Franchise: Anytime Fitness
Franchising Since: 2002
Headquarters: Hastings, Minn.
Locations: Over 2,500
About Anytime Fitness Franchise
Anytime Fitness is consistently ranked as one of the best franchise opportunities available. Since 2011, the number of Anytime Fitness franchises across the globe has increased by nearly 50 percent. What’s more is that Anytime Fitness is only looking to expand even further than they already have.
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One of the reasons that Anytime Fitness has been so successful has to do with their concept. Anytime Fitness locations are open 24 hours a day, 7-days a week.
Other factors contributing to the franchise’s success:
- Training — Three days of training minimum is required at headquarters and three days at franchisee’s location. Ongoing training is available
- Ongoing Support —Count on support from Anytime Fitness throughout the entire process and beyond Trainers are there to help you with lease negotiation, conducting meetings, toll-free phone line, grand opening, Internet, security/safety procedures, field operations/evaluations, purchasing cooperatives, marketing and more
The Big Picture
As you might imagine, the upfront investment that you’ll need to make in an Anytime Fitness franchise is quite substantial. At the low end, you can get involved for around $85,000; however, this won’t work for most prospective franchisees. An initial investment well into the six figures should be expected, as the location will come at a premium, as will the equipment.
Anytime Fitness has arrangements with a number of third-party equipment lenders who provide financing to franchisees.
Term of Agreement and Renewal
The initial term is six years, except in California, where the initial term is 10 years. If the franchisee is in good standing, he or she can renew the Franchise Agreement for an additional five-year period.
A Breakdown of Costs
The following information is compiled from the Franchise Disclosure Document of Anytime Fitness (2015). The FDD will provide you with in-depth information regarding the costs and expenses you can plan to incur when developing an Anytime Fitness club.
Initial Franchise/Development Fee: $20,000 to $35,000
The initial Franchise Fee is generally $35,000, but fees can be discounted in certain circumstances, such as committing to open two or more fitness centers.
Travel and Living Expenses While Training: $1,500 to $2,800
The Principal Operator of your business must attend mandatory training at the Anytime Fitness headquarters in Hastings, Minn., which requires the cost of travel and living expenses.
Real Estate and Improvements: $12,100 to $262,000
Negotiating a lease can be stressful, and at times, can seem overwhelming. Considering the different lease terms, like triple net leases, gross leases and CAM charges, deciding on a lease option can be daunting if you lack experience in dealing with building owners. Anytime Fitness real estate experts can help you achieve the lowest possible rate and make sure the lease is structured with your best interests in mind.
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Fitness Equipment: $4,200 to $20,700
The franchise consultants will work with you on choosing the best equipment for the size of your club and budget. With volume buying power, you may see direct savings with discounted rates from preferred equipment vendors. They can also make suggestions based on your market demographics, area competition, your personal preferences and their experience with other franchisees’ feedback. Anytime Fitness finance experts can assist you with the leasing options and put you in touch with some of the best leasing companies in the fitness industry.
Tanning Equipment: $0 to $1,400
Virtual Programming Kiosk: $0 to $1,200
Security System: $3,800 to $13,700
First Aid Equipment: $1,000 to $1,600
You are required to have an automated external defibrillator on site, which can cost up to $1,400.
Interior Signs: $100 to $3,000
Outside Signs: $100 to $8,500
Misc. Opening Costs: $1,900 to $2,700
This includes utility costs and licensing fees.
Grand Opening Advertising: $8,000 to $13,000
Insurance: $2,500 to $2,800
Exactly what type of insurance should you buy? Keep in mind this may be different than other fitness franchises given that there will not be staff on the premises at all times. How much should you have? Where do you get it? These are questions you need help with. Anytime Fitness insurance experts will assist you with these important questions.
Supplies and Furniture: $4,000 to $6,000
Legal and Accounting Expenses: $500 to $4,500
Additional Funds — 3 months: $25,000 to $39,000
Costs do not include any payroll or owner’s draw amounts and assumed you will work full-time at your Anytime Fitness Center.
ESTIMATED TOTAL: $84,700 to $471,900
These figures are estimates in setting up an Anytime Fitness center and operating it for three months. It is possible to exceed costs in any of the areas above.