World GymFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A World Gym franchise requires a total initial investment of $453K – $2.2M, including a $25K franchise fee. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 11 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $453K – $2.2M
- 81st pct Health & Fitn…
- Avg gross sales
- N/A
- 59th pct Health & Fitn…
- Royalty
- N/A
- Units
- 18
- 51st pct Health & Fitn…
- SBA default
- 0.0%
- 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
Only 0.0% of 11 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 33 to 18 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $453K – $2.2M including a $25K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 83/100. SBA loan charge-off rate of 0.0% across 11 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- World Gym International, LLC
- Parent company
- World Fitness Services, Limited (“WFSL”)
- Incorporated in
- DE
- HQ
- 1901 Avenue of the Stars, Suite 1100, Los Angeles, California 90067
- Auditor
- Chen & Fan Accountancy Corporation
- Audited financials
- Franchisor revenue
- $3.2M
- vs $3.6M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2026
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
World Gym franchisees operate full-service fitness centers offering gym memberships, personal training, group classes, and ancillary services (supplements, merchandise). Day-to-day operations include managing facility maintenance, staff scheduling, member retention programs, marketing, and revenue collection from monthly membership dues and personal training services.
- CEO
- John Caraccio
- Headquarters
- CA
- Founded
- 2008
- FDD year
- 2026
- States available
- 9
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $45K | $150K |
| Equipment, build-out, other | $383K | $2.1M |
| Total initial investment | $453K | $2.2M |
Source: World Gym 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
- $453K – $2.2M
- Below avg, review vs category
- Liquid capital req'd
- $45K – $150K
- Below avg, review vs category
- Franchise fee
- $25K – $25K
- Better than avg vs category
- Royalty
- $1,250 per month, with a $50 per month increase upon each…
- Ad fund
- $350 per month
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $165 |
| Transfer fee | $5K |
| Renewal fee | $3K |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Health & Fitness averages
How World Gym Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 18
- Opened
- 0
- Last reporting year
- Closed
- 2
- Turnover rate
- 11.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -10.0%
- Net unit change last year
- 3-yr CAGR
- -25.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 9 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.
9
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
- 11
- Loan volume
- $4.4M
- Median loan
- $196K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into World Gym's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 7-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 11 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
World Gym presents meaningful risk due to declining unit count, lack of financial transparency, high capital requirements, and an unstable franchise system that may struggle to support new franchisees.
Audited financials (Item 21)
Yes · Chen & Fan Accountancy Corporation⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 83 / 100 rating
- 01MEDUnit count declined 10% YoY (18 units total) — indicates contracting franchise system with potential viability concerns
- 02MINORNo average revenue or net income disclosure (no Item 19) — impossible to assess ROI or typical unit economics
- 03MEDHigh initial investment range ($452.5K–$2.2M) with no disclosed profitability benchmarks — significant capital at risk
- 04MINOREscalating royalty structure ($1,250/month + $50/year) creates headwind for mature locations and compounds ongoing costs
- 05MINORFitness industry remains highly competitive post-pandemic with shift to low-cost and digital alternatives
- 06MEDSmall franchise footprint (18 units) suggests limited brand recognition and support infrastructure
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 | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Designated Territory |
| 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 | Delaware |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 56 hrs
- On-the-job training
- 8 hrs
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
World Gym · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a World Gym franchise?
The total investment to open a World Gym franchise ranges from $453K – $2.2M, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do World Gym franchise owners earn?
World 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 World Gym's franchise failure rate?
Based on SBA 7(a) loan data, World Gym has a charge-off rate of 0.0% across 11 loans, meaning 0.0% 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 World Gym franchise locations are there?
As of their most recent FDD filing, World Gym has 18 total units in the United States, including 33 franchised units and 0 company-owned units.
Is World Gym a good franchise to buy?
FranchiseVerdict rates World Gym as a F-grade franchise with a risk score of 83 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.