For one U.S. SPENGA studio, those are the strongest defensible annual ranges produced by a 2026 FDD-anchored scenario model. The lower range is estimated pre-tax owner earnings after a modeled Designated Manager cost. The higher range is estimated owner-operator benefit, which combines residual business profit with the economic value of the owner's day-to-day management labor.
This range is an independent analytical scenario, not an Item 19 financial performance representation of owner earnings by Spenga Holdings LLC. It combines 2026 FDD facts—2025 Net Cash In, disclosed affiliate costs, royalty and marketing obligations—with separately identified cost-reserve and manager-compensation assumptions. Actual results can differ materially by location, studio format, membership sales, labor, rent, financing, owner involvement, equipment maintenance and execution.
Legal franchisor: Spenga Holdings LLC. FDD: issued April 24, 2026. Item 19 status: official 2025 Net Cash In data for 35 franchised Studios, plus a cost-and-expense disclosure for one affiliate-owned Studio; no franchised-studio owner profit or owner compensation is reported. Applicable offer: U.S. traditional and combo Studio models. External benchmark: May 2025 Bureau of Labor Statistics wage data for General and Operations Managers in NAICS 713940, Fitness and Recreational Sports Centers. Checked: July 15, 2026.
FDD-anchored scenario estimate. Item 19 supplies same-brand revenue distributions but not a franchised-unit earnings measure. The official affiliate residual is used only as an expense proxy.
Limited. The revenue evidence is current and same-brand, but the expense proxy covers one affiliate Studio and omits owner compensation, a Designated Manager and some costs.
What does SPENGA's 2026 FDD actually report?
The FDD officially reports Net Cash In, or NCI, for 35 franchised Studios that were open for all of 2025 and met the minimum monthly marketing requirement. It does not report franchised-studio net income, EBITDA, owner salary, owner distributions or take-home pay.
NCI is a revenue measure covering membership, service and product receipts, with specified exclusions such as sales tax and instructor tips. It must not be treated as owner earnings. Nine franchised Studios were excluded from Part IX because they did not satisfy the minimum marketing-spend criterion.
Open for the entire 2025 calendar year and compliant with minimum monthly marketing spend.
Not operating profit: owner pay, a Designated Manager, repairs and some other costs are excluded.
The fee is the greater of 7% of NCI or a $1,000 monthly minimum after the stated trigger.
The FDD says this minimum spend does not include labor charges.
May 2025 national median for General and Operations Managers in fitness and recreational sports centers.
Official median NCI for each Item 19 performance tier; these are revenue observations, not owner earnings.
Interpretation: Tier 1's median NCI was about 74% above Tier 4's median, so revenue placement is the largest modeled earnings driver. Tier labels describe ordered 2025 groups; they are not probabilities or forecasts.
Source: 2026 SPENGA FDD, Item 19, Part IX, p. 69. Population: 35 franchised Studios open throughout 2025 and meeting the minimum marketing requirement.The official Tier 1 median of $791,043 and Tier 4 median of $454,604 are NCI figures. An owner still bears payroll, occupancy, products, royalty, advertising, technology, maintenance, financing and other operating costs before receiving any economic benefit.
How is the annual owner-earnings range calculated?
For one U.S. Studio using 2025 Part IX tier medians, the estimate applies an adjusted residual margin and then separately deducts a modeled Designated Manager cost. The central calculation is derived; the cost reserve and manager burden are scenario assumptions.
- Conservative: Tier 4 median NCI of $454,604 and a 15-percentage-point reserve, producing a 27% modeled benefit margin.
- Base: Tier 3 median NCI of $500,901 and a 12-percentage-point reserve, producing a 30% modeled benefit margin.
- Upside: Tier 1 median NCI of $791,043 and a 9-percentage-point reserve, producing a 33% modeled benefit margin.
The 42.0% starting point is the affiliate Studio's $351,486.65 of NCI remaining after $484,895.32 of disclosed costs on $836,381.97 of 2025 NCI. Item 19 expressly says that figure excludes owner compensation and Designated Manager compensation, and it also excludes equipment repairs and maintenance plus certain nominal costs. The 9–15 percentage-point reserve is therefore an editorial sensitivity for omitted costs, required system charges not separately identifiable in the affiliate table, maintenance variability and operating inefficiency. It is not a franchisor-reported margin.
Annual estimates per Studio before personal income taxes and financing payments.
Interpretation: The owner-role gap is fixed at $70,000 in this model, while the much larger change across scenarios comes from NCI and the cost-reserve margin. No scenario is presented as the most likely result.
Sources and formulas: 2026 SPENGA FDD, Item 19, Parts I and IX, pp. 58–61 and 69; BLS May 2025 OEWS, General and Operations Managers, NAICS 713940. Values are rounded to the nearest $1,000 after full-precision calculations.How does active ownership change the result?
In this 2025 one-Studio scenario, active ownership increases the estimated economic benefit by about $70,000 per year because the owner is assumed to replace a paid Designated Manager. That increment is compensation for labor and responsibility, not passive business profit.
Does the FDD require an owner to run the Studio?
The official answer is no, but direct participation is recommended. Item 15 says the owner may hire an approved Designated Manager, and each Studio must have a properly trained manager. For a multi-unit owner, a trained Designated Manager is required at each Studio.
Why is the manager cost modeled at $70,000?
The May 2025 BLS median annual wage for General and Operations Managers in NAICS 713940 was $62,900. The model adds a clearly labeled $7,100 allowance for employer payroll and benefit burden, yielding a rounded $70,000 employer-cost assumption. Local wages, benefits, recruiting costs and manager experience may move that figure materially.
