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Earnings Claims of Top Franchises Revealed

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Considering a Blink Fitness Franchise? Don’t Overlook These 28 Important Franchise Fees

by Franchise Chatter on May 18, 2017

in Fitness Franchises, Franchise Fees



Franchise Chatter Membership Information

Don't Invest in a Franchise Until You Check Out This List

If you are considering a Blink Fitness franchise, don’t get blindsided by these 28 important franchise fees (from the initial franchise fee, to the royalty fee, to 26 other fees found in Items 5 and 6 of Blink Fitness’s 2017 FDD).

1.  Initial Franchise Fee:  $40,000

  • You must pay Blink Fitness an initial franchise fee in a lump sum when you sign the Franchise Agreement. The initial franchise fee is $40,000 (unless you sign a Development Rights Agreement, as described below).
  • Blink Fitness might pay a portion of the initial franchise fee it collects from you to a third party site consultant it designates (the “Site Consultant”) to assist you by reviewing potential sites for your Gym.
  • The initial franchise fee is not refundable.

2.  Registration and Support Fee:  $4,000

  • You must pay Blink Fitness a lump sum, nonrefundable $4,000 registration and support fee within 7 days of opening the Gym. This is part of your overall costs for the required Computer System.
  • Blink Fitness uses the registration and support fee to provide configuration services for the technology platforms that your Gym will operate. This fee is not refundable.

3.  Monthly Technology and Support Services Fee:  currently $600 per month



  • You also must pay Blink Fitness a monthly technology and support services fee (currently $600 per month).
  • The first technology and support services fee is due on the date Blink Fitness specifies of the month following the month during which you start the presale of memberships for the Gym. (Blink Fitness estimates 4 monthly technology and support services fee payments before the Gym’s actual opening date.)
  • The technology and support services fee reimburses Blink Fitness’s costs for dedicated help desk support, vendor coordination and support, and proactive monitoring. These payments are not refundable.

4.  Development Fee:  varies under the circumstances

  • You must pay Blink Fitness a lump sum development fee when you sign the Development Rights Agreement.
  • If you agree to develop 3 or 4 Blink Fitness Gyms, the development fee is $25,000 for each Blink Fitness Gym you agree to develop under the Schedule, including the first Blink Fitness Gym.
  • If you agree to develop 5 Blink Fitness Gyms, the development fee is $100,000.
  • If you agree to develop 6 or more Blink Fitness Gyms, the development fee is $100,000, plus $10,000 for each of the 6th and each successive Blink Fitness Gym you agree to develop under the Schedule.
  • Blink Fitness will insert the applicable fee in the Development Rights Agreement before signing it. The development fee is nonrefundable.
  • Blink Fitness does not apply the development fee toward any initial franchise fees due for the Blink Fitness Gyms you develop.
  • If you sign the Development Rights Agreement, Blink Fitness will charge a $10,000 initial franchise fee for each Blink Fitness Gym you develop and open under that Agreement, including the first Blink Fitness Gym.

5.  Extension Fee:  $5,000 per 6-month extension

  • Blink Fitness may, in its sole judgment, grant you (and/or your Controlled Affiliates) extensions of any of the opening deadlines listed on the Schedule for any Blink Fitness Gym.
  • You must request an extension of the applicable deadline at least 60 days before the deadline date.
  • You must pay Blink Fitness its then-current lump-sum extension fee for each extension when you request the extension to compensate Blink Fitness’s costs, expenses, and lost opportunities related to the proposed extension.
  • Currently, the extension fee is $5,000 per 6-month extension. The extension fee is nonrefundable unless Blink Fitness notifies you otherwise on or before the original deadline date.

6.  Royalty:  5% of Gross Sales

  • Due Date:  Due monthly on day Blink Fitness specifies.
  • First Royalty payment is due following the month during which you first open the Gym for business, based on Gross Sales before then (including Gross Sales derived during presale of memberships).

7.  New Member Fee:  $5 for each new member who signs an online membership agreement with the Gym and for each former member signing a new online membership agreement

  • Due Date:  Payable in the month following the month in which the online membership agreement is signed.
  • Blink Fitness charges this fee only for new and former members signing new online membership agreements through the System Website.
  • However, this fee is not due for any new or former member who signs a new membership agreement through the System Website while physically present at the Gym through the kiosk or the MOSO POS System at the Gym’s front desk.
  • Blink Fitness may increase the New Member Fee on an annual basis (separate and apart from any inflation-based increase), but it will never be greater than the New Member Fee it requires new Blink Fitness Gym franchisees to pay, as reflected in its then-current form of franchise agreement.

8.  Brand Fund Contributions:  2% of Gross Sales

  • Due Date:  Due monthly on day Blink Fitness specifies.
  • Blink Fitness has not yet begun collecting Brand Fund contributions but may do so on 60 days’ prior written notice to you.
  • Blink Fitness expects the Brand Fund contribution will be 2% of your Gym’s Gross Sales when the Brand Fund first becomes operational. It may increase your Brand Fund contributions to 3% of your Gym’s Gross Sales.

9.  Local Marketing Spending Requirement:  5% of Gross Sales

  • You generally must spend at least 5% of the Gym’s Gross Sales each calendar year on Marketing Materials and advertising, marketing, and promotional programs for the Gym (the “Local Marketing Spending Requirement”).
  • Blink Fitness will administer up to 2% of your 5% Local Marketing Spending Requirement on digital marketing geo-targeted around your Gym(s). This includes, among other things, search engine marketing, cross-device digital display advertising, social media advertising, online local listings, search engine optimization, and monitoring tools to analyze digital media performance.

