Updated October 18, 2020.
Detailed Estimates of Snap Fitness Franchise Costs Based on Item 7 (Estimated Initial Investment) of Snap Fitness’ 2020 Franchise Disclosure Document
- The estimates below are based on a Club with 4,000 to 6,000 square feet. If your Club includes more or less square feet, your estimated initial investment will vary.
1. Initial Franchise Fee: $29,500
2. GO FAST Kit: $1,741 to $3,118
- If you choose to add items to the standard GO FAST kit, you may spend more.
3. In Club Technology Package: $893 to $1,491
- The standard in club technology package includes door access components, panic system, camera and surveillance equipment, televisions, Myzone installation, and related items.
4. Fitness and Weight Equipment: $6,216 to $11,561
- The ranges in the Item 7 table for the GO FAST kit, In Club Technology Package, fitness and weight equipment, exterior signage, and mirrors assume you operate in a standard-sized club (4,000 to 6,000 square feet) and assumes you finance or lease your equipment.
- The estimates noted in the Item 7 table are based on the financing terms offered through Snap Fitness’ third-party lender, Hitachi Capital America Corp. (“Hitachi Capital”). Currently, Hitachi Capital does not require a down payment or any advance payments (subject to credit approval) and the estimates in the Item 7 table assume an interest rate of 8.25% interest with a 60-month term. If you are an existing franchisee, you may be eligible for a lower interest rate of 7.5% with a 60-month term.
- If you have a larger Club, choose to purchase additional equipment, or obtain financing from a different source, your costs may be higher.
5. Freight and Installation: $29,705 to $43,955
6. Exterior Signage: $428 to $612
7. Mirrors: $135 to $245
8. Leasehold Improvements (not including flooring): $0 to $270,000
- The costs of construction and leasehold improvements depend upon the size and condition of the Club premises, the nature and extent of leasehold improvements required, the local cost of contract work, and the location of your Club.
- In some cases, your landlord may agree to pay for some or all of the leasehold improvements as part of your lease negotiations.
9. Grand Opening Marketing: $10,200
10. Rent: $12,000 to $40,000
- The figures in the Item 7 table represent an estimated 3 months’ rent, exclusive of monthly operating expenses. The rental expense may vary widely based on geographic location, size of the Club, local rental rates, and other factors.
- A typical Club occupies from 4,000 to 6,000 square feet of commercial space.
- You should allow 500 to 1,000 square feet for functional training space.
11. Lease and Utility Security Deposits: $1,500 to $10,000
- Landlords may require a security deposit, and utility companies may require that you place a deposit prior to installing telephone, gas, and electricity and related utility services.
- A typical utility security deposit is one month’s expense. A typical lease deposit will be an amount equal to one month’s rent.
- These deposits may be refundable according to the agreements made with the utility companies and landlord.
12. Insurance: $980 to $1,080
- This estimate includes premium for 3 months of Snap Fitness’s SAPP insurance program. If you need additional insurance for your club (for example, state required workers’ compensation or a surety bond), you may have additional costs.
- A surety bond may range from $100 to $500, depending on the state. Workers’ compensation coverage may range from $450 to $1,000, but may be more depending on the number of employees and your state requirements.
13. Training Expenses: $500 to $3,000
- There is no separate training fee payable to Snap Fitness, as initial training is included in the Initial Franchise Fee. You must make arrangements and pay the expenses for you and your General Manager to attend the training program, including transportation, lodging, meals, and wages.
- The estimate provided contemplates initial training of 2 people for 5 days, including travel, lodging, food, and miscellaneous expenses associated with 2 people traveling to Snap Fitness’s headquarters for training.
14. Professional Fees: $1,000 to $4,000
- Snap Fitness recommends that you hire your own attorney to help you evaluate the franchise offering, to identify the laws and regulations that may apply to your Club, to help you set up a business entity, to review and negotiate your lease, to assist you in adapting the Membership Agreement to laws and regulations in your state or locality, and for whatever other purpose you deem appropriate.
15. Additional Funds (3-month period): $50,000
- The figures in the Item 7 table represent the estimated amount of working capital you will need to cover other initial operating expenses for a period of 3 months. These figures are estimates and Snap Fitness cannot guarantee that you will not have additional expenses starting the business.
- Expenses not included are hourly labor costs, permits and licensing, and rent (beyond the rent noted in number 12 above). Some states may have staffing requirements that could increase this number significantly.
16. Total: $144,798 to $478,762
- To compile these estimates, Snap Fitness relied on its franchisees’ and affiliates’ experience in operating similar businesses and its experience in franchising the operation of Snap Fitness Clubs.