Bottom line
- Total investment $431K – $1.1M including a $40K franchise fee.
- Average unit revenue of $250K/year (median $215K). Estimated payback in 8.7 years.
- Rated CAUTION with a risk score of 69/100. SBA loan default rate of 0.0% across 342 loans (below the industry average).
- System contracting at -11.5% 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 SNAP FITNESS unit return on the cash you put in?
Unlevered ROIC · per unit
9%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 SNAP FITNESS units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.1M
on $5.5M purchase
Total debt
$4.4M
SBA $2.8M + senior + seller note
Overview
About
Snap Fitness franchisees operate 24/7 automated fitness centers offering gym memberships, equipment access, and fitness services to local markets. Day-to-day operations include member management, facility maintenance, equipment servicing, staff scheduling, marketing, and revenue collection through membership dues and ancillary services.
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 · 14 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
Snap Fitness presents high risk due to contracting unit base (-5.1% YoY), extensive litigation spanning contract breaches to class actions, modest net margins (35.7%), and lack of transparent financial performance data.
Score breakdown · what drove the 69 / 100 rating
- 01MINORUnit count declining 5.1% YoY (493 units) indicates system contraction and potential market saturation or operational failures
- 02HIGHMultiple active litigation cases involving breach of contract, non-compete violations, unjust enrichment, and class action suits suggest systemic franchisor-franchisee relationship problems
- 03MINORNet income of $89,439 on average revenue of $250,461 (35.7% margin) is modest for a fitness franchise requiring $430K-$1.1M investment with high operational overhead
- 04MINORRecurring monthly royalty of $700 combined with declining unit economics creates cash flow pressure in declining revenue environment
- 05MEDNo Item 19 (Financial Performance Representations) disclosed limits ability to validate franchisor's revenue/profitability claims
- 06HIGHMultiple litigation themes (management software disputes, enhancement fees, non-competes) indicate franchisor may impose undisclosed costs and restrict franchisee autonomy
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
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
SNAP FITNESS · FDD (2025) PDF