Quick Verdict · who it fits
Red Light Method fits first-time franchise buyers looking for an emerging fitness concept.
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$192K - $821K
Franchise fee (Item 5)
$50K
Royalty (Item 6)
6% + 2% ad
System size (Item 20)
2 +2
Agreement term
10 yrs
Years in business
3+ yrs
Company-owned units
2
Item 3 litigation
None disclosed
Model Red Light Method's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
•No exclusive territory✓No bankruptcy disclosed✓No Item 3 litigation
Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
Drag to your projected annual sales. Royalty 6% + ad fund 2% on gross sales.
PROJECTED ANNUAL SALES$500,000
$100k$2M
Royalty (6%)
—
Ad fund (2%)
—
Total / year
—
▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
Free AI summary — the first read on the filing.
4
Total units open
2 franchised units
Units opened last year
0
Units closed last year
+2 franchised units
Net unit growth
What our analysis flagged across the 2026 filing.
5
Risks to review
4
Strengths identified
5
Questions to ask
How Red Light Method ranks against 162 Fitness & Wellness peers we've analyzed.
Initial investment
25th pct · of 162 peers
Franchise fee
53rd pct · of 162 peers
System size
14th pct · of 162 peers
Fitness & Wellness industry averages
Avg investment
$437K - $1.0M
Avg franchise fee
$48K
Avg system size
150
Franchises analyzed
162
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| Red Light Method | Disclosed | $50K | $192K - $821K | 6% | 2 |
| KlineSimilar price | None | $60K | $221K - $823K | 6% | 386 |
| JazzerciseBiggest system | Disclosed | $1K | $2K - $3K | 20% | 5,092 |
| Next HealthTop-rated in category | Disclosed | $80K | $1.7M - $2.3M | 9% | 5 |
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Free explainers to go deeper before you sign.
Brand Analysis
The 2026 FDD prices an Anytime Fitness franchise at $539,329 to $905,482 and charges a flat $842 monthly royalty, not a percentage. Every Item 7 line item, the four revenue quartiles, and the fee clause most cost pages have never read.
Brand Analysis
Club Pilates' 2026 FDD shows total investment of $403K to $1.0M, a $65K franchise fee, and an 8% royalty. As the largest reformer-Pilates franchise system in the U.S., the brand has proven unit economics — and is also subject to the Xponential parent-company risk that affects every Xponential brand. Here's the math.
Brand Analysis
Crunch Fitness' 2026 FDD shows an investment range of $2.15M to $5.37M, a low-tier $35K franchise fee, and a 5% royalty. The wide range reflects two very different gym formats — Standard and Signature. Here's how to read the math and which buyer profile fits.
Red Light Method requires a $50,000 initial franchise fee and a total initial investment range of $191,675–$821,050, per the most recent FDD on file.
Red Light Method franchises are sold by Red Light Method Franchising, LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the corporate structure, including any parent companies and predecessors.
Yes. Red Light Method discloses Item 19 financial performance representations in its FDD. See the financials sub-page for the disclosed figures.
Franchisees pay a royalty of 6% and an advertising fund contribution of 2% of Gross Sales on gross sales as defined in Item 6 of the FDD.
As of their 2026 FDD, Red Light Method has 2 total locations, with 2 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
No. Red Light Method does not grant exclusive territory rights under Item 12. The franchisor retains the right to operate or grant additional units inside or adjacent to your trade area.
Per the FDD, Red Light Method discloses an initial agreement term of 10 years, a renewal fee of $7,777, a transfer fee of $17,777. Review Items 10 and 17 for the full renewal and termination provisions.
This page is part of VetMyFranchise. View all pages: llms.txt · llms-full.txt