This post was updated on November 8, 2017 to reflect information from Workout Anytime’s 2017 FDD (Item 7).
Detailed Estimates of Workout Anytime Franchise Costs Based on Item 7 (Estimated Initial Investment) of Workout Anytime’s 2017 Franchise Disclosure Document
1. Initial Franchise Fee: $29,500
- The franchise has an Initial Franchise Fee of $29,500 for a single health club. You must pay this amount upon the signing of the Franchise Agreement.
- If you sign a Development Agreement to develop more than 1 health club, the Initial Fee will increase depending on the number of health clubs you agree to develop.
2. Travel and Living Expenses While Training: $1,000 to $2,000
- You should allow at least $1,000 per person for travel, lodging, food, and other miscellaneous expenses incurred during training. Your actual costs will vary, depending on the distance to be traveled, your method of travel, and your personal circumstances.
3. Rent and Security Deposit: $7,500 to $30,000
- You must lease or purchase the business premises for the franchise location. In the franchisor’s experience, landlords typically give 1-2 months’ free rent, however, the franchisor cannot guarantee any landlord concessions.
- If renting, your security deposit and rent will vary depending on factors such as size, condition, and location of the leased premises. The high cost estimate above reflects 3 months’ rent plus 1 month security deposit.
- The franchisor recommends the size of the building space for your franchise to be approximately 5,000 to 8,000 square feet.
4. Real Estate Improvements/Build-out: $0 to $250,000
- The cost of the build-out of the premises will depend on what allowance, if any, is provided by the landlord. The low estimate is for an allowance sufficient to cover the entire cost of the build-out, and the high estimate is for no landlord allowance.
5. Architect Fees: $6,000 to $12,000
- You must retain the services of Workout Anytime’s approved architect.
6. Furniture/Office Equipment and Supplies: $1,800 to $6,000
- You will need to purchase desks, and miscellaneous office equipment and furnishings.
- Supplies include any supplies or materials you deem necessary to operate efficiently, such as forms, paper, writing instruments, posters, weight scales, body composition testing devices, etc.
7. Exercise Equipment: $325,000 to $425,000
- The number and type of exercise equipment you purchase will vary depending on the ultimate size of your facility after consultation with the franchisor.
- Unless otherwise agreed upon with the franchisor in writing, you must purchase specific equipment from designated manufacturers and vendors such as Commercial Fitness Products, Inc.
8. Surveillance and Club Access: $20,000 to $30,000
- You will need to equip your facility with surveillance cameras from which you can observe your club, and record events occurring thereon, from a remote site.
- In addition, the facility will be armed with a door access system permitting for the entry of any and all Workout Anytime members who are then in good standing.
- This figure also includes the costs of audio/visual equipment, televisions, sound system, and installation.
9. Signage (Exterior Club and Interior Graphics): $18,000 to $22,000
10. Advertising: $16,000 to $20,000
- You will need to spend $4,000 per month to advertise locally during the initial pre-sale start-up phase and grand opening to help establish name recognition in your area. Thereafter, you will expend a minimum of $2,000 monthly promoting and marketing your health club.
11. Deposits and Permits: $2,000 to $4,000
- Includes utility deposits, utility costs, incorporation fees, business licensing, or any requirements by your locality as to necessary permits and/or licenses.
12. Insurance: $3,000 to $5,000
- You will need to purchase and maintain in effect at all times during the term of the Agreement, a policy or policies of Commercial General Liability insurance naming the franchisor an additional insured on the face of each policy in no less than the following amounts:
- bodily injury: $2,000,000 each person, $2,000,000 each accident
- property damage: $2,000,000 each accident
- You must also purchase surety bonds, workers’ compensation, and automobile liability insurance as may be required by your state’s laws.
- All policies must name the franchisor as an additional insured party. You must provide a Certificate of Insurance to the franchisor on an annual basis.
13. Additional Funds: $20,000 to $30,000
- The franchisor recommends that you have additional funds during the start-up phase of your franchise. The amounts are the franchisor’s estimates of the amount needed to cover your expenses for a minimum 3-month period from the date you open for business plus your pre-sale period.
14. Total: $449,800 to $865,500
- Workout Anytime has relied on its experience in the fitness business to compile these estimates.
- Workout Anytime does not provide financing arrangements for you.