Snap Fitness Franchise Cost, Revenue & Review 2026
- Investment
- $431K – $1.1M
- Disclosed sales
- $250K
- gross sales, not profit
- SBA charge-off
- 11.6%
- on 265 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Snap Fitness is a 24/7 access-gym franchise offering keyfob entry to compact, equipment-focused clubs. Franchisees operate lightly staffed fitness centers built on recurring memberships and add-on training.
FranchiseVerdict summary · 2026
A SNAP FITNESS franchise requires a total initial investment of $431K – $1.1M, including a $40K franchise fee. Per the 2025 FDD, average unit revenue was $250K[2]. SBA 7(a) loans show a 11.6% charge-off rate across 265 loans[1]. FranchiseVerdict grade: C (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: medium - issued 12 to 24 months ago; a newer filing is likely on file
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 scored6 of 6 headline figures on this page cite a page of the filing.
Overview
- Investment
- $431K – $1.1M
- 79th pct Health & Fitn…
- Avg gross sales
- $250K
- 5th pct Health & Fitn…
- Royalty
- Not extracted
- Units
- 493
- 96th pct Health & Fitn…
- SBA charge-off
- 11.6%
- % 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 $431K – $1.1M including a $40K franchise fee.
- RETURNSAverage unit revenue of $250K/year (median $215K).
- RISKVerdict C (Average), verdict score 45/100 (higher is better). SBA loan charge-off rate of 11.6% across 265 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -26 franchised outlets in the latest year (6 opened, 32 closed); 11 signed but not yet open (Item 20).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Snap Fitness, Inc.
- Parent company
- Lift Brands, Inc.
- FDD Item 1, page 8 of the 2025 FDD
- Ultimate parent
- TZP Capital Partners II, L.P. and TZP Capital Partners II-A (Blocker), L.P.
- CEO title
- Chief Executive Officer and Director
- Ty Menzies
- Incorporated in
- Minnesota
- HQ
- 2411 Galpin Court, Suite 110, Chanhassen, MN 55317
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $56.8M
- vs $52.8M prior year
Overview
About
- CEO
- Ty Menzies
- Headquarters
- MN
- Founded
- 2003
- FDD year
- 2025
- States available
- 47
Can you afford it, and what does the money buy?
Entry cost runs 97% above the typical health & fitness franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $25K | $50K |
| Equipment, build-out, other | $366K | $1.0M |
| Total initial investment | $431K | $1.1M |
Source: SNAP FITNESS 2025 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
- $431K – $1.1M
- Bottom third — review vs category
- Liquid capital req'd
- $25K – $50K
- Middle of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- $700 per month
- Ad fund
- $500 per month
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | $700 per month flat royalty fee per Club, subject to annual CPI increase (not a percentage of gross sales) |
| Technology fee | $400 |
| Transfer fee | $40K |
| Renewal fee | $0 |
What do units actually make?
Average unit sales run 47% below the health & fitness norm.
Source: FDD 2025 · 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 SNAP FITNESS 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 royalty rate, ad fund rate, 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
$812K
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 SNAP FITNESS 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 royalty rate, ad fund rate, 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 royalty rate, ad fund rate, 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: 2025 FDD
Financial Performance
- Avg gross sales
- $250K
- Per unit, per year
- Median gross sales
- $215K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 479 outlets
- vs category median 11 · large
- Range (low → high)
- $49K→$1.4MCited, not corroborated — printed on page 46 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $109K→$458K
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 10 / 10
- vs category median 4 / 10 · above
Compared against 173 Health & Fitness brands
Revenue is only 0.3x 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 $250K/year in gross sales. Revenue-to-investment ratio: 0.3x.
Disclosure
Transparency score 10/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -11.5% 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 Snap Fitness 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 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 493
- Opened
- 6
- Last reporting year
- Closed
- 32
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 21
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.5%
- Company-owned
- 9
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- -11.5%
- Net unit change over 3 years
- 3-yr CAGR
- -11.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 21
- Transferred
- 31
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 11
- 0.02 per open outlet · Item 20 Table 5
- Projected new
- 3
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 46 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.
