Franchise: Snap Fitness
Franchising Since: 2004
Headquarters: Chanhassen, Minn.
Number of Units: 1,442
About the Franchise
Snap Fitness is the fast, convenient and affordable workout alternative to traditional health clubs. Snap Fitness Centers are accessible 24 hours a day and offer the sale of memberships that allow access to exercise equipment, including cardio, strength and selected equipment.
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With 2,000 locations open or in development in 18 countries and 1.5 million members worldwide, a Snap Fitness franchise is the top choice for entrepreneurs to bring a high-quality workout experience to their communities.
Financial Assistance
Snap Fitness offers, directly or through a preferred financing vendor, the following financing programs: the Lease Servicing Center (LSC)/Matrix Vendor Program for new franchisees opening their first Club or existing franchisees opening an additional Club, the Snap Fitness In-House Program for existing Snap Fitness franchisees to finance equipment to open their next Snap Fitness location, and the Re-Snap Program for existing Snap Fitness franchisees renewing their agreement for a second term.
Term of Agreement and Renewal
The term of the franchisee agreement is 10 years with the option to renew for unlimited additional 10-year terms, if requirements are met.
Breakdown of Costs
The following information is compiled from the Franchise Disclosure Document of Snap Fitness (2015). The FDD will provide you with in-depth information regarding the costs and expenses you can plan to incur when developing a Snap Fitness franchise.
Initial Franchise Fee: $25,000
GO FAST Kit: $5,400 to $8,225
If you choose to add items to the standard GO FAST kit or you choose to purchase a tanning bed, you may spend more.
Fitness and Weight Equipment: $26,800 to $38,470
The ranges in the chart for fitness and weight equipment, freight and installation, exterior signage, security and surveillance system, and mirrors assume you will purchase the recommended equipment for a standard-sized club (3,500 to 5,000 square feet) and are based on the lease costs before opening and the first 3 months (including a 20% down payment and the equivalent of four monthly payments).
Freight and Installation $10,000 to $17,000
Exterior Signage: $1,855 to $2,655
Door Access, Security and Surveillance System: $4,775 to $6,635
Mirrors: $585 to $1,060
FitnessOnDemand: $1,590 to $2,785
FitnessOnDemand is an automated group fitness class system. The range in the chart includes the cost of the FitnessOnDemand system. You will pay Snap Fitness’s affiliate between $6,000 and $10,495 and will pay an additional monthly license fee.
MyZone: $265 to $795
MyZone is a heart rate monitoring system. You will pay Snap Fitness’s affiliate $1,500 to $3,000 for the MyZone system and will pay an additional monthly license fee.
Leasehold Improvements (not including flooring): $0 to $125,000
The costs of construction and leasehold improvements depend upon the size and condition of the Club premises, the nature and extent of leasehold improvements required, the local cost of contract work, and the location of your Club.
Flooring and Installation: $5,105 to $7,295
The flooring (including installation) must be installed by Snap Fitness’s approved vendor. –
Rent: $4,400 to $18,000
The figures in the chart represent an estimated 3 months’ rent, exclusive of monthly operating expenses. The rental expense may vary widely based on geographic location, size of the Club, local rental rates, and other factors. A typical Club occupies from 3,500 to 5,000 square feet of commercial space.
Lease and Utility Security Deposits: $1,500 to $5,800
Landlords may require a security deposit, and utility companies may require that you place a deposit prior to installing telephone, gas, and electricity and related utility services. A typical utility security deposit is one month’s expense. A typical lease deposit will be an amount equal to one month’s rent.
Insurance: $750 to $900
This estimate includes premium for 3 months of Snap Fitness’s SAPP insurance program. If you need additional insurance for your club (for example, state workers’ compensation or a surety bond), you may have additional costs.
Training Expenses: $
The franchisor provides an initial training to at least two people in the franchisee’s organization (including the General Manager), which the attendees must complete to the franchisor’s satisfaction. The program lasts four days. The franchisor does not charge for this training, but the franchisee must pay the travel and living expenses and supply costs for themselves and their employees.
Professional Fees: $1,000 to $4,000
Snap Fitness recommends that you hire your own attorney to help you evaluate the franchise offering, to identify the laws and regulations that may apply to your Club, to help you set up a business entity, to review and negotiate your lease, to assist you in adapting the Membership Agreement to laws and regulations in your state or locality, and for whatever other purpose you deem appropriate.
Additional Funds (3-month period): $20,000
The figures in the chart represent the estimated amount of working capital you will need to cover other initial operating expenses for a period of 3 months. These figures are estimates and Snap Fitness cannot guarantee that you will not have additional expenses starting the business.
ESTIMATED TOTAL: $109,525 to $285,620
These figures are estimates in setting up a Snap Fitness franchise and operating it for three months. It is possible to exceed costs in any of the areas above.
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