The Little Gym Franchise Costs, Fees & FDD

Year Business Began: 1981

Franchising Since: 1992

Headquarters: Bedford, Texas

Estimated Number of Units: 370

Franchise Description: TLGI, LLC is the franchisor. The franchisor’s parent company is Unleashed Brands, LLC. The franchisor offers franchises for The Little Gym businesses that provide physical fitness, recreational gymnastics, motor skills development, and other programs to children in a non-threatening, highly motivational environment that enhances physical and mental growth.
Training Overview: Franchisees and their designated manager must satisfactorily complete the initial training program and required subsequent training. The initial training program, called Bootcamp Training, currently consists of both virtual and in-person training for a total of one to two weeks. The first portion of Bootcamp Training is approximately five days in length with three to five hours of virtual training content. The second part of Bootcamp Training is internship training and is approximately two to three days in length. The in-person portion takes place at an approved working gym location that the franchisor chooses and requires travel. The franchisor may also require franchisees to attend up to 15 days per year of group training courses of its choosing after the initial training and may charge up to $500 per person per day. The franchisor may conduct, and require franchisees to attend, periodic conferences to discuss system developments, including operational efficiency, personnel training, bookkeeping, account, inventory control, performance standards, advertising programs, and merchandising procedures. The franchisor may require the designated manager to attend the conferences.

Territory Granted: Franchisees must operate the franchised business at a site approved by the franchisor within the “protected area” as identified in the Franchise Agreement. The protected area will be determined by the franchisor, and which may be based upon any or all of the following: zip codes, geographic boundaries, or a radius surrounding the approved location. There is no minimum protected area. Typically, but not in all cases, available protected areas will have average household income above $70,000 and encompass a population of approximately 10,000 children aged 0 to 4 years, based upon the most recent U.S. Census or other publicly available data that the franchisor designates. During the term of and subject to franchisees’ compliance with their Franchise Agreement and any other agreement between franchisees and the franchisor or its affiliates, the franchisor will neither operate nor grant others the right to operate another The Little Gym business in the protected area, except for those rights reserved to the franchisor and its affiliates.

Obligations and Restrictions: The franchisee is required to be a business entity formally organized in the state of the franchisee’s choosing. The franchised business must be supervised at all times by a person who assumes the responsibilities of general management, and full-time responsibility for daily supervision and operation, of the franchised business (the “designated manager”). Neither franchisees, their designated manager, nor their gym director may own, maintain, advise, operate, engage in, be employed by, make loans to, invest in, provide any assistance to, or have any direct or indirect interest in (as owner or otherwise) or relationship or association with, any business that competes with The Little Gym businesses or any of the products or services they offer. Franchisees may offer and sell only the products, goods, and services specifically authorized by the franchisor in writing, including without limitation ancillary services that the franchisor may authorize from time to time. Franchisees may not offer or sell any products, goods, or services not specifically authorized by the franchisor in writing.

Term of Agreement and Renewal: The length of the franchise term is 10 years. If franchisees are in good standing and requirements are met, they may elect to continue operating the franchise for two additional, consecutive five-year successor terms.

Financial Assistance: The franchisor does not currently offer direct or indirect financing. The franchisor does not guarantee a franchisee’s any note, lease or obligation. The franchisor offers a 5% reduction of the development fee for active-duty United States military and United States veterans who were honorably discharged.

Estimated Initial Investment

Name of Fee	Low	High
Development Fee	$113,050	$113,050
Lease Payments (one month rent and security deposit)	$12,000	$30,000
Leasehold and Tenant Improvements	$177,518	$300,248
Architectural & Construction Management Fees	$16,700	$25,000
Signage (interior and exterior)	$24,000	$35,000
Initial Inventory and Equipment Package	$65,000	$75,000
Furniture, Fixtures and Equipment	$15,000	$18,000
Computer Systems, A/V, Security Surveillance System, Other Systems	$10,000	$15,000
Training Related Expenses	$17,500	$22,500
Legal, Accounting and Other Professional Fees	$5,000	$11,000
Technology Fees (3 months)	$357	$357
Insurance Deposit and Premiums	$2,440	$2,840
Business Licenses and Permits	$500	$1,000
Grand Opening Marketing	$20,000	$25,000
Initial Supplies	$1,200	$2,000
Additional Funds – 3 Months	$39,000	$81,000
ESTIMATED TOTAL	$519,265	$756,995

 
Other Fees

Type of Fee	Amount
Royalty	Greater of 8% of gross sales or $2,500 per month.
National Advertising Fund (NAF) Contribution	Up to 2.5% of monthly gross sales; currently 1% of gross sales.
Local Marketing Expenditure	Up to 6% of monthly gross sales, minus the portion the franchisor designates for NAF contribution; currently 5% of gross sales.
Advertising Cooperative (if established)	Determined by majority vote of cooperative members.
Technology Fee	Up to $399 per month. Currently $119/month.
Call Center Fee	The sum of the service fee and the franchisee’s pro rata share of E-commerce variable cost. Currently, the base fee is $80 to $120 per month per gym.
Initial Training Fee	$500 for the first 2 individuals; then-current fee (currently, $500 per day) for each additional person.
Additional Training	Then-current additional training fee (currently, $500 per day) plus reimbursement of the franchisor’s actual costs.
Conference Fee	Currently $1,000 per attendee.
Additional On-Site Assistance	$500 - $2,500 per day; plus the franchisor’s expenses for travel and accommodations.
Compliance Review Fee	Actual cost of program, including purchases made as part of the mystery shop or audit.
Dashboard Access License Fee	Waived for the first license; $10 per month per license after the first one.
Supplier Review Fee	Reimbursement of the franchisor’s costs incurred in product testing and evaluating suppliers.
Gift Card and Loyalty Program Fees	Currently $0.
Renewal Fee	25% of the then-current initial franchise fee plus reimbursement of the franchisor’s legal and professional expenses and its other costs incurred in connection with the renewal.
Holdover Fee	$250 per day that franchisees operate after the expiration of the term of their Franchise Agreement.
Split Territory Fee	50% of the franchisor’s then-current initial franchise fee.
Transfer Fee	Varies. See FDD.
Resale Program Fee	Currently, the greater of 4% of the purchase price paid for the franchised business (in any form, including cash, credit, debt or stock) or the then-current initial franchise fee.
Interest	Lesser of 18% per year or maximum lawful rate in the franchisee’s state.
Nonsufficient Funds Fee	$100 per occurrence, not to exceed maximum allowed by applicable law.
Audit Costs	Actual cost of audit.
Indemnification	Varies depending upon claim and resolution of claim.
Liquidated Damages	See FDD. Payable only if franchisees default and the franchisor terminates the Franchise Agreement.
Public Offering or Private Placement of the Franchisee’s Securities	Reimbursement of the franchisor’s actual costs and expenses incurred in having its legal and professional counsel review offering materials.
Payment Processing Fee	Varies depending upon the volume of payments made by credit card.

The above information has been compiled from the FDD of The Little Gym. Year of FDD: 2025.
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