Bottom line
- Total investment $436K – $824K including a $50K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 103 loans (below the industry average).
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 SPENGA unit return on the cash you put in?
Unlevered ROIC · per unit
35%
In Yale's "attractive" band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 23 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
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.
Score breakdown · what drove the 63 / 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
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
63 numbers
One-time purchase · CSV download · Validation questions included
FDD download
SPENGA · FDD (2024) PDF