Retrofitness Franchise Cost, Revenue & Review 2026
- Investment
- $832K – $3.2M
- Disclosed sales
- $1.2M
- gross sales, not profit
- SBA charge-off
- 7.0%
- on 128 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
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
A Retrofitness franchise requires a total initial investment of $832K – $3.2M, including a $29K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.2M[2]. SBA 7(a) loans show a 7.0% charge-off rate across 128 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: low - issued within the last 12 months
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 scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $832K – $3.2M
- 92nd pct Health & Fitn…
- Avg gross sales
- $1.2M
- 33rd pct Health & Fitn…
- Royalty
- 5.0%
- 2nd pct Health & Fitn…
- Units
- 77
- 76th pct Health & Fitn…
- SBA charge-off
- 7.0%
- % 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 $832K – $3.2M including a $29K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.2M/year (median $1.0M).
- RISKVerdict B (Above average), verdict score 48/100 (higher is better). SBA loan charge-off rate of 7.0% across 128 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -5 franchised outlets in the latest year (1 opened, 6 closed); 25 signed but not yet open (Item 20).
- DECLINESystem contracting at -11.6% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · 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
- vs $12.7M prior year
Overview
About
- CEO
- Andrew Alfano
- Headquarters
- FL
- Founded
- 2008
- FDD year
- 2026
- States available
- 9
Can you afford it, and what does the money buy?
Entry cost runs 419% above the typical health & fitness franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $29K | $29K |
| Working capital (3–6 mo) | $100K | $350K |
| Equipment, build-out, other | $703K | $2.9M |
| Total initial investment | $832K | $3.2M |
Source: Retrofitness 2026 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
- $832K – $3.2M
- Bottom third — review vs category
- Liquid capital req'd
- $100K – $350K
- Bottom third — review vs category
- Franchise fee
- $29K – $29K
- Top 40% of category vs category
- Royalty
- 5.0%
- Set by a formula · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $720 |
| Transfer fee | $15K |
| Renewal fee | $20K |
| Total fee load | 7.0% of rev |
What do units actually make?
Average unit sales run 161% above the health & fitness norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Retrofitness until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
Total invested capital · disclosed
$2.3M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Retrofitness 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 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.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
Financial Performance
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- $1.0M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historic financial performance representation (percentile cohorts of Average Gross Sales, Revenue per Sq Ft, and Membership)
- Sample size
- 74 outlets
- vs category median 11 · large
- Range (low → high)
- $352K→$3.7MCited, not corroborated — printed on page 62 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $678K→$2.1M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 173 Health & Fitness brands
Revenue is only 0.6x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.2M/year in gross sales. Median is $1.0M — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 0.6x.
Fee burden
Total ongoing fee load of 7.0% — below the Health & Fitness median of 9.0%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -11.6% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 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.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 77
- Opened
- 1
- Last reporting year
- Closed
- 6
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.8%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (3-yr)
- -11.6%
- Net unit change over 3 years
- 3-yr CAGR
- -11.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 4
- 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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 9 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
9
states with franchisees (per FDD Item 12)
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 128
- Loan volume
- $118.8M
- Median loan
- $1.1M
- 50th percentile
- Charge-off rate
- 7.0%
- on 128 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)
- 93.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 37
- Defaults
- 6
- Typical loan rate
- 7.5%
- avg rate to borrowers
- Franchised industry avg
- 15.8%
- brand beats franchise avg ↓
- Jobs supported
- 613
- 2.1 per loan
- Lender concentration
- 17%
- top lender's share
Borrower mix: 48% went to startups / new businesses, 52% 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.
Top lenders financing Retrofitness franchisees
Showing 3 of 37 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 Retrofitness from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 7.55%
- Lender concentration
- 17.2%
- Job velocity
- 2.1 per $100K
- NAICS benchmark
- 12.5%
- NAICS 713940
- Jobs supported
- 613
Top SBA lendersTop lender holds 17% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | TD Bank, National Association | 5 | $4.3M | 0.0% |
| 2 | Live Oak Banking Company | 4 | $5.2M | 0.0% |
| 3 | United Community Bank | 3 | $2.7M | N/A |
| 4 | First Bank | 2 | $1.5M | N/A |
| 5 | Grasshopper Bank National Association | 2 | $1.8M | N/A |
| 6 | Gulf Coast Bank and Trust Company | 2 | $2.2M | 0.0% |
| 7 | First National Bank of Pennsylvania | 1 | $1.2M | 0.0% |
| 8 | CRF Small Business Loan Company, LLC | 1 | $1.2M | 0.0% |
| 9 | Unity Bank | 1 | $1.1M | N/A |
| 10 | Bank of Hope | 1 | $674K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| NJNew Jersey | 12 | 0 | 0.0% |
| FLFlorida | 5 | 0 | 0.0% |
| NYNew York | 5 | 0 | 0.0% |
| MDMaryland | 2 | 0 | 0.0% |
| PAPennsylvania | 2 | 0 | -- |
| CACalifornia | 1 | 0 | 0.0% |
| ILIllinois | 1 | 0 | 0.0% |
| MNMinnesota | 1 | 0 | 0.0% |
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 7.0% — 56% 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
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%.
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · RSM US LLP
Franchisor revenue (Item 21)
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
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 48 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Palm Beach County, Florida |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 5 |
View Item 3 litigation summary
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.
Items 10, 11
Training & 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 & 11
Franchisor Support
Technology: ABC Fitness Solutions
Item 20 · call current owners
Franchisee Contacts
107 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 Retrofitness franchise?
The total investment to open a Retrofitness franchise ranges from $832K – $3.2M, with an initial franchise fee of $29K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Retrofitness franchise owners earn?
According to Item 19 of the Retrofitness FDD, the average gross sales per unit is $1.2M. The median is $1.0M. Note: this is gross revenue, not profit. Actual owner earnings vary based 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's franchise failure rate?
Based on SBA 7(a) loan data, Retrofitness has a charge-off rate of 7.0% across 128 loans, meaning 7.0% 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 Retrofitness franchise locations are there?
As of their most recent FDD filing, Retrofitness has 77 total units in the United States, including 76 franchised units and 1 company-owned units. 1 new units were opened in the latest reporting year.
Is Retrofitness a good franchise to buy?
FranchiseVerdict rates Retrofitness as a B-grade franchise with a verdict score of 48 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.