How to Finance a Discover Strength Franchise: Studio Costs
By Anthony Cornella
A Discover Strength franchise loan funds a boutique strength training studio where members come in for 30-minute workouts twice a week, coached by exercise physiologists. With a published investment range of $529,000 to $870,000 and a $750,000 net worth requirement, this is a larger, more professionally staffed studio than many boutique fitness concepts, and lenders underwrite it that way.
US Professional Funding is not affiliated with, sponsored by or endorsed by Discover Strength; the name is used only to describe the business. Figures from the franchisor’s disclosure document and franchising website can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Discover Strength Franchise Loan at a Glance
- Estimated total investment: $529,000 to $870,000, according to the franchisor’s franchising website, covering franchise fees, equipment, build-out, initial marketing and operating expenses.
- Net worth requirement: $750,000 minimum.
- Liquidity requirement: $150,000 in liquid assets available to invest.
- Average studio size: 1,800 to 2,200 square feet.
- Workout model: 30-minute strength training sessions twice a week, delivered as one-on-one personal training and small group training.
- Membership terms: the brand advertises no long-term contracts and no cancellation or initiation fees.
- FDD: the franchisor references its 2026 FDD, including an Item 19 financial performance representation.
- SBA Franchise Directory: listed as Discover Strength (code S6610), with a note about the Studio Lease Addendum when real estate secures the loan.
What Is Discover Strength?
Discover Strength is a strength training studio concept based in St. Louis Park, Minnesota. The franchisor, Discover Strength Franchising LLC, built its model through company-owned studios before announcing a national franchise opportunity on its franchising site in early 2023.
The workout. The brand’s core promise is efficiency: short, intense strength workouts lasting 30 minutes, twice a week, led by exercise physiologists. It offers one-on-one small personal training and small group training rather than large classes or open-gym access.
The studio. Average studios run 1,800 to 2,200 square feet. The floor is built around strength training equipment and coached training areas rather than cardio rows, locker rooms or pools.
The business model. Revenue comes from recurring memberships for coached training. The brand advertises no long-term contracts and no cancellation or initiation fees, which makes member retention and coaching quality central to the studio’s cash flow.
Why lenders view it the way they do. Lenders like recurring revenue, a compact footprint and a defined service. They also recognize that a coaching-based model depends on hiring and keeping qualified exercise physiologists, and that an investment of this size needs a borrower with real liquidity. A strong Discover Strength franchise loan request addresses staffing, ramp-up and reserves directly.
Discover Strength Franchise Costs
The franchisor’s website lists a total investment of $529,000 to $870,000. It says the range covers initial franchise costs, including franchise fees, equipment, build-out, initial marketing and operating expenses. The detailed line items are in Item 7 of the current FDD.
Initial franchise fee. The fee is disclosed in Item 5 of the FDD. Ask whether multi-unit or development pricing is available.
Real estate and build-out. Most studios lease retail or mixed-use space in the 1,800 to 2,200 square foot range. Costs include lease deposits, leasehold improvements, flooring rated for strength equipment, lighting, HVAC and finishes. Second-generation fitness space can lower build-out costs.
Equipment. Strength training machines and related studio equipment are a major part of the budget and a key source of collateral.
Opening costs and working capital. Signage, technology, presale and grand opening marketing, training travel, insurance, deposits and additional funds to cover rent, payroll and fees while membership builds.
Total investment. The Item 7 table typically groups costs into categories like these:
- Initial franchise fee
- Lease deposits and pre-opening rent
- Leasehold improvements, flooring and finishes
- Strength training equipment
- Technology, software and audio-visual systems
- Signage
- Presale and grand opening marketing
- Training travel and lodging
- Insurance, licenses and deposits
- Additional funds for the initial operating period
Build your loan request from the actual Item 7 ranges, and show the lender which costs you will pay with cash and which you plan to finance.
Ongoing Fees and How They Affect Your Loan
Royalty and brand fund. Item 6 of the FDD lists the royalty, any brand or marketing fund contribution and any minimum payments.
Technology and other fees. Check Item 6 for software, scheduling, billing or other recurring fees, as well as transfer and renewal fees.
Payroll. Because sessions are coached by exercise physiologists, payroll is one of the studio’s largest costs. Lenders will want a hiring and scheduling plan that matches projected member counts.
