Is
The Little Gym
a franchise?
How many
The Little Gym
franchises
are there?
What are the
The Little Gym
franchise
fees?
Initial Franchise Fee
The initial franchise fee is $59,500. This fee is non-refundable and is payable in full when you sign the Franchise Agreement. This upfront fee is a standard charge for the rights to open and operate a "The Little Gym" franchise.
Royalty Fee
The royalty fee is the greater of 8% of Gross Sales or $2,500 per month. This is a monthly fee due on the 15th of each month, and it represents ongoing compensation to the franchisor for the continued use of the "The Little Gym" brand and system.
Marketing Fee
The marketing fee, also known as the National Advertising Fund (NAF) Contribution, is up to 2.5% of monthly Gross Sales; however, it is currently set at 1% of Gross Sales. This fee is also due monthly on the 15th, starting from the established opening date. The total obligation between NAF Contribution, Local Marketing Expenditure, and Advertising Cooperative shall not exceed 6% of Gross Sales.
Local Marketing Expenditure
The local marketing expenditure requires up to 6% of monthly Gross Sales, minus the portion designated for the NAF Contribution. This fee ensures that franchisees contribute to the marketing and promotion of their local "The Little Gym" operations.
Technology Fee
There is also a technology fee of up to $399 per month, which is subject to adjustment based on the annual increase in the Consumer Price Index or any increase passed on by third-party vendors.
Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.
How much does
it cost
to start a
The Little Gym
franchise?
Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.
Does
The Little Gym
provide
training
to its
franchisees?
Virtual Training
This initial phase consists of 3 to 5 hours of online training. It is designed to give franchisees a flexible learning option that can be completed remotely.
Preparation & Homework
Franchisees are expected to dedicate 13.5 to 20 hours to study and preparation, which includes 1-2 hours per day of homework to reinforce the material learned during virtual training.
Pre-Opening Assistance
For the first The Little Gym location, the franchisor provides two to three days of pre-opening assistance and training at the franchise location without any fee. However, for subsequent locations or if additional assistance is requested, the franchisor may charge a reasonable fee, including reimbursement for out-of-pocket costs such as travel, accommodations, and meals for the trainers.
Continuing Training
Franchisees are required to attend up to 15 days per year of group training courses chosen by the franchisor, which may cost up to $500 per person per day. This does not include transportation, lodging, meals, employee wages, and other expenses incurred during all training.
Regional Training
Franchisees must attend annual regional training sessions at locations and dates determined by the franchisor. This is part of the mandatory continuing training programs provided by the franchisor to ensure franchisees are up-to-date with newly developed operating procedures.
Does
The Little Gym
provides
territory
protection?
The franchise does provide a form of territory protection, but with specific conditions and limitations.
Can a
The Little Gym
franchise
be run as
a passive
investment?
The Little Gym franchise cannot be run as a passive investment.
