How much capital does The Little Gym require?
The most decision-relevant 2026 FDD range is $476,874 to $828,923 for the Development Agreement plus the first fixed-premises Gym. The offer requires a minimum commitment to two Gyms and permits a commitment of up to three. This range covers the Development Fee, $3,000 to $5,000 of development-agreement review costs, and the first Gym investment excluding its separately stated $59,500 Initial Franchise Fee because that fee is credited through the Development Fee.
Basis: 2026 Franchise Disclosure Document, Item 7, pp. 20–21. The range is the initial outlay shown for the multi-unit contract and the first Gym. It is not the total cost of constructing and opening every required second or optional third Gym.
The franchisor’s official U.S. investment page separately displays $420,324 to $722,773 for one Gym. The mandatory multi-unit contract is why a buyer must keep the two figures distinct.
Data basis. Legal franchisor: TLGI, LLC, a Delaware limited liability company and wholly owned subsidiary of Unleashed Brands, LLC. FDD issuance date: April 24, 2026. Applicable offer: a fixed-premises The Little Gym business, generally 2,800 to 4,200 square feet, developed under a two- or three-Gym development contract. Primary cost disclosures: Items 5, 6 and 7; financing: Item 10; supplier, technology and contract-cost context: Items 8, 11 and 17. Information checked July 19, 2026. No matching current FDD was located on an official franchise-controlled public webpage, so FDD citations below are unlinked Item and page references.
Corporate identity is also reflected in the Unleashed Brands portfolio, while current U.S. offer information appears on the official franchise website.
The smaller range answers what the first location may cost. The larger range adds the multi-unit commitment and its upfront fee. Neither range is the all-in cost to open two or three complete Gyms.
Capital snapshot
Why is the Development Agreement central to the cost?
TLGI, LLC requires a minimum commitment of two locations. The upfront Development Fee is paid in one non-refundable lump sum when the multi-unit contract is signed, and the first Franchise Agreement is executed at the same time. It reserves the Development Area and covers the location fees for the required sites. Later locations use separate, then-current contracts and incur their own site, build-out, equipment, training, opening and working-capital costs. See the 2026 disclosure, Item 1, pp. 3–4; Item 5, p. 8; and Item 7, pp. 20–21.
The Little Gym development-fee ladder
The cumulative amount falls on a per-location basis as the commitment increases, but the entire upfront payment is earned when paid and remains non-refundable even if a later location never opens.
First Gym
First-location fee component. The first contract is signed concurrently with the multi-unit contract.
Two-Gym minimum
Cumulative upfront payment: $59,500 for the first location plus $53,550 for the second.
Three-Gym commitment
Cumulative upfront payment, adding $47,600 for the third location.
| Development payment | Amount | Timing and payee |
|---|---|---|
| Two-location upfront fee | $113,050 | Lump sum on signing the multi-unit contract; paid to the franchisor. |
| Three-location upfront fee | $160,650 | Lump sum on signing the multi-unit contract; paid to the franchisor. |
| Legal, accounting and other review costs | $3,000–$5,000 | As incurred; paid to third-party advisers. |
A two-location buyer is exposed to more than the first opening table. The second site’s premises, build-out, required package, signage, training and working capital are separate future obligations under the Development Schedule.
What is included in the first Gym’s $420,324–$722,773 range?
The first-location total includes 16 disclosed expenditure categories. The largest variable is Leasehold and Tenant Improvements at $135,240 to $325,644. The estimate assumes a fixed-premises Gym of 2,800 to 4,200 square feet and, for a second-generation site, a landlord improvement contribution of at least $20 per square foot. New construction, delayed landlord reimbursement, market rent, labor and material costs can push the buyer’s cash requirement higher. See the 2026 disclosure, Item 7, pp. 17–20.
Bars share a $0–$325,644 scale. The position marks the low estimate and the bar endpoint marks the high estimate.
Source: The Little Gym 2026 FDD, Item 7, pp. 17–20. All plotted values are official ranges for the same fixed-premises Gym format. The chart omits smaller categories for legibility; the grouped tables below preserve them.