10.  Cooperative Contributions:  amount determined by Cooperative, subject to Local Marketing Spending Requirement

  • Due Date:  As Cooperative specifies.
  • Blink Fitness reserves the right to require you to contribute an additional 1% of the Gym’s monthly Gross Sales to the Cooperative. It counts Cooperative contributions toward the Local Marketing Spending Requirement.

11.  Successor Franchise Fee:  50% of then-current initial franchise fee for single Blink Fitness Gym franchises (i.e., not developed pursuant to a Development Rights Agreement)

  • Due Date:  Upon signing successor franchise agreement.

12.  Transfer:  50% of then-current initial franchise fee for single Blink Fitness Gym franchises (i.e., not developed pursuant to a Development Rights Agreement)

  • Due Date:  Upon transfer.
  • No transfer fee if the transferee: (1) is an entity you control; (2) has been a franchisee in good standing for at least 5 years; or (3) has managed a franchised or company-owned Blink Fitness Gym for 5 or more years.

13.  Unauthorized Transfer Fee:  $25,000



  • Due Date:  Upon demand.
  • Due if you make any transfer in violation of the Franchise Agreement.

14.  Transfer Training Fee:  Blink Fitness’s then-current initial training fee, currently $2,000 per person; Blink Fitness may increase this fee and charge up to $5,000

  • Due Date:  Upon transfer.
  • Due for the transferee (or its owner) and each person (e.g., the transferee’s management personnel and instructors if different from your management personnel and instructors) who must satisfactorily complete Blink Fitness’s then-current initial training program upon transfer.

15.  Ongoing and Supplemental Training:  Blink Fitness’s then-current fee for continuing and advanced training, plus travel expenses and room and board for its employees if the training occurs locally at or near your Gym. Currently $500 per trainer per day, but Blink Fitness may increase this fee and charge up to $750 per trainer per day.

  • Due Date:  As incurred.
  • Blink Fitness may charge you for supplemental training courses, programs, and conventions and for additional or supplemental training.

16.  Retraining of Operating Principal or Club Manager:  Blink Fitness’s then-current retraining fee, currently $2,000 per person; Blink Fitness may increase this fee and charge up to $5,000

  • Due Date:  As incurred.
  • Payable if your Operating Principal or the Club Manager fails to complete the initial training program to Blink Fitness’s satisfaction, or if Blink Fitness determines after an inspection that the Gym is not operating according to Brand Standards.

17.  Replacement Operating Principal or Club Manager Training:  Blink Fitness’s then-current training fee, currently $2,000 per person; Blink Fitness may increase this fee and charge up to $5,000

  • Due Date:  As incurred.
  • Due for (1) your 2nd and any subsequent Replacement Manager who must attend Blink Fitness’s replacement manager training program and (2) any new Operating Principal who must undergo training.

18.  Local Training:  Blink Fitness’s then-current fee for local training, plus travel expenses and room and board for its employees, currently $500 per trainer per day; Blink Fitness may increase this fee and charge up to $750 per trainer per day

  • Due Date:  As incurred.
  • Payable if you request that any additional or supplemental training occurs locally. Subject to the availability of Blink Fitness’s training personnel.

19.  Testing and Evaluation Fees:  projected costs of testing (amount of which depends on circumstances, including supplier’s location, testing required, and item involved)

  • Due Date:  As incurred.
  • Covers costs of testing new products or inspecting new suppliers you propose.

20.  Relocation:  $5,000 and reasonable costs Blink Fitness incurs

  • Due Date:  As incurred.
  • Due only if you relocate the Gym.

21.  Audit:  cost of inspection or audit, including legal fees and independent accountants’ fees, plus travel expenses, room and board, and compensation of Blink Fitness’s employees

  • Due Date:  As incurred.
  • Due only if you fail to report or understate Gross Sales by 2% or more.

22.  Inspection Fee:  Blink Fitness’s then-current evaluation fee. It may charge up to $1,000, plus travel expenses and room and board for its employees.

  • Due Date:  As incurred.
  • Payable to compensate Blink Fitness for its costs and expenses during any follow-up inspection to confirm that you corrected deficiencies and are otherwise complying with the Franchise Agreement and all Brand Standards, or for any evaluation that you request.

23.  Interest:  lesser of 1.5% per month or highest commercial contract interest rate law allows

  • Due Date:  Upon receipt of invoice from Blink Fitness.
  • Blink Fitness’s acceptance of interest on overdue amounts is not an indication that it chooses to offer financing to you.

24.  Administrative Fee:  $75

  • Due Date:  Upon receipt of invoice from Blink Fitness.
  • Due for each late or dishonored payment.

25.  Costs and Attorneys’ Fees:  will vary under circumstances and depends on nature of your noncompliance

  • Due Date:  As incurred.
  • Due when you do not comply with the Franchise Agreement or Development Rights Agreement.

26.  Indemnification:  will vary under circumstances and depends on nature of third-party claim

  • Due Date:  As incurred.
  • You must reimburse Blink Fitness for all claims arising out of (i) the Gym’s operations, (ii) the business you conduct under the Franchise Agreement, (iii) your breach of the Franchise Agreement, or (iv) non-compliance with any law, ordinance, or regulation.

27.  Management Fee:  up to 5% of Gross Sales, plus any out-of-pocket expenses incurred in connection with the Gym’s management

  • Due Date:  As incurred.
  • Due if you abandon or fail to actively operate the Gym for any period and Blink Fitness assumes the Gym’s management.

28.  Technology and Support Services Fee:  currently $600 monthly, but Blink Fitness may increase this fee up to 3% each year

  • Due Date:  Due monthly on day Blink Fitness specifies.
  • Defrays Blink Fitness’s costs for software support for the kiosks, System Website, and POS System; proactive monitoring and notification of the Gym’s network and Wi-Fi outages; dedicated level 1 help desk support; and vendor issue management and coordination support.


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