Discover Strength Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$472,000 - $838,500
Franchise Fee
$34,000
Total US Locations
22
Business Summary
Discover Strength Franchising LLC offers individual unit franchises for operating a Discover Strength business, which provides high-quality strength training experiences to customers of all ages through one-on-one and small group training sessions, along with other related services and products.
Corporate History
Discover Strength Franchising LLC was formed in Minnesota in January 2020. Its predecessor, Discover Strength Personal Fitness Center, Inc. (DSPFC), developed the Discover Strength concept and began operating Studios in May 2006. Discover Strength Franchising LLC started offering franchises for Discover Strength Studios in April 2020.
Financial Overview
Investment Range
$472,000 - $838,500
Franchise Fee (Low)
$34,000
Franchise Fee (High)
$58,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$322,000
Equipment Costs (High)
$575,500
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Discover Strength Franchising LLC has reported net losses for the years ended December 31, 2024, 2023, and 2022. The company's Member's Equity also shows a deficit, meaning liabilities exceed assets, as of December 31, 2024, and 2023. This indicates that Discover Strength Franchising LLC has financial challenges.
Financing Details
Discover Strength Franchising LLC does not offer any direct or indirect financing to its franchisees. Additionally, it does not guarantee any franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
22
Franchised Units
14
Corporate Units
8
Avg Square Footage
2,000
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Discover Strength Franchising LLC has no litigation to report, as stated in Item 3 of its Franchise Disclosure Document. No litigation is required to be disclosed for the franchisor or its management.
Bankruptcy History
Discover Strength Franchising LLC has no bankruptcy history to report, as stated in Item 4 of its Franchise Disclosure Document. No bankruptcy information is required to be disclosed for the franchisor or its management.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Discover Strength franchisees must provide written notice between 180 and 365 days before the term ends. They must be in good standing with the company, having complied with all material provisions and paid all monetary obligations. The General Manager and a Principal Owner (if applicable) must complete any new or refresher training programs. Franchisees are also required to sign the then-current standard franchise agreement (which may have different terms), remodel their Studio to meet current standards, provide proof of continued possession of the Studio premises, pay a $5,000 renewal fee, and sign a general release of all claims against Discover Strength Franchising LLC.
Training & Support Program
Franchisor Assistance
Discover Strength Franchising LLC provides pre-opening and ongoing assistance. Before opening, Discover Strength provides consulting for site selection and approval, prototype drawings and specifications, a list of approved suppliers, initial training for Principal Owners and the General Manager, and 2 to 5 days of on-site assistance for the Studio's opening. Franchisees also receive access to a confidential Operations Manual and the designated Management System. Ongoing assistance includes advisory services on operations, marketing, sales promotion, clinical rotation programs, and general administrative procedures. Discover Strength also updates the Operations Manual and manages a System Marketing Fund. The franchisor determines the content and rules for the Discover Strength website and intranet system. Representatives are available for additional operating assistance for a fee. Mandatory franchise conventions and Quarterly Leadership Team Offsite meetings are also held for General Managers and Principals.
Initial Training Hours
80
Training Location
St. Louis Park, Minnesota
Ongoing Support
After opening, Discover Strength provides ongoing advisory services related to Studio operations, including services offered, purchasing, marketing assistance, and administrative procedures. Franchisees receive periodic updates to the Operations Manual and access to the Discover Strength website and intranet system. The franchisor manages a System Marketing Fund for brand promotion. Franchisees' General Managers are required to attend supplemental and refresher training programs for up to 5 days each calendar year, for which a fee may be charged. Additionally, General Managers and other designated personnel must attend mandatory franchise conventions, including the annual 'DS Annual Summit.' Quarterly 'Leadership Team Offsite' meetings are also held with the General Manager and Principals of each franchisee to review performance and set goals, with a fee charged for attendees.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
full-time
Territory Type
Protected
Territory Size Requirements
Each Discover Strength franchise territory is defined as a protected geographic area with an approximate population of 50,000 people, as determined by Discover Strength Franchising LLC.
Staffing Notes
Discover Strength franchisees are solely responsible for hiring, training, and all personnel decisions for their Studio employees. They must conduct background checks on potential employees using an approved vendor and implement a training program for staff according to franchisor requirements. Studios must always maintain a sufficient staff of trained employees and operate under the full-time supervision of an approved General Manager. All employees must comply with required licenses and certifications. If the General Manager is absent, Discover Strength Franchising LLC may appoint a temporary manager to maintain operations, charging a reasonable fee for these services.