Fit Body Boot Camp Logo

Fit Body Boot Camp

Initial Investment Range

$211,850 to $448,400

Franchise Fee

$54,600 to $114,200

As a Fit Body Boot Camp franchisee, you will operate a group personal training and fitness services business in both a virtual and retail outlet setting to retail customers using designated or authorized “Fit Body Boot Camp” fitness programs and methods.

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Fit Body Boot Camp April 15, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
4
2
4

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

Fit Body Boot Camp, Inc. (FBBC) explicitly warns on its 'Special Risks' page that its financial condition calls its ability to provide support into question. The audited financial statements in Exhibit C confirm this, showing a significant and persistent stockholder's deficit (negative net worth) for the fiscal years 2022, 2023, and 2024. This financial weakness could jeopardize FBBC's ability to support you, grow the brand, or even remain in business.

Potential Mitigations

  • An experienced franchise accountant must thoroughly review all financial statements, including footnotes, to assess the franchisor's long-term viability.
  • Inquire with your business advisor about the implications of the negative net worth and how the company plans to address it.
  • Ask your attorney if any financial assurances, such as a performance bond, are required by your state due to the weak financials.
Citations: Item 21, FDD Exhibit C

High Franchisee Turnover

High Risk

Explanation

The FDD's Item 20 tables reveal a very high and accelerating rate of franchisee churn. In 2024, a total of 90 franchised outlets exited the system (terminations, non-renewals, and cessations) against a starting base of 264, representing an approximate 34% annual turnover rate. This large number of exits, especially the 49 units that 'Ceased Operations for Other Reasons,' is a critical red flag suggesting potential systemic issues with profitability, support, or the business model.

Potential Mitigations

  • You must contact a significant number of former franchisees listed in Exhibit E to understand the specific reasons for this high turnover.
  • A franchise accountant should help you analyze the turnover data trends over the past three years to assess the system's stability.
  • Your attorney should help you frame questions for the franchisor regarding the high rate of cessations and terminations.
Citations: Item 20

Rapid System Growth

High Risk

Explanation

The system shows signs of contraction rather than rapid growth, with a net decrease of 62 outlets in 2024. While avoiding the risks of overstretched support from rapid expansion, this sharp decline, coupled with the noted financial weakness and high turnover, suggests significant systemic challenges. You may find yourself part of a shrinking system, which could negatively impact brand value, support levels, and resale opportunities. The franchisor's ability to support remaining franchisees may be strained.

Potential Mitigations

  • A business advisor can help you analyze the potential impacts of joining a contracting franchise system.
  • Ask current franchisees about any perceived changes in the quality or availability of franchisor support.
  • Your accountant should review the franchisor's financials to see if revenue from ongoing royalties is sufficient to sustain support operations.
Citations: Items 11, 20, 21

New/Unproven Franchise System

High Risk

Explanation

FBBC began franchising in October 2011, so it is not a new system. However, the business model and its management have evolved. The significant recent franchisee turnover and financial weakness noted in Items 20 and 21 present risks similar to an unproven system, calling into question the current model's long-term viability and the franchisor's ability to provide stable support. These factors suggest a system facing significant challenges despite its years in operation.

Potential Mitigations

  • It is vital to conduct extensive due diligence with your business advisor, focusing on the system's recent performance and changes.
  • Discuss the franchisor's current strategic direction and the reasons for recent high turnover with your attorney.
  • An accountant should help you scrutinize the recent financials to assess if the business model remains sustainable.
Citations: Items 1, 2, 20, 21

Possible Fad Business

Medium Risk

Explanation

The fitness industry, particularly boutique concepts like boot camps, can be subject to changing consumer trends. While the concept has been around for over a decade, the high franchisee turnover disclosed in Item 20 could suggest that maintaining long-term profitability in a competitive market is a significant challenge. You should evaluate whether the business has a durable competitive advantage or if it is susceptible to being a fad, which could impact your investment's long-term viability.

