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.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 16 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one World Gym unit return on the cash you put in?
Unlevered ROIC · per unit
15%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 57 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
23 numbers
One-time purchase · CSV download · Validation questions included
FDD download
World Gym · FDD (2026) PDF