Risk Score
Pending analysis
Investment Range
$92,100 - $174,000
Franchise Fee
$44,500
Total US Locations
130
Business Summary
GYMGUYZ operates mobile personal fitness training businesses that focus on individualized one-on-one fitness, group sessions, and corporate fitness. The business utilizes state-of-the-art equipment that trainers bring directly to clients. Services offered by GYMGUYZ include weight loss programs, body sculpting, bodybuilding, weight training, therapeutic athletic/stretch, strength training, senior fitness, obstacle course training, kickboxing, group training, corporate fitness, pre & post-natal exercise, pool workouts, pre-teen and teen fitness training, cardio fitness, professional sports conditioning, and nutrition counseling.
Corporate History
GYMGUYZ Franchising LLC was formed as a New York limited liability company on July 24, 2013. The company began offering franchises in December 2013. Its affiliate, GYMGUYZ, LLC, has owned and operated a similar business since October 2008 and owns the proprietary marks licensed to GYMGUYZ Franchising LLC for sub-licensing to franchisees.
Financial Overview
Investment Range
$92,100 - $174,000
Franchise Fee (Low)
$44,500
Franchise Fee (High)
$72,000
Royalty %
7%
Marketing %
2%
Equipment Costs (High)
$8,000
Working Capital
$42,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
GYMGUYZ Franchising LLC's accumulated deficit increased from $4,867,292 in 2023 to $5,588,175 in 2024, driven by sustained negative cash flows from operations and negative working capital. The company also shows low liquidity compared to its short-term obligations. Management is implementing cost-cutting measures, increasing franchisee sales volume, and relying on continued funding and support from its member to ensure the company's viability and meet its financial obligations for the upcoming year. The auditor's opinion emphasizes this liquidity and business risk but is not modified by it.
Financing Details
GYMGUYZ Franchising LLC does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
130
Franchised Units
116
Corporate Units
14
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
GYMGUYZ Franchising LLC has no litigation history to report in Item 3 of its Franchise Disclosure Document. The document states that no litigation is required to be disclosed in this Item.
Bankruptcy History
GYMGUYZ Franchising LLC has no bankruptcy information to report in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, GYMGUYZ Franchising LLC franchisees must provide notice between six and nine months before the initial term ends. They must have been in substantial compliance throughout the current term and be in full compliance with all agreements at the time of renewal. Franchisees must also be current on all monetary obligations, sign a general release, sign the then-current renewal franchise agreement (which may have different terms and fees), perform any necessary upgrades to their business, vehicle, and equipment to meet current brand standards, and pay a renewal fee of $10,000. The franchisor will re-evaluate the territory based on demographics and current standards upon renewal, which may result in a smaller or larger territory.
Training & Support Program
Franchisor Assistance
GYMGUYZ Franchising LLC provides franchisees with a range of assistance. Before opening, the franchisor loans a digital copy of its Confidential Operations Manual, provides initial training for up to two people, and approves or designates the necessary computer hardware, software, vehicle, and equipment. After opening, GYMGUYZ Franchising LLC offers ongoing support including occasional instructions and forms, information on approved suppliers, administration of a Brand Development Fund, business consultation as needed, and mandatory annual meetings for franchisees. Additional training is also available upon request or as required by the franchisor. Furthermore, the franchisor indemnifies franchisees for damages arising from the authorized use of its trademarks.
Initial Training Hours
53
Training Location
A hybrid model of virtual training and in-person training at GYMGUYZ Franchising LLC's headquarters in Melville, New York, or another designated location.
Ongoing Support
After opening, GYMGUYZ Franchising LLC provides continuing support to its franchisees. This includes periodically furnishing instructions, forms, and other operational information, and providing updates on approved suppliers. The franchisor administers a Brand Development Fund for system-wide advertising and marketing. They also offer consultation as deemed appropriate for business operations and conduct mandatory annual franchisee meetings to discuss sales techniques, training, performance standards, and advertising. Additionally, GYMGUYZ Franchising LLC provides supplemental training upon request or when deemed necessary, and maintains a website and intranet for franchisee resources.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
GYMGUYZ Franchising LLC defines a standard territory as an area containing 30,000 households. The boundaries of each territory are determined by the franchisor and can be described using street names, contiguous zip codes, town boundaries, or county boundaries, or depicted on a map attached to the Franchise Agreement. Franchisees also have the option to purchase a larger territory with additional households.
Staffing Notes
GYMGUYZ Franchising LLC franchisees are solely responsible for recruiting, hiring, and managing the terms of employment for all their employees, including compensation. Franchisees must conduct rigorous background checks on all employees and ensure that all personal trainers are appropriately certified as required by law. Franchisees are also responsible for the onboarding and ongoing training of their staff. Franchisees are required to participate full-time in the day-to-day operation of the business, but they may participate semi-absentee with prior written approval from the franchisor and by appointing a manager. If a manager is hired, both the franchisee (or owners if an entity) and the manager must satisfactorily complete the initial training program. The manager is required to sign a confidentiality agreement.