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).
- Rated CAUTION with a risk score of 68/100. SBA loan default rate of 0.0% across 46 loans (below the industry average).
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Retrofitness unit return on the cash you put in?
Unlevered ROIC · per unit
13%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Retrofitness units return on equity?
Equity IRR · 5-yr
26.2%
3.20× MOIC
Year-1 DSCR
3.16×
EBITDA ÷ debt service
Equity required
$14.9M
on $28.5M purchase
Total debt
$13.5M
SBA $5.0M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 68 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
68 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Retrofitness · FDD (2025) PDF