Updated August 21, 2018.
Detailed Estimates of Orangetheory Fitness Franchise Costs Based on Item 7 (Estimated Initial Investment) of Orangetheory Fitness’s 2018 Franchise Disclosure Document
- Orangetheory Fitness does not offer direct or indirect financing for your initial investment for an Orangetheory Fitness Studio.
1. Initial Fee: $54,950 to $59,950
- The low estimate is for franchisees who are opening their second or subsequent Studio. The high estimate is for a franchisee’s first Studio.
2. Travel and Living Expenses During Training (for all attendees): $1,200 to $4,800
- Orangetheory Fitness provides initial training for up to three trainees at no charge.
- You must arrange and pay for all travel and living expenses for the people who attend the initial training program. Costs vary depending on the distance traveled and the type of lodging. This estimate does not include the cost of transportation.
3. Deposit for Leasehold: $12,000 to $25,000
4. 3 Months’ Rent: $18,000 to $30,000
- If you do not already 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 3,600 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.
- The initial investment assumes you will rent. If you purchase the premises, your initial investment will increase dramatically.
5. Leasehold Improvements and Construction Costs: $250,000 to $575,000
- You will need to adapt Orangetheory’s prototype designs and plans for the building in which you will locate your Studio 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.
- The cost shown does not include the cost to purchase the building or site for the Studio.
- The range shown includes costs for end-cap, free-standing, and in-line Studios. The cost of leasehold improvements depends on the condition and size of the site, the local cost of contract work, and the location of the Studio.
- The high estimated figures include remodeling walls, ceilings, floors, and other construction, including electrical, plumbing, HVAC, and carpentry work.
- Depending on the lease terms, your landlord might cover some of these costs. In Orangetheory’s experience, the landlord will typically offer free rent for an initial period. This is not included in the estimate.
- This estimate also takes into account estimate for permitting.
6. Reception Desk, Retail Display Wall, and All Interior Logo Signage: $10,600 to $14,000
7. Graphics: $4,000 to $5,000
8. Fitness Equipment (including installation) and OT Beat Start-Up System: $106,682 to $125,824
- This includes selectorized equipment, free weights, cardiovascular equipment, and installation; and the proprietary OT Beat System equipment and start-up kit, which includes pods and straps for pre-sales of memberships for 200 members.
- Additional pod sets are $25 each and straps are $10 each, and these must be ordered for all members.
- This estimate does not include monthly OT Beat Fees that must be paid to OTF Distribution for the OT Beat System.
9. Technology Software Licensing Fee (3 months): $1,197 to $2,247
- Orangetheory Fitness charges a monthly software license fee to all franchisees for all Required Software. The software license fee is currently $399 to $749 per month and must be paid one month in advance, commencing with the month that you set up your MBO Software account for membership pre-sales for your Studio.
10. Fitness Equipment Maintenance: $900 to $2,400
- An equipment maintenance contract is required prior to opening your Studio and evidence of such must be provided to Orangetheory Fitness. The current cost of the maintenance contract is $300 to $800 per month. This fee is charged by a third-party provider and is subject to change. Neither Orangetheory Fitness nor its affiliates currently provide any equipment maintenance services.
11. Initial Inventory of Orangetheory Fitness Retail Merchandise: $4,000 to $6,000
- This estimate includes 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.
- You should not assume that you can purchase inventory or other supplies on credit.
12. AED and First Aid Equipment/Training: $1,000 to $5,000
- This estimate includes the cost of one automated external defibrillator (“AED”) and training for CPR and AEDs, which every Studio must have.
13. Exterior Signage: $5,000 to $7,000
14. Technology System: $34,500 to $43,500
- You must obtain, maintain, and use the hardware, software, other equipment, and network connections that Orangetheory Fitness specifies periodically in the Manuals necessary to operate the point-of-sale system, the membership management system, the accounting system, the OT Beat System, the training system, the online reservation system, the audio-visual system, and other technology systems that Orangetheory Fitness designates (collectively, the “Technology System”).
- This estimate includes the cost of acquiring the required equipment in the Technology System, including three desktop computers, three to six televisions, two Apple TVs, a laptop or tablet, and all audio equipment for your sound system. This also includes music licensing fees paid to third-party music licensors.
15. Pre-Sale and Grand Opening Advertising: $30,000 to $40,000
- You must conduct a pre-sale/grand opening program Orangetheory Fitness approves, with a minimum cost of $30,000 to $40,000, as determined by Orangetheory Fitness.
16. Pre-Sales Training Program: $0 to $4,900
- For your first Studio, Orangetheory Fitness requires you to participate in the Pre-Sales Training Program. For your subsequent Studios, Orangetheory Fitness may require you to use this service in its sole discretion.
17. Business Licenses/Miscellaneous Opening Costs: $1,000 to $3,000
- This estimate is subject to any state and local requirements for licenses and permits.
18. Insurance: $3,500 to $5,000
- Insurance must be obtained to meet the minimum requirements established by the System Standards.
19. Additional Assistance: $0 to $5,500
- At your reasonable request, Orangetheory Fitness may, in its sole discretion and subject to the availability of its personnel, furnish you with additional site selection and/or development guidance and assistance which is beyond the nature and scope of the services it is then providing to new Orangetheory Fitness franchisees as part of the Initial Franchise Fee.
- Orangetheory Fitness estimates that the fee will range from $2,500 to $5,500. The low estimate assumes that you do not request additional assistance.
20. Additional Funds – 3 Months: $25,000 to $35,000
- This is an estimate of the amount of additional operating capital that you may need during the first three months after opening your business. You may require additional working capital if your sales are low or if your fixed costs are high.
21. Total Estimated Initial Investment (excluding real estate purchase costs): $563,529 to $999,121
- The estimated initial investments shown are based primarily on the costs Orangetheory’s affiliates have incurred in constructing and operating similar Studios, encompassing approximately 2,600 to 3,600 square feet. Your Studio may be larger or smaller, and your actual costs will vary depending on the size and location of your Studio.
- The total actual cost to construct and operate each Affiliate-Owned Studio has varied from the estimated costs shown above, and no particular Studio has experienced the low or the high estimate for every category shown above.
- The amounts shown are estimates only and may vary for many reasons.