Risk Score
Pending analysis
Investment Range
$471,500 - $616,500
Franchise Fee
$25,000
Min Cash Required
$40,000
Total US Locations
8
Business Summary
Smart Fit Method is a health, wellness, and fitness business that provides personalized training programs. The programs utilize machines powered by artificial intelligence (AI) that adapt to an individual's unique resistance levels. Clients perform three 20-minute High-Intensity Interval Training (HIIT) workouts per week on four specialized machines to achieve a total-body transformation without the inflammation often associated with traditional HIIT and cardio.
Corporate History
Smart Fit Method's affiliate, Smart Fit Cardiff, LLC, began operating a business similar to the current franchise concept on July 1, 2021. Robert Darnbrough, co-owner of the parent company Smart Fit Method Inc., also co-owned a research and development location in Kauai, Hawaii, from March 2022 until the end of 2023. Smart Fit Franchising, LLC was formed on June 7, 2022, and began offering franchises in 2022, growing to seven franchised locations by the end of 2023. The parent company, Smart Fit Method Inc., continuously conducts research and development to enhance its fitness programs and equipment, holding a perpetual and exclusive license to this intellectual property.
Financial Overview
Investment Range
$471,500 - $616,500
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$40,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$271,000
Equipment Costs (High)
$332,000
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Smart Fit Method's financial statements show that the company incurred net losses from operations in both 2022 and 2023. As of December 31, 2023, the company had negative working capital, with total current liabilities exceeding total current assets. Smart Fit Method has relied on capital contributions to fund its operations and anticipates continuing to do so in the future. The independent auditor's report, however, provided an unqualified opinion on the financial statements, indicating they are presented fairly in all material respects.
Financing Details
Smart Fit Method does not offer any direct or indirect financing options to its franchisees. This means that franchisees will need to secure all necessary funding for their investment, including initial fees and ongoing costs, from third-party lenders or other sources.
Performance Metrics
Total US Locations
8
Franchised Units
7
Corporate Units
1
Avg Square Footage
1,350
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Smart Fit Method has no litigation cases required to be disclosed in their FDD. This indicates a clean legal record for the franchise as of the document's issuance.
Bankruptcy History
Smart Fit Method has no bankruptcy information to disclose in their FDD, indicating that neither the franchisor nor its key personnel have a history of bankruptcy.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Smart Fit Method franchise, franchisees must notify the franchisor in writing 120 days before the current term ends. They must be in good standing, meaning they are not in default of their franchise agreement or any other agreements with the franchisor, its affiliates, or suppliers, and have substantially complied with all terms. Franchisees must also maintain the right to occupy their approved site (or a new, approved location), refurbish their business to meet current Smart Fit Method standards for appearance and branding, sign the then-current franchise agreement (which may have different terms), pay a $1,500 renewal fee, sign a general release, and meet current qualifications and training requirements.
Training & Support Program
Franchisor Assistance
Smart Fit Method provides extensive assistance to its franchisees. Before opening, Smart Fit Method helps with site approval, reviews design plans, and provides standards and a list of approved suppliers for all necessary equipment and materials. They also provide a list of authorized products and services, give final written approval before opening, approve the General Manager and Operations Manager, and provide an initial tuition-free training program, including an operations manual. After opening, Smart Fit Method assists with site approval and design plan review for any relocation or remodeling. They also provide ongoing updates to standards and supplier lists, help resolve client disputes, offer continuing operational assistance, provide updates to the Operations Manual, review franchisee advertising, set pricing for products and services, and approve any replacement General or Operations Managers.
Initial Training Hours
47
Training Location
Cardiff, California
Ongoing Support
After opening their Smart Fit Method business, franchisees receive up to seven days of complimentary on-site assistance. They also have access to the Smart Fit Method website, which includes a digital copy of the Operations Manual. The franchisor offers telephone and email assistance as needed for all operational phases. Field representatives may visit locations periodically at the franchisor's discretion, and ongoing consultation and guidance are available from national headquarters. Franchisees may be required to attend additional training courses, seminars, and conferences, for which travel and meal expenses are the franchisee's responsibility, and a per diem fee may be charged for some programs.
Franchise Requirements
Ideal Candidate Profile
Smart Fit Method seeks franchisees who will ensure their business is run by qualified personnel. Specifically, the franchisee must maintain a full-time Operations Manager who also serves as a trainer, dedicates their full time and energy to the business, and successfully completes the initial training. This Operations Manager must be approved by Smart Fit Method, capable, certified as a trainer, and sign confidentiality and non-competition agreements. The franchisee's General Manager, who may also be an owner, has overall responsibility for managing the business and must also be approved by Smart Fit Method. While the franchisee owner is not personally required to participate in daily operations, strong personal involvement is highly recommended. All equity owners of the franchise must personally guarantee all obligations under the Franchise Agreement.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Staff Count
4
Territory Size Requirements
Smart Fit Method grants franchisees a protected territory defined as a 5-mile driving distance radius from their approved business location.
Staffing Notes
Each Smart Fit Method franchised business is expected to operate with a total of four employees: three trainers and one Operations Manager, who also serves as a trainer. All employees must be certified as personal trainers by NASM and successfully complete the Smart Fit Method's initial training program. The Operations Manager must be full-time, dedicating all their energy to the business, and must be approved by the franchisor. Any replacement Operations Manager must also be approved, capable, trained, and certified as a trainer. A General Manager, who may be an owner, is responsible for overall business management and must also be approved by the franchisor.