Premises and construction payments
| Opening expenditure | 2026 range | When paid |
|---|---|---|
| Lease Payments: one month’s rent and security deposit | $12,000–$30,000 | At lease signing; paid to the landlord. |
| Leasehold and Tenant Improvements | $135,240–$325,644 | As requested by contractors, landlord and third-party suppliers. |
| Architectural & Construction Management Fees | $16,700–$25,000 | As requested by the approved architect and construction manager. |
| Signage: interior and exterior | $24,000–$35,000 | As requested by approved suppliers and contractors. |
Equipment, systems and opening supplies
| Opening expenditure | 2026 range | When paid |
|---|---|---|
| Initial Inventory and Equipment Package | $65,000–$75,000 | Lump sum before opening; paid to TLGI, LLC or an affiliate. |
| Furniture, Fixtures and Equipment | $15,000–$18,000 | Before opening; paid to approved suppliers. |
| Computer Systems, A/V, Security Surveillance and Other Systems | $7,000–$9,000 | Before opening; paid to approved suppliers. |
| Technology Fees and Call Center | $244–$289 | As arranged; paid to TLGI, LLC or an affiliate. |
| Initial Supplies | $1,200–$2,000 | Before opening; paid to approved suppliers. |
Pre-opening and initial operating capital
| Opening expenditure | 2026 range | Scope |
|---|---|---|
| Initial Franchise Fee | $59,500 | Due on Franchise Agreement signing; credited through the multi-unit fee structure. |
| Training Related Expenses | $17,500–$22,500 | Includes pre-opening payroll, a three-month gym-director salary allotment, travel, hotels and meals. |
| Legal, Accounting and Other Professional Fees | $5,000–$11,000 | As arranged with attorneys, accountants and other advisers. |
| Insurance Deposit and Premium | $2,440–$2,840 | Typically a 20% deposit plus three months of premium payments. |
| Business Licenses and Permits | $500–$1,000 | Before opening; jurisdiction-specific requirements may vary. |
| Grand Opening Marketing | $20,000–$25,000 | Before opening; may be paid partly through TLGI, an affiliate or designated suppliers. |
| Additional Funds — 3 Months | $39,000–$81,000 | Initial operating expenses and working capital, less income earned. |
| Official opening total | $420,324–$722,773 | One fixed-premises Gym. |
The official total is preserved rather than recomputed. The disclosure notes control where assumptions, timing and optional conditions affect line-item arithmetic.
The three-month working-capital allowance is already inside the $420,324–$722,773 total. The $39,000–$81,000 estimate covers three months and includes employee wages, but excludes owner salary, finance costs, debt service, personal expenses and reimbursements to the owner. The disclosure also warns that tariffs can raise construction, equipment, merchandise and supply costs.
When is the money paid?
The largest contractual payment occurs at signing, while the premises and equipment cash is released in stages before opening. The disclosure does not present one universal calendar because lease negotiations, construction draws and supplier invoices vary, but it identifies a clear payment sequence.
Sign the multi-unit and first-location contracts. Pay $113,050 for two locations or $160,650 for three in full. The fee is non-refundable and fully earned when paid.
Secure the approved premises. Pay the first month’s rent and security deposit at lease signing, then fund architectural work, construction management and Leasehold and Tenant Improvements as requested.
Order required equipment and inventory. Pay the $65,000–$75,000 Start-Up Equipment and Inventory Package in full when the purchase order is submitted; other systems, furniture and supplies are paid before opening.
Fund training and opening promotion. Training-related expenses accrue before opening. TLGI may require grand-opening money no later than six weeks before the scheduled opening or when the media plan is submitted.
Carry the first three months. Use the disclosed $39,000–$81,000 allowance for initial operating expenses and working capital, subject to the stated exclusions.
Begin recurring payments. NAF Contribution starts on the Opening Date. Royalty, marketing, technology and call-center obligations are generally billed or drafted monthly; the $2,500 Minimum Royalty assessment begins after 180 days.
