This post was updated on February 8, 2017 to reflect information from GymGuyz’s 2016 FDD (Item 7).
Detailed Estimates of GymGuyz Franchise Costs Based on Item 7 (Estimated Initial Investment) of GymGuyz’s 2016 Franchise Disclosure Document
1. Initial Franchise Fee: $35,000
- The estimate assumes you are purchasing a basic exclusive territory with no additional area, and does not include any discount to which you may be entitled.
2. Computer System and Software: $2,650 to $3,950
- You must have the computer system and software the franchisor designates, and must pay a weekly Technology Fee.
3. Insurance: $1,575 to $4,000
- You must have the insurance the franchisor specifies for your GymGuyz Business at all times during the term of the Franchise Agreement. The insurance requirements are included in Item 8.
- The low end of the estimate assumes a quarterly premium and the high end of the estimate assumes an annual premium.
4. Permits and Licenses: $100 to $500
- The estimate includes the cost of obtaining local business licenses which typically remain in effect for one year. The cost of these permits and licenses will vary substantially depending on the location of your Business.
- You should consult the appropriate governmental authority concerning the availability of required licenses and the associated expenses for your Business before you sign a Franchise Agreement.
5. Equipment: $6,100 to $7,000
- You must purchase exercise and fitness equipment. The estimate includes the equipment package you must purchase from the franchisor. It also includes the VOIP telephone equipment and GPS/navigation system you must purchase from third party suppliers.
- You will also need basic office furnishings for your home office.
6. Marketing Materials: $4,000 to $5,000
- You must purchase marketing materials from the franchisor’s approved suppliers to market your Franchised Business including, but not limited to: lawn signs, banner stands, car magnets, brochures, door hangers, post cards, tents, business cards, backdrops, table cloths, folders, duffle bags, tote bags, pens, and gift cards.
7. Professional Certifications: $500 to $700
8. Grand Opening Advertising: $5,000 to $10,000
- You must conduct a grand opening advertising campaign to promote the opening of your Franchised Business. The types of expenditures you will have include local media, lawn signs, and promotional giveaways for clients.
- The franchisor must approve of your grand opening advertising campaign before you conduct it.
9. Travel Expenses for Training: $100 to $2,500
- These estimates include only your out-of-pocket costs associated with attending the initial training program, including travel, lodging, meals, and applicable wages for the first two trainees.
- These amounts do not include any fees or expenses for training any other personnel.
- The lower end of the estimate assumes that the trainees live within driving distance of the training facility.
10. Vehicle: $7,000 to $8,000
- You must have a white Nissan NV 1500 van wrapped with the franchisor’s trade dress and equipped with shelving and partitions. The franchisor recommends that you obtain a low mileage “demo” or off lease van.
- Your costs will be higher if you purchase a brand new van.
11. Professional Fees: $1,500 to $4,000
- The franchisor recommends that you retain an attorney and an accountant to assist you with evaluating this franchise offering.
12. Uniforms: $2,200 to $2,800
- You must purchase uniforms for yourself and your staff from the franchisor.
13. Additional Funds – 3 Months: $7,000 to $9,000
- This estimates your initial start-up expenses for an initial three-month period, not including payroll costs, Royalty Fees, and Brand Development Fees, and does not include any revenue that your Franchised Business may earn in the first three months of operation.
14. Total: $72,725 to $92,450
- The franchisor relied on its Affiliate’s experience in operating a GymGuyz Business since October 2008 when compiling these estimates.
- The franchisor has not included an estimate for the lease or purchase of office space. It assumes that you will initially operate the Franchised Business from a home office, if you are permitted to do so by applicable law.
- The franchisor reserves the right to require you to lease office space for the Franchised Business when you have three vans and/or three trainers.