
- Bottom group → top group: the top and bottom 25% as the filing reports them
- Transparency
- 4 / 10
- vs category median 3 / 10 (more detail than most)
Percentile ranks within Health & Fitness
Each rank is among the Health & Fitness brands that report that figure (the count is under each bar).
Average gross sales are only 0.6x the investment midpoint, so recouping the initial outlay is likely to take years even at strong margins. Gross sales are not profit.
vs Health & Fitness medians
How Retrofitness 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.
Who are you contracting with?
Retrofitness, LLC, owned by Fierce Brands, LLC.
Item 21 (audited financials) · audited statements · 2026 FDD
The franchisor's own finances
The franchisor related companies owe it $2.1M, 18% of its assets. A franchisor that keeps little of its own profit has less of a cushion if the system has a bad year; ask how support and the ad fund are funded.
The figures, with their pages
- Net income
- $1.6Mlatest year · FDD Item 21
- Owed by related companies
- $2.1M18% of total assets (our arithmetic) · FDD p.205
- Total assets
- $11.3MFDD Item 21
- Equity
- $3.3MFDD Item 21
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- Retrofitness, LLC
- Parent company
- Fierce Brands, LLC
- FDD Item 1, page 8 of the 2026 FDD
- Predecessor
- Retrofitness Corp.
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Andrew Alfano
- Incorporated in
- Delaware
- HQ
- 1601 Belvedere Road, Suite E-500, West Palm Beach, FL 33406
- Auditor
- RSM US LLP
- Audited financials
- Franchisor revenue
- $12.9M
- latest fiscal year in the 2026 FDD; $12.7M the year before
Overview
About
- CEO
- Andrew Alfano
- States and territories listed
- 9
- registered or offered in, as the filing lists them (DC and territories included); not where units may open
Is the system healthy?
-10 franchised outlets over the two years to 2025 (86 to 76, -11.6% in total, -6.0% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 25
- 0.32 per open outlet · Item 20 Table 5
- Projected new
- 10
- Franchisor's next-year forecast
Item 20 · franchised units at year end
Franchised units fell from 86 in 2023 to 76 in 2025
Axis does not start at zero.
Source and method
A system that lost more than 10% of its franchised outlets across the Item 20 years is a red flag. Check whether closures are concentrated in specific regions.
Government records
SBA loan data
Lenders charged off 7.1% of 85 resolved SBA 7(a) loans, below the 14.9% category median. 7(a) is the SBA's main small-business loan; a resolved loan was paid in full or charged off.
- Loans on file
- 103
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $96.5M
- Average loan
- $937K
- loan volume divided by loans
- Charge-off rate
- 7.1%
- 6 of 85 resolved loans
- Paid in full
- 92.9%
- of resolved loans
- Charge-off, loans approved FY2014–FY2019
- 9.3%
- 5 of 54 resolved loans; newer loans have not had time to default, so this is not a trend
- Lenders
- 37
- Average interest rate
- 6.2%
- Jobs reported
- 2,114
- Lender concentration
- 24%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Benchmark: the median Health & Fitness brand charges off 14.9% (35 brands with a published rate, same cumulative window and source). This brand is 7.8 points below it.
Borrower mix: of 30 loans with a business-age entry, 27 recorded an age: 15 (56%) went to startups or businesses under two years old and 12 (44%) to established businesses or ownership changes; 3 were marked unanswered.
The approval-year breakdown covers 81 of the 85 resolved loans and 6 of the 6 charge-offs (FY2007 to FY2019).
SBA 7(a) · charge-off rate by approval year
Retrofitness: below all franchise loans in 2 of 3 rated years
Hollow rings on the axis: years with fewer than 10 resolved loans, not rated (too few to judge). Their numbers are in the table.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 2007 | 5 | 1 | Too few |
| 2009 | 7 | 0 | Too few |
| 2010 | 6 | 0 | Too few |
| 2012 | 4 | 0 | Too few |
| 2013 | 5 | 0 | Too few |
| 2014 | 14 | 2 | 14.3% |
| 2015 | 12 | 0 | 0.0% |
| 2016 | 10 | 1 | 10.0% |
| 2017 | 6 | 0 | Too few |
| 2018 | 5 | 2 | Too few |
| 2019 | 7 | 0 | Too few |
Dashed line: all franchise 7(a) loans approved the same year.