The franchisor’s official ownership sequence confirms that initial fees are paid when agreements are signed. Under the FTC Franchise Rule, a prospect generally must receive the disclosure document at least 14 calendar days before signing a binding agreement or paying the franchisor or an affiliate; the FTC franchise buying guide explains that timing rule and the roles of FDD Items 5–7.
Which fees continue after opening?
The principal continuing charges are the royalty, a 6% current marketing allocation, technology and call-center charges. The royalty is 8% of the stated sales base or $2,500 per month, whichever is greater. The minimum assessment begins on the first day after 180 days following the grand opening. The current allocation is 1% to the national fund and 5% to local marketing; together with any cooperative contribution, the total cannot exceed 6% of the same sales base. See the 2026 disclosure, Item 6, pp. 9–16.
The scale runs from 0% to 8%. Marketing is shown as one 6% obligation split between the current NAF and Local Marketing allocations.
Source: The Little Gym 2026 FDD, Item 6, pp. 9–10 and notes on pp. 15–16. These are official percentage bases, not annual dollar estimates. Cooperative payments, if established, are credited toward local marketing rather than added above the 6% cap.
| Continuing fee | Amount or basis | Timing and qualification |
|---|---|---|
| Royalty Fee | 8% of Gross Sales or $2,500/month | Monthly on the 15th; Minimum Royalty starts after 180 days. |
| NAF Contribution | Up to 2.5%; currently 1% | Monthly from the Opening Date. |
| Local Marketing Expenditure | Currently 5% | Monthly; may change with at least 30 days’ notice, subject to the combined 6% cap. |
| Advertising Cooperative | Member vote | Only if established; credited against Local Marketing Expenditure. None was established in the document. |
| Technology Fee | Up to $399/month | Currently $119 base, plus messaging and vendor pass-through costs; automatically drafted monthly. |
| Call Center Fee | $80–$120/month current Service Fee | Plus the Gym’s pro rata share of E-commerce Variable Cost; monthly. |
| Annual Conference | $950–$1,350/attendee | Up to $1,500; hotel, travel and wages are separate. Non-attendance materials fee may be $1,500. |
| Dashboard Access License | $10/month | First license waived; fee applies to each additional license. |
- Gross Sales basis
- The disclosed sales basis broadly includes products, services, membership fees and other value generated by the location, subject to stated exclusions. It is the denominator for the percentage charges.
- Technology scope
- The technology charge supports the website and communications tools, learning portal, customer-management and operational software. Extra hardware and vendor pass-through costs can be additional. The official technology support page describes the system at a high level.
- Marketing cap
- National, local and cooperative marketing together cannot exceed 6% of the stated sales base during a 12-month period.
How are liquidity, net worth and financing different from the investment range?
The official franchise website currently screens candidates for $100,000 in liquid assets and $250,000 in net worth. Those figures are financial qualifications, not substitutes for the $476,874–$828,923 development-contract range. Liquid assets are funds that can be accessed; net worth is assets minus liabilities; neither tells the buyer how much debt a lender will approve or how much unencumbered cash will ultimately be required. The current figures appear on the official investment information and franchise-site screening form.
Item 10 states that the franchisor does not offer direct or indirect financing and does not guarantee a note, lease or other obligation. The official franchise FAQ says candidates may be introduced to preferred lenders, and the official process page refers to funding partners. Those statements describe lender relationships, not guaranteed approval or franchisor financing. See the disclosure, Item 10, p. 26.
Ask the franchisor and any lender to state separately the required borrower equity, permitted borrowed funds, collateral, personal guarantees, construction disbursement timing and cash reserve after opening. The document does not publish a non-borrowed-funds threshold.
Which fees apply only when an event occurs?
Renewal, transfer, resale, territory changes, compliance failures and default can create substantial charges outside the opening budget. These obligations are not part of the opening total unless an initial payment is expressly included there.
Renewal and refresh
Renewal Fee: 25% of the then-current Initial Franchise Fee, plus legal, professional and other renewal costs. A required Refresh Grand Opening can cost up to the amount spent on the original Grand Opening. Holdover is $250 per day.
