StrideFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Stride franchise requires a total initial investment of $380K – $555K, including a $60K franchise fee and an ongoing 7.0% royalty[2]. Per the 2023 FDD, average unit revenue was $36K[2]. SBA 7(a) loans show a 25.0% charge-off rate across 12 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $380K – $555K
- 69th pct Health & Fitn…
- Avg gross sales
- $36K
- 1st pct Health & Fitn…
- Royalty
- 7.0%
- 28th pct Health & Fitn…
- Units
- 18
- 51st pct Health & Fitn…
- SBA default
- 25.0%
- 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
At 0.1x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
25.0% of SBA loans charged off across 12 loans, above the 16% franchise average.
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $380K – $555K including a $60K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $36K/year. Note: this is gross profit, not take-home income.
- Verdict F (Bottom Quintile) with a risk score of 97/100. SBA loan charge-off rate of 25.0% across 12 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Emerging franchise: only 3 years of franchising with 18 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Stride Franchise SPV, LLC
- Parent company
- XPOF Assetco, LLC
- Ultimate parent
- Xponential Fitness, LLC
- Incorporated in
- DE
- HQ
- 17877 Von Karman Ave., Suite 100, Irvine, CA 92614
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $4.1M
- Most recent fiscal year
Overview
About
Stride appears to be a service-based or retail franchise model (specific business type not provided in data). Franchisees manage daily operations, customer acquisition, service/product delivery, and staff management while paying 7% of gross sales as royalty fees to support corporate overhead and brand initiatives.
- CEO
- Sarah Luna
- Headquarters
- CA
- Founded
- 2023
- FDD year
- 2023
- States available
- 9
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $10K | $40K |
| Equipment, build-out, other | $310K | $455K |
| Total initial investment | $380K | $555K |
Source: Stride 2023 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
$10K
29.0% margin
Unlevered ROIC
2%
EBITDA / total invested capital
Payback
47.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $380K – $555K
- Below avg, review vs category
- Liquid capital req'd
- $10K – $40K
- Better than avg vs category
- Franchise fee
- $60K – $60K
- Below avg, review vs category
- Royalty
- 7.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $4K |
| Training fee | $5K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $36K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 11 units
- vs category median 11
- Range (low → high)
- $5K→$67K
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
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 Stride Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 18
- Opened
- 8
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 94%
- vs corporate-owned
- Multi-unit owners
- 5.0%
- Net growth (yr3)
- +70.0%
- Net unit change last year
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Transfers (3yr)
- 2
- Projected new
- 7
- Franchisor's next-year forecast
- Transfer rate
- 11.1%
- Owners selling to other franchisees
- Ceased ops
- 5.6%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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.
- Total loans
- 12
- Loan volume
- $5.4M
- Median loan
- $460K
- 50th percentile
- Charge-off rate
- 25.0%
- 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)
- 75.0%
- 5-yr charge-off
- 25.0%
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Stride's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
A 25.0% charge-off rate means roughly 1 in 4 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Stride is a micro-system with undisclosed profitability, potential franchisor financial distress, and insufficient unit density to validate the business model.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 97 / 100 rating
- 01MEDNo Item 19 (Average Net Income) disclosed — impossible to assess true profitability against $379k-$554k investment
- 02HIGHGoing Concern status is False — suggests franchisor financial instability or regulatory issues
- 03MINOROnly 18 units system-wide with 70% YoY growth appears inflated from very small base (likely 10-11 units prior year)
- 04MINORHigh royalty rate (7%) on modest average revenue ($309k) creates thin margin risk
- 05MINORFranchise fee ($60k) represents 15.8-18% of total investment — typical is 10-12%
- 06MINORAverage revenue of $309k with unknown profitability makes ROI calculation impossible
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 | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Designated Territory |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Irvine, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 48 hrs
- On-the-job training
- 25 hrs
- Training location
- On-site and off-site
- POS system
- Club Ready
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Club Ready
Item 20 · call current owners
Franchisee Contacts
26 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Stride · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Stride franchise?
The total investment to open a Stride franchise ranges from $380K – $555K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Stride franchise owners earn?
According to Item 19 of the Stride FDD, the average gross sales per unit is $36K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Stride's franchise failure rate?
Based on SBA 7(a) loan data, Stride has a charge-off rate of 25.0% across 12 loans, meaning 25.0% 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 Stride franchise locations are there?
As of their most recent FDD filing, Stride has 18 total units in the United States, including 3 franchised units and 1 company-owned units. 8 new units were opened in the latest reporting year.
Is Stride a good franchise to buy?
FranchiseVerdict rates Stride as a F-grade franchise with a risk score of 97 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.