Updated September 28, 2021.
Detailed Estimates of Retro Fitness Franchise Costs Based on Item 7 (Estimated Initial Investment) of Retro Fitness’ 2021 Franchise Disclosure Document
- Payments to Retro Fitness are not refundable. Payments made to third-party vendors may be refundable, subject to vendor’s terms and conditions.
- Retro Fitness does not provide direct or indirect financing for any part of your initial fees or investment.
1. Initial Franchise Fee: $69,000
- The Initial Franchise Fee for a Retro Fitness Outlet is $69,000.
- The Initial Franchise Fee includes F.I.T. training program for franchisee owners and the “Retro Ready” training program for up to 20 total people.
- The Initial Franchise Fee is due and payable in full when you sign the Franchise Agreement and is non-refundable under any circumstances.
2. Opening Advertising – Pre-Sales: $15,000 to $45,000
3. Office Supplies: $500 to $2,000
4. Computer Equipment: $1,000 to $4,000
5. Opening Inventory: $10,000 to $15,000
6. Insurance and Bond: $12,000 to $24,000
7. Signage: $15,000 to $45,000
8. Equipment and Furnishings: $85,000 to $125,000
- You must purchase certain equipment and furnishings as required by Retro Fitness. Franchisees typically obtain third-party financing for the purchase of these items.
- The range in the chart reflects the estimate of the down payment you may be required to make to the third-party financing institution, which generally represents 20% of the total cost for equipment and furnishings.
- If you elect to pay for the equipment and furnishings in full before you begin operations, the estimated total cost for the equipment and furnishings ranges from $425,000 to $625,000.
- Franchisees do not typically pay for these items without the aid of third-party financing prior to opening.
- A typical Retro Fitness Outlet contains 25 to 50 cardiovascular machines, 30 to 50 pieces of circuit training and free weight training equipment, areas for personal/group training, 1 to 3 massage chairs/beds, and 1 stand-up tanning unit.
- Other furnishings include smoothie bar, blender(s), heart rate monitoring systems, basic office furniture and equipment, such as a desk, chairs, bar stools, a scanner/copier, a complete audio-visual gym system, cameras, and telephones. Most Retro Fitness Outlets have 6 computers.
9. Prepaid Rent and Security Deposit: $0 to $75,000
10. Lease Review Fee: $2,500
11. Turnkey Build-Out Service Fee: $35,000 for new club under 15,000 square feet; $45,000 for new club 15,000 square feet or larger; $15,000 for a refurb of an existing Retro outlet
12. Architectural Fees: $25,000 to $45,000
13. Leasehold Improvements/Fit Out: $760,000 to $1,000,000
- The cost of leasehold improvements is dependent on the size/condition of the leasehold site when you (the tenant) take possession and/or how much the landlord’s contribution to leasehold improvements may be, and this varies from location to location.
- Some landlords may agree to do “rough plumbing,” or sheetrock all the exterior walls (vanilla box). In that case, the additional leasehold improvements that you would be paying for, at a minimum, from vanilla box, would be as follows:
- 2 locker rooms (30-40 lockers for each room);
- 3 showers for each locker room;
- 2 toilet fixtures for each locker room (men’s room: 1 urinal, 2 toilets);
- 2 sinks for each locker room;
- smoothie bar area requires a hand sink, a triple basin sink, and 1 ice machine hook up;
- 1 mop sink;
- rubber flooring throughout equipment areas; then-current approved product elsewhere;
- construction of the front desk/reception area, including smoothie bar area (for the preparation of healthy shakes and smoothies).
- The estimated costs of construction and outfitting for a new Retro Fitness Outlet are based on a model build-out of approximately 12,000 to 15,000 square feet.
14. Utility Deposits: $0 to $3,500
15. Licenses and Permits: $500 to $5,000
16. Fictitious Name Registration and/or Incorporation and Legal Review: $250 to $1,500
17. Travel, Lodging, Meals, Etc. for Initial Training: $0 to $3,500
18. Miscellaneous Start-Up Costs: $2,000 to $5,000
19. Additional Funds (working capital to cover 3 months of expenses such as payroll, utilities, and advertising during early stages of operation, until cash flow builds up): $75,000 to $270,000
- The Additional Funds category also includes estimates for the first three months of equipment financing payments. These expenses do not include owner’s salary or draw.
20. Total: $1,107,750 to $1,785,000
- The amounts above are estimates only. Your individual costs and expenses may vary depending on numerous factors, including the size of your Retro Fitness Outlet, location, ability to negotiate rent, leasehold improvements, and other factors that are outside of the franchisor’s control. The franchisor cannot, and does not, guarantee that your costs will fall within the stated ranges.
- The franchisor has relied on its experience in the fitness business, its affiliates’ and principals’ experience in the nutrition and fitness business, its predecessor Retro Fitness Corp.’s experience, and franchised facilities currently operating or under construction to compile these estimates.
- If your Outlet is located in one of the New York City Boroughs or in other metropolitan markets, your estimated initial investment expenses will likely be significantly higher than the ranges stated in this Table.
- Costs are constantly changing and your costs may be higher. You should diligently investigate all potential costs before proceeding.