How Much Does an OsteoStrong Franchise Owner Make?

Officially, it reports no financial performance representation. Item 19, p. 33, does not provide Gross Revenues, average unit volume, operating profit, EBITDA, net income, cash flow, owner compensation, or a percentage of Centers reaching a threshold. Revenue therefore cannot be inferred from the FDD, and revenue must not be confused with owner earnings.

The FDD does provide structural evidence. Item 20 reports 153 franchised Centers and zero company-owned Centers at the end of 2024, which removes a same-brand company-store proxy. Item 15 requires an approved, trained Center Manager to devote full-time best efforts to day-to-day operations; an owner may fill that role, but if a non-owner manager is used, a Managing Owner must still oversee general operations. The official OsteoStrong U.S. franchise page describes both single-Center owner/manager and multi-Center ownership models.

The scenarios combine a broad $954,013 central revenue proxy with a 6.17% central owner-operated net-income proxy. Both are derived from 2023 government data, not OsteoStrong results. Conservative and Upside cases use 80% and 120% of the central revenue proxy and move the margin down or up by 3 percentage points. Those spreads are editorial sensitivity assumptions, not probabilities or FDD-reported quartiles.

• Revenue anchor — DERIVED BENCHMARK: $39.645 billion of 2023 employer revenue for NAICS 713940 Fitness and Recreational Sports Centers divided by 41,556 employer establishments equals $954,013 per establishment. The numerator comes from the 2023 Census Annual Integrated Economic Survey table; the denominator comes from the Census NAICS 713940 industry profile. This cross-program ratio is not a Census-published average and includes facilities unlike OsteoStrong.
• Margin anchor — DERIVED BENCHMARK: 2023 IRS net income less deficit of $933.271 million divided by $15.122 billion of business receipts equals 6.17% for the broader Amusement, Gambling, and Recreation Industries sole-proprietorship group. The calculation uses loss-making returns rather than only profitable returns. See the IRS nonfarm sole-proprietorship statistics and 2023 IRS Table 2 income-statement workbook.
• Owner-operator treatment — EDITORIAL SCENARIO: Schedule C net income does not deduct a sole proprietor's salary, so the modeled result is labeled estimated owner-operator benefit. It may combine residual business profit with the market value of the owner's work.
• Manager-run treatment — EDITORIAL SCENARIO: the owner-operator benefit is reduced by a $70,270 wage-only proxy. BLS reported that May 2024 median wage for entertainment and recreation managers working in fitness and recreational sports centers. Employer payroll taxes, benefits, recruiting, and coverage costs are excluded, so the manager-run residual may be overstated. See the BLS manager wage profile.

Estimated owner-operator benefit is higher because the owner is assumed to perform the full-time Center Manager role rather than purchase that labor in the market. This treatment applies to one modeled mature U.S. Center and is scenario-based. The FDD permits an owner to serve as Center Manager and strongly recommends that arrangement, but it does not report whether owner-managed Centers outperform manager-run Centers.

A manager-run owner still has oversight duties under Item 15, so the model should not be interpreted as passive income. The BLS figure is wage only. Adding employer payroll taxes, benefits, paid leave, hiring costs, and coverage could reduce the manager-run result further. Conversely, a local manager may cost less than the national industry median, which would improve the residual.

At the three modeled revenue levels, the disclosed recurring system-fee burden is approximately $70,045 to $100,573 per year. This is a derived calculation from official 2025 FDD Item 6 fees for a mature Center: a 7% Royalty Fee, a 1% Advertising Fee, a $250 monthly Technology Fee, a $350 monthly Education and Spectrum License Fee, and a $149 monthly Operations Software Expenditure.

Beginning in month 13, royalty is the greater of 7% of Gross Revenues or $1,500 per month. All three modeled revenues are high enough for the 7% calculation to exceed the minimum. The fee chart excludes the proprietary digital marketing program after its required opening phase because participation is described as optional after the third full month of operations. Continuing it for a full year would add approximately $23,964 to $47,964, depending on ad spend.

