Verified — real FDD extraction
SBA-eligible · directory code S0446 since 2017
Crunch
Other · independent · est. —
Crunch is a full-size health club chain offering gym memberships with strength and cardio equipment, group fitness classes, and personal training. A franchisee builds out and operates a large fitness facility, managing trainers and front-desk staff and selling memberships to the surrounding community.
Crunch net unit count grew +32.4% from 2023–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Proven & strong
Distress
Enough units and history to judge, and the record is good: growing or stable units with clean exits by the standards of its disclosed record. The standout in the record: the system is growing.
Exit rate · latest year
3.9%
fiscal 2025, per Item 20
Cost to open
$2.1M–$5.4M
Item 7 total investment range
SBA loan defaults
0.0%
13 loans resolved — directional only
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2023–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 16 of 415 franchised outlets left the system — a 3.9% annualized exit rate. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 328 | 367 | 423 |
| Opened | 52 | 68 | 82 |
| Transfers | 9 | 25 | 31 |
| Terminations | 0 | 0 | 1 |
| Non-renewals | 1 | 1 | 2 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 7 | 11 | 13 |
| Outlets at end | 367 | 423 | 486 |
| Net change | +39 | +56 | +63 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 24 SBA-backed loans to Crunch franchisees since 2013. Only 13 have resolved so far — too thin for a reliable default rate, but 0 of them charged off.
—
13 resolved · too thin to rate
—
avg. charged-off $ ÷ approved $
—
default rate × loss severity
$3,311,520
what recent franchisees borrowed
—
approval → charge-off, defaulted loans
2 vs 6
distinct banks — pulling back
Charge-off rate by loan approval year (%)
Loan performance by state
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO CRUNCH BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $35K franchise fee (Item 5) and a total investment of $2.1M–$5.4M (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$2.1M–$5.4M
all-in investment range
Franchise fee (Item 5)
$35K
upfront, one-time
Royalty (Item 6)
5%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$50K
5% of sales, before profit
Over a 10-yr term
$500K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for Crunch with an independent CPALabor record
US Dept. of Labor enforcement · franchisee-level · FY2005–present
Federal investigators have concluded 8 wage cases against operators of this system, recovering $133K in back wages for 127 workers, including 1 child-labor case. Some of these cases are recent, not ancient history. These cases name franchisee-owned locations, not the franchisor itself.
Concluded cases
8
Back wages owed
$133K
Employees affected
127
Since 2020
2
1 of these cases involved child-labor violations, covering 3 minors across the system's franchised locations.
Read this carefully. The employers in these cases are individual Crunch franchisees — separately owned businesses operating under the brand name — not Crunch itself. The franchisor is not the respondent and in most cases is not a party. What the record shows is how this system's operators run their payrolls, which is worth knowing before you become one of them. Counts rise with system size and with age: a 20-year-old, 10,000-unit system will out-count a young one regardless of conduct. Source: DOL Wage and Hour Division concluded compliance actions, FY2005–present, most recent finding 2023.
Modeled risk
FDD Risk Score · modeled from the public record
The public record puts this brand toward the safer end of the systems we score — but the evidence is thin, so treat it as a range, not a number.
Risk percentile (range)
0–20 / 100
Directional
Modeled SBA charge-off
6.9%
Observed SBA charge-off
0.0%
Top drivers: Investment ceiling (log) (lowers) · System size (log units) (lowers) · Net unit growth (lowers) · Item 20 exit rate (lowers). Thin loan history — treat this as a range, not a number. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for Crunch. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing Crunch's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →Crunch franchise questions, answered from the filings
What percentage of Crunch franchises closed last year?
In Crunch's latest FDD Item 20 (fiscal 2025), 16 of 415 franchised outlets left the system — an annualized exit rate of 3.9%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a Crunch franchise cost?
Per Crunch's 2026 FDD, buying in requires an initial franchise fee of $35K (Item 5) and a total initial investment of $2.1M–$5.4M (Item 7).
What royalty does Crunch charge?
Crunch charges an ongoing royalty of 5.0% of gross sales, per Item 6 of its 2026 FDD.
Does Crunch disclose earnings (Item 19)?
Yes — Crunch makes a financial performance representation in Item 19 of its 2026 FDD. Read it closely: franchisors choose which units and which metrics to include.