Starz ProgramFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Starz Program franchise requires a total initial investment of $42K – $131K, including a $39K franchise fee and an ongoing 8.0% royalty[2]. Per the 2026 FDD, average unit revenue was $10K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $42K – $131K
- 4th pct Health & Fitn…
- Avg gross sales
- $10K
- 0th pct Health & Fitn…
- Royalty
- 8.0%
- 55th pct Health & Fitn…
- Units
- 7
- 32nd pct Health & Fitn…
- SBA default
- N/A
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
At 0.1x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $42K – $131K including a $39K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $10K/year (median $11K), with an estimated 8% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 45/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- STARZ PROGRAM WORLDWIDE LLC
- Incorporated in
- VA
- HQ
- 10307 W. Broad St., #121, Richmond, VA 23060
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $56K
- vs $57K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2026
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Starz Program franchisees appear to operate a service or product-based business generating approximately $10,000 in monthly revenue. Day-to-day operations likely involve client acquisition, service delivery or product fulfillment, and customer relationship management, though the specific business model is not disclosed in the provided data.
- CEO
- Sophia Wastler
- Headquarters
- VA
- Founded
- 2017
- FDD year
- 2026
- States available
- 3
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $39K | $39K |
| Working capital (3–6 mo) | $500 | $1K |
| Equipment, build-out, other | $3K | $91K |
| Total initial investment | $42K | $131K |
Source: Starz Program 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$3K
28.0% margin
Unlevered ROIC
3%
EBITDA / total invested capital
Payback
31.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $42K – $131K
- Better than avg vs category
- Liquid capital req'd
- $500 – $1K
- Better than avg vs category
- Franchise fee
- $25K – $105K
- Better than avg vs category
- Royalty
- 8.0%
- Gross Sales with minimums ($400-$500/month after 180 days) · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
- Payback period
- 12.8 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $4K |
| Renewal fee | $8K |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $10K
- Per unit, per year
- Median gross sales
- $11K
- Avg p&l bottom line
- $7K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 7.8%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Historical
- Sample size
- 6 units
- vs category median 11
- Range (low → high)
- $2K→$31K
- Cohort dispersion (min → max)
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 180 Health & Fitness brands
Revenue is only 0.1x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Health & Fitness averages
How Starz Program Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 7
- Opened
- 2
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 86%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (yr3)
- +50.0%
- Net unit change last year
- 3-yr CAGR
- +200.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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.
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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Starz Program presents a caution-to-high-risk investment with weak unit economics, unprotected territory, high entry costs relative to earnings potential, and minimal system growth despite 50% YoY unit expansion from a negligible base.
Audited financials (Item 21)
Yes · Metwally CPA PLLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 45 / 100 rating
- 01MINORUnprotected territory creates direct competition risk among 7 franchisees
- 02MINORFranchise fee ($39,000) represents 59% of initial investment floor, creating high cost-to-entry burden relative to $6,765 average net income
- 03MINORAverage net income of $6,765 annually yields only 5.2% ROI on $130,625 max investment in year one—far below franchise industry benchmarks
- 04MEDMinimal unit growth (7 total units) suggests limited brand scale, market acceptance, or franchisee recruitment success
- 05MINOR8% royalty on $10,007 average revenue generates only $801 annually per unit—indicates either weak sales performance or unsustainable unit economics
- 06MEDNo Item 19 (financial performance representations) disclosed—inability to validate claimed revenue/income figures independently
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 |
| Territory type | Geographic area (zip codes or county lines) |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Virginia |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 13 hrs
- On-the-job training
- 13 hrs
- POS system
- QuickBooks Online, Enrollsy, Dropbox
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Online, Enrollsy, Dropbox
Item 20 · call current owners
Franchisee Contacts
6 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Starz Program · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Starz Program franchise?
The total investment to open a Starz Program franchise ranges from $42K – $131K, with an initial franchise fee of $39K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Starz Program franchise owners earn?
According to Item 19 of the Starz Program FDD, the average gross sales per unit is $10K. The median is $11K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Starz Program's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Starz Program (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 Starz Program franchise locations are there?
As of their most recent FDD filing, Starz Program has 7 total units in the United States, including 2 franchised units and 1 company-owned units. 2 new units were opened in the latest reporting year.
Is Starz Program a good franchise to buy?
FranchiseVerdict rates Starz Program as a A-grade franchise with a risk score of 45 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.
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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.