Source and method
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Retrofitness from SBA 7(a) FOIA loan records.
- Average SBA guarantee
- 75%
- Average interest rate
- 6.2%
- Lender concentration
- 24%
- Jobs reported
- 2,114
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| TD Bank, National Association | ||
| 5 | $4.3M | Too few4 resolved |
| Live Oak Banking Company | ||
| 4 | $5.2M | Too few3 resolved |
| United Community Bank | ||
| 3 | $2.7M | Too few0 resolved |
| First Bank | ||
| 2 | $1.5M | Too few0 resolved |
| Grasshopper Bank National Association | ||
| 2 | $1.8M | Too few0 resolved |
| Gulf Coast Bank and Trust Company | ||
| 2 | $2.2M | Too few1 resolved |
| First National Bank of Pennsylvania | ||
| 1 | $1.2M | Too few1 resolved |
| CRF Small Business Loan Company, LLC | ||
| 1 | $1.2M | Too few1 resolved |
| Unity Bank | ||
| 1 | $1.1M | Too few0 resolved |
| Bank of Hope | ||
| 1 | $674K | Too few1 resolved |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| NJ New Jersey | 45 | 2 | 5.6%36 resolved |
| NY New York | 25 | 1 | 5.0%20 resolved |
| PA Pennsylvania | 11 | 1 | Too few9 resolved |
| FL Florida | 9 | 1 | Too few7 resolved |
| MD Maryland | 4 | 0 | Too few4 resolved |
| CA California | 3 | 0 | Too few3 resolved |
| IL Illinois | 2 | 0 | Too few2 resolved |
| CT Connecticut | 1 | 0 | Too few1 resolved |
| DE Delaware | 1 | 0 | Too few1 resolved |
| MN Minnesota | 1 | 0 | Too few1 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Borrower profile
The SBA's own business-age labels (6)
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
What are the risks?
Main risk: a shrinking system. Franchised outlets fell from 86 to 76 over the two years to 2025.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade B: Second tier, 48/100 (category median 46); the full grade is at the top of the page.
How the grade is built
77-unit fitness franchise with four suits including multiple NJ consumer-protection class-action-style claims over membership agreements (some dismissed, on appeal). Financials are parent-level (net worth $3.3M, net income $1.63M) so brand equity isn't disclosed; net unit growth negative at -11.6%.
Why a B, factor by factor
- Financial health HelpsAudited financials; no going-concern doubt; statements are the parent's, so this stays near neutral
- Unit economics Weighs on itAvg gross sales $1.2M on a $2.0M investment midpoint, 0.6x (gross sales, not profit)
- Unit growth Weighs on it, weakest dimension-10 franchised outlets over the two years to 2025 (86 to 76, -11.6% in total, -6.0% a year compounded); turnover 7.8%
- Scale Helps76 franchised units, +1 company-owned (77 in all); franchising since 2008
- Legal Weighs on it5 matters naming the franchisor among the Item 3 matters we list (6.5 per 100 outlets)
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (+1 point)Rounding: the score is kept as a whole number, which moved it by 1 point.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Multiple NJ class-action style suits alleging violations of NJ Retail Installment Sales Act, Health Club Services Act, Consumer Fraud Act re: membership agreements (Ardino: dismissed w/ prejudice, on appeal; Morrell; dismissed, remanded on appeal); Westchester Fitness NY franchisee dispute alleging Franchise Agreement breach and NY Franchise Sales Act violation (pending); concluded AAA arbitration (Pirlet/Musculi) settled for $600,000.
Largest disclosed settlement in the franchisor's own cases: $600,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · RSM US LLP
Franchisor revenue (Item 21)
The revenue figures are in the Franchisor tab, under The franchisor.
