Updated February 18, 2019.
Detailed Estimates of Fitness Together Franchise Costs Based on Item 7 (Estimated Initial Investment) of Fitness Together’s 2018 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: $39,900
- Unless you are signing a Franchise Agreement under an Area Development Agreement, when you sign a Franchise Agreement to develop a single Studio, you must pay Fitness Together an Initial Franchise Fee of $39,900.
- You must pay the Initial Franchise Fee as a lump sum by wire transfer. The Initial Franchise Fee is fully earned by Fitness Together when paid by you.
2. Real Property and Utility Security Deposits: $2,250 to $3,600
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- 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 1,200 to 1,500 square feet.
- Estimated monthly lease payments range from $2,000 to $3,100 (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): $42,000 to $67,500
- Typically, costs are higher in large metropolitan areas or if you choose premises with square footage in excess of the high range of 1,500 square feet.
- The range disclosed in the chart includes the construction management fee you must pay Fitness Together in the event it approves an exception to the requirement that you use one of its Approved Suppliers for construction.
- 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: $20,200 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: $4,900 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: $5,300 to $6,100
- 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 ($405 per month), each of which is included in the estimate range stated in the Table.
7. Initial Training: $1,350 to $2,700 (travel, meals, lodging, and other expenses)
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- 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 2 other people traveling to Fitness Together’s Support Center office in Colorado for approximately 5 days.
- The estimates do not include any wages or salary you may choose to pay yourself or others while attending Initial Training.
8. Grand Opening Spend Fee: $15,000
- No later than 10 days after the date that you sign an approved lease for your Studio premises (or 10 days after the date you purchase an existing Studio), you must pay to Fitness Together the Grand Opening Spend Fee of $15,000 by ACH.
- The Grand Opening Spend Fee is in addition to your Local Marketing Spend Requirement.
- Fitness Together will use the Grand Opening Spend Fee to advertise, market, and promote your Studio in accordance with a marketing plan that it determines in its sole discretion.
- Fitness Together may require you to spend the Grand Opening Spend Fee directly (rather than pay it the Grand Opening Spend Fee), and if it so requests, you will advertise, market, and promote your Studio in accordance with an advertising and marketing plan it approves before the opening of your 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 $1,000
- 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. Additional Funds (3 months): $10,900 to $15,600
- 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.
14. Total Estimated Initial Investment: $147,000 to $192,400
- The franchisor relied on its and its affiliates’ many years of business experience in selling and supporting Fitness Together and Elements franchises to compile these estimates.