The Exercise Coach Franchise Cost, Revenue & Review 2026
- Investment
- $263K – $481K
- Disclosed sales
- $304K
- gross sales, not profit
- SBA charge-off
- 14.3%
- on 93 loans
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 $263K – $481K, 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 14.3% charge-off rate across 93 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $263K – $481K
- 53rd pct Education
- Avg gross sales
- $304K
- 10th pct Education
- Royalty
- 6.0%
- 7th pct Education
- Units
- 221
- 72nd pct Education
- SBA charge-off
- 14.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education median · 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 $263K – $481K including a $50K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $304K/year (median $296K).
- RISKVerdict B (Above average), verdict score 65/100 (higher is better). SBA loan charge-off rate of 14.3% across 93 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +6 franchised outlets in the latest year (11 opened, 5 closed); 18 signed but not yet open (Item 20).
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 91% above 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 | $183K | $387K |
| Total initial investment | $263K | $481K |
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
- $263K – $481K
- 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%
- Set by a formula · 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 |
| Inventory (initial) | $3K – $4K |
| Total fee load | 7.0% of rev |
What do units actually make?
Average unit sales run 25% below the education norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for THE EXERCISE COACH until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$410K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own 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?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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 16 · large
- Range (low → high)
- $109K→$734KCited, not corroborated — printed on page 49 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- 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 0.8x 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: 0.8x.
Fee burden
Total ongoing fee load of 7.0% — below the Education median of 9.0%.
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 medians
How The Exercise Coach Compares
Category median of published Education brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 221
- Opened
- 11
- Last reporting year
- Closed
- 5
- Terminated
- 5
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.3%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 5
- Not renewed
- 0
- Transferred
- 13
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 18
- 0.08 per open outlet · Item 20 Table 5
- Projected new
- 17
- Franchisor's next-year forecast
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
- 14.3%
- on 93 loans · 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)
- 85.7%
- 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for The Exercise Coach from SBA 7(a) FOIA data.
- Principal loss rate
- 1.7%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 7.58%
- Avg chargeoff amount
- $71K
- Lender concentration
- 30.1%
- Job velocity
- 3.5 per $100K
- NAICS benchmark
- 12.5%
- NAICS 713940
- Jobs supported
- 597
Top SBA lendersTop lender holds 30% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 28 | $4.3M | 0.0% |
| 2 | Stearns Bank National Association | 12 | $1.9M | 33.3% |
| 3 | Cadence Bank | 8 | $2.3M | 0.0% |
| 4 | United Midwest Savings Bank National Association | 3 | $450K | N/A |
| 5 | United Community Bank | 3 | $515K | N/A |
| 6 | BNC National Bank | 2 | $240K | 0.0% |
| 7 | East Cambridge Savings Bank | 2 | $163K | 0.0% |
| 8 | Cornerstone Bank | 2 | $200K | 0.0% |
| 9 | BayFirst National Bank | 2 | $139K | 100.0% |
| 10 | U.S. Bank, National Association | 2 | $314K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 13 | 0 | 0.0% |
| TXTexas | 12 | 0 | 0.0% |
| MOMissouri | 8 | 3 | 100.0% |
| AZArizona | 5 | 0 | 0.0% |
| FLFlorida | 5 | 1 | 50.0% |
| MAMassachusetts | 5 | 0 | 0.0% |
| COColorado | 4 | 0 | -- |
| OHOhio | 4 | 0 | 0.0% |
| PAPennsylvania | 4 | 0 | 0.0% |
| GAGeorgia | 3 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 14.3% — 11% 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.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CYGAN HAYES, Ltd.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited financial statements (Exhibit "H") for Exercise Coach USA, LLC are not present/legible in the extracted text (image-based statements not OCR'd), so no balance-sheet figures (assets, liabilities, member's equity, net income) could be captured. Total revenue of $7,603,198 for FY ended Dec 31, 2024 is disclosed in Item 7 (franchisor's own total revenue), not read from the Item 21 audited statement; year-2 revenue not disclosed in body text.
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
Score breakdown · what drove the 65 / 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 | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 5,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| 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 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 90 hrs
- On-the-job training
- 10 hrs
- Ongoing training
- Required
- Site selection
- Franchisee (subject to franchisor approval)
- Franchisor financing
- Not offered
- Item 10
- 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
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 $263K – $481K, 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.
Who owns THE EXERCISE COACH?
THE EXERCISE COACH is franchised by Exercise Coach USA, LLC. Source: FDD Item 1, 2026 filing.
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 14.3% across 93 loans, meaning 14.3% 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 221 total units in the United States, including 217 franchised units and 4 company-owned units. 11 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 B-grade franchise with a verdict score of 65 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.