The Exercise Coach Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
The Exercise Coach is a boutique-fitness franchise offering short, one-on-one strength workouts using smart, AI-guided equipment. Franchisees run compact studios staffing coaches on a recurring-membership model.
FranchiseVerdict summary · 2026
A THE EXERCISE COACH franchise requires a total initial investment of $260K – $390K, including a $50K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $304K[2]. SBA 7(a) loans show a 4.3% charge-off rate across 93 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $260K – $390K
- 54th pct Education
- Avg gross sales
- $304K
- 10th pct Education
- Royalty
- 6.0%
- 6th pct Education
- Units
- 215
- 72nd pct Education
- SBA charge-off
- 4.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education 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 $260K – $390K including a $50K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $304K/year (median $296K).
- RISKVerdict A (Strongest tier), verdict score 76/100 (higher is better). SBA loan charge-off rate of 4.3% across 93 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Exercise Coach USA, LLC
- CEO title
- Chief Executive Officer and Manager
- Brian R. Cygan
- Incorporated in
- Illinois
- HQ
- 531 Telser Rd., Lake Zurich, Illinois 60084
- Auditor
- CYGAN HAYES, Ltd.
- Audited financials
- Franchisor revenue
- $6.9M
- vs $7.5M prior year
Overview
About
- CEO
- Brian R. Cygan
- Headquarters
- IL
- Founded
- 2009
- FDD year
- 2026
- States available
- 37
Can you afford it, and what does the money buy?
Entry cost runs 51% below the typical education franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $30K | $45K |
| Equipment, build-out, other | $180K | $295K |
| Total initial investment | $260K | $390K |
Source: THE EXERCISE COACH 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $260K – $390K
- Middle of category vs category
- Liquid capital req'd
- $30K – $45K
- Middle of category vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $750 |
| Transfer fee | $15K |
| Renewal fee | $10K |
| Total fee load | 7.0% of rev |
What do units actually make?
Average unit sales run 62% below the education norm.
Source: FDD 2026 · Item 19
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
$49K
16.0% margin
Unlevered ROIC
13%
EBITDA / total invested capital
Payback
7.4 yrs
cash-on-cash, unlevered
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one THE EXERCISE COACH unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
13%
Below the 30–60% attractive-franchise band
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 THE EXERCISE COACH units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$548K
on $2.7M purchase
Total debt
$2.2M
SBA $1.4M + senior + seller note
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: 2026 FDD
Financial Performance
- Avg gross sales
- $304K
- Per unit, per year
- Median gross sales
- $296K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Gross Sales (historical, Quartile breakdown) and Select Operating Expenses
- Sample size
- 206 outlets
- vs category median 17 · large
- Range (low → high)
- $109K→$734K
- Cohort dispersion (min → max)
- Quartile band
- $174K→$460K
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 204 Education brands
Revenue is only 0.9x 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 $304K/year in gross sales. Revenue-to-investment ratio: 0.9x.
Fee burden
Total ongoing fee load of 7.0% — below the Education average of 10.6%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
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 Education averages
How The Exercise Coach Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 215
- Opened
- 28
- Last reporting year
- Closed
- 8
- Terminated
- 8
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.6%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 20
- Closed (3yr)
- 8
- Terminated (3yr)
- 8
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 13
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 37 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.
37
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 93
- Loan volume
- $17.2M
- Median loan
- $185K
- 50th percentile
- Charge-off rate
- 4.3%
- 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)
- 95.7%
- 5-yr charge-off
- 22.2%
- Loans approved 2021+
- Active lenders
- 34
- Defaults
- 4
- Typical loan rate
- 7.6%
- avg rate to borrowers
- Franchised industry avg
- 15.8%
- brand beats franchise avg ↓
- Jobs supported
- 597
- 3.5 per loan
- Lender concentration
- 30%
- top lender's share
Borrower mix: 92% went to startups / new businesses, 8% to established operators
Franchise vs independent — in fitness and recreational sports centers, franchised businesses charge off at 15.8% vs 18.2% for independents — franchising is associated with 13% lower SBA default risk in this category.
Vintage analysis
The Exercise Coach charge-off rate by loan vintage
Top lenders financing The Exercise Coach franchisees
Showing 3 of 34 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into The Exercise Coach's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 11-year lending trend
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 4.3% — 73% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Clean profile: zero litigation, no bankruptcy, no going-concern, audited financials with $7.6M revenue and Item 19 disclosed. 215 units (211 franchised) with low 7.6% turnover.
Audited financials (Item 21)
Yes · CYGAN HAYES, Ltd.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 76 / 100 verdict
- 01HIGH0 litigation, no bankruptcy
- 02MEDAudited, Item 19 disclosed
- 03MINOR$7.6M revenue, 215 units, 7.6% turnover
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 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Household Count |
| Protected territory | Yes |
| Online sales rights | Restricted |
| 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 | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 90 hrs
- On-the-job training
- 10 hrs
- POS system
- HubSpot, QuickBooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: HubSpot, QuickBooks Online
Item 20 · call current owners
Franchisee Contacts
241 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
THE EXERCISE COACH · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a THE EXERCISE COACH franchise?
The total investment to open a THE EXERCISE COACH franchise ranges from $260K – $390K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do THE EXERCISE COACH franchise owners earn?
According to Item 19 of the THE EXERCISE COACH FDD, the average gross sales per unit is $304K. The median is $296K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the THE EXERCISE COACH 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 THE EXERCISE COACH FDD and qualifies whose outlets they describe.
What is THE EXERCISE COACH's franchise failure rate?
Based on SBA 7(a) loan data, THE EXERCISE COACH has a charge-off rate of 4.3% across 93 loans, meaning 4.3% 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 THE EXERCISE COACH franchise locations are there?
As of their most recent FDD filing, THE EXERCISE COACH has 215 total units in the United States, including 211 franchised units and 4 company-owned units. 28 new units were opened in the latest reporting year.
Is THE EXERCISE COACH a good franchise to buy?
FranchiseVerdict rates THE EXERCISE COACH as a A-grade franchise with a verdict score of 76 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 THE EXERCISE COACH, you can request corrections or provide updated information.
Other Education franchises
Compare similar franchise opportunities in the Education category
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.