How lenders factor these costs in. Lenders deduct royalties, fund contributions, rent and payroll from projected revenue, then test whether the remaining cash flow covers debt service with a margin. Modeling the ramp-up month by month, with realistic payroll from day one, makes the projections far more credible.
Franchisor Requirements for New Owners
Discover Strength’s franchising website lists:
- Minimum net worth: $750,000
- Liquid assets available to invest: $150,000
The approval process. The franchisor lists a 30-minute pre-qualification call as the first step. After that, expect a discovery process that includes reviewing the FDD and meeting the franchisor team before approval and signing.
The liquidity requirement is a minimum. Given the size of the investment, lenders will look at your equity injection and the reserves you keep after closing. Our article on SBA loans for gyms and fitness studios explains how lenders view fitness borrowers.
Ways to Own a Discover Strength
A new studio. Most franchisees open a new studio. Lenders underwrite the borrower, the Item 7 budget, the lease and a membership ramp-up plan. Our page on fitness center start-up financing covers how we approach new openings.
Buying an existing studio. A resale brings members, coaches, equipment and a revenue history. Review member counts, billing and cancellation data, the lease and staffing, and get franchisor approval for the transfer. See our guide to buying a boutique fitness studio and how we finance fitness center acquisitions.
Multiple studios. Owners who plan more than one studio should ask about development agreements and schedules. See the multi-unit section below.
Financing Options for a Discover Strength Franchise
SBA 7(a) loans. Because Discover Strength is on the SBA Franchise Directory, an SBA 7(a) loan is a natural starting point. A single 7(a) loan can cover the franchise fee, build-out, equipment, opening costs and working capital.
SBA 504 loans. The 504 program finances owner-occupied real estate and long-lived fixed assets. It fits only when an owner buys the building, and the SBA directory note about the lease addendum applies in that case.
Conventional term loans. A conventional business loan may suit borrowers with strong liquidity and collateral, or experienced owners adding a studio.
Equipment financing. Strength training machines, audio-visual systems and studio technology can be financed or leased separately, preserving cash for working capital. Learn more about fitness equipment financing and leasing.
Working capital and lines of credit. Coaches need to be hired and trained before membership revenue covers payroll. A working capital reserve or line of credit can bridge presale, launch and ramp-up. See our fitness center working capital options.
Seller financing on resales. A seller may agree to carry part of the price on an existing studio. Any seller note must be acceptable to the senior lender, is typically subordinate to it, and some loan programs limit its structure.
SBA Loans for Discover Strength Franchisees
SBA lenders generally require a franchise brand to appear on the SBA Franchise Directory before making an SBA-guaranteed loan to its franchisees. A listing means the franchise documents were reviewed for eligibility; it does not approve any borrower.
Discover Strength’s listing and note. Discover Strength is listed under code S6610 with this note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, a Studio Lease Addendum may not be executed. In plain English, the Studio Lease Addendum is the franchisor’s standard add-on to a studio lease. If you or an affiliate own the building and pledge it as collateral for the SBA loan, that addendum should not be signed, so the lender, franchisor and your attorney need to agree on how the real estate is documented. For a typical leased studio, the note generally does not come into play.
Program limits. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
Application tips. Provide the current FDD, franchise agreement, lease or letter of intent, personal financial statement, tax returns, resume and monthly projections. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
How Lenders Evaluate a Discover Strength Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and typically require a personal guarantee.
Net worth and liquidity. The franchisor’s $750,000 net worth and $150,000 liquidity requirements set a floor. Lenders want reserves left after the equity injection.
Industry and management experience. Management, fitness, health care or sales experience helps. If you will not coach, show who will lead the training team and how you will recruit qualified exercise physiologists.
Business plan and projections. Model presale results, monthly member growth, the mix of one-on-one and small group training, coach capacity and payroll. Item 19 of the 2026 FDD includes financial performance information; use it as a reference, not a forecast.
The FDD and franchise agreement. Lenders review the term, renewal, transfer conditions, territory and Item 10 financing. Our article on how lenders read a Franchise Disclosure Document covers the key items.
Site and lease. Lenders look at lease term, renewal options, rent and tenant improvement allowances, and confirm that the lease runs at least as long as the loan.
