The Little Gym Franchise Cost, Revenue & Review 2026
- Investment
- $519K – $757K
- Disclosed sales
- $699K
- gross sales, not profit
- SBA charge-off
- 14.9%
- on 261 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
The Little Gym is a children's-development franchise offering gymnastics, movement, and enrichment classes for infants through pre-teens. Franchisees run a facility teaching classes, hosting parties, and managing enrollment and instructors.
FranchiseVerdict summary · 2026
A THE LITTLE GYM franchise requires a total initial investment of $519K – $757K, including a $60K franchise fee and an ongoing 8.0% royalty[2]. Per the 2025 FDD, average unit revenue was $699K[2]. SBA 7(a) loans show a 14.9% charge-off rate across 261 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: medium - issued 12 to 24 months ago; a newer filing is likely on file
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 scored5 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $519K – $757K
- 87th pct Health & Fitn…
- Avg gross sales
- $699K
- Outlet subset26th pct Health & Fitn…
- Royalty
- 8.0%
- 72nd pct Health & Fitn…
- Units
- 219
- 91st pct Health & Fitn…
- SBA charge-off
- 14.9%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness 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 $519K – $757K including a $60K franchise fee, 8.0% ongoing royalty.
- RETURNSAverage unit revenue of $699K/year (median $687K) (reported for a subset of outlets rather than the whole system).
- RISKVerdict B (Above average), verdict score 64/100 (higher is better). SBA loan charge-off rate of 14.9% across 261 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +33 franchised outlets in the latest year (39 opened, 6 closed) (Item 20).
- GROWTHSystem growing at 26.0% CAGR over 3 years with 219 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- TLGI, LLC
- Parent company
- Unleashed Brands, LLC
- FDD Item 1, page 8 of the 2025 FDD
- Ultimate parent
- UA Holdings, LLC
- FDD Item 1, page 8 of the 2025 FDD
- Predecessor
- The Little Gym International, Inc.
- Prior franchisor entity
- CEO title
- President
- Samantha Musonda
- Incorporated in
- Delaware
- HQ
- 2350 Airport Freeway, Suite 505, Bedford, Texas 76022
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $194.7M
- vs $151.5M prior year
Same owner · FDD Item 1, page 8
7 other brands on this site name UA Holdings, LLC as parent or ultimate parent in their own FDD.
- Class 101A
- Premier Martial ArtsC
- SNAPOLOGYA
- Sylvan LearningB
- Urban Air Adventure ParkA
- Water Wings Swim SchoolC
- XP LeagueB
Portfolio: Unleashed Brands
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Samantha Musonda
- Headquarters
- TX
- Founded
- 1992
- FDD year
- 2025
- States available
- 34
Can you afford it, and what does the money buy?
Entry cost runs 63% above the typical health & fitness franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $39K | $81K |
| Equipment, build-out, other | $421K | $616K |
| Total initial investment | $519K | $757K |
Source: THE LITTLE GYM 2025 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
- $519K – $757K
- Bottom third — review vs category
- Liquid capital req'd
- $39K – $81K
- Bottom third — review vs category
- Franchise fee
- $60K – $60K
- Bottom third — review vs category
- Royalty
- 8.0%
- Set by a formula · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 1.0% |
| Technology fee | $119 |
| Transfer fee | $30K |
| Renewal fee | $15K |
| Inventory (initial) | $65K – $75K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 47% above the health & fitness norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2025 · 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 LITTLE GYM 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
$698K
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 LITTLE GYM 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: 2025 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $699K
- Per unit, per year
- Median gross sales
- $687K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Actual
- Sample size
- 140 outlets
- vs category median 11 · large
- Range (low → high)
- $111K→$1.9MCited, not corroborated — printed on page 63 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 173 Health & Fitness brands
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 $699K/year in gross sales. Revenue-to-investment ratio: 1.1x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 9.0% (near the Health & Fitness median).
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 26.0% CAGR over 3 years across 219 units — operators are staying and new ones are joining.
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 Health & Fitness medians
How The Little Gym Compares
Category median of published Health & Fitness 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 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 219
- Opened
- 39
- Last reporting year
- Closed
- 6
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 2.7%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (3-yr)
- +26.0%
- Net unit change over 3 years
- 3-yr CAGR
- +26.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 2
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 36 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.
Where the owners are · Item 20 owner list
220 current owners across 36 states.
- CA 24
- NJ 22
- NY 19
- TX 19
- FL 18
- GA 12
- NC 12
- MA 11
- CO 9
- AZ 7
- IL 5
- ID 4
- +24 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 261
- Loan volume
- $62.2M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 14.9%
- on 261 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)
- 85.1%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 87
- Defaults
- 24
- Typical loan rate
- 8.6%
- avg rate to borrowers
- Franchised industry avg
- 15.8%
- brand beats franchise avg ↓
- Jobs supported
- 1,780
- 2.9 per loan
- Lender concentration
- 16%
- top lender's share
Borrower mix: 88% went to startups / new businesses, 12% 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 Little Gym charge-off rate by loan vintage
Top lenders financing The Little Gym franchisees
Showing 3 of 87 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 Little Gym from SBA 7(a) FOIA data.