Transfer and resale
Transfer Fee: 50% of the then-current Initial Franchise Fee for a new controlling owner; 25% for a qualified existing franchisee; or $3,500 for a qualifying non-controlling transfer. The Resale Program Fee is 4% of purchase price or the then-current Initial Franchise Fee, whichever is greater, and is additional to the Transfer Fee.
Territory and development changes
Split Territory Fee: 50% of the then-current Initial Franchise Fee. Transfer of a controlling interest under the Development Agreement is $25,000 plus $1,500 for each undeveloped Gym; a qualifying common-control or non-controlling administrative transfer is $3,500.
Training and on-site assistance
Initial Training Fee: $500 for the first two people, then currently $500 per day for each additional person. Additional or remedial training is currently $500 per day plus actual costs. Additional on-site assistance is $500–$2,500 per day plus travel and lodging.
Compliance, audit and supplier review
A Compliance Review currently costs $1,500–$3,500. Financial Audit Costs are currently $4,800–$5,500 when triggered by missing records or an understatement above 2%. An alternative-supplier request requires reimbursement of product-testing and evaluation costs.
Programs and payment administration
Gift-card redemption may be reduced by an administrative fee of up to 7%. Customer Card Program administration is currently $0 but may be instituted. Extra POS hardware, extra email addresses and other vendor pass-through services can add costs.
Late payment and termination
Interest is the lesser of 18% per year or the maximum lawful rate. Franchise termination liquidated damages use the contractual Royalty Fee formula. Development Agreement liquidated damages are the lesser of $100,000 or the Minimum Royalty multiplied by 36 and by undeveloped units.
Other actual-cost obligations
Indemnification, securities-offering review, professional expenses and certain vendor costs vary with the claim, transaction or service. Item 17 also allows transfer approval to require refurbishment and a designated-supplier inspection, without stating one fixed refurbishment amount.
These charges are summarized from the 2026 disclosure, Item 6, pp. 10–17 and Item 17, pp. 47–52. The exact Franchise Agreement and Development Agreement formulas govern. A buyer evaluating an existing Gym should also distinguish relocation, refurbishment, lease-assumption and transfer costs from the new-location opening estimate; the official location information notes that the system handles new locations, existing-Gym opportunities, leasing, construction permits, licensing, zoning and relocation.
What can reduce the fee, and what remains unresolved?
The 2026 disclosure offers a 5% reduction of the Initial Franchise Fee and Development Fee to qualifying active-duty U.S. military personnel and honorably discharged veterans. The participant must hold at least 51% of the franchise entity through the initial term. If the qualifying veteran is no longer an owner, the discount must be reimbursed at the fifth anniversary or upon a transfer, except where the ownership change resulted from death or disability. Existing brand and Affiliated Brands franchisees in good standing may also receive a 5% fee discount for additional units. TLGI may modify or cancel incentives. See Item 5, pp. 8–9.
The official franchise site confirms that military incentives exist but does not publish the full contractual conditions on its investment page. The disclosure controls the percentage, ownership condition and repayment trigger. The FTC’s Franchise Rule materials explain that the disclosure document contains 23 required Items and should be reviewed together with the attached agreements.
What should a buyer carry into final budgeting?
The first location is disclosed at $420,324 to $722,773, but the 2026 offer is built around a two- or three-location commitment. The larger $476,874 to $828,923 range is the clearer starting point for that commitment plus the first location, while later sites require additional location-specific capital. Build-out is the largest disclosed variable; the $39,000 to $81,000 working-capital allowance covers only three months and excludes owner compensation, debt service and personal costs.
After opening, the core structure is an 8% royalty or $2,500 monthly minimum, a current 6% marketing allocation, technology and call-center charges, plus event-triggered renewal, transfer, compliance and default costs. The $100,000 liquid-assets and $250,000 net-worth figures are current official-site qualifications, not evidence that the full investment can be funded with that amount.