Orangetheory Fitness’ Initial Franchise Fee, Royalty Fee + 20 Other Fees
- 1. Initial Franchise Fee: $59,950 ...
- 2. Royalty Fee: 8% of Gross Sales ...
- 3. Brand Fund Contributions: currently 2% of Gross Sales; may be increased up to 3% of Gross Sales ...
- 4. Cooperative Advertising: as determined by Cooperative, if one is formed in your area ...
- 5. Successor Franchise Fees: 50% of then-current Initial Franchise Fee for new franchisees ...
Full Answer
How much does it cost to open an Orangetheory Fitness franchise?
How much does it cost to open a OrangeTheory Fitness Franchise? The estimated investment required to open a OrangeTheory Fitness Franchise is between $608,172-$1,800,322. There is an initial franchise fee of $59,500 which grants you the license to run a business under the OrangeTheory Fitness name.
What licenses do I need to open an Orangetheory franchise?
Certain state permits and licenses may be needed to operate a Orangetheory franchise business, if you’re opening your own studio. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits. Most businesses are required to collect sales tax on the goods or services they provide.
What are the benefits of buying an Orangetheory franchise?
One benefit of purchasing a franchise is the ability to take advantage of an established brand and business plan. Orangetheory has a very successful business model, and the best thing for a new franchise owner to do is to learn as much as he can about the business from the people who started the company.
How much can I charge customers at Orangetheory?
In addition to earning money on memberships, an Orangetheory studio can sell the brand's clothing and accessories. How much can you charge customers? The average cost of a membership at Orangetheory is between $59 - $200 a month depending on the membership level. Non-members can take a single class for $28.
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How much does an Orangetheory franchise owner make?
Estimated Average Franchise Revenue: $517,000 1- Based on a midpoint investment of $1,378,500 with estimated profits of $51,800 (10% profit margin) it would take about 27 years to recoup your investment.
How much does it cost to open an OTF?
The cost to start a Orangetheory Franchise will include the following: Total Investment: The total investment necessary to begin operation of a “Orangetheory Franchise” franchise ranges from $563,529 – $994,121. Initial Fees: Initial franchise fee: $59,950.
How much does it cost to buy an Orangetheory?
How much does Orangetheory Fitness franchise cost? Orangetheory Fitness has the franchise fee of up to $59,950, with total initial investment range of $488,405 to $994,360.
What is the most profitable franchise?
Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•
How are Orangetheory coaches paid?
Orangetheory Fitness Coach Hourly Pay The estimated base pay is $20 per hour. The estimated additional pay is $5 per hour. Additional pay could include bonus, stock, commission, profit sharing or tips.
Is Orangetheory overpriced?
It is expensive, and the employees can be too salesy. Like other gyms that focus primarily on group fitness such as F45 or CrossFit, Orangetheory is much more expensive than most standard gyms. And when you go for your first class, the staff can be pushy about getting you to sign up for a membership.
How many members does Orangetheory have?
one million membersOur workout is scientifically proven to produce results, and our tried-and-true development track record is evidence of an effective franchise formula. With nearly one million members and over 1500 fitness studios around the globe, we're just getting started in our mission to bring More Life to more people.
How much does it cost to open a CycleBar?
Total Investment: $346,910 - $487,910 *Please see Item 7 of the 2022 CycleBar FDD for explanatory notes and details.
Who owns Orangetheory?
Roark Capital GroupOrangetheory Fitness / Parent organizationRoark Capital Group is an American private equity firm with over $33 billion in assets under management. The firm is focused on leveraged buyout investments in middle-market companies, primarily in the franchise/multi-location, restaurant and food, health and wellness, and business services sectors. Wikipedia
How much do F45 owners make?
A typical F45 franchise requires an initial investment of approximately $315,000, significantly lower than other franchise models. In Year 3 of operation, franchisees produce an average AUV of approximately $359,000; average four-wall EBITDA margins in excess of 30%; and average cash-on-cash returns in excess of 35%.
Do franchise owners make money?
Franchise Business Review found that the average annual pre-tax income of franchise owners in America is $80,000. Only 7% of franchise owners make more than $250,000 annually, and 51% earn less than $50,000. Legally, franchisors cannot give income amounts or forecasts of future income.
Which franchise is best in 2022?
Franchises provide a strong corporate and management framework, plus marketing, merchandising and production support....Bluevine Business CheckingDunkin' ... Anytime Fitness. ... Planet Fitness. ... Orangetheory Fitness. ... Primrose Schools. ... Kiddie Academy. ... Kumon Math and Reading Centers. ... Ace Hardware.More items...•
How much does it cost to open a CycleBar?
Total Investment: $346,910 - $487,910 *Please see Item 7 of the 2022 CycleBar FDD for explanatory notes and details.
How much is it to buy a Taco Bell franchise?
Costs overview Franchising fee: It costs between $25,000 and close to $50,000 for the initial franchise fee. This, too, will vary depending on the details of your specific Taco Bell franchise. Net worth: The current net-worth requirement is around $1.5 million worth of assets.
What is the cost of McDonald's franchise?
The Franchise fee of McDonald's goes for around 30 lakhs INR; however, this fee is also attached with a 4 % monthly royalty fee as service fees to the brand. The actual investment amount differs, a business owner needs to keep a rough estimate of around 6 to 14 Crores.
