Risk Score
Pending analysis
Investment Range
$480,280 - $789,595
Franchise Fee
$49,500
Total US Locations
50
Business Summary
Spenga operates fitness studios that combine three essential elements of fitness: spin, strength training, and yoga, all in one session. These studios feature exercise equipment, training services, and branded merchandise. The workout environment is designed to be invigorating, utilizing aromatherapy and DJ-inspired music. Studios typically range from 3,000 to 4,000 square feet and are set up to accommodate 24 users at a time. Spenga offers both a standard studio model and a combo model which integrates the strength and yoga portions into a shared footprint.
Corporate History
Spenga Holdings LLC was formed in March 2015 as a Delaware limited liability company and began offering franchises for its fitness studios in the same year. The company operates under the SPENGA name. Its parent company is Spenga Ventures LLC, formed in March 2017. An affiliate, Spenga of Mokena, LLC, has been operating a studio since August 2014, and another affiliate, Spenga, Inc., which owns the brand's proprietary marks, was also formed in August 2014. The company's members and managers also have interests in other fitness club concepts, including those under the 'Charter Fitness' mark.
Financial Overview
Investment Range
$480,280 - $789,595
Franchise Fee (Low)
$49,500
Franchise Fee (High)
$49,500
Royalty %
7%
Equipment Costs (Low)
$246,631
Equipment Costs (High)
$255,468
Working Capital
$17,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Spenga Holdings LLC's financial condition, as noted in the FDD's special risks section, raises questions about the franchisor's financial ability to provide services and support to franchisees. The company's financial statements show a negative members' equity (deficit) of $(695,543) for 2024 and $(1,103,135) for 2023. Despite the negative equity, Spenga Holdings LLC reported positive net income of $629,542 in 2024 and $554,079 in 2023.
Financing Details
Spenga Holdings LLC does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any promissory notes, mortgages, leases, or other financial obligations incurred by the franchisee.
Performance Metrics
Total US Locations
50
Franchised Units
49
Corporate Units
1
Avg Square Footage
3,500
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
Spenga Holdings LLC has disclosed three recent litigation cases, all filed in 2023 or 2024, involving actions against its franchisees. One case, from 2024, is a suit to enforce a personal guaranty against Lukas Butkovic. The other two cases, from 2024 and 2023 respectively, are suits to enter consent judgments against LJM Fitness, LLC and LJM Fitness 2, LLC. All these cases are against franchisees.
Bankruptcy History
Spenga Holdings LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Spenga Holdings LLC franchisees must meet several conditions: they must be in good standing and compliant with the Operations Manual, provide written notice of their intent to renew 9 to 12 months before expiration, sign the then-current franchise agreement (which may have different terms), pay a renewal fee of $10,000, demonstrate the right to operate from the approved site, modernize their studio and equipment to meet current standards, execute a general release, and satisfy current training requirements. Spenga Holdings LLC also reserves the right to adjust the designated territory boundaries upon renewal.
Training & Support Program
Franchisor Assistance
Spenga Holdings LLC provides pre-opening assistance that includes access to its Operations Manual, approval of the studio site, review and approval of the lease, and design/layout templates for the studio. The franchisor offers initial training to the franchisee and up to two other individuals, lasting approximately six to seven business days (partially in-person in Illinois and partially virtual). During operations, Spenga Holdings LLC offers refresher training, periodic seminars, advice, and assistance as deemed necessary, along with sales promotions and general guidance on operating issues, marketing programs, and pricing. The franchisor also provides lists of required suppliers and ongoing marketing directives. Franchisees are required to use a designated point-of-sale system and other computer hardware and software, with the franchisor providing access to a website and social media guidelines.
Initial Training Hours
124
Training Location
Corporate headquarters or designated training studio in Illinois (including virtual training)
Ongoing Support
After opening, Spenga Holdings LLC offers franchisees refresher training, periodic seminars, and advisory assistance as deemed necessary by the franchisor, though fees may apply for certain requests. The franchisor also assists with sales promotions and provides general guidance on operational matters, system standards, and marketing programs. Ongoing marketing directives and programs are provided, and the franchisor assists in setting prices. Franchisees are required to attend an annual conference, which may incur a fee. Additional training courses can be developed and mandated, with the franchisee responsible for costs. Support related to the computer system, such as maintenance and upgrades, is the franchisee's responsibility, though the franchisor charges a monthly Technology Fee for website maintenance and other required technology.
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
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Spenga Holdings LLC defines its designated territories with varying sizes, ranging from a 0.25-mile to 3-mile radius around the approved studio site. For rural or suburban areas, a territory typically includes about 7,500 qualifying households with an annual income of at least $75,000. In densely populated urban areas, the territory will be a smaller geographical area described by a certain number of blocks or a walking/driving radius around the studio. The franchisor determines the size and boundaries of each territory on a case-by-case basis, considering factors like population density, competition, and traffic.
Staffing Notes
Spenga Holdings LLC requires that each studio be managed and staffed by at least one individual who has successfully completed the initial training program. Franchisees are recommended to personally manage the day-to-day operations and devote full-time attention, but they can delegate this role to a Designated Manager approved by the franchisor. All prospective instructors must complete specific instructor training and have a minimum of 6 months of experience before providing services. At least one trained instructor must be present on-site whenever approved services are provided. Franchisees operating multiple studios must have a properly trained Designated Manager at each location.