The FDD affiliate payroll line includes management pay but expressly excludes compensation for a Designated Manager because the standard offering assumes the franchisee manages daily operations. The separate manager deduction therefore addresses a cost that the affiliate residual does not include.
Sources: 2026 SPENGA FDD, Item 15, p. 47; Item 19, Part I note 2, p. 60. Wage benchmark: BLS May 2025 national industry-specific OEWS data.An owner-operator can receive cash from the business while also supplying full-time management labor. The resulting $123,000–$261,000 range should be compared with both the owner's time commitment and the salary that would otherwise be paid to a qualified manager.
Which fees and operating costs can materially change earnings?
The 2026 FDD officially identifies a 7% royalty, a $3,000–$4,000 monthly local marketing requirement and numerous fixed technology and supplier charges for a U.S. Studio. The core scenario does not subtract every fixed fee again because the affiliate's pooled operating-expense line may already include some technology, phone, processing and administrative costs; double-counting would understate earnings.
| Recurring obligation | Official amount | Scenario treatment |
|---|---|---|
| Royalty Fee | Greater of 7% of NCI or $1,000/month | Explicitly represented in the affiliate cost proxy at 7%. |
| Local Marketing Requirement | $3,000–$4,000/month | Affiliate advertising was 4% of NCI; actual compliance cost varies by revenue and market. |
| Brand Development Fund | Up to 2% of NCI; currently 0% | Not charged in the model because the FDD says it is not currently collected. |
| Technology Fee | $350–$450/month | Covered by the unmodeled-cost reserve rather than separately deducted. |
| POS, CRM, app, SEO and review software | $930/month combined | Potential overlap with the affiliate pooled expense line; covered by the reserve. |
| Phone, music, aromatherapy and fitness technology | $818/month combined | Covered by the reserve; taxes and future supplier increases are not separately modeled. |
Across the fixed monthly charges that can be summed from Item 6, the listed range is approximately $2,098–$2,198 per month, or $25,176–$26,376 per year, before taxes and percentage-based payment-processing charges. That total excludes the royalty, local marketing requirement and any future Brand Development Fund contribution.
Source: 2026 SPENGA FDD, Item 6, pp. 7–14. The combined fixed-fee arithmetic is derived from the listed monthly amounts and should be reconciled against current vendor contracts before use.How much confidence should a buyer place in the range?
Confidence is limited because the 2025 population has no franchised-unit profit statement. The strongest uncertainty is whether a specific U.S. Studio's full operating expense structure resembles the single affiliate Studio after accounting for rent, instructor staffing, maintenance, required software, local advertising and owner or manager compensation.
- Official evidence
- 2025 franchised-Studio NCI tiers, one affiliate cost table, royalty and recurring-fee terms, and outlet counts.
- Derived evidence
- The affiliate disclosed-cost ratio of 57.98% and residual ratio of 42.02%, calculated from exact Item 19 dollar amounts.
- Scenario assumptions
- The 9%, 12% and 15% unmodeled-cost reserves; the $7,100 manager payroll/benefit allowance; and the choice of tier medians as scenario anchors.
- Excluded from earnings
- Personal income taxes, financing interest and principal, depreciation, amortization, full capital-replacement spending and any owner's entity-level overhead.
Item 20 also shows that franchised outlets declined from 66 at the start of 2023 to 44 at the end of 2025, with 2025 beginning at 49 and ending at 44. That system trend does not prove why any outlet closed and does not directly determine earnings, but it increases the importance of reviewing closures, transfers and former-franchisee interviews alongside the financial model. Item 19 also does not separate the Part IX NCI tiers by traditional versus combo Studio, so the scenario cannot establish a format-specific earnings range.
Source: 2026 SPENGA FDD, Item 20, Table 1, p. 71. The table reports outlet counts, not profitability or causal explanations.What should a prospective owner verify before relying on these numbers?
For the 2025 one-Studio U.S. estimate, the answer is a verification process rather than an official earnings figure. A buyer should treat the model as a disciplined interview framework, not a substitute for Studio-level financial statements; the following checks target the assumptions that move the result most.
- Request Item 19 written substantiation and confirm the exact 35-Studio Part IX population, tier assignment method and treatment of closed, transferred or noncompliant locations.
- Ask multiple current franchisees for 2025 and trailing-12-month profit-and-loss statements, separating NCI, instructor payroll, manager payroll, rent, marketing, merchant fees, software, maintenance and owner compensation.
- Ask lower-tier and former franchisees whether the affiliate's 24% payroll, 20% occupancy-and-other-cost and 4% advertising ratios resemble their actual experience.
- Confirm whether the target location will use the traditional or combo Studio model and whether its staffing, square footage and equipment-maintenance profile differ from the Item 19 affiliate Studio.
- Obtain current written vendor quotes for every Item 6 system charge and verify which amounts are already embedded in franchisee operating statements.
- Model financing separately. Interest and principal payments can reduce cash available to the owner even when Studio-level operating earnings are positive.
- Compare owner-operated and manager-run schedules realistically, including the owner's weekly hours, sales responsibilities, instructor coverage and the market cost of a qualified Designated Manager.
The strongest defensible annual range is approximately $53,000–$191,000 of estimated pre-tax manager-run owner earnings, or $123,000–$261,000 of estimated owner-operator benefit, per Studio. Both ranges are scenario-based, not official Item 19 earnings.
The largest earnings driver is 2025 NCI: official tier medians ranged from $454,604 to $791,043. The largest unresolved uncertainty is the gap between the single affiliate Studio's disclosed expenses and the complete recurring cost structure of a franchised Studio. A buyer should verify the Item 19 substantiation, obtain full Studio-level financial statements and test the model through current and former franchisee interviews before assigning weight to any midpoint.