Risk Score
Pending analysis
Investment Range
$2,037,316 - $3,241,991
Total US Locations
82
Business Summary
Retrofitness operates fitness centers that provide discount fitness programs in a specially designed format. The business model is based on offering exercise and fitness training programs and related services to members for a monthly fee. Retrofitness Outlets offer equipment from fitness industry leaders, including various cardio and strength machines, dumbbells, barbells, and functional training tools.
Corporate History
Retrofitness, LLC, the franchisor, was formed on August 6, 2008, as a Delaware limited liability company. It acquired all assets of its predecessor, Retrofitness Corp., on August 19, 2008. Retrofitness Corp. was incorporated on May 26, 2006, and offered franchises from 2006 until the asset sale. Before Retrofitness Corp., Retrofitness Enterprises, LLC (formed between June 2005 and June 2006) offered license agreements for fitness centers under the Retrofitness trademark. Retrofitness's parent entity is Fierce Brands, LLC, originally formed as Retrofitness Holdings, LLC on July 31, 2008, before changing its name in December 2012; Fierce Brands, LLC has never offered franchises. Other affiliates include Retrofitness IP LLC, formed in August 2008 to hold intellectual property; Fierce Clubs, LLC, formed in January 2018 to own and operate Retrofitness outlets; and Retro MGT, LLC, formed in May 2024 to provide optional management services for franchisees. Retrofitness, LLC has no other business apart from offering franchises and assisting franchisees.
Financial Overview
Investment Range
$2,037,316 - $3,241,991
Franchise Fee (High)
$29,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$2,180,000
Equipment Costs (High)
$3,170,000
Working Capital
$275,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Retrofitness's financial statements for 2023 and 2024 show positive net income and cash flow from operating activities, with an increasing members' equity. Specifically, in 2024, Retrofitness reported a net income of $1,830,519, net cash provided by operating activities of $2,478,472, and total members' equity of $1,804,888. However, it's important to note that the Maryland and Illinois state addenda highlight a risk, stating that the franchisor's financial condition 'calls into question the franchisor's financial ability to provide services and support to you.' Despite these state-level concerns, the independent auditors issued an unqualified opinion on the financial statements without a going concern qualification, indicating that the statements present fairly Retrofitness's financial position and results of operations.
Financing Details
Retrofitness does not offer any direct or indirect financing to its franchisees. Additionally, Retrofitness does not guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
82
Franchised Units
81
Corporate Units
1
Avg Square Footage
16,500
Franchising Since
2006
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
5
Litigation Summary
Retrofitness has been involved in five notable legal disputes since 2020. This includes four lawsuits (three of which are class-action style complaints concerning membership agreements) and one arbitration. The class-action lawsuits, Joseph Ardino et al. v. Retrofitness, LLC et al. (filed 2014, with activity in 2022 and 2024 and currently awaiting a ruling on a motion to dismiss after multiple amended complaints) and Shaun Morrell v. Retrofitness, LLC et al. (filed 2020, dismissed in 2024 but currently on appeal), both allege violations of New Jersey consumer protection laws regarding membership agreements. Retrofitness denies wrongdoing in these cases. Another lawsuit, Westchester Fitness, LLC v. Retrofitness, LLC (filed 2020), alleging breach of franchise agreement and fraud, was dismissed as to Retrofitness in 2021 but is currently stayed pending an appeal. The arbitration case, Atlantic Fitness, LLC v. Retrofitness, LLC (filed 2023), concerning possessory rights after a franchise agreement expiration, was resolved in Retrofitness's favor in April 2025, with Retrofitness being awarded approximately $122,652.91 in fees, costs, and sanctions. A prior arbitration, Kimberly Ann Pirlet, and Musculi,, LLC v. Retrofitness, LLC et al. (demanded 2020), alleging breach of contract and misrepresentation, was settled through mediation with Retrofitness paying $600,000, and no parties admitting liability. Retrofitness states it will vigorously defend against all remaining claims.
Bankruptcy History
Retrofitness has no bankruptcy history to disclose in this document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Retrofitness franchise agreement, franchisees must be in good standing, provide timely advance notice (not less than six months nor more than twenty-four months prior to the end of the current term), pay the then-current renewal fee (currently $20,000, or $15,000 if executed between 12 and 24 months before renewal), and sign a new franchise agreement that may contain materially different terms. Additionally, franchisees must be current in all payments, sign a general release, and modernize their outlet to meet Retrofitness's then-current standards of appearance and function, including purchasing new strength equipment, dumbbells, and free weights.
Training & Support Program
Franchisor Assistance
Retrofitness provides several forms of assistance to its franchisees. Before opening, Retrofitness helps with site approval, designates the approved territory, offers turnkey build-out support for design, construction, and furnishing of the outlet, and provides an initial training program. After the grand opening, Retrofitness may develop and share information on new services and methods, and lends franchisees an Operations Brand Standards Manual, which is periodically updated. Retrofitness may also conduct mandatory ongoing training or education programs and hold mandatory annual conferences, for which fees may be charged. Additionally, Retrofitness may provide turnkey remodeling, refurbishment, or improvement support if required, for an additional fee. Retrofitness may also take control of crisis management events affecting the outlets. Optional paid services include bookkeeping, call center, and managed IT services.
Initial Training Hours
118
Training Location
Retrofitness Support Center in West Palm Beach, Florida, or a Retrofitness approved training facility, or onsite at the franchisee's Retrofitness Outlet.
Ongoing Support
After opening, Retrofitness provides ongoing support by developing and sharing information on new services and methods. It lends franchisees an Operations Brand Standards Manual, which is regularly updated, and may offer ongoing training or education programs. Retrofitness may hold mandatory annual conferences to discuss sales, training, and operational procedures, for which a fee may be charged. Additionally, Retrofitness may provide turnkey remodeling, refurbishment, or improvement support when required, also for a fee. Retrofitness offers optional paid services such as bookkeeping, call center, and managed IT services, available after an initial required period. Retrofitness may also control and manage crisis management events.
Franchise Requirements
Ideal Candidate Profile
Retrofitness seeks franchisees with integrity, ability, experience, and financial resources. The franchise requires a Managing Owner to personally supervise the business. This individual must be responsible for managing the Retrofitness Outlet, possess sufficient decision-making authority for effective and efficient operations, and communicate directly with Retrofitness on franchise-related matters. The Managing Owner is expected to devote their best efforts to the business and must not engage in other businesses or activities that would conflict with their substantial management responsibilities or time commitments to the Retrofitness Outlet.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
protected
Territory Size Requirements
Retrofitness designates an Approved Territory based on an area within a three-mile drivable distance from the approved site. This drivable distance is determined by Retrofitness using a mapping service, such as Google Maps, at its sole discretion. Retrofitness may also grant a territory of less than a three-mile drivable distance if justified by the demographics of the area.
Staffing Notes
Retrofitness requires franchisees to maintain a staff of competent, conscientious, and trained employees sufficient to operate the Retrofitness Outlet in compliance with its standards. Although Retrofitness provides initial training for up to 20 employees, it does not directly control labor or employment matters, nor does it mandate specific personnel policies or procedures. Franchisees are solely responsible for all employment decisions and for ensuring their staff is adequately trained to meet Retrofitness's operational standards, which the franchisor may provide as suggestions or guidance.