Estimated owner-operator benefit

Cash represented by the external sole-proprietorship net-income proxy after normal business deductions, including a return for owner labor, before personal income taxes and financing principal payments.

Manager-run residual

Estimated owner-operator benefit minus the $70,270 wage-only manager proxy. It excludes additional employer payroll burden and does not eliminate the Managing Owner's oversight duties.

Interest and depreciation

The IRS benchmark includes reported business interest and depreciation within business deductions, but the mix may not match a franchised Center. Capital spending is represented only indirectly through depreciation.

Debt service and taxes

Financing principal and personal income taxes are excluded. Item 10 states that the franchisor does not offer or guarantee financing, so no uniform debt structure is assumed.

The largest uncertainty is same-brand unit revenue and expense performance. That uncertainty is official and material forthe current U.S. offer because Item 19 supplies no sales or profit cohort, no average or median, no maturity threshold, and no percentage of Centers achieving a stated result. The external revenue proxy includes gyms, pools, skating rinks, and other facilities that may have different square footage, staffing, pricing, and capital intensity.

The margin proxy is also broad. IRS sole-proprietorship data combine amusement, gambling, and recreation businesses, and the data do not isolate franchised wellness Centers. The all-in margin is therefore used without subtracting disclosed franchise fees a second time. The separate fee chart shows the FDD burden, but the earnings scenarios assume those fees fit within the broader benchmark expense ratio. That compatibility cannot be verified from Item 19.

A buyer should replace every external assumption with written same-brand evidence wherever possible. The following checks apply to the current U.S. Center format and should be completed before treating any scenario as decision-grade.

• Request written Item 19 substantiation or confirm that none exists. The FTC's guide to buying a franchise explains that sales or earnings claims generally belong in Item 19, subject to narrow exceptions.
• Interview a balanced Item 20 sample. Ask current and former franchisees for annual Gross Revenues, member count, pricing, refunds, payroll, rent, local marketing, manager compensation, owner hours, depreciation, interest, and distributions for comparable mature Centers.
• Separate owner labor from business return. Ask owner-managers what salary they would need to pay a qualified replacement and ask manager-run owners about payroll taxes, benefits, coverage, and their continuing oversight time.
• Reconcile every recurring fee. Confirm current royalty minimums, advertising, technology, education, Spectrum licensing, software, payment processing, required local advertising, and whether the proprietary digital marketing program is practically optional after the opening phase.
• Normalize timing and cohort. Compare mature full-year Centers with the same operating format; do not blend pre-opening, ramp-up, relocated, transferred, or partial-year units with stabilized results.
• Model financing separately. Use the buyer's actual loan amount, rate, term, fees, and principal schedule. Do not subtract the Item 7 initial investment from one year of sales or call pre-tax operating benefit after-tax take-home pay.

The strongest defensible range from the available evidence is approximately −$46,000 to $35,000 of annual pre-tax manager-run residual, or $24,000 to $105,000 of estimated owner-operator benefit, for one modeled mature U.S. Center. It is scenario-based, not official. The central cases are approximately −$11,000 manager-run and $59,000 owner-operated.

The most important earnings driver is whether unit revenue and margin are sufficient to support a full-time manager after the disclosed system fees and local operating costs. The largest unresolved uncertainty is that the 2025 Item 19 contains no same-brand sales or earnings data. Before proceeding, a buyer should verify comparable full-year Center records, Item 19 substantiation, recurring-fee treatment, owner hours, and replacement-manager cost through written franchisor materials and structured interviews with current and former franchisees.

All figures are annual U.S. dollars and rounded for presentation after calculations using full-precision inputs. Negative values indicate an estimated operating shortfall before financing principal and personal income taxes. No scenario is a forecast, probability, guarantee, or after-tax take-home estimate.