Retrofitness Franchise Cost, Revenue & Review 2026
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 $2.0M – $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 →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $2.0M – $3.2M
- 97th pct Health & Fitn…
- Avg gross sales
- $1.2M
- 27th pct Health & Fitn…
- Royalty
- 5.0%
- 1st 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 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 $2.0M – $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).
- 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
- 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 360% 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 | $1.9M | $2.9M |
| Total initial investment | $2.0M | $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
- $2.0M – $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%
- percentage_of_gross · 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 103% above the health & fitness norm.
Source: FDD 2026 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$386K
31.0% margin
Unlevered ROIC
13%
EBITDA / total invested capital
Payback
7.4 yrs
cash-on-cash, unlevered
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real 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?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
13%
Below the 30–60% attractive-franchise band
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Retrofitness units return on equity?
Equity IRR · 5-yr
25.8%
3.16× MOIC
Year-1 DSCR
3.22×
EBITDA ÷ debt service
Equity required
$15.9M
on $29.8M purchase
Total debt
$14.0M
SBA $5.0M + senior + seller note
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 12 · large
- Range (low → high)
- $352K→$3.7M
- 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 0.5x 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: 0.5x.
Fee burden
Total ongoing fee load of 7.0% — below the Health & Fitness average of 8.4%.
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 averages
How Retrofitness Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 77
- Opened
- 8
- 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
- 7.9%
- 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
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 6
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 3
- Reacquired (3yr)
- 0
- Franchisor bought back
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%
- 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.
Premium insight
SBA Lending Report
Deep-dive into Retrofitness'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 8 states
- Startup risk premium and job creation velocity
- 9-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
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%.
Audited financials (Item 21)
Yes · RSM US LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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.
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)
- 04MINORTurnover rate 7.9%
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 | Drivable Distance |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 5 |
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 94 hrs
- 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
FDD download
Retrofitness · FDD (2026) PDF
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 $2.0M – $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.
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. 8 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), 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
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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.