FDD Analysis 2025 FDD

The Little Gym Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from The Little Gym's FDD, including franchise costs (Item 7), ongoing fees (Item 6), financial performance data (Item 19), and unit growth trends (Item 20).

What the The Little Gym FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Revenue data provided

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$519,265 - $756,995
Franchise Fee

Investment Breakdown

Development Fee$113,050 - $113,050
Lease Payments (one month rent and security deposit)$12,000 - $30,000
Leasehold and Tenant Improvements$177,518 - $300,248
Architectural & Construction Management Fees$16,700 - $25,000
Signage (interior and exterior)$24,000 - $35,000

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee8% of gross sales
Marketing/Advertising Fee8.5% of gross sales

Other Ongoing Fees

NAF Contribution2.5%
Technology FeeVaries
Call Center FeeVaries
Initial Training FeeVaries
Additional TrainingVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

Median Revenue$334,588/year
Disclosure Year2025
Reporting Units
Revenue VarianceHigh variance (wide performance range)

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

219

Total Units

+33

Net Growth (YoY)

+17.7%

Growth Rate

Franchised Units218
Company-Owned Units1

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

This FDD discloses litigation history. Review Item 3 carefully to understand the nature and outcome of any legal proceedings.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

Related Resources

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