For resales, historical financials. Several years of profit and loss statements, tax returns and membership reports.
Equipment and Staffing: What Drives This Model
Discover Strength studios are equipment-intensive for their size. Strength machines are long-lived assets, which makes them well suited to equipment financing with terms matched to their useful life. Ask the franchisor for the required equipment package and vendor quotes early, because lenders will want them in the loan file.
Staffing is just as important. Each session is coached, so your capacity to grow is limited by the number of qualified coaches you can hire and schedule. Lenders will look for a realistic hiring timeline and enough working capital to cover payroll before revenue catches up.
Multi-Unit Growth and Development Agreements
Owners planning several studios may sign a development agreement with a schedule for future openings. Ask the franchisor what development terms are available and what fees apply.
Financing additional studios. Lenders usually finance each studio as it opens, underwriting the first studio’s performance alongside the new one. Our article on multi-location gym financing explains how lenders approach growth.
Real-World Scenarios
A corporate executive opens a first studio. A buyer with management experience meets the net worth and liquidity requirements, uses an SBA 7(a) loan for build-out, equipment and working capital, and hires a head coach before opening.
A physical therapist adds a studio. A health care professional finances equipment separately and uses a conventional loan for the build-out, keeping cash in reserve for payroll.
An owner buys the building. An owner purchases a small commercial building for a studio. Because the real estate secures the SBA loan, the lender and franchisor follow the directory note and do not use the Studio Lease Addendum.
An existing owner opens a second studio. The lender reviews the first studio’s results and finances the new studio’s build-out and equipment.
Common Mistakes to Avoid
- Treating the $150,000 liquidity requirement as the full cash need
- Underestimating coach payroll during ramp-up
- Overlooking the SBA directory note when real estate secures the loan
- Signing a lease shorter than the loan term
- Using Item 19 figures as a projection instead of building your own
- Underfunding presale and launch marketing
For more pitfalls across the industry, read the loan mistakes fitness center owners make.
Next Steps to Finance Your Discover Strength Franchise
Step 1: Confirm you qualify. Check your net worth and liquidity against the franchisor’s requirements.
Step 2: Review the FDD. Study Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 3: Select a site. Find space in the target size range and negotiate a lease that fits your loan term.
Step 4: Build your projections. Model member growth, coach hiring and payroll month by month.
Step 5: Talk with a financing specialist. Compare SBA 7(a), conventional and equipment financing.
Step 6: Apply and coordinate approvals. Align lender, franchisor and landlord timelines.
Step 7: Close and open. Order equipment, hire coaches and launch presale.
Discover Strength Franchise Loan FAQs
How much does a Discover Strength franchise cost?
The franchisor’s website lists a total investment of $529,000 to $870,000, including franchise fees, equipment, build-out, initial marketing and operating expenses.
What is the Discover Strength franchise fee?
The initial franchise fee is disclosed in Item 5 of the current FDD.
What royalty does Discover Strength charge?
The royalty and any marketing fund contribution are listed in Item 6 of the FDD.
How much net worth and liquidity do I need?
A minimum net worth of $750,000 and $150,000 in liquid assets available to invest.
Can I get an SBA loan for a Discover Strength franchise?
Yes, if you qualify. Discover Strength is listed on the SBA Franchise Directory under code S6610. If real estate secures the loan, the Studio Lease Addendum may not be executed.
Can I finance strength equipment separately?
Yes. Machines and studio technology can often be financed or leased separately.
Can I buy an existing studio?
Yes, if one is available and the franchisor approves the transfer. Lenders can underwrite the studio’s actual results.
Does Discover Strength offer financing?
Check Item 10 of the FDD. Most buyers arrange outside financing.
Does the FDD include financial performance information?
Yes. The franchisor refers candidates to Item 19 of its 2026 FDD. Review it with your accountant.
Can a first-time owner get a Discover Strength franchise loan?
Yes, if you meet the financial requirements and present a strong plan. Lenders weigh management experience and your staffing plan.
Final Thoughts
A Discover Strength franchise loan is a mid-six-figure commitment built on coaching, retention and a well-equipped studio. Borrowers who meet the financial requirements, plan payroll carefully and understand the SBA directory note are well positioned for a smooth closing.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and fitness center financing solutions.
