This post was updated on June 12, 2017 to reflect information from Fitness Together’s 2017 FDD (Item 7).
Detailed Estimates of Fitness Together Franchise Costs Based on Item 7 (Estimated Initial Investment) of Fitness Together’s 2017 Franchise Disclosure Document
- Fitness Together offers franchises for the operation of personal fitness training studios under the name Fitness Together, which provide individualized one-on-one and small group personal fitness training, a nutrition program, and other related products and services.
1. Initial Franchise Fee: $34,900
- The initial franchise fee for each additional franchise you purchase after the first is $29,900.
- If you are signing the Conversion Addendum described in Item 1, you must pay Fitness Together 50% of the then-existing initial franchise fee (currently 50% of $34,900) when you sign the Franchise Agreement.
2. Real Property and Utility Security Deposits: $1,550 to $2,300
- If you do not own retail space adequate to open your Studio, you must lease or rent the retail space from a third party. Studios are typically located in light industrial and commercial areas, and require approximately 1,000 to 1,400 square feet.
- Estimated monthly lease payments range from $1,300 to $1,800 (including common area maintenance payments) depending on the size, condition, and location of the leased premises.
- Your landlord may require a security deposit before leasing the premises to you, which is typically equal to 1 month’s rent.
- Some utility companies also may require a security deposit before commencing services. The franchisor estimates the total amount of utility security deposits to range from approximately $250 to $500.
3. Leasehold Improvements (net of landlord tenant allowances): $25,000 to $70,000
- Typically, costs are higher in large metropolitan areas or if you choose premises with square footage in excess of the high range of 1,400 square feet.
- The range disclosed in the chart is the range of costs after deducting any landlord allowances (tenant improvements, rent deduction, and the like), which may or may not be granted by your landlord.
4. Equipment: $15,100 to $25,400
- You must purchase from the franchisor’s Approved Suppliers specific fitness training equipment for the operation of the Studio as detailed in the Operations Manual. The range of estimated costs represents the equipment recommended for an open concept Studio and a 3-room Studio.
5. Furniture and Decor: $5,500 to $5,700
- You must purchase from the franchisor’s Approved Supplier furniture and fixtures for your Studio as specified in the Operations Manual or otherwise. The cost will depend on supplier financing terms (if available), the brands purchased, the quality of the items purchased, and other factors.
6. Computer Hardware and Software: $4,100 to $4,800
- Before opening your Studio, the franchisor typically requires you to purchase 1 computer workstation and related equipment and the franchisor’s designated and other software programs. Your minimum requirements for these items are designated in the Operations Manual.
- You must pay the franchisor a $499 set-up fee for the set-up of certain required software programs and the technology fee for the 2 months before opening ($395 per month), each of which is included in the estimate range stated in the Table.
7. Initial Training: $1,400 to $2,800 (travel, meals, lodging, and other expenses)
- You must pay your own transportation, meals, lodging, and any other living expenses for you and any other persons attending the Initial Training.
- The estimate contemplates attendance by you and 1 other person traveling to Fitness Together’s Support Center office in Colorado for approximately 5 days.
- For each person in excess of 3 designated by you to attend Initial Training, you must pay the franchisor a $500 fee, and pay for the additional person’s transportation, meals, lodging, and other living expenses.
- The estimates do not include any wages or salary you may choose to pay yourself or others while attending Initial Training.
8. Initial Marketing Spend Requirement: $15,000
- During the period beginning at least 60 days before you open your Studio and continuing through the first 90 days of your Studio operations, you must spend at least $15,000 to advertise, market, and promote your Studio.
- However, if you purchase an existing Studio, the $15,000 Initial Marketing Spend Requirement applies during the first 180 days after you take possession of the Studio.
9. Signs: $4,000 to $8,000
- The estimate includes the franchisor’s required interior signs and 1 exterior sign which bear the Marks. The cost of the signs varies depending on the type, size, and location of the sign, and may also be affected by shipping costs, as well as local zoning and other ordinances and regulations and landlord restrictions.
10. Business Licenses and Permits: $100 to $1,000
- The cost includes the licenses and permits required to operate a Studio in your location. The license and permit requirements are specific to the state and city/town in which your Studio is located.
- Certain states may require that you file and post a bond, the estimated cost of which is not included in the table.
11. Insurance: $800 to $900
- You must obtain insurance coverage from Fitness Together’s Approved Supplier with the limits required by the franchisor as described in Item 8 of the Disclosure Document. Your landlord may require additional insurance.
- The estimate shown in the table reflects the initial 20% payment, which you will pay before your Studio opens. However, franchisees have the option of paying the entire annual premium up front. If you elect to pay your entire annual insurance premium up front, these figures will be higher.
12. Miscellaneous Opening Costs: $300 to $900
- This cost includes other start-up costs and expenses (including reasonable pre-opening salary for your employees) but does not include any advisor fees or bank financing costs you may incur.
13. Lease Review Fee: $1,650
- When you enter into a letter of intent for the lease of your Studio premises, you will be required to pay the franchisor this fee.
- The franchisor will charge you only 1 lease review fee, unless you refuse to sign a lease that the franchisor has approved and it is then required to review other leases for the Studio location.
14. Additional Funds (3 months): $15,600 to $17,400
- The range of estimated costs represents your estimated initial start up expenses (other than the amounts separately identified in the table), which include payroll costs (excluding a draw or salary for you or your manager if you are not the manager), lease payments, marketing expenses, uniform expenses, the costs of supplies, and other operating expenses.
- The 3-month period is not intended, and should not be interpreted, to identify a point at which your Studio will break even.
15. Total Estimated Initial Investment: $125,000 to $190,750
- The franchisor relied on its and its affiliates’ many years of business experience in selling and supporting Fitness Together franchises to compile these estimates.