How many members does orange theory have?
one million membersOur workout is scientifically proven to produce results, and our tried-and-true development track record is evidence of an effective franchise formula. With nearly one million members and over 1500 fitness studios around the globe, we're just getting started in our mission to bring More Life to more people.
What is an orangetheory studio?
Orangetheory Studios operate as contemporary fitness studios identified by an orange color scheme and trade dress, offering members access to exercise equipment, including cardio and strength equipment, and other related services and ancillary merchandise related to the Orangetheory concept.
What is a franchise agreement?
Territory Granted: The Franchise Agreement grants franchisees the right to operate a single studio at a specific location in the site selection area that franchisees select and the franchisor accepts, in its sole discretion. Once the franchisor has accepted the site, it will designate a geographic territory for franchisees. The franchisor will determine the territory based on the factors that it deems relevant, which might include population, traffic flow, presence of businesses, location of competitors (including other studios), demographics, and other market conditions. The franchisor does not specify a minimum geographic or population size for the territory. As long as franchisees are in compliance with the Franchise Agreement, the franchisor and its affiliates will not operate or authorize others to operate a studio identified by the marks the physical premises of which are located within the territory, except it may operate and authorize others to operate studios located in private businesses, governmental institutions, or other limited access facilities within the territory. As long as franchisees are in compliance with the Franchise Agreement, their exclusive rights in the territory will not be modified for any reason, except by mutual written agreement signed by both parties.
How long can a franchisee renew?
If franchisees meet requirements, they can renew for one additional consecutive term of 10 years. Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligations. Investment Tables: Estimated Initial Investment. Name of Fee.
Does Franchise Direct sell your information?
Franchise Direct's reputation for integrity in the franchise industry has been established over our 20+ years in business. We NEVER sell your information or share it with anyone other than the companies from which you have requested information. Please view our privacy policy.
Can a franchisee offer classes in the studio?
Franchisees may offer in the studio to customers only the products, services, and classes that the franchisor has approved in writing. In addition, franchisees must offer the specific products, services, and classes that we require in the manuals or otherwise in writing .
What is Orangetheory Fitness?
Fitness. Orangetheory Fitness is an exciting new fitness concept like no other that is sweeping the nation. Hailed by the New York Times as an effective new plateau-busting workout, Orangetheory Fitness leverages heart-rate-monitored interval exercise and group personal training to maximize calorie burn. In less than a year after opening the first ...
Where is Orangetheory Fitness located?
Orangetheory Fitness, the energizing and fast-growing fitness franchise, today announced that nine new studios are coming to Chicago, Ill. Kick-starting the growth surge, two new studios opened in Wrigleyville and La Grange on May 1. Additionally, Orangetheory Fitness will open a studio in Oak Park ...
How much does it cost to open an Orangetheory?
The costs to open an Orangetheory franchise are quite high. On the low end, the costs are just over $488.000, while on the high end, the costs can reach almost 1 million dollars. The majority of the cost of opening an Orangetheory franchise goes toward leasehold improvements, rent and the purchase of workout equipment.
How to increase profits at Orangetheory?
The best way to increase profits would be to open up another Orangetheory gym in a populated area far enough away from your first location that it would be able to develop its own local membership.
How does Orangetheory make money?
Owners of an Orangetheory franchise makes money through the sale of different tiers of memberships. These three different membership levels give members a set number of classes per month. Members can purchase additional classes at a discounted rate compared to non-members.
What is an orangetheory gym?
An Orangetheory gym offers its members a highly-intensive workout which focuses on complete coach-led cardio and strength training programs while maintaining a target heart rate. It is a one-of-a-kind approach to exercising at health clubs, and it works.
What can an Orangetheory studio sell?
In addition to earning money on memberships, an Orangetheory studio can sell the brand's clothing and accessories.
What are the expenses associated with Orangetheory?
There are many ongoing expenses associated with an Orangetheory franchise. Besides the cost of labor, rent, utilities, insurance and other common business expenses there are franchise-specific costs. Orangetheory franchisees must pay an 8% royalty and a 1% brand fund contribution of gross revenue.
Should Orangetheory franchises sign waivers?
To avoid liability and potential lawsuits, Orangetheory franchise business should have their clients sign waivers.
How much does a "Orangetheory" franchise cost?
The minimum amount required for a franchisee to invest is $675,542 and can go all the way up to $2,105,322.
How many "Orangetheory" units are in the United States?
There are 1213 Orangetheory locations in the United States, of which "16" are corporate units and 16 are franchise units.
From the Franchise Disclosure Document of "Orangetheory", that was issued on, 06, 09 2021
OTF Franchisor, LLC offers franchises for the operation of health and fitness studios that offer members access to exercise equipment, including cardio and strength equipment, in a simple, contemporary atmosphere characterized by our signature, energizing orange color scheme and trade dress under the Orangetheroy trademarks.
Background
In 2007, physiologist Ellen Latham brought science and fitness together in a revolutionary way. She called it the Orange Effect and started a U.S. studio to prove the revolution was real.
Support and Training Offered By Orangetheory Fitness
In terms of training, the franchise offers franchisees on-the-job training that lasts for 36 hours, as well as 33 hours of classroom training.
Franchises Similar to Orangetheory Fitness
The International Franchise Professionals Group (IFPG) is an internationally recognized membership-based franchise organization. IFPG Franchise Consultants guide aspiring business owners through the process of identifying and investing in franchise businesses. The IFPG represents more than 550 franchises.
