The Little Gym Franchise Cost, Revenue & Review 2026
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. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 9.2% charge-off rate across 261 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $519K – $757K
- 86th pct Health & Fitn…
- Avg gross sales
- N/A
- Outlet subset
- Royalty
- N/A
- Units
- 219
- 91st pct Health & Fitn…
- SBA charge-off
- 9.2%
- % 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 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 $519K – $757K including a $60K franchise fee.
- RETURNSItem 19 reports Actual rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 74/100 (higher is better). SBA loan charge-off rate of 9.2% across 261 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- 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
- Ultimate parent
- UA Holdings, LLC
- 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
- $151.5M
- vs $194.7M prior year
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 11% 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
- Greater of 8% of Gross Sales or $2,500 per month
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $119 |
| Transfer fee | $30K |
| Renewal fee | $15K |
| Total fee load | 9.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
THE LITTLE GYM did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one THE LITTLE GYM unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
33%
Within the 30–60% "attractive franchise" band
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
- 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.
No system-wide average is published for this brand. The median and range below are what Item 19 supports; we show an average only where it reconciles against them.
- Item 19 type
- Actual
- Sample size
- 140
- vs category median 12 · large
- Range (low → high)
- $111K→$1.9M
- Cohort dispersion (min → max)
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- 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.
Fee burden
Total ongoing fee load of 9.0% (near the Health & Fitness average).
Disclosure
Item 19 reports Actual rather than annual gross sales, so unit revenue is not directly comparable.
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 averages
How The Little Gym Compares
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
- 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
3-year detail · Item 20
- Transfers (3yr)
- 22
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.
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
- 9.2%
- 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)
- 90.8%
- 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.
Premium insight
SBA Lending Report
Deep-dive into The Little Gym'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
- 33-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 9.2% — 43% 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
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.
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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.
Score breakdown · what drove the 74 / 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 | Radius, zip codes, or geographic boundaries |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 5 |
Items 10, 11
Training & Operations
- Classroom training
- 44 hrs
- On-the-job training
- 56 hrs
- 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
FDD download
THE LITTLE GYM · FDD (2025) PDF
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?
THE LITTLE GYM does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 9.2% across 261 loans, meaning 9.2% 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 A-grade franchise with a verdict score of 74 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
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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.