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Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Snap Fitness Franchise Costs (2016 FDD)

by Franchise Chatter on June 1, 2015

in Fitness Franchises, Franchise Costs



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This post was updated on September 18, 2016 to reflect information from Snap Fitness’s 2016 FDD (Item 7).

Detailed Estimates of Snap Fitness Franchise Costs Based on Item 7 (Estimated Initial Investment) of Snap Fitness’s 2016 Franchise Disclosure Document

1.  Initial Franchise Fee:  $29,500

2.  GO FAST Kit:  $5,320 to $8,100

  • If you choose to add items to the standard GO FAST kit or you choose to purchase a tanning bed, you may spend more.

3.  In Club Technology Package:  $6,530 to $10,055

  • The standard in club technology package includes door access components, panic system, camera and surveillance equipment, televisions, MyZone, FitnessOnDemand, and related items.

4.  Fitness and Weight Equipment:  $26,380 to $37,870

  • The ranges in the chart for GO FAST kit, in club technology, fitness and weight equipment, flooring, exterior signage, and mirrors assume you will purchase the recommended equipment for a standard-sized club (3,500 to 5,000 square feet) and are based on the lease costs before opening and the first 3 months (including a 20% down payment and the equivalent of four monthly payments).
  • If you have a larger club or choose to purchase additional equipment, your costs may be higher.

5.  Freight and Installation:  $10,000 to $17,000

6.  Exterior Signage:  $1,825 to $2,615

7.  Mirrors:  $575 to $1,045

8.  Leasehold Improvements (not including flooring):  $0 to $125,000

  • 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.  Flooring and Installation:  $5,025 to $7,180

  • The flooring (including installation) must be installed by Snap Fitness’s approved vendor.

10.  Design Fee:  $500

  • Each club receives a custom CAD drawing reflecting the club design (this is not an architectural drawing). The current fee is $500 and will be charged with your first month’s royalties.

11.  Grand Opening Marketing:  $5,000

12.  Rent:  $4,400 to $18,000

  • The figures in the chart 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 3,500 to 5,000 square feet of commercial space.
  • You should allow 500 to 1,000 square feet in a separate group fitness room for the FitnessOnDemand system.

13.  Lease and Utility Security Deposits:  $1,500 to $5,800

  • 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.

14.  Insurance:  $750 to $900

  • 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 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.

15.  Training Expenses:  $500 to $2,000

  • 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 4 days, including travel, lodging, food, and miscellaneous expenses associated with 2 people traveling to Snap Fitness’s headquarters for training.

16.  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.

17.  Additional Funds (3-month period):  $20,000

  • The figures in the chart 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 and rent (beyond the rent noted in number 12 above). Some states may have staffing requirements that could increase this number significantly.

18.  Total:  $118,805 to $294,565

  • To compile these estimates, Snap Fitness relied on its affiliates’ experience in operating similar businesses and its experience in franchising the operation of Snap Fitness Clubs.



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