How much does it cost to open a The Little Gym franchise?

The total initial investment for a The Little Gym franchise ranges from $519,265 to $756,995. This includes the franchise fee of $53,550, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a The Little Gym franchise?

The Little Gym franchisees pay a 8.0% royalty fee and a 1.0% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a The Little Gym franchise?

Based on Item 19 financial performance data, the median The Little Gym franchise generates $453,643 in annual revenue. Estimated owner profit is approximately $49,901.

Early Access — All reports and features are 100% free while we collect feedback. Send us feedback

Childcare

The Little Gym Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$519,265 – $756,995

Franchise Fee

$53,550

Royalty Rate

8.0%

Initial Investment Range

Low: $519,265 High: $756,995

The total initial investment to open a The Little Gym franchise ranges from $519,265 to $756,995, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $53,550.

Midpoint estimate: $638,130

Franchise Fee

$53,550

One-time initial fee

The The Little Gym franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the The Little Gym brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

8.0%

of gross revenue

Ad/Marketing Fund

1.0%

of gross revenue

Total Ongoing Fee Burden: 9.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Royalty Fee	8.0	PCT	Greater of 8% of Gross Sales or $2,500 per month minimum. Minimum Royalty begins first day following 180 days after grand opening. Due on 15th of month.
NAF Contribution	1.0	PCT	Currently 1% of Gross Sales; up to 2.5%. Total obligation between NAF, Local Marketing, and Ad Cooperative cannot exceed 6% of Gross Sales. NAF may contribute up to 15% of monthly balance to Unleashed Fund for marketing all Affiliated Brands. Due on 15th of month beginning on Opening Date.
Local Marketing Expenditure	5.0	PCT	Currently 5% of Gross Sales (4% collected by franchisor for Designated Supplier, 1% purchased directly by franchisee); up to 6% minus NAF portion. Total with NAF and Ad Cooperative cannot exceed 6% of Gross Sales. Can be modified with 30 days notice. Due monthly upon invoice.
Advertising Cooperative	N/A	VARIABLE	Currently not established. If established, determined by majority vote of cooperative members. Each Gym gets one vote. Contributions credited toward Local Marketing Expenditure. Cannot exceed $10,000/year without franchisee consent if company-owned Gyms have majority voting power.
Technology Fee	119.0	FIXED	Currently $119/month; up to $399/month. Subject to upward adjustment equal to annual CPI increase or third-party vendor increases. For proprietary technology stack. Can be adjusted with 30 days notice. Drafted automatically on 15th of month.
Call Center Fee	N/A	VARIABLE	Currently $80-$120/month per Gym. Consists of: $5 per birthday party booked, $5 per $50 upsell (max $10), share of Call Center Costs, plus pro-rata share of E-commerce Variable Cost. Due on 15th of month.
Initial Training Fee	500.0	FIXED	$500 for first 2 individuals; $500 per day for each additional person. Due before internship training portion. Upon invoice.
Additional Training	500.0	FIXED	Currently $500/day plus reimbursement of actual costs. Required for remedial or additional training as deemed necessary. Upon invoice.
Conference Fee	1000.0	FIXED	Currently $1,000/attendee; up to $1,500/attendee (subject to CPI adjustment). Required to attend annual conference or send Designated Manager. $1,000 materials fee if no attendance. Franchisee pays travel, lodging, wages. Upon billing.
Additional On-Site Assistance	N/A	VARIABLE	$500-$2,500/day plus travel and accommodation expenses. Payable if franchisee requests on-site representative. No fee for first The Little Gym business. Upon billing.
Compliance Review Fee	N/A	VARIABLE	Actual cost including purchases made as part of mystery shop or audit. Payable if franchisor implements mystery shop, audit, customer satisfaction or similar program. Upon invoice.
Dashboard Access License Fee	10.0	FIXED	Waived for first license; $10/month for each additional license. Pass-through fee from Microsoft without markup. Upon invoice.
Supplier Review Fee	N/A	VARIABLE	Reimbursement of costs for product testing and supplier evaluation. Only if franchisee requests alternative supplier or product. Upon invoice.
