The Little GymFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A THE LITTLE GYM franchise requires a total initial investment of $519K – $757K, including a $60K franchise fee. Per the 2025 FDD, average unit revenue was $992K[2]. SBA 7(a) loans show a 9.2% charge-off rate across 261 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $519K – $757K
- 87th pct Health & Fitn…
- Avg gross sales
- $992K
- 47th pct Health & Fitn…
- Royalty
- N/A
- Units
- 219
- 92nd pct Health & Fitn…
- SBA default
- 9.2%
- system-wide median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1992. Systems this mature have refined operations and brand recognition.
The system grew 18% year-over-year. Fast growth means demand, but can strain support.
34% cash-on-cash return (based on EBITDA). Above the 20% threshold most investors target.
Bottom line
- Total investment $519K – $757K including a $60K franchise fee.
- Average unit revenue of $992K/year (median $687K), with an estimated 34% cash-on-cash return (based on EBITDA).
- Verdict B (Above Average) with a risk score of 59/100. 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, 2010–2024).
- System growing at 26.0% CAGR over 3 years with 219 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- TLGI, LLC
- Parent company
- Unleashed Brands, LLC
- Incorporated in
- DE
- 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
Franchisees operate children's fitness and enrichment centers (typically 2,500-4,000 sq ft) offering gymnastics, sports, music, and dance classes to infants through pre-K children. Day-to-day operations include teaching movement-based classes, managing enrollment, staffing instructors, maintaining facility cleanliness and safety compliance, and executing local marketing to drive member acquisition and retention.
- CEO
- Samantha Musonda
- Headquarters
- TX
- Founded
- 1992
- FDD year
- 2025
- States available
- 34
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.
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
$308K
31.0% margin
Unlevered ROIC
44%
EBITDA / total invested capital
Payback
27 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $519K – $757K
- Below avg, review vs category
- Liquid capital req'd
- $39K – $81K
- Below avg, review vs category
- Franchise fee
- $48K – $60K
- Below avg, 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
- Payback period
- 3.0 yrs
- From FDD / Item 19
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 |
Financial Performance
- Avg gross sales
- $992K
- Per unit, per year
- Median gross sales
- $687K
- Avg ebitda
- $216K
- Reported as EBITDA in FDD Item 19
- Cash-on-cash
- 33.8%
- Based on EBITDA / investment midpoint
- Item 19 type
- Actual
- Sample size
- 140 units
- vs category median 11 · large
- Range (low → high)
- $111K→$1.9M
- Cohort dispersion (min → max)
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 180 Health & Fitness brands
vs Health & Fitness averages
How The Little Gym Compares
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
- 100%
- vs corporate-owned
- Net growth (yr3)
- +17.8%
- Net unit change last year
- 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)
- 85.1%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 87
- Defaults
- 24
Vintage analysis
The Little Gym charge-off rate by loan vintage
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
The Little Gym presents meaningful investment risk due to undisclosed unit-level financials, multiple litigation cases involving contract breaches and trade secret disputes, and state registration violations — limiting due diligence capability despite modest unit growth.
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 59 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed — impossible to validate ROI claims or compare profitability against $519k-$757k investment
- 02HIGHMultiple litigation cases including breach of contract, non-compete disputes, and trade secret theft suggest contentious franchisor-franchisee relationships
- 03MINORRegistration violations in Maryland and California (affiliate brand) indicate compliance issues with state franchise laws
- 04MINORHigh royalty floor ($2,500/month minimum) creates fixed cost burden; franchisees must generate ~$31,250 monthly sales just to break even on royalties alone
- 05HIGHUnit growth of 17.8% YoY is positive but insufficient to offset litigation and disclosure concerns in risk profile
- 06HIGHAbsence of going concern disclaimer is positive, but combined with other factors suggests operational friction
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 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
120 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?
According to Item 19 of the THE LITTLE GYM FDD, the average gross sales per unit is $992K. The median is $687K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 176 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 risk score of 59 out of 100, 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.
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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.