FRANCHISE·WATCH·DESK

Verified — real FDD extraction

Not found in the SBA Franchise Directory under this name — though SBA loans to its franchisees exist; verify eligibility with your lender

WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS

Fitness · independent · est. —

We Rock the Spectrum Kid's Gym is a children's gym franchise designed to be inclusive of kids of all abilities, including children with autism and sensory needs. A franchisee operates a play-gym facility with sensory-friendly equipment, offering open play, classes, and parties for local families.

WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS net unit count grew +53.2% from 20232025 per its FDD Item 20.

New to franchising? Start here

A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.

Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:

  • Franchise fee — the one-time cost to buy in.
  • Royalty — the ongoing cut of your sales you pay the franchisor.
  • Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).

The verdict

Proven & steady

Distress

0
STABLE

A real track record with an unremarkable region of the ledger: neither the growth nor the exits stand out, for better or worse. The main concern in the record: owners are leaving at a high rate.

Exit rate · latest year

4.2%

vs 3.4% across 33 fitness systems

Cost to open

$179K–$388K

Item 7 total investment range

SBA loan defaults

25.0%

20 loans resolved — directional only

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Strong
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Strong
Transfer / churn15%

transfers vs. base · Table 3

Weak
Promise-keeping10%

actual vs. projected openings · Table 5

Strong
Transparency15%

Item 19 disclosure + completeness

Weak

Systemwide units

2023–2025

+53.2%
7720239720241182025

Survival record

FDD Item 20 · outlet status by year

In fiscal 2025, 4 of 96 franchised outlets left the system — a 4.2% annualized exit rate, vs 3.4% across 33 fitness systems. Not every exit is a failure — but this is the measurable floor.

Show the outlet tables
Status (FTC)202320242025
Outlets at start577797
Opened212225
Transfers1188
Terminations024
Non-renewals000
Reacquired by franchisor000
Ceased — other reasons100
Outlets at end7797118
Net change+20+20+21

The lender's view

SBA 7(a)/504 loan performance · FY1991–present

Banks have made 22 SBA-backed loans to WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS franchisees since 2004. Only 20 have resolved so far — too thin for a reliable default rate, but 5 of them charged off.

Charge-off rate

20 resolved · too thin to rate

Loss given default

avg. charged-off $ ÷ approved $

Expected loss

default rate × loss severity

Avg. loan · FY2020+

$106,127

what recent franchisees borrowed

Median time to default

23 mo

approval → charge-off, defaulted loans

Lenders · FY21+ vs FY16–20

0 vs 11

distinct banks — pulling back

Charge-off rate by loan approval year (%)

SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL

The owner's side of the deal

FDD × federal loan record

Who finances it

Wells Fargo Bank National Association

22.7% of this brand's loans

That lender charges off 15.6% of its loans to other franchise brands, vs 14.8% nationally.

Who buys it

Too few identified operators

Does experience help here?

Not enough resolved loans to split

Computed from 22 SBA 7(a)/504 loans to WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.

What it costs — and what it drags

FDD Items 5–7 · fees, investment, royalty

Buying in means a $65K franchise fee (Item 5) and a total investment of $179K–$388K (Item 7). The franchisor publishes no earnings claim (Item 19) — ask current and former franchisees for real numbers.

To open (Item 7)

$179K–$388K

all-in investment range

Franchise fee (Item 5)

$65K

upfront, one-time

Royalty (Item 6)

5%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — this brand discloses no Item 19 earnings; validate with current & former owners.

Royalty you'd pay / yr

$50K

5% of sales, before profit

Over a 10-yr term

$500K

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS with an independent CPA

Modeled risk

FDD Risk Score · modeled from the public record

Lower risk

Modeled from the public record, this brand looks safer than 71% of systems we score.

Risk percentile

29 / 100

Loan-corroborated

Modeled SBA charge-off

9.9%

Observed SBA charge-off

25.0%

Top drivers: Share financed by high-loss lenders (lowers) · Net unit growth (lowers) · System size (log units) (raises) · Item 20 exit rate (lowers). 15+ resolved loans stand behind this estimate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.

Distress signals

news-sourced · bankruptcies, closures, lawsuits

No recent closures, bankruptcies, or major lawsuits found in the news for WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS. That's a good sign — but it reflects news coverage, not a guarantee.

