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Earnings Claims of Top Franchises Revealed

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FDD Talk 2017: What You Need to Know About the Blink Fitness Franchise Opportunity (Financial Performance Analysis, Costs and Fees)

by Franchise Chatter on May 18, 2017

in FDD Talk 2017: Fitness Franchises, Fitness Franchises, Franchise Earnings



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In this FDD Talk 2017 post, you’ll learn the following:

  • Section I – Background information on the Blink Fitness franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Blink Fitness franchise, based on Item 7 of the company’s 2017 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Blink Fitness franchise, based on Items 5 and 6 of the company’s 2017 FDD
  • Section IV – Presentation and analysis of Blink Fitness’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
  • average and median year-end membership, gross sales, personnel costs, supplies and maintenance, utilities, other club expenses, EBITDAR, rent and occupancy costs, and EBITDA (plus royalties, technology and support services fee, brand fund, and local marketing) for the 39 Blink Fitness gyms that were open and operating for at least 1 full year as of December 31, 2016
  • average and median year-end membership, gross sales, personnel costs, supplies and maintenance, utilities, other club expenses, EBITDAR, rent and occupancy costs, and EBITDA (plus royalties, technology and support services fee, brand fund, and local marketing) for the 34 Blink Fitness gyms that also had been open and operating for at least 2 full years (but less than 3 full years) as of December 31, 2016
  • average and median year-end membership, gross sales, personnel costs, supplies and maintenance, utilities, other club expenses, EBITDAR, rent and occupancy costs, and EBITDA (plus royalties, technology and support services fee, brand fund, and local marketing) for the 23 Blink Fitness gyms that also had been open and operating for at least 3 full years (but less than 4 full years) as of December 31, 2016
  • average and median year-end membership, gross sales, personnel costs, supplies and maintenance, utilities, other club expenses, EBITDAR, rent and occupancy costs, and EBITDA (plus royalties, technology and support services fee, brand fund, and local marketing) for the 9 Blink Fitness gyms that also had been open and operating for at least 4 full years as of December 31, 2016

Section I – Background Information

12 Things You Need to Know About the Blink Fitness Franchise

Ad Campaign Features Real Gym Members

1.  At the beginning of January, Blink Fitness launched its 2017 marketing campaign called “Every Body Happy.” This iteration of the ad campaign features 16 members of Blink Fitness gyms. The people featured in the ad were of varying sizes and shapes with self-confidence being their common thread.

2.  In order to be considered for the campaign, members were asked to submit in the fall of 2016 a photo or video on Instagram that showed their confidence and explain why they should be chosen. Of the 2,000 submissions, 50 semi-finalists were chosen to appear in-person to share their fitness stories in front of a panel of judges. The panel included actress Dascha Polanco and former NFL punter Steve Weatherford – both of whom are Blink Fitness members and advocates for body positivity and the emotional benefits of exercise.



3.  For over a year, Blink Fitness has been producing ads that aim to challenge industry norms and celebrate how exercise makes people feel, rather than focusing on how it makes them look.

Turned Off TV News for a Month to Help Reduce Stress

4.  Every Monday throughout the month of April, Blink Fitness switched off cable news and instead, showed uplifting television programs. Blink’s move to turn off the news was inspired by an American Psychological Association survey released in February that confirmed that “everyone is stressing out over politics.”

Expanding Into New Territories in 2017

5.  In early February, Blink Fitness announced that it will be entering a few new areas including Philadelphia, Pennsylvania and Los Angeles, California. The company will be opening four gyms in the Philadelphia area over the next year and one gym in Los Angeles by the end of this year.

6.  The Los Angeles gym will be located in the landmark Huntington Park Warner Theatre. As the only tenant in the theater space, Blink plans to preserve the historic elements of the building, including the marquee and original art deco designs.

7.  Blink’s expansion into new territories is part of its long-term goal of having 300 gyms in the U.S. by the end of 2020.

Standing Out From the Competition

8.  From its inception, Blink Fitness has endeavored to position itself as the fitness franchise leader in the High Volume, Low Price (HVLP) space. According to Blink, the company offers members a luxury experience at a low price and focuses on a “Mood Above Muscle” philosophy, which celebrates the positive feelings people get from exercise and not just the physical benefits.

9.  In order to create what the fitness franchise calls its “Feel Good Experience,” Blink offers five things it says no other HVLP player is providing:



  • Hiring passionate people with high energies, whom the company calls “Mood Lifters.”
  • Giving the facilities a luxury feel in terms of design through carefully chosen colors, lighting, and space.
  • Keeping everything clean at all facilities by requiring all employees, regardless of position, to clean.
  • Providing curated music based on beats per minute to ensure the club’s energy stays high.
  • Making training programs accessible to all members. Blink offers a free personal training session to every new member and additional sessions start at $27.

Company History

10.  Blink Fitness was started in 2011 by Equinox Fitness, a luxury fitness company that operates several other fitness brands: Equinox, PURE Yoga, and SoulCycle. Equinox launched Blink as a separate fitness company with a value-driven membership model.

11.  Before franchising in 2015, Blink Fitness mostly opened locations in its home state of New York and neighboring New Jersey. Today, there are over 50 Blink Fitness locations in the country with over 60 locations set to open over the next year.

Entrepreneur’s Franchise 500

12.  Blink Fitness has only been franchising since 2015 and has yet to earn a spot on Entrepreneur’s annual Franchise 500 list.

Section II – Estimated Costs

  • Please click here for detailed estimates of Blink Fitness franchise costs, based on Item 7 of the company’s 2017 FDD (updated).

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Please click here for detailed information on Blink Fitness’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.

Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis



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