About Discover Strength Franchise
Discover Strength is a boutique fitness franchise offering one on one and small group strength training sessions in a studio environment.
The brand targets customers of all ages, primarily families with median household incomes of $100,000 to $120,000, in urban and suburban areas seeking effective, personalized fitness experiences.
The franchise fee is $49,000, and the company has been franchising since 2020.
Discover Strength Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales | National brand fund |
| Total Investment Range | $322,000 – $502,000 | Includes build-out, inventory, working capital |
The investment range of $322K–$502K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (2% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,000 | $49,000 |
| Rent (3 months) | $15,000 | $28,000 |
| Lease, Utility and Security Deposits | $0 | $10,000 |
| Design and Architectural Fees | $7,000 | $12,000 |
| Leasehold Improvements | $130,000 | $200,000 |
| Equipment | $80,000 | $125,000 |
| Fixtures & Furniture | $5,000 | $8,000 |
| Supplies | $3,000 | $5,000 |
| Management System and Designated Software | $2,000 | $4,000 |
| Signage | $12,000 | $28,000 |
| Training Expenses | $2,000 | $8,000 |
| Opening Advertising and Promotion | $8,000 | $8,000 |
| Licenses, Permits and Professional Fees | $3,000 | $5,000 |
| Insurance | $1,000 | $2,000 |
| Additional Funds - 3 months | $5,000 | $10,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of then-current standard initial franchise fee if the transferee is a new Discover Strength™ franchisee, or 25% of our then-current standard initial franchise fee if the transferee is an existing Discover Strength™ franchisee. If the transfer involves less than a “controlling interest” in you, the fee will be reduced to $2,000. |
| Renewal Fee | $5,000 |
| Technology Fee | $350 per month |
| Audit Fee | Cost of audit plus interest from due date (Payable only if audit shows an understatement of at least 2% of Gross Sales for any month) |
| Local Marketing Spend | 2% of Gross Sales during the previous calendar quarter (minimum) |
| Advertising Cooperative | Currently not collected (Established by us) |
| Software License Fees | May be charged in the future (currently $0) |
| Studio Opening Campaign | $8,000 (minimum, if not spent locally, difference deposited into System Marketing Fund) |
| Initial Training Program | Our then-current fee (currently $2,000) plus other costs and expenses we incur (for new General Manager) |
| Exercise Physiologist Onboarding | Currently $500 for a 3-day training period (optional) |
| Training Reimbursement Fee | 20% of the exercise physiologist’s annual salary (if hiring franchisor's/affiliate's physiologist) |
| Supplemental or Refresher Training | Our then-current fee (currently $1,000) plus other costs and expenses we incur |
| Income and Sales Taxes | Cost of all taxes arising from our licensing of intellectual property to you (if applicable) |
| Approved Supplier/Product Testing Fee | Our reasonable and actual costs incurred |
| Relocation Fee | 25% of our then-current standard initial franchise fee |
| Remodeling Expenses | Will vary under circumstances |
| Costs and Attorneys’ Fees | Reasonable costs and expenses (if you lose in a dispute) |
| Interest Expenses | Lesser of 18% per year or the maximum rate permitted by law |
| Insufficient Fund Fee | Up to $250 for each delinquent payment |
| Insurance | Cost of insurance (reimbursement if you fail to maintain) |
| Operating Assistance | Currently $500 per day plus reimbursement of our related travel, room and board expenses |
| Mystery Shopper or Compliance Assessment Program Expenses | Cost of third party mystery shopper or other compliance assessment services |
| Management Services | Our then-current fee, which is currently $400 per day (if we appoint a manager) |
| Franchise Convention Fee | Up to $500 per attendee |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 10 consecutive days (80 hours total) |
| Classroom Training | 40 |
| On-the-Job Training | 40 |
| Training Location | St. Louis Park, Minnesota, or another location we designate. |
| Additional Training | We may require your General Manager to attend all supplemental and refresher training programs that we designate for up to 5 days each calendar year. All new General Managers must complete our designated initial training program. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | approximately 100,000 people |
| Description | The Protected Territory will generally consist of a population containing approximately 100,000 people, as determined by the franchisor. The franchisor will not establish other franchised or company-owned Discover Strength™ businesses within this territory, provided the franchisee complies with the Franchise Agreement. The continuation of territorial protection is dependent on achieving minimum sales performance levels. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 3 additional 5-year terms |
| Renewal Fee | $5,000 |
