Franchise: Orangetheory Fitness
Franchising Since: 2010
Headquarters: Ft. Lauderdale, Fla.
Number of Units: 229
About the Franchise
Orangetheory Fitness is a one-of-a-kind, group personal training workout broken into intervals of cardiovascular and strength training. Backed by the science of excess post-exercise oxygen consumption (EPOC), Orangetheory’s heart-rate-monitored training is designed to maintain a target zone that stimulates metabolism and increases energy. Led by skilled personal trainers, participants use a variety of equipment including treadmills, rowing machines, TRX suspension training and free weights, burning an average of 900 calories including after-burn. The result is the Orange Effect — more energy, visible toning and extra calorie burn for up to 36 hours post-workout.
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Orangetheory Fitness has become one of the world’s top fitness franchises, with more than 200 open studios in 28 states, and more than 600 franchise licenses awarded in and outside of the United States. In addition to its newest international location in South America, Orangetheory currently has studios in Canada and the U.K., Mexico, Colombia and Australia.
The Big Picture
The investment required to open a OrangeTheory Fitness Franchise is between $243,100-$482,600. There is an initial franchise fee of $29,500 which grants you the license to run a business under the OrangeTheory Fitness name.
Orangetheory Fitness does not offer direct or indirect financing for your initial investment for an Orangetheory Fitness Facility.
Term of Agreement and Renewal
The length of the initial franchise term is 10 years.
Breakdown of Costs
The following information is compiled from the Franchise Disclosure Document of Orangetheory Fitness (2014). The FDD will provide you with in-depth information regarding the costs and expenses you can plan to incur when developing a Orangetheory Fitness franchise.
Initial Fee: $32,500 to $39,500
Orangetheory Fitness will refund 50% of the initial fee if it terminates the Franchise Agreement (for your first franchise) based on your failure to satisfactorily complete the initial training program. You and your owners must sign a general release in order to receive a refund.
Travel and Living Expenses During Training (for all attendees): $
Orangetheory Fitness provides initial training at no charge for up to 3 owners (individuals), but you must arrange and pay for all travel and living expenses for the people who attend the initial training program.
Three Months’ Rent: $18,000 to $45,000
If you do not own suitable commercial space, the premises must be purchased or leased. Orangetheory Fitness anticipates that most franchisees will lease the premises. Orangetheory Fitness requires a commercial space of 2,600 to 3,400 square feet of interior space. The cost of leasing or purchasing space will vary, depending on location and other market factors, and cannot be accurately projected by Orangetheory Fitness; as a result, the costs shown above may be low or high.
Deposit for Leasehold: $12,000 to $30,000
Leasehold Improvements and Construction Costs: $75,000 to $250,000
You will need to adapt Orangetheory’s prototype designs and plans for the building in which you will locate your Facility in accordance with state and local building codes. Construction costs vary depending upon numerous factors, including the size and configuration of the premises and the cost of materials and labor for construction.
Fitness Equipment Maintenance Contract (3 months): $
A maintenance contract is required. The current cost of the maintenance contract is $300 to $500 per month. This fee is charged by a third party provider and is subject to change. Neither Orangetheory Fitness or its affiliates currently provide any equipment maintenance services.
AED and First Aid Equipment/Training: $1,000 to $5,000
Signage: $5,000 to $7,000
Initial Inventory, Audio, Video System, Other Equipment and Supplies: $20,500 to $25,500
This includes all audio equipment for your sound system (including music licensing) and video equipment for your Facility, along with an initial supply of printed materials, office supplies, and equipment. This amount also includes approximately $1,500 to $3,500 for an initial mandatory start-up kit of inventory of branded merchandise, which includes items such as shirts, hats, shorts, gym bags, water bottles, towels, and related items as Orangetheory Fitness determines.
Computer System: $14,000 to $18,000
Presently, Orangetheory Fitness requires you to install and maintain 3 Dell desktop computers capable of running the MindBody web-based business management software that it requires and that operates on a Windows XP or higher operating system.
Advertising: $30,000 to $40,000
You must conduct a pre-sale/grand opening program the franchisor approves, with a minimum cost of $20,000 to $30,000, as determined by Orangetheory Fitness.
Business Licenses/Misc. Opening Costs: $1,000 to $4,000
Insurance: $3,500 to $5,000
Insurance must be obtained to meet the minimum requirements established by the System Standards.
Additional Funds (3 months): $25,000 to $50,000
These amounts are minimum recommended levels to cover operating expenses, including employee salaries, for three months. Orangetheory Fitness cannot guarantee that this amount is sufficient. You may require additional working capital if your sales are low or if your fixed costs are high.
TOTAL ESTIMATED INITIAL INVESTMENT (EXCLUDING REAL ESTATE PURCHASE COSTS): $327,600 to $634,100
The estimated initial investments shown are based primarily on the costs Orantheory’s affiliates have incurred in constructing and operating similar Facilities, encompassing approximately 2,600 to 3,400 square feet. Your Facility may be larger or smaller, and your actual costs will vary depending on the size and location of your Facility.
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