StarCycle Franchise Cost, Revenue & Review 2026
- Investment
- $240K – $465K
- Disclosed sales
- $337K
- gross sales, not profit
- SBA charge-off
- Under 10 loans (4)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
StarCycle is a boutique fitness franchise offering instructor-led, music-driven indoor cycling classes. Franchisees run the studios, managing instructors, class scheduling, and membership growth.
FranchiseVerdict summary · 2026
A StarCycle franchise requires a total initial investment of $240K – $465K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2024 FDD, average unit revenue was $337K[2]. FranchiseVerdict grade: B (Above 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: high - issued more than two years ago
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
- $240K – $465K
- 47th pct Health & Fitn…
- Avg gross sales
- $337K
- Partial period12th pct Health & Fitn…
- Royalty
- 5.0%
- 2nd pct Health & Fitn…
- Units
- 14
- 41st pct Health & Fitn…
- SBA charge-off
- N/A
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 $240K – $465K including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $337K/year.
- RISKVerdict B (Above average), verdict score 61/100 (higher is better).
- GROWTHPositive: net +2 franchised outlets in the latest year (3 opened, 1 closed); 2 signed but not yet open (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- StarCycle Franchise, LLC
- Ultimate parent
- Thomas M. Cook Investments, LLC (55% ownership stake as of June 12, 2017)
- FDD Item 1, page 7 of the 2024 FDD
- CEO title
- Chief Executive Officer and Co-Founder
- Dionne Del Carlo
- CEO experience
- 2013 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- Oregon
- HQ
- 375 Second Street, Lake Oswego, Oregon 97034
- Auditor
- Geffen Mesher
- Audited financials
- Franchisor revenue
- $474K
- vs $422K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Dionne Del Carlo
- Headquarters
- OR
- Founded
- 2013
- FDD year
- 2024
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost runs 10% below the typical health & fitness franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $20K | $40K | |
| Pre-opening Training Expensesnot refundable | $1K | $15K | |
| Real Estate Lease and Security Depositnot refundable | — | — | |
| Permitsnot refundable | $3K | $5K | |
| Construction and Remodeling (including Architect & Engineering Expenses)not refundable | $137K | $250K | |
| Signage (Interior/Exterior, and Mural)not refundable | $8K | $13K | |
| Computer Hardware and Softwarenot refundable | $3K | $5K | |
| Bikesnot refundable | $3K | $40K | |
| Other Equipment/Furnishings/Fixtures/Suppliesnot refundable | $20K | $30K | |
| Initial Inventorynot refundable | $6K | $10K | |
| Your Grand Opening Marketingnot refundable | $13K | $13K | |
| Grand Opening Marketing Support Feenot refundable | $3K | $3K | |
| Insurance - Initial Depositsnot refundable | $2K | $3K | |
| Business Licenses/Permits/Incorporation Feesnot refundable | $2K | $2K | |
| Professional Feesnot refundable | $2K | $3K | |
| Additional Funds (3 months)not refundable | $20K | $35K | |
| Total initial investment | $240K | $465K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $240K – $465K
- Middle of category vs category
- Liquid capital req'd
- $20K – $35K
- Middle of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $149 |
| Training fee | $400 |
| Transfer fee | $20K |
| Renewal fee | $10K |
| Inventory (initial) | $6K – $10K |
| Total fee load | 7.0% of rev |
What do units actually make?
Average unit sales run 29% below the health & fitness norm.
Covers a partial period, not a full year
Source: FDD 2024 · 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 StarCycle 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 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
$380K
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 StarCycle 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 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 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: 2024 FDD
Financial Performance
Covers a partial period, not a full year
- Avg gross sales
- $337K
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- average monthly revenues
- Sample size
- 8 outlets
- vs category median 11
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 173 Health & Fitness brands
Revenue is only 1.0x 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 $337K/year in gross sales. Revenue-to-investment ratio: 1.0x.
Fee burden
Total ongoing fee load of 7.0% — below the Health & Fitness median of 9.0%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 22.2% CAGR over 3 years across 14 units — operators are staying and new ones are joining.
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 StarCycle 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 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 14
- Opened
- 3
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.1%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 79%
- vs corporate-owned
- Net growth (3-yr)
- +22.2%
- Net unit change over 3 years
- 3-yr CAGR
- +22.2%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 2
- 0.14 per open outlet · Item 20 Table 5
- Projected new
- 3
- Franchisor's next-year forecast
- Transfer rate
- 14.3%
- Owners selling to other franchisees
- Ceased ops
- 7.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 5 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
5
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $920K
- Median loan
- $245K
- 50th percentile
- Charge-off rate
- Under 10 loans (4)
- Insufficient SBA coverage: 4 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (4)
- 5-yr charge-off
- Under 10 loans (4)
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
No litigation, no bankruptcy, no distress, audited financials and Item 19 disclosed. Small 14-unit fitness system growing (+22.2%); single concern is thin financial disclosure (net worth not stated, low reported avg gross sales figure of $28,089).
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Geffen Mesher
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 61 / 100 verdict
- 01HIGHNo litigation, bankruptcy, or distress
- 02MEDAudited, Item 19 disclosed
- 03MINORSmall 14-unit system, growth +22.2%
- 04MEDThin financials; net worth not disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 10,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Clackamas County, Oregon |
| Jury trial waiver | Yes |
| Governing law | Oregon |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 25 hrs
- Training location
- Off-site and on-site
- Ongoing training
- Required
- Site selection
- Franchisee, with optional assistance from franchisor's national real estate brokerage firm
- Franchisor financing
- Not offered
- Item 10
- POS system
- Mariana Tek
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Mariana Tek
Item 20 · call current owners
Franchisee Contacts
19 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 StarCycle franchise?
The total investment to open a StarCycle franchise ranges from $240K – $465K, 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 StarCycle franchise owners earn?
According to Item 19 of the StarCycle FDD, the average gross sales per unit is $337K. Important context: Covers a partial period, not a full year. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns StarCycle?
StarCycle is franchised by StarCycle Franchise, LLC. The ultimate parent named in the FDD is Thomas M. Cook Investments, LLC (55% ownership stake as of June 12, 2017). Source: FDD Item 1, 2024 filing.
What is Item 19 in the StarCycle 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 StarCycle FDD and qualifies whose outlets they describe.
What is StarCycle's franchise failure rate?
SBA 7(a) loan charge-off data is not available for StarCycle (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many StarCycle franchise locations are there?
As of their most recent FDD filing, StarCycle has 14 total units in the United States, including 11 franchised units and 3 company-owned units. 3 new units were opened in the latest reporting year.
Is StarCycle a good franchise to buy?
FranchiseVerdict rates StarCycle as a B-grade franchise with a verdict score of 61 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 StarCycle, you can request corrections or provide updated information.
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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.