| Renewal Conditions | Provide advance notice (180-365 days), have complied with current franchise agreement, General Manager and Principal Owner satisfactorily complete any new/refresher training programs, sign new agreement (which may contain materially different provisions), remodel, provide proof of maintaining possession of the Studio premises, pay a renewal fee, and sign a general release of claims. |
| Transfer Fee | 50% of then-current standard initial franchise fee if the transferee is a new Discover Strength™ franchisee, or 25% of our then-current standard initial franchise fee if the transferee is an existing Discover Strength™ franchisee. If the transfer involves less than a “controlling interest” in you, the fee will be reduced to $2,000. |
| Transfer Conditions | All accrued monetary obligations satisfied, transferee and Principal Owners approved, proposed General Manager meets standards, transferee signs current franchise agreement and completes training, landlord consents to lease transfer, pay applicable transfer fee, sign general release, franchisor approves sale documents, agree to comply with post-termination obligations. For non-controlling interest transfers: 30 days notice, new Principal Owner signs personal guaranty, pay $2,000 fee, provide requested information. |
| Termination for Cause | Franchisor may terminate for various defaults including: General Manager/Principal Owner failing training, failure to open on time, material violations of agreement, material misrepresentation, conviction of felony/moral turpitude, non-compliance with system standards, failure to pay fees, insolvency, assignment for benefit of creditors, abandonment, acts damaging goodwill, unauthorized transfer, threat to public health/safety, health code violation, lease expiration/termination (unless relocated), understatement of Gross Sales by 2%+, willful falsification of reports, or failure to meet Minimum Performance Requirement. Some defaults have cure periods (30 days generally, 10 days for non-payment, 72 hours for health code), others are immediate termination (e.g., 3 material violations in 12 months, non-curable breach, willful deception, felony conviction, abandonment). |
| Non-Compete Period | 18 months after termination or expiration |
| Non-Compete Details | During the term, franchisee (and Principal Owners) cannot be involved in any Competing Business (strength training, fitness training, or similar physical training services/products). Post-term, for 18 months after expiration/termination or ceasing operations (whichever is later), cannot be involved in a Competing Business that is located within an 8-mile radius of the former Studio site or any other then-existing Discover Strength™ Studio. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You must designate an individual we approve and who successfully completes our initial training program and other required training as the General Manager of the Studio. If the General Manager is not a Principal Owner (owning 10% or greater interest), a Principal Owner must also attend and successfully complete the initial training program. The General Manager is responsible for day-to-day Studio operations on a full-time basis and may not engage in conflicting business activities. All Principal Owners must sign a Guaranty and Assumption of Obligations. |
| Required Suppliers | Currently, you must purchase all strength training equipment from us. In addition, we or our designees may be the designated or sole source of supply for certain other products and services. As of the issuance date of this disclosure document, you must use the third-party firm we designate for accounting services and membership management, which includes the use of QuickBooks Online, Mindbody, Listen360 and HubSpot. |
| Supply Restrictions | You must purchase for use or sale at your Studio those products used in or sold at your Studio and other services or products we designate from us, our designees or from other suppliers we approve. If you propose to use any product, material, fixture, equipment, sign or other item that we have not approved, or purchase any items from any supplier that we have not approved, you must first notify us in writing and must provide us with sufficient information. We may require you to pay us our then-current inspection and evaluation fee, plus our cost incurred evaluating the alternative product or supplier. |
| Franchisor Revenue from Suppliers | During our last fiscal year ending December 31, 2021, we received $48,993 as a result of franchisee purchases of products and services, which represents less than 48% of the total $103,230 revenue we received in 2021. |
Discover Strength Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Discover Strength Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Discover Strength System Growth
Discover Strength currently operates 2 franchised locations and 6 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 0 | 5 |
| 2020 | 2 | 0 | 7 |
| 2021 | 2 | 1 | 8 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 5 states: IL, MN, ND, SD, WI
Franchisor Financials (Item 21)
Audited by Baker Tilly US, LLP for year ending December 31.
Discover Strength Franchise — FAQ
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