Risk Score
Pending analysis
Investment Range
$194,400 - $324,275
Franchise Fee
$19,950
Min Cash Required
$10,000
Total US Locations
7
Business Summary
Vertica Fitness offers franchises for fitness studios that specialize in Pole Fitness and other exercise classes. These studios provide a variety of exercise programs to the general public.
Corporate History
Vertica Fitness Franchising, Inc. was formed as an Arizona Corporation on April 14, 2022, and began offering franchises for its pole fitness studios in the same year. The franchisor itself did not operate a business of the type being franchised before starting to offer franchises. However, an affiliate, Centre Stage Dance Studio, LLC, which was formed in 2008, has been operating pole fitness studios since 2015 in Oro Valley, AZ, and since 2018 in Tucson, AZ. These affiliate studios were rebranded to 'Vertica Fitness' in 2022 and 2023. Vertica Fitness Franchising, Inc. has no parents or predecessors.
Financial Overview
Investment Range
$194,400 - $324,275
Franchise Fee (Low)
$19,950
Franchise Fee (High)
$59,950
Minimum Cash Required
$10,000
Royalty %
8.25%
Equipment Costs (Low)
$90,000
Equipment Costs (High)
$189,925
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Vertica Fitness's financial condition, as reflected in its financial statements, raises questions about its ability to provide services and support to franchisees. The independent auditor's report noted that they considered whether there is substantial doubt about Vertica Fitness Franchising, Inc.'s ability to continue operating as a going concern for a reasonable period. Additionally, several state regulatory agencies, including California, Illinois, Maryland, Virginia, and Washington, have required Vertica Fitness to post surety bonds due to its current financial condition to protect prospective franchisees.
Financing Details
Vertica Fitness does not offer any direct or indirect financing to its franchisees. It also does not guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
7
Franchised Units
5
Corporate Units
2
Avg Square Footage
1,200
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Vertica Fitness has no litigation history to report. Item 3 of the FDD states that no litigation is required to be disclosed.
Bankruptcy History
Vertica Fitness has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Conditions
To renew, Vertica Fitness franchisees must be in compliance with their Franchise Agreement. They must notify the franchisor in writing at least 180 days before the agreement expires, pay a renewal fee, and sign a general release of claims. Franchisees will also be required to sign the franchisor's then-current Franchise Agreement, which may have terms and conditions that are materially different from their original contract.
Training & Support Program
Franchisor Assistance
Before opening, Vertica Fitness provides franchisees with an initial training program in Tucson, Arizona, and offers criteria to help with site selection. The franchisor must approve any selected site and proposed lease before signing. They will also provide a sample site layout plan and guidance on building out the location, hiring and training employees, and obtaining equipment, signs, fixtures, initial inventory, and supplies. Franchisees receive access to a proprietary Operations Manual. After opening, Vertica Fitness offers ongoing operational support, marketing assistance, and specifies required computer hardware and software systems. The franchisor may also offer additional training or seminars and administers an advertising fund (when implemented) for national and local advertising efforts, including maintaining a corporate website and digital marketing campaigns. The franchisor reserves the right to review business operations, including sending secret shoppers and inspecting records.
Initial Training Hours
52
Training Location
Online and in Tucson, AZ
Ongoing Support
After opening, Vertica Fitness provides ongoing operational support to assist with problems and issues. They offer marketing assistance and specify required computer hardware and software systems. The franchisor may also elect to offer additional training or seminars. They develop and maintain a corporate website for all locations, create and promote digital marketing (including social media and digital advertising), and supply print-ready collateral. Vertica Fitness also has the right to review business operations, conduct inspections, obtain business records, and send secret shoppers to outlets.
Franchise Requirements
Ideal Candidate Profile
Vertica Fitness seeks franchisees who are honorably discharged U.S. veterans or first responders, as they offer a discount to these groups. Ideal candidates or their designated managers are required to participate personally in the direct operation of the business. All owners must be prepared to guarantee the franchise's obligations and pass a background check. The brand looks for individuals who meet educational, managerial, and business standards, possess good moral character, a strong business reputation, and a favorable credit rating. Franchisees should demonstrate the aptitude and ability to successfully conduct the Vertica Fitness business and have adequate financial resources and capital to meet ongoing performance obligations.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
exclusive
Staff Count
5
Territory Size Requirements
Vertica Fitness grants territories that are defined by specific geographic regions, using zip codes, natural, or political boundaries as detailed in Schedule 1 of the Franchise Agreement. Each territory is designed to include a minimum population of at least 50,000 people.
Staffing Notes
Vertica Fitness provides guidance to franchisees on how to hire and train employees. The franchisee or a designated manager must attend and successfully complete initial training and pass a background check. All owners must guarantee the Franchise Agreement obligations. The franchisor requires staff to wear uniforms, with an estimated purchase of 3-6 uniforms initially. Beyond these points, specific detailed staffing roles or operational requirements are not explicitly outlined.