The Little Gym Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$519,265 - $809,595
Franchise Fee
$47,600
Total US Locations
219
Business Summary
THE LITTLE GYM® operates businesses that offer physical fitness, recreational gymnastics, and motor skills development programs for children. These programs are designed to enhance children's physical and mental growth in a supportive and motivating environment. Franchisees also have the right to purchase and sell approved sportswear, accessories, novelties, proprietary musical recordings, and gym equipment.
Corporate History
THE LITTLE GYM® was originally incorporated in Washington in June 1992 as The Little Gym International, Inc., and began offering franchises in September 1992. In November 2021, Unleashed Brands, LLC acquired 100% of the company's equity, after which it converted to a limited liability company and changed its name to TLGI, LLC. THE LITTLE GYM® is now a wholly-owned subsidiary of Unleashed Brands, LLC, which offers several other franchise brands.
Financial Overview
Investment Range
$519,265 - $809,595
Franchise Fee (Low)
$47,600
Franchise Fee (High)
$59,500
Royalty %
8%
Marketing %
6%
Equipment Costs (Low)
$267,518
Equipment Costs (High)
$408,248
Working Capital
$60,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
UA Holdings, LLC, the parent company of THE LITTLE GYM®, reported a net loss of $(68,667) thousand in 2024, an increase from $(59,616) thousand in 2023. Its accumulated deficit also grew from $(59,551) thousand in 2023 to $(128,218) thousand in 2024. The company experienced a negative cash flow from operating activities of $(7,169) thousand in 2024, a notable shift from generating $16,599 thousand in 2023. Despite these financial losses and negative operating cash flow, the independent auditor's report does not include a going concern qualification, and the company was in compliance with its term loan covenants as of December 31, 2024. Additionally, management determined that a valuation allowance for net deferred tax assets was not required.
Financing Details
THE LITTLE GYM® does not offer any direct or indirect financing to its franchisees. Franchisees are responsible for securing their own funding, although THE LITTLE GYM® may, in the future, provide referrals to preferred lenders or financing sources. THE LITTLE GYM® does not guarantee any franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
219
Franchised Units
218
Corporate Units
1
Avg Square Footage
3,500
Franchising Since
1992
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
5
Litigation Summary
THE LITTLE GYM® and its affiliates have been involved in several legal matters. THE LITTLE GYM® itself filed an arbitration demand in February 2024 against a former franchisee and its owners, alleging breach of contract and unfair competition related to unauthorized use of confidential information. In January 2025, an arbitrator ruled in favor of THE LITTLE GYM®, requiring the former franchisee to pay over $156,000 in fees. An affiliate, Snapology, entered a consent order in January 2016 with the Maryland Securities Commissioner for offering franchises without proper registration. Another affiliate, Urban Air Adventure Parks, settled a complex lawsuit in September 2022 where it had sued a distributor for breach of contract and fraud, resulting in a $5 million payment to the distributor. Unleashed Services, an affiliate, resolved a dispute in October 2024 with a former executive over an employment agreement, involving a buyback of ownership interests. Additionally, Premier Martial Arts, an affiliate, entered a consent order in November 2021 with California regulators for similar issues of unregistered franchise offers and omissions in disclosures, resulting in a $10,000 penalty. All litigation not involving THE LITTLE GYM® directly were against its affiliates.
Bankruptcy History
THE LITTLE GYM® has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, THE LITTLE GYM® franchisees must provide written notice 8 to 12 months before the current term expires. They must be in good standing, with no defaults on their agreements or outstanding monetary obligations. Franchisees are required to renovate and upgrade their business premises to meet current brand standards. They must have the right to possess the location for the successor term or secure a new approved site. All required training must be up-to-date, and the franchisee and guarantors must sign a general release. They must not have a pattern of non-compliance, even if corrective action was taken. If approved, franchisees will sign the then-current franchise agreement, which may have different terms and fees, but the initial franchise fee will be waived.
Training & Support Program
Franchisor Assistance
THE LITTLE GYM® provides pre-opening assistance including reviewing franchise site information, providing specifications for design and layout, and offering 2-3 days of on-site training for the first location. It also conducts an initial training program and loans a confidential operations manual. Ongoing assistance includes sharing expertise on system developments through various communication channels such as on-site visits, written materials, meetings, seminars, and digital communications. THE LITTLE GYM® also reviews and approves marketing materials and administers membership, gift card, loyalty, and master insurance programs.
Initial Training Hours
100
Training Location
Virtual and in-person training at designated locations, including Flower Mound, TX, and Bedford, TX, or other approved working Gym locations.
Ongoing Support
After opening, THE LITTLE GYM® provides ongoing assistance by advising and consulting with franchisees on business management, sales promotion, and service concepts through various channels such as on-site visits, printed or electronic materials, meetings, seminars, and communications. THE LITTLE GYM® may also require franchisees and their key personnel to attend individual or group training programs for additional fees and periodic conferences on system developments, which also incur a fee per attendee.
Franchise Requirements
Ideal Candidate Profile
THE LITTLE GYM® seeks franchisees who are financially responsible, possess good moral character and business reputation, and have the aptitude to operate the business. Franchisees must appoint a Designated Manager (who can be an owner) to have full-time, hands-on control over daily operations and complete all required training. This manager must not engage in other substantial business activities. The franchise also looks for individuals who meet educational, managerial, and business standards.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
THE LITTLE GYM® territories are defined by zip codes, geographic boundaries, or a radius around the approved location. While there is no minimum size, typical protected areas usually have an average household income above $70,000 and a population of approximately 10,000 children aged 0 to 4 years, based on recent U.S. Census data.
Staffing Notes
THE LITTLE GYM® franchisees are responsible for hiring a sufficient number of qualified employees and for their comprehensive training in all aspects of business operations and customer relations, in compliance with THE LITTLE GYM®'s standards and certified trainers. A Designated Manager (who can be an owner) must be appointed to oversee day-to-day operations full-time, and this manager, along with other key personnel, is identified in the franchise agreement's attachments. THE LITTLE GYM® may offer recommendations for employee qualifications but does not direct hiring, firing, or employment terms; franchisees retain sole authority over all employment decisions.