Franchisor entity revenue (not unit-level)
Fierce Brands, LLC (parent, absolute guarantor) consolidated financials for FY2025/FY2024: Franchise revenue $6,757,977 / $6,723,970; Initial franchise fees $1,064,127 / $514,834; Vendor rebates $1,883,521 / $2,738,134; Advertising fund revenue $1,913,201 / $1,903,422; Clubs revenue $1,171,831 / $866,551.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results; the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Franchisor takes supplier rebates: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Notes from the filing review · not the score inputs
- 01HIGHFour litigation matters including NJ consumer-fraud/class-action-style suits
- 02MINORNegative net growth -11.6% on 77 units
- 03MEDFinancials are parent-level (brand's own equity not disclosed)
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail5 matters · Item 3
Litigation cases
The franchisor
Pending (4)
Retrofitness, LLC v. Choice Design Corp., Aldrich Plaza, LLC, Patrick Kerr, and Carrie-Ann Kerr
pendingBrought against a franchisee · filed 2025-09-26 · Superior Court of New Jersey · MON-L-3941-25
“… Docket No. MON-L-3941-25, MON-L-3941-25 (Superior Court of New Jersey , September 26, 2025).”Page 12 of the 2026 FDD, Item 3
Shaun Morrell v. Retrofitness, LLC, ABC Financial Services Company, Inc., et al.
pendingBrought by a third party · filed 2020-11-17 · Superior Court of New Jersey, Middlesex County; Appellate Division · MID-L-7998-20; A-003294-23
“Shaun Morrell v. Retrofitness, LLC, ABC Financial Services Company, Inc., Rocalor Fitness, LLC d/b/a Retro Fitness of East Windsor, Robert O. Hahl, Lori A. Hahl, Eric Casaburi, Andrew Alfano, John/Jane Does 1-250, Defendant Retrofitness Franchisees 1-125, and”Page 11 of the 2026 FDD, Item 3
Westchester Fitness, LLC v. Retrofitness, LLC and Robert Sprechman
pendingBrought by a franchisee · filed 2020-01-02 · Supreme Court of New York, Suffolk County (removed to E.D.N.Y. and remanded) · 600083/2020; 2:20-cv-00699-PKC-LB
“… This case was filed on or about January 2, 2020 in the Supreme Court New York, Suffolk County, (Index #: 600083/2020), and was subsequently moved to the United States District Court for the Eastern District of New York (Case No. 2:20-cv-00699-PKC-LB).”Page 11 of the 2026 FDD, Item 3
Joseph Ardino, Samantha Ardino, Krista DeFazio, Scott Richter, James Heaney, and Phillip Mazzucco v. Retrofitness, LLC, ABC Financial Services, Inc., et al.
pendingBrought by a third party · filed 2014-01-17 · Superior Court of New Jersey, Middlesex County · MID-L-362-14
“Joseph Ardino, Samantha Ardino, Krista DeFazio, Scott Richter, James Heaney, and Phillip Mazzucco v. Retrofitness, LLC, ABC Financial Services, Inc., Z Times Three, LLC d/b/a/ RetroFitness of Kenilworth, Britcarianna, LLC, d/b/a RetroFitness Fairfield, PJ’s Fitness Express, Inc. d/b/a RetroFitness of Bordentown, PRJ Holding, LLC d/b/a RetroFitness of Wall.”Page 10 of the 2026 FDD, Item 3
Concluded (1)
Kimberly Ann Pirlet, and Musculi, LLC v. Retrofitness, LLC, Fierce Brands, LLC, Robert Sprechman, Matt Schultz and Patrick Pantano
settledBrought by a franchisee · filed 2020-10-21 · American Arbitration Association · 01-20-0015-3621
“… This arbitration was demanded on or around October 21, 2020 before the American Arbitration Association, Arbitration (Case No. 01-20-0015-3621).”Page 12 of the 2026 FDD, Item 3
Outcome: “Retrofitness paid a settlement amount of $600,000 and Plaintiffs reaffirmed all post-term obligations, including provisions relating to indemnification, confidentiality, use of Retrofitness’ trademarks and service marks, the non-compete covenants and other restrictive covenants.”