Where the owners are · Item 20 owner list
489 current owners across 46 states; 6 former (terminated, transferred or not renewed) listed separately.
- MN 74
- TX 42
- OH 31
- WI 28
- LA 25
- MI 25
- OR 22
- PA 20
- IL 17
- AZ 16
- CA 16
- WA 14
- +34 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- 265
- Loan volume
- $44.6M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 11.6%
- on 265 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)
- 88.4%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 124
- Defaults
- 26
- Typical loan rate
- 6.5%
- avg rate to borrowers
- Franchised industry avg
- 15.8%
- brand beats franchise avg ↓
- Jobs supported
- 1,205
- 2.7 per loan
- Lender concentration
- 6%
- top lender's share
Borrower mix: 30% went to startups / new businesses, 70% 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.
Vintage analysis
Snap Fitness charge-off rate by loan vintage
Top lenders financing Snap Fitness franchisees
Showing 3 of 124 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 Snap Fitness from SBA 7(a) FOIA data.
- Principal loss rate
- 6.6%
- Avg SBA guarantee
- 71%
- Avg interest rate
- 6.45%
- Avg chargeoff amount
- $113K
- Lender concentration
- 6.4%
- Job velocity
- 2.7 per $100K
- Startup risk premium
- -8.3pp
- NAICS benchmark
- 12.5%
- NAICS 713940
- Jobs supported
- 1,205
Top SBA lendersTop lender holds 6% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 17 | $1.9M | 0.0% |
| 2 | Wells Fargo Bank National Association | 16 | $4.4M | 20.0% |
| 3 | Old National Bank | 13 | $2.3M | 11.1% |
| 4 | JPMorgan Chase Bank, National Association | 10 | $1.3M | 10.0% |
| 5 | U.S. Bank, National Association | 7 | $911K | 0.0% |
| 6 | Stearns Bank National Association | 7 | $1.1M | 14.3% |
| 7 | Security Bank USA | 7 | $508K | 0.0% |
| 8 | Readycap Lending, LLC | 6 | $1.2M | 80.0% |
| 9 | Zions Bank, A Division of | 6 | $1.1M | 0.0% |
| 10 | First American Bank | 5 | $912K | 40.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| MNMinnesota | 61 | 4 | 8.7% |
| WIWisconsin | 28 | 5 | 19.2% |
| MIMichigan | 21 | 0 | 0.0% |
| LALouisiana | 11 | 0 | 0.0% |
| OHOhio | 11 | 1 | 14.3% |
| IAIowa | 9 | 2 | 25.0% |
| MOMissouri | 9 | 0 | 0.0% |
| WAWashington | 9 | 0 | 0.0% |
| GAGeorgia | 8 | 1 | 14.3% |
| MTMontana | 8 | 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 11.6% — 28% 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
9 concluded (no pending) trademark/non-compete enforcement actions where Snap Fitness was the plaintiff — routine for a 493-unit system. The disclosed bankruptcy is an officer's prior-employer (Gold's Gym/GGI) Chapter 11, not the franchisor's — low weight. Financials are parent-level (net worth $24.1M, net income $7.5M), audited, Item 19 disclosed.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
9 concluded actions in Item 3 (no pending actions): trademark/non-compete enforcement actions by Snap Fitness against former franchisees (Scenic City Fitness/Blankenship - permanent injunction + $174K+ in damages/fines/fees; John Mullins/JDM - $115K settlement; Christina/Jason Clark - $57.5K settlement; Sharon Lockhart - $30K paid by Snap Fitness then $53.4K arbitration award against Snap Fitness; Scott Estes - $99.5K award for Snap Fitness); franchisee-initiated actions against Snap Fitness (SF Franchisee Association class-type dispute over club management software/ransomware, settled with fee credits/discounts; Wellness Plus/Robicheaux arbitration over same software issue, $15K paid to Snap Fitness; Robert Miller breach of contract claim, voluntarily dismissed; Thomas Dwyer class action over Club Enhancement Fee, $2.9M settlement fund paid by Snap Fitness).
