Bottom line
- Total investment $458K – $2.2M including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $725K/year.
- Rated CAUTION with a risk score of 72/100.
- Emerging franchise — only 1 year of franchising with 1 units. Early-stage systems carry higher risk but may offer better territory availability.
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 Styles Studios Fitness unit return on the cash you put in?
Unlevered ROIC · per unit
15%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Styles Studios Fitness units return on equity?
Equity IRR · 5-yr
31.5%
3.93× MOIC
Year-1 DSCR
2.56×
EBITDA ÷ debt service
Equity required
$7.2M
on $17.4M purchase
Total debt
$10.2M
SBA $5.0M + senior + seller note
Overview
About
Styles Studios Fitness franchisees operate boutique fitness studios offering specialized classes (likely yoga, pilates, barre, or spin) in a protected local territory. Day-to-day operations include managing class schedules, instructing or overseeing certified instructors, member retention, facility maintenance, and driving local marketing to maintain the $725k average revenue base.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Styles Studios Fitness presents HIGH RISK due to franchisor going concern issues, single-unit system with unknown growth, undisclosed net income, and inability to validate franchisee profitability or franchisor viability.
Score breakdown · what drove the 72 / 100 rating
- 01HIGHGoing Concern status is False — indicates potential financial distress or viability questions with the franchisor
- 02MEDOnly 1 unit in system with unknown growth trajectory — extremely limited track record and no evidence of scalability
- 03MEDNet Income not disclosed in FDD Item 19 — impossible to assess actual profitability; average revenue of $725k may mask significant losses
- 04MINORWide investment range ($458k–$2.2M) with no clear cost drivers — suggests inconsistent unit economics or hidden variables
- 05MINOR6% royalty on gross sales with no net income transparency — franchisee profitability unclear relative to fee burden
- 06MINORSingle-unit franchise with protected territory — cannot validate multi-unit success, market demand, or franchisor support capability
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
15 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Styles Studios Fitness · FDD (2025) PDF