StarCycle Franchise Cost, Revenue & Review 2026
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]. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $240K – $465K
- 47th pct Health & Fitn…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 1st 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 avg · 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.
- RETURNSItem 19 reports average monthly revenues rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 61/100 (higher is better).
- DATAItem 19 reports average monthly revenues rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
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)
- 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
- $422K
- vs $474K 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 39% 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%
- percentage · 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 |
| Total fee load | 7.0% of rev |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
StarCycle did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one StarCycle unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
61%
Above the 30–60% band. Verify revenue is per-unit average
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
- Item 19 type
- average monthly revenues
- Sample size
- 8
- vs category median 12
- 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
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% — below the Health & Fitness average of 8.4%.
Disclosure
Item 19 reports average monthly revenues rather than annual gross sales, so unit revenue is not directly comparable.
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 averages
How StarCycle Compares
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
- 9.1%
- 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
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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
- N/A
- limited sample (4 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- 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)
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 | Specific geographic area |
| Protected territory | Yes |
| 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
- 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
FDD download
StarCycle · FDD (2024) PDF
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?
StarCycle 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 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 A-grade franchise with a verdict score of 61 out of 100 (higher is better), 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
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.