- Principal loss rate
- 5.2%
- Avg SBA guarantee
- 71%
- Avg interest rate
- 8.55%
- Avg chargeoff amount
- $136K
- Lender concentration
- 16.1%
- Job velocity
- 2.9 per $100K
- Startup risk premium
- +9.1pp
- NAICS benchmark
- 12.5%
- NAICS 713940
- Jobs supported
- 1,780
Top SBA lendersTop lender holds 16% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 42 | $10.8M | 0.0% |
| 2 | Wells Fargo Bank National Association | 25 | $3.0M | 17.4% |
| 3 | PNC Bank, National Association | 16 | $1.8M | 12.5% |
| 4 | Readycap Lending, LLC | 11 | $3.2M | 60.0% |
| 5 | First Commonwealth Bank | 11 | $6.2M | N/A |
| 6 | Five Star Bank | 9 | $3.3M | 0.0% |
| 7 | SouthState Bank, National Association | 7 | $2.1M | 0.0% |
| 8 | Stearns Bank National Association | 6 | $1.1M | 0.0% |
| 9 | Zions Bank, A Division of | 5 | $513K | 20.0% |
| 10 | JPMorgan Chase Bank, National Association | 5 | $426K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 43 | 5 | 25.0% |
| GAGeorgia | 19 | 2 | 25.0% |
| NJNew Jersey | 19 | 2 | 20.0% |
| FLFlorida | 14 | 3 | 75.0% |
| PAPennsylvania | 14 | 0 | 0.0% |
| CACalifornia | 13 | 3 | 30.0% |
| MAMassachusetts | 11 | 0 | 0.0% |
| NCNorth Carolina | 10 | 0 | 0.0% |
| NYNew York | 10 | 2 | 28.6% |
| OHOhio | 10 | 0 | 0.0% |
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 here charge off near the 16.0% national average.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Established child-fitness franchisor (since 1992) with 219 units and 26% growth. Financials are parent-level ($351M net worth, -$68.7M net income), so brand-level losses are not attributable to operations. 1 concluded arbitration ($156K award to franchisor). Item 19 disclosed; parent leverage is the only flag and not penalized.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
TLGI, LLC vs. Kids in Motion of Springfield, LLC (arbitration) - concluded January 2025, arbitrator awarded TLGI $156,295.79 for breach of non-compete and unfair competition by former franchisee
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Financial statements are consolidated audited statements of UA Holdings, LLC (ultimate parent, guarantor), not TLGI standalone; TLGI's own franchisee-derived revenue disclosed in Item 8 was $60,367 (0.4% of TLGI total revenues of $15,965,630 for FY2024)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 64 / 100 verdict
- 01MINORParent-level financials (not penalized on operations)
- 02MINOR1 concluded arbitration won by franchisor
- 03MINORStrong growth (26%), 219 units
- 04MEDAudited financials and Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | Radius, zip codes, or geographic boundaries |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 16 |
| Curable defaultsℹ | 16 |
| Mandatory arbitration | Yes |
| Arbitration location | Texas (within a five-mile radius of Franchisor's principal headquarters for Development Agreement disputes) |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 5 |
View Item 3 litigation summary
TLGI, LLC vs. Kids in Motion of Springfield, LLC (arbitration) - concluded January 2025, arbitrator awarded TLGI $156,295.79 for breach of non-compete and unfair competition by former franchisee
Items 10, 11
Training & Operations
- Classroom training
- 44 hrs
- On-the-job training
- 56 hrs
- Ongoing training
- Required
- Site selection
- franchisor approval required within Protected Area
- Franchisor financing
- Not offered
- Item 10
- POS system
- TLG Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: TLG Software
Item 20 · call current owners
Franchisee Contacts
220 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 LITTLE GYM franchise?
The total investment to open a THE LITTLE GYM franchise ranges from $519K – $757K, 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 THE LITTLE GYM franchise owners earn?
According to Item 19 of the THE LITTLE GYM FDD, the average gross sales per unit is $699K. The median is $687K. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns THE LITTLE GYM?
THE LITTLE GYM is franchised by TLGI, LLC. Its parent company is Unleashed Brands, LLC. The ultimate parent named in the FDD is UA Holdings, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the THE LITTLE GYM 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 LITTLE GYM FDD and qualifies whose outlets they describe.
What is THE LITTLE GYM's franchise failure rate?
Based on SBA 7(a) loan data, THE LITTLE GYM has a charge-off rate of 14.9% across 261 loans, meaning 14.9% 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 LITTLE GYM franchise locations are there?
As of their most recent FDD filing, THE LITTLE GYM has 219 total units in the United States, including 218 franchised units and 1 company-owned units. 39 new units were opened in the latest reporting year.
Is THE LITTLE GYM a good franchise to buy?
FranchiseVerdict rates THE LITTLE GYM as a B-grade franchise with a verdict score of 64 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.