Potential Mitigations

  • Assess the long-term market demand for this specific type of fitness service in your local area with the help of a business advisor.
  • Inquire with current franchisees about local competition and how the brand differentiates itself.
  • Evaluate the franchisor's plans for innovation and adaptation to stay relevant by discussing them with your financial advisor.
Citations: Items 1, 11

Inexperienced Management

Medium Risk

Explanation

Item 2 indicates that several key executives, including the CEO and Director of Operations, have prior experience as FBBC franchisees. While this can provide valuable insight, it's also noted that the company has no company-owned outlets. The franchisor's experience is therefore primarily in selling and supporting franchises, not in operating them directly. This could create a disconnect between corporate strategy and the day-to-day operational realities you will face as a franchisee.

Potential Mitigations

  • It is prudent to discuss the management team's direct operational experience with your business advisor.
  • Inquire with current franchisees about the quality of operational guidance and support provided by the management team.
  • Your attorney can help clarify the franchisor's specific support obligations as detailed in the Franchise Agreement.
Citations: Items 1, 2, 11

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD package. The franchisor, FBBC, does not appear to be owned by a private equity firm. However, it is important to understand that if the system were sold in the future, the new owner's priorities might focus more on short-term returns than on the long-term health of franchisees. The Franchise Agreement gives the franchisor the right to sell the system without your consent.

Potential Mitigations

  • Your attorney should review the assignment clause in the Franchise Agreement to understand your rights if the system is sold.
  • Researching the track record of any potential future buyer would be a critical step for a business advisor to undertake.
  • Engage with other franchisees to discuss collective strategies should a sale of the franchise system occur.
Citations: Items 1, 17, 21

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD package. FBBC discloses its parent company, Empire Master Holdings, LLC, in Item 1. However, the parent company's financial statements are not provided, and there is no parent guarantee for the franchisor's obligations. This means you must rely solely on the financial strength of FBBC itself, which, as noted, shows a significant stockholder's deficit, presenting a considerable risk.

Potential Mitigations

  • Your accountant should evaluate the franchisor's standalone financial statements with the understanding that there is no parent company backing.
  • Ask your attorney to inquire if the franchisor would be willing to provide a parent company guarantee.
  • Your business advisor can help you assess the overall risk of investing in a financially weak entity without a stronger parent's guarantee.
Citations: Items 1, 8, 21, 22

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD package. FBBC states it has no direct predecessor. It does disclose an affiliate, Fitness Mastermind, LLC (FMM), that operated a similar business concept prior to the start of franchising. The history appears to be disclosed. Understanding this history is important for assessing the brand's origins and the experience of its founder, which can be part of your due diligence.

Potential Mitigations

  • Your attorney can help you review the FDD for any information related to predecessors or affiliates that may have operated the business previously.
  • In discussions with long-term franchisees, ask about their experiences with any prior versions of the company or brand.
  • Independent research into the business's history may provide additional context for your business advisor.
Citations: Items 1, 3, 4

Pattern of Litigation

Low Risk

Explanation

Item 3 discloses one regulatory action from 2016 by the Rhode Island Department of Business Regulation for inadvertently selling a franchise without being registered in the state. The matter was resolved, and FBBC paid a $4,000 penalty. While this is not a pattern of franchisee-initiated fraud litigation, it does represent a past compliance failure. The FDD does not disclose other litigation that would indicate a pattern of disputes with franchisees.

Potential Mitigations

  • Your attorney should review the details of the disclosed regulatory action to understand its implications.
  • It is wise to ask the franchisor about the compliance systems they have since implemented to prevent similar issues.
  • Conducting due diligence by speaking with current franchisees can provide insight into the current state of the franchisor-franchisee relationship.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
4
0
11

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
4
5
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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4

Legal & Contract Risks

Total: 16
8
4
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
3
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
4
4
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
4
4
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
8
8
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
1
1
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.