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
Paul Early, Snap Fitness's Chief Administrative Officer, was CAO at Gold's Gym International, Inc. (affiliate of GGI Holdings, LLC) when GGI Holdings filed Chapter 11 bankruptcy on May 4, 2020 (Case No. 20-31318, N.D. Texas); reorganization plan confirmed August 26, 2020. This is a personal/officer bankruptcy disclosure, not a bankruptcy of Snap Fitness itself.
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Total revenues, net includes Franchising $35.813M, Commercial $10.577M, Corporate fitness clubs $8.850M, Insurance $1.553M for FY2024 (in 000's, consolidated)
ⓘ 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 45 / 100 verdict
- 01MINOR9 concluded enforcement suits, franchisor-as-plaintiff, no pending
- 02HIGHBankruptcy is officer's prior-employer (GGI/Gold's Gym), not franchisor — low weight
- 03MEDAudited, Item 19 disclosed; slight contraction -11.5%
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2025 · 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 sizeℹ | one city block minimum up to 3-mile radius |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Minneapolis, Minnesota |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 9 |
View Item 3 litigation summary
9 concluded actions in Item 3 (no pending actions): trademark/non-compete enforcement actions by Snap Fitness against former franchisees (Scenic City Fitness/Blankenship - permanent injunction + $174K+ in damages/fines/fees; John Mullins/JDM - $115K settlement; Christina/Jason Clark - $57.5K settlement; Sharon Lockhart - $30K paid by Snap Fitness then $53.4K arbitration award against Snap Fitness; Scott Estes - $99.5K award for Snap Fitness); franchisee-initiated actions against Snap Fitness (SF Franchisee Association class-type dispute over club management software/ransomware, settled with fee credits/discounts; Wellness Plus/Robicheaux arbitration over same software issue, $15K paid to Snap Fitness; Robert Miller breach of contract claim, voluntarily dismissed; Thomas Dwyer class action over Club Enhancement Fee, $2.9M settlement fund paid by Snap Fitness).
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 26 hrs
- Ongoing training
- Required
- Site selection
- franchisee (subject to franchisor approval)
- Franchisor financing
- Not offered
- Item 10
- POS system
- Glofox
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Glofox
Item 20 · call current owners
Franchisee Contacts
495 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 SNAP FITNESS franchise?
The total investment to open a SNAP FITNESS franchise ranges from $431K – $1.1M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do SNAP FITNESS franchise owners earn?
According to Item 19 of the SNAP FITNESS FDD, the average gross sales per unit is $250K. The median is $215K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns SNAP FITNESS?
SNAP FITNESS is franchised by Snap Fitness, Inc.. Its parent company is Lift Brands, Inc.. The ultimate parent named in the FDD is TZP Capital Partners II, L.P. and TZP Capital Partners II-A (Blocker), L.P.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the SNAP FITNESS 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 SNAP FITNESS FDD and qualifies whose outlets they describe.
What is SNAP FITNESS's franchise failure rate?
Based on SBA 7(a) loan data, SNAP FITNESS has a charge-off rate of 11.6% across 265 loans, meaning 11.6% 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 SNAP FITNESS franchise locations are there?
As of their most recent FDD filing, SNAP FITNESS has 493 total units in the United States, including 484 franchised units and 9 company-owned units. 6 new units were opened in the latest reporting year.
Is SNAP FITNESS a good franchise to buy?
FranchiseVerdict rates SNAP FITNESS as a C-grade franchise with a verdict score of 45 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
Are you the franchisor?
If you represent SNAP FITNESS, you can request corrections or provide updated information.
Other Health & Fitness franchises
Compare similar franchise opportunities in the Health & Fitness category
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.