9 questions to ask a WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS franchisee

Built from this brand's own disclosures · take it to your validation calls

The franchisor will give you a list of owners to call. Most buyers ask whether they like it. These are the questions built from what WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS has actually disclosed — each one carries the number it came from, so you can tell whether the answer squares with the record.

  1. 01

    WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS’ own Item 20 shows 4 of 96 franchised outlets left the system in fiscal 2025 — about 4.2%. Do you know any of those owners, and do you know why they left?

    A franchisor will call these “transitions.” An owner three doors down usually knows whether they sold at a profit or handed the keys back.

    FDD Item 20 · FY2025

  2. 02

    8 units transferred to new owners in fiscal 2025. When you look at those, were they people cashing out a good business — or getting out of a bad one?

    Transfers count as neutral in every ranking. They are the single easiest place to hide distress.

    FDD Item 20 · FY2025

  3. 03

    You pay 5.0% royalty on gross sales, plus the ad fund, before any of your own costs. On your actual revenue last year, what did you take home as the owner — not revenue, take-home?

    Royalty is charged on sales, not profit. This is the number the brochure never shows and the one your life actually runs on.

    FDD Item 6

  4. 04

    WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS’ FDD makes no financial performance representation at all — legally, they've told buyers nothing about earnings. What did your first 24 months actually look like, month by month?

    When a franchisor won't publish numbers, existing owners are the only source. Silence in Item 19 is a choice, not a requirement.

    FDD Item 19 · 2026

  5. 05

    How many months did it take to cover your own costs, and how much cash did you burn getting there?

    Ramp-to-breakeven working capital is the most underestimated line in any franchise purchase, and the most common reason otherwise-good units fail.

    Not disclosed in any FDD — ask an owner

  6. 06

    Item 3 discloses 2 legal matters. Do you know what those were about, and were any brought by franchisees?

    Franchisee-brought suits over territory, fees or support tell you how the franchisor behaves when there's a disagreement.

    FDD Item 3 · 2026

  7. 07

    What does the franchisor charge for that you didn't expect — required tech fees, mandatory remodels, approved-supplier pricing?

    Required spending appears across Items 6, 8 and 11 rather than in one place, so buyers routinely miss the total.

    FDD Items 6, 8, 11

  8. 08

    If your agreement came up for renewal tomorrow at current terms, would you sign again?

    The single most predictive question you can ask. A hesitation is the answer.

    Ask every owner you speak to

  9. 09

    Who else should I call — including someone who left?

    The franchisor's list is curated by definition. Former franchisees are where the unflattering truth lives, and current owners usually know how to reach them.

    Ask every owner you speak to

Want this as a checklist you can take to the calls?

I'll email you the printable version, and tell you if WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS’ numbers move — a new filing, a rising exit rate, a distress signal. Unsubscribe in one click.

Before you sign anythingfree · 30 min · no commission

A broker is paid by the franchisor to place you. I'm paid by you — and the job is pressure-testing WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS's numbers, including talking you out of a bad deal.

Don Drummond, CPA — Virginia #43775 · what I charge

Book a free 30-minute call →
Own or owned a WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS?no appointment · read by a person

This page is what buyers see before they call you for validation. If the record above is wrong — or right in a way the numbers can't show — say so. Corrections are checked against the filings; nothing you write is published with your name unless you agree to it.

WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS franchise questions, answered from the filings

What percentage of WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS franchises closed last year?

In WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS's latest FDD Item 20 (fiscal 2025), 4 of 96 franchised outlets left the system — an annualized exit rate of 4.2% — compared with 3.4% across 33 fitness systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.

How much does a WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS franchise cost?

Per WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS's 2026 FDD, buying in requires an initial franchise fee of $65K (Item 5) and a total initial investment of $179K–$388K (Item 7).

What royalty does WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS charge?

WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS charges an ongoing royalty of 5.0% of gross sales, per Item 6 of its 2026 FDD.

Does WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS disclose earnings (Item 19)?

No — WE ROCK THE SPECTRUM KID'S GYM FOR ALL KIDS's 2026 FDD makes no financial performance representation in Item 19. That is legal and common, but it means the franchisor publishes no earnings claim; ask current franchisees for real numbers.