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Protected territory | Yes |
|---|---|
| Exclusive territory | No |
| Territory radius | 3 mi |
| Online sales rights | Allowed |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | The owner, or a principal the franchisor approves, must run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 15 mi |
| Right of first refusal | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Palm Beach County, Florida |
| Jury trial waiver | Yes |
| Governing law | Florida |
Items 5 (initial fees), 7 (startup costs), 12 (territory) and 20 (outlet counts) · development agreement
Area development (several units)
A development fee of $10,000 per unit you commit to.
Every term, with its page
- Development fee
- $10,000 per unit committed.
2026 FDD p.1
“For each outlet over four (4) outlets that you are granted the right to develop, you will pay us an additional development fee of $10,000 per outlet immediately upon signing the Area Development Agreement.”Open p.1 in the filing - Signed, not yet open
- 25 franchises sold but not open at year end (Item 20, Table 5; see Growth). Ask how long they have been waiting and why.
Each unit still needs its own Item 7 investment on top of the development fee ($10K times the units you commit to). Have a franchise attorney read the schedule and the default terms before you sign.
Items 10 (financing), 11 (training and support)
Training and operations
- Classroom training
- 24 hrs
- On-the-job training
- 94 hrs
- Ongoing training
- Required
- Site selection
- franchisee (with franchisor approval)
- Franchisor financing
- Not offered
- Item 10
- POS system
- ABC Fitness Solutions
- Operating tech stack
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Item 20 (outlet counts) · call current owners
Franchisee contacts
Who can you call before you sign?
105 current owners to call
Each record has the franchisee (company or owner name as the filing prints it) and phone number. No cities or states. 105 records. From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list holds 105 current outlets; Item 20's table counts 76 franchised at year end.
For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.
One-time · CSV download · full refund within 7 days if the data does not match the FDD. Some numbers, especially for former owners, may be outdated.
Frequently asked questions
How much does it cost to open a Retrofitness franchise?
Per the 2026 FDD, the total investment to open a Retrofitness franchise ranges from $832K to $3.2M, with an initial franchise fee of $29K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Retrofitness franchise owners earn?
According to Item 19 of the Retrofitness FDD, average gross sales were $1.2M (Item 19 group “100% (Average Gross Sales)”, 74 outlets; gross sales, not profit). The median is $1.0M. What an owner keeps depends on location, operating costs and management.
Who owns Retrofitness?
Retrofitness is franchised by Retrofitness, LLC. Its parent company is Fierce Brands, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Retrofitness 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 Retrofitness FDD and qualifies whose outlets they describe.
What is Retrofitness' franchise failure rate?
There is no published franchise failure rate. What is measurable is Retrofitness' SBA charge-off rate: 7.1% on 85 resolved loans. Put plainly: 1 in 14 SBA 7(a) loans to Retrofitness owners charged off (6 of 85 resolved loans, approved since FY1991); loans approved FY2014–FY2019: 5 of 54 resolved loans charged off (9.3%); newer loans have not had time to default, so this is not a trend. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. A franchisee can repay and close, or default and keep trading.
How many Retrofitness franchise locations are there?
Per the 2026 FDD, Retrofitness has 76 franchised units and 1 company-owned (77 in all). In the latest year, the number of franchised outlets fell by 5 (1 opened, 6 closed).
Is Retrofitness a good franchise to buy?
FranchiseVerdict gives Retrofitness a B Verdict grade (Second tier) with a verdict score of 48 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by financial health, scale and transparency. Held back by unit economics (avg gross sales $1.2M on a $2.0M investment midpoint, 0.6x: gross sales, not profit), unit growth and legal record. The “Why a B” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Health & Fitness franchises
Similar investment first, then by grade
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.