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Nexgen fitness (Area Representative)

Company Information

1721 Cross Timbers Dr, Prosper TX 75078

[email protected]

We do not have any parents. NexGen Fitness Corporation, Texas Corporation with an address of 1721 Cross Timbers Dr, Prosper TX 75078 is our predecessor pursuant to asset purchase In February of 2019. We do not have any affiliates, parents, or predecessors that offer franchises in any other line of business. Bryan Whatley, LLC, with an address of 1721 Cross Timbers Dr, Prosper TX 75078 offered NexGen Fitness licenses during the years 2014 to 2018. As of December 31, 2019, there were and are currently 6 open and operating NexGen Fitness licensees in Texas. In addition, Bryan Whatley, LLC, our affiliate, owns and operates NexGen Fitness Businesses like the franchises offered in this disclosure document . We do not have any parents or affiliates that offer franchises in any line of business.

You will sign our then-current form of Area Representative Agreement for each NexGen Fitness Franchised Business to be opened under the Area Representative Agreement. As an Area Representative, you must have at least one unit NexGen Fitness Franchised Business in operation. Unit NexGen Fitness franchises are offered in a separate franchise disclosure document. We may continue to develop new products and services, but we are not obligated to do so. If we do develop new products or services, we may offer you the opportunity to provide such products but are not required to offer such opportunity, and if we do, we may require you to take additional training, pay additional fees, and sign additional agreements or other requirements. Our franchises use specialized business formats and systems, called the “System,” which we have the right to modify. Our franchises use certain service marks and other commercial symbols of ours called the “Marks.” You have no obligation, nor any right, to open any additional NexGen Fitness Franchised Business.

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

2/10

Investment Accessibility

2/10

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $39,900 Maximum: $45,900

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $195,945 Maximum: $544,295

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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