Starting Strength
Initial Investment Range
$227,394 to $751,452
Franchise Fee
$45,787 to $112,597
Strength Train LLC offers for sale a franchise to establish and operate a gym that focuses on a strength training system identified by the “Starting Strength” trade name and marks.
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Starting Strength June 17, 2024 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.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The franchisor, Strength Train LLC (Strength Train), explicitly warns of its financial condition. Audited financial statements in Exhibit C confirm this risk, showing a Members' Deficit (negative net worth) of ($729,407) for 2023, growing from ($473,588) in 2022. The company also had accelerating net losses, reaching ($225,819) in 2023. This severe financial distress may impact its ability to support you, grow the brand, or even remain in business, a fact acknowledged by multiple state regulators requiring fee deferrals.
Potential Mitigations
- Your accountant must conduct a deep analysis of the audited financial statements, including footnotes, to assess the franchisor's viability and reliance on new franchise sales for cash flow.
- It is crucial for your attorney to review any state-mandated financial assurances, like fee deferrals or bonds, to understand the level of protection they may or may not offer.
- A business advisor should help you evaluate the risk that a financially weak franchisor may underinvest in technology, marketing, and support.
High Franchisee Turnover
Medium Risk
Explanation
Item 20 tables show zero terminations, non-renewals, or other cessations of operations for the past three years. While a low turnover rate is typically positive, a rate of zero is unusual, especially given the franchisor's disclosed severe financial difficulties. This apparent inconsistency warrants further investigation, as it could indicate that struggling franchisees are transferred rather than closed, potentially masking underlying system health issues. There was one transfer reported in 2022 and zero in 2021 and 2023.
Potential Mitigations
- Speaking with a wide range of current and former franchisees from the lists in Item 20 is essential to understand their financial performance and satisfaction.
- Your attorney can help you formulate specific questions for former franchisees about the circumstances surrounding their departure from the system.
- Ask your accountant to compare the surprisingly low turnover data with the franchisor's poor financial performance to assess potential inconsistencies.
Rapid System Growth
High Risk
Explanation
The franchise system is growing rapidly, expanding from 4 outlets at the start of 2021 to 22 by the end of 2023. This rapid growth, when combined with the franchisor's significant net losses and large members' deficit as shown in Item 21, raises concerns. The franchisor's resources may be strained, potentially compromising its ability to provide adequate site selection support, training, and ongoing operational assistance to all franchisees in the expanding system.
Potential Mitigations
- Engaging with a broad range of franchisees, especially those who opened recently, can provide insight into the current quality and responsiveness of franchisor support.
- Your business advisor can help you question the franchisor about its plans to scale its support infrastructure to match its rapid unit growth.
- It is important that your accountant reviews the franchisor's financial statements to assess if they have the capital to support this growth.
New/Unproven Franchise System
High Risk
Explanation
The franchise system began in July 2018 and has a relatively short operating history. More significantly, Item 1 states that the franchisor does not and has never operated a corporate-owned Starting Strength Gym. This lack of direct operational experience is a considerable risk, as their systems and support may be theoretical rather than based on practical, real-world application. This could affect the quality of guidance on operations, marketing, and profitability drivers.
Potential Mitigations
- Thorough due diligence is essential; speaking with a large number of existing franchisees about the effectiveness of the support and systems is critical.
- Your business advisor should help you assess whether the management team's experience, detailed in Item 2, is sufficient to overcome the lack of corporate store operations.
- Seeking legal counsel to negotiate for stronger performance guarantees or support commitments in the franchise agreement is advisable.
Possible Fad Business
Low Risk
Explanation
This risk was not identified in the FDD package. A fad business is one based on a short-lived trend, creating risk for long-term franchisee investment. While the fitness industry has trends, strength training is a well-established market segment. However, the success of this specific brand and method over the long term remains a business risk you must evaluate.
Potential Mitigations
- It is wise to research the long-term market demand for this specific type of strength training with a business advisor.
- Evaluating the franchisor's plans for innovation and adaptation to stay relevant in the competitive fitness market is a key step.
- Consider the sustainability of the business model beyond any current popularity with your financial advisor.
Inexperienced Management
High Risk
Explanation
Strength Train discloses in Item 1 that it has never operated a company-owned gym. While the management team in Item 2 has experience in the industry and some are franchisees themselves, the franchisor entity lacks direct, hands-on experience in running the day-to-day operations of the very business model it sells. This may impact the quality and practicality of the operational guidance, training, and support systems provided to you.
Potential Mitigations
- A business advisor can help you thoroughly vet the specific operational experience of the key support staff you will be interacting with.
- It's critical to speak with existing franchisees to gauge the quality and real-world applicability of the training and support they receive.
- Your attorney should be consulted to understand the franchisor's contractual obligations for support and whether they are specific and enforceable.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD package. Item 1 does not indicate that the franchisor is owned by a private equity firm. Private equity ownership can be a risk if the firm prioritizes short-term returns over the long-term health of the franchise system. You should remain aware of any future sale of the franchise system.
Potential Mitigations
- Your attorney should review the Franchise Agreement's assignment clause to understand your rights if the franchisor is sold in the future.
- If the franchisor were to be sold, a business advisor could help you research the acquiring firm's reputation with other franchise systems.
- Engaging with other franchisees through an association could provide a collective voice in case of a sale to a new owner.
Non-Disclosure of Parent Company
Low Risk
Explanation
This risk was not identified in the FDD package. The franchisor does not appear to have a parent company. However, it does have a critical affiliate relationship with The Aasgaard Company, which licenses the core intellectual property and is owned by a member of the franchisor's management team. The franchisor's own financial statements are provided.
Potential Mitigations
- It is important to have your attorney review the licensing agreement between the franchisor and its affiliates to understand its terms and stability.
- Your accountant can help assess the financial interdependence between the franchisor and its key affiliates.
- Asking the franchisor about the long-term stability of its affiliate relationships is a prudent step for a business advisor to take.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD package. Strength Train LLC was formed in 2018 and states in Item 1 that it has no predecessors. Therefore, there is no prior business history under a different entity to analyze for potential inherited issues.
Potential Mitigations
- An attorney can help confirm the corporate history of the franchisor and its principals to ensure no predecessor entities have been omitted.
- With a new system lacking predecessors, due diligence should focus heavily on the experience of the management team, as detailed in Item 2, with help from a business advisor.
- Speaking with the earliest franchisees in the system can provide insight into the company's evolution and any initial challenges.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD package. Item 3 states that there is no litigation required to be disclosed. This includes lawsuits from franchisees or regulatory bodies. The absence of litigation is a positive indicator, but it does not eliminate all business risks.
Potential Mitigations
- Your attorney can conduct an independent search for litigation involving the franchisor or its principals that may not have met the threshold for disclosure in Item 3.
- It is always a good practice to ask current and former franchisees about any disputes they may have had, even if they did not result in litigation.
- A business advisor can help you maintain open communication with the franchisor to resolve potential disputes before they escalate to legal action.
Disclosure & Representation Risks
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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Financial & Fee Risks
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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Legal & Contract Risks
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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Territory & Competition Risks
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.
Regulatory & Compliance Risks
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.
Franchisor Support Risks
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.
Operational Control Risks
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.
Term & Exit Risks
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.
Miscellaneous Risks
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.
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