RetrofitnessFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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 2025 FDD, average unit revenue was $1.2M[2]. SBA 7(a) loans show a 7.0% charge-off rate across 128 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $2.0M – $3.2M
- 98th pct Health & Fitn…
- Avg gross sales
- $1.2M
- 49th pct Health & Fitn…
- Royalty
- 5.0%
- 1st pct Health & Fitn…
- Units
- 82
- 79th pct Health & Fitn…
- SBA default
- 7.0%
- 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
At 0.4x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Franchised units fell from 86 to 81 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $2.0M – $3.2M including a $29K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.2M/year (median $977K).
- Verdict F (Bottom Quintile) with a risk score of 80/100. 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, 2010–2024).
- System contracting at -5.8% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Retrofitness, LLC
- Parent company
- Fierce Brands, LLC
- Incorporated in
- DE
- 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
Retrofitness franchisees operate boutique fitness facilities offering strength training, HIIT, and functional fitness classes in protected territories. Day-to-day operations include class scheduling, trainer management, member retention, billing/membership administration, facility maintenance, and marketing to sustain the $1.19M average unit volume in a competitive fitness market.
- CEO
- Andrew Alfano
- Headquarters
- FL
- Founded
- 2006
- FDD year
- 2025
- States available
- 9
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $29K | $29K |
| Working capital (3–6 mo) | $200K | $350K |
| Equipment, build-out, other | $1.8M | $2.9M |
| Total initial investment | $2.0M | $3.2M |
Source: Retrofitness 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$368K
31.0% margin
Unlevered ROIC
13%
EBITDA / total invested capital
Payback
7.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $2.0M – $3.2M
- Below avg, review vs category
- Liquid capital req'd
- $200K – $350K
- Below avg, review vs category
- Franchise fee
- $29K – $29K
- Better than avg 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 |
Financial Performance
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- $977K
- Item 19 type
- gross_sales
- Sample size
- 74 units
- vs category median 11 · large
- Range (low → high)
- $385K→$3.5M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 180 Health & Fitness brands
Revenue is only 0.4x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Health & Fitness averages
How Retrofitness Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 82
- Opened
- 5
- Last reporting year
- Closed
- 10
- Turnover rate
- 12.2%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (yr3)
- -5.8%
- Net unit change last year
- 3-yr CAGR
- -5.8%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 3
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 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
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 37
- Defaults
- 6
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Retrofitness presents high risk due to contracting unit count, substantial litigation including class actions, undisclosed profitability metrics, and a $600K settlement—suggesting systemic franchise relationship and compliance failures.
Audited financials (Item 21)
Yes · RSM US LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 80 / 100 rating
- 01MINORUnit count declining 5.8% YoY (82 units) suggests system contraction and potential franchisee struggles
- 02MINORMultiple class action and individual lawsuits involving NJ consumer protection, health club law violations, and franchise agreement breaches indicate systemic operational or compliance issues
- 03MINOR$600,000 arbitration settlement indicates material disputes between franchisor and franchisees
- 04MEDNet income not disclosed despite $1.19M average revenue—suggests profitability concerns or reluctance to disclose underperformance
- 05HIGHHigh initial investment ($2M–$3.2M) combined with declining unit count and litigation creates elevated failure risk
- 06MINORNo Item 19 (financial performance representations) limits ability to validate franchisee earning claims
- 07MINOR5% royalty on gross sales (not net) increases burden during revenue downturns—common in declining systems
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 | 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
68 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Retrofitness · FDD (2025) 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 $977K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 82 total units in the United States, including 86 franchised units and 1 company-owned units. 5 new units were opened in the latest reporting year.
Is Retrofitness a good franchise to buy?
FranchiseVerdict rates Retrofitness as a F-grade franchise with a risk score of 80 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.