Gift Card and Loyalty Program Fees	N/A	VARIABLE	Currently $0; amount of administrative fees once instituted. Must participate in Customer Card Programs using designated vendors. Up to 7% administrative fee retained on gift card redemptions. As incurred.
Renewal Fee	25.0	PCT	25% of then-current initial franchise fee plus reimbursement of legal, professional expenses and other costs. Only if exercising successor term option. Upon invoice.
Holdover Fee	250.0	FIXED	$250/day for operating after franchise agreement expiration without signing renewal. Only if desiring to renew. Upon invoice.
Split Territory Fee	50.0	PCT	50% of then-current initial franchise fee. Payable to split Protected Area into two territories for second location or upon approved transfer requiring territory split. Upon invoice.
Transfer Fee	50.0	PCT	50% of then-current fee for Controlling interest (>20%) to new franchisee; 25% plus actual costs for Controlling interest to existing franchisee; $3,500 for Non-Controlling interest (≤20%) once per 12 months. Upon invoice.
Resale Program Fee	4.0	VARIABLE	Greater of 4% of purchase price or then-current initial franchise fee (currently $59,500). Only if electing to participate in Resale Program. In addition to Transfer Fee. Prior to closing.
Interest	18.0	PCT	Lesser of 18% per year or maximum lawful rate in franchisee's state. Charged when fees not paid when due or audit reveals underpayment. California maximum is 10% annually. Upon demand.
Nonsufficient Funds Fee	100.0	FIXED	$100 per occurrence, not to exceed maximum allowed by law. For insufficient funds in ACH debit account. Upon demand.
Audit Costs	N/A	VARIABLE	Actual audit costs. Payable if audit necessary due to franchisee's failure to provide reports/records timely or if understatement of Gross Sales exceeds 2%. Upon invoice.
Indemnification	N/A	VARIABLE	All losses and expenses franchisor incurs from third-party claims requiring franchisee indemnification under Franchise Agreement. Upon demand.
Liquidated Damages	N/A	VARIABLE	Product of (i) Royalty Fee multiplied by previous 12 months Gross Sales and (ii) lesser of 3 years or remaining term years. If operating <12 months, based on system-wide average. Only if franchisor terminates for default. On demand.
Public offering or private placement review fee	N/A	VARIABLE	Reimbursement of actual costs for legal/professional counsel to review offering materials. Only if franchisee offers securities publicly or privately. Upon demand.
Payment Processing Fee	N/A	VARIABLE	Varies based on credit card payment volume. Pro rata share of system-wide fee from designated payment processor. Payable to franchisor.
Transfer Fee (Development Agreement - Controlling Interest)	25000.0	FIXED	$25,000 plus $1,500 for each Gym yet to be developed. Only for Development Agreement transfer to approved third-party. Upon demand.
Administrative Fee (Development Agreement - Non-Controlling Interest)	3500.0	FIXED	$3,500 for transfers of ≤20% to approved Owner, limited to once per 12 months. Otherwise subject to Controlling Interest Transfer Fee. For transfers to entity under common control. Upon demand.
Liquidated Damages (Development Agreement)	N/A	VARIABLE	Lesser of $100,000 or (Minimum Royalty Fee × 36 × number of undeveloped units). Only if franchisor terminates Development Agreement for default. Upon demand.

What You Get

Financial Performance (Item 19)

Median Revenue

$453,643

per year, per location

Profitability Estimate

Estimated Owner Profit

$49,901

per year

Profit Margin

11.0%

of revenue

Estimation method: disclosed

Estimated ROI (Simple Payback): 12.8 years

Based on midpoint investment of $638,130 and estimated annual owner profit of $49,901.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

4.7%

Moderate risk — near industry average

Net Unit Growth

-176 units

From 2022 to 2025

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2022	176	+9	-4	—	173
2023	173	+19	—	—	185
2024	185	+39	-2	—	218
2025	—	+32	—	—	—

Is a The Little Gym Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the The Little Gym franchise opportunity:

Overall Score

70/100

Strong opportunity

Est. Payback Period

12.8 yrs

Longer payback

Risk Level

Medium

4.7% annual closure rate

The Little Gym scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $453,643 and a combined fee burden of 9.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.