SpengaFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A SPENGA franchise requires a total initial investment of $436K – $824K, including a $50K franchise fee. The 2024 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 32.0% charge-off rate across 65 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $436K – $824K
- 78th pct Health & Fitn…
- Avg gross sales
- N/A
- 59th pct Health & Fitn…
- Royalty
- N/A
- Units
- 58
- 74th pct Health & Fitn…
- SBA default
- 32.0%
- 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
32.0% of SBA loans charged off across 65 loans, above the 16% franchise average.
The system contracted 14% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $436K – $824K including a $50K franchise fee.
- Item 19 discloses "Historical historical NCI increases, leads, conversions, and affiliate costs." rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict F (Bottom Quintile) with a risk score of 100/100. SBA loan charge-off rate of 32.0% across 65 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Item 19 reports "Historical historical NCI increases, leads, conversions, and affiliate costs." instead of annual gross sales. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Spenga Holdings LLC
- Parent company
- Spenga Ventures LLC
- Incorporated in
- DE
- HQ
- 13161 W 143rd Street, Suite 103, Homer Glen, Illinois 60491
- Auditor
- Mayer Hoffman McCann P.C.
- Audited financials
- Franchisor revenue
- $5.1M
- vs $4.0M prior year
Overview
About
SPENGA franchisees operate boutique fitness studios offering high-intensity interval training (HIIT) and spin classes. Day-to-day operations include managing class schedules, instructor hiring/training, member retention, studio maintenance, and marketing to drive membership sales in their protected territory.
- CEO
- Roger McGreal
- Headquarters
- IL
- Founded
- 2015
- FDD year
- 2024
- States available
- 21
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $10K | $25K |
| Equipment, build-out, other | $376K | $749K |
| Total initial investment | $436K | $824K |
Source: SPENGA 2024 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
- $436K – $824K
- Below avg, review vs category
- Liquid capital req'd
- $10K – $25K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Near category avg vs category
- Royalty
- The greater of: (i) 7% of the “Net Cash In” generated by …
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $450 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 9.0% of rev |
Financial Performance
This brand's FDD disclosed "Historical historical NCI increases, leads, conversions, and affiliate costs." in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Health & Fitness averages
How Spenga Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 58
- Opened
- 4
- Last reporting year
- Closed
- 13
- Turnover rate
- 22.4%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- -13.6%
- Net unit change last year
- 3-yr CAGR
- +1.8%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 4
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 27 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.
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
- 65
- Loan volume
- $34.7M
- Median loan
- $591K
- 50th percentile
- Charge-off rate
- 32.0%
- 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)
- 68.0%
- 5-yr charge-off
- 31.6%
- Loans approved 2021+
- Active lenders
- 23
- Defaults
- 8
Vintage analysis
Spenga charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Spenga'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 15 states
- Startup risk premium and job creation velocity
- 9-year lending trend
Instant access. No subscription.
A 32.0% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
SPENGA presents HIGH RISK due to a collapsing franchise system (13.6% unit decline), active fraud litigation, going concern issues, opacity on revenue metrics, and a high capital requirement with unproven returns.
Audited financials (Item 21)
Yes · Mayer Hoffman McCann P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 100 / 100 rating
- 01MINORSystem declining 13.6% YoY (58 units) indicating brand contraction and potential market saturation or operational failure
- 02HIGHActive litigation involving breach of lease, fraud, and conversion of security interest raises governance and trustworthiness concerns
- 03MEDNo average revenue disclosure despite disclosed net income ($237,698) is a major transparency red flag and prevents ROI validation
- 04MINORDual royalty structure (7% or $1,000/month minimum) creates unpredictable cost burden; $1,000/month floor problematic if revenue drops
- 05HIGHGoing Concern = False is critical; franchisor's financial viability is questionable, threatening support and system stability
- 06MEDHigh initial investment ($435k-$823k) combined with undisclosed revenue makes payback period impossible to calculate
- 07MEDOnly 58 remaining units after 13.6% decline suggests franchisees are exiting; insufficient scale for supply chain leverage or brand recognition
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 |
| Allowed renewalsℹ | 2 |
| Territory type | Qualifying Households / Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 1 |
Items 10, 11
Training & Operations
- Classroom training
- 55 hrs
- On-the-job training
- 68 hrs
- POS system
- Designated POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Designated POS System
Item 20 · call current owners
Franchisee Contacts
70 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
SPENGA · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a SPENGA franchise?
The total investment to open a SPENGA franchise ranges from $436K – $824K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do SPENGA franchise owners earn?
SPENGA does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is SPENGA's franchise failure rate?
Based on SBA 7(a) loan data, SPENGA has a charge-off rate of 32.0% across 65 loans, meaning 32.0% 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 SPENGA franchise locations are there?
As of their most recent FDD filing, SPENGA has 58 total units in the United States, including 56 franchised units and 1 company-owned units. 4 new units were opened in the latest reporting year.
Is SPENGA a good franchise to buy?
FranchiseVerdict rates SPENGA as a F-grade franchise with a risk score of 100 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.
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.