Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Considering a Fitness Together Franchise? Don’t Overlook These 25 Important Franchise Fees

by Franchise Chatter on June 15, 2017

in Fitness Franchises, Franchise Fees



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

If you are considering a Fitness Together franchise, don’t get blindsided by these 25 important franchise fees (from the initial franchise fee, to the royalty fee, to 23 other fees found in Items 5 and 6 of Fitness Together’s 2017 FDD).

1.  Initial Franchise Fee:  $29,900 to $34,900

  • When you sign the Franchise Agreement, you must pay Fitness Together an initial franchise fee of $34,900.
  • If this is your second or subsequent Franchise Agreement, you must pay Fitness Together an initial franchise fee of $29,900.
  • If you enter into multiple Franchise Agreements at the same time, and become eligible for the reduced franchise fee of $29,900 for each Franchise Agreement after your first Franchise Agreement, your total initial franchise fees will be allocated equally among all the Franchise Agreements you purchase.
  • Fitness Together offers a veterans and active-duty military discount of $5,000 for the first franchise you purchase if you are a veteran or an active-duty member of the military.
  • If you are signing the Conversion Addendum described in Item 1, you must pay Fitness Together 50% of the then-existing initial franchise fee (currently 50% of $34,900) when you sign the Franchise Agreement. At the time you convert your existing business to a Studio, you must pay Fitness Together the balance of the initial franchise fee.
  • You will have 180 days to convert your existing business into a Studio; however, you will pay royalties on your gross receipts that accrue beginning on the date on which your Franchise Agreement is fully executed by you and Fitness Together.
  • If you fail to convert your business into a Studio within this time period, Fitness Together will have the right to terminate your Franchise Agreement and retain the non-refundable initial franchise fee.
  • The initial franchise fees must be paid to Fitness Together as a lump sum in the form of a cashier’s check or wire transfer at the time the Franchise Agreement is signed.
  • All initial franchise fees are fully earned by Fitness Together when paid by you and are not refundable under any circumstances.
  • Fitness Together reserves the right to waive or reduce the initial franchise fee for other franchisees. In the fiscal year ended December 31, 2016, Fitness Together received initial franchise fees in amounts ranging from $0 to $14,900.

2.  Set-Up and Technology Fees:  $499

  • You are required to pay Fitness Together $499 for the set-up of certain required software programs. You are also required to pay Fitness Together a technology fee for the 2 months before opening ($395 per month).

3.  Lease Review Fee:  $1,650



  • When you enter into a letter of intent for the lease of your Studio premises, you will be required to pay Fitness Together a $1,650 lease review fee.
  • Fitness Together will charge you only 1 lease review fee, unless you refuse to sign a lease that it has approved and it is then required to review other leases for the Studio location.

4.  Initial Marketing Spend Requirement:  $15,000

  • During the period beginning at least 60 days before you open your Studio and continuing through the first 90 days of your Studio operations, you must spend at least $15,000 to advertise, market, and promote your Studio.
  • However, if you purchase an existing Studio, the $15,000 Initial Marketing Spend Requirement applies during the first 180 days after you take possession of the Studio.
  • Fitness Together reserves the right to require you to pay the Initial Marketing Spend Requirement to it. If it requires you to pay the Initial Marketing Spend Requirement to it, it will advertise, market, and promote your Studio on your behalf.

5.  Royalty:  6% of gross receipts

  • Due Date:  5th day of each month.

6.  Default Fee:  $250

  • Due Date:  Upon receipt of statement.

7.  Dishonored Check or Insufficient Funds Fee:  $150

  • Due Date:  Upon receipt of statement.

8.  Defense or Enforcement Costs:  all costs, including attorneys’ fees (variable)

  • Due Date:  Upon settlement or conclusion of a claim or other legal action.

9.  Indemnification:  all costs, including attorneys’ fees (variable)

  • Due Date:  Upon settlement or conclusion of a claim or other legal action.

10.  Collection Costs:  actual costs to collect past due or other amounts

  • Due Date:  Upon settlement or conclusion.

11.  Default Operation Costs (in event of your default):  up to $5,000 per month

  • Due Date:  1st day of each month upon occurrence.

12.  Royalty Underpayments (audit):  varies; difference between amount reported and correct amount, plus 12% of such amount; and if understated amount is more than 2%, plus Fitness Together’s costs (including attorneys’ and accountants’ fees)

  • Due Date:  Time of audit.

13.  Supplies or Supplier Approval:  $100 per hour



  • Due Date:  Upon request.

14.  Technology Fee:  $395 per month; additional $7.50 per month per email user in excess of 4

  • Due Date:  1st day of each calendar month.

15.  Computer Hardware and Software Upgrades:  varies depending on requirements, but typically $100 to $10,000 per upgrade

  • Due Date:  At time of upgrade.

16.  Extension Fee:  $7,500

  • Due Date:  At the time Fitness Together grants an extension to open your Studio.

17.  Marketing Fund:  not currently charged, but if established, up to the greater of 2% of gross receipts or $500 per month

  • Due Date:  As established.

18.  Ongoing Marketing Spend Requirement:  $2,500 per month

  • Due Date:  Beginning on the date your Studio first opens for business (or, if you are purchasing an existing Studio, on the date you take possession of the Studio).

19.  Marketing Cooperatives:  not currently charged

  • Due Date:  As established.

20.  Training (refresher):  Fitness Together may require a $500 fee and you must pay all costs for travel, meals, lodging, and other expenses

  • Due Date:  If a fee is payable, before attendance at training program; costs and expenses as incurred.

21.  Insurance:  varies by coverage and provider

  • If you fail to obtain insurance, Fitness Together may obtain it for you and you will be required to reimburse it for any premiums and other costs it incurs.

22.  Transfer Fee:  50% of the then-current initial franchise fee

  • Due Date:  Upon signing the consent to transfer.

23.  Transfer Fee Deposit:  $3,500

  • Due Date:  Upon signing the consent to transfer.

24.  Arbitration and Proceeding Costs:  Fitness Together’s arbitration or other proceeding fees and costs, plus attorneys’ fees and costs if Fitness Together prevails in the arbitration or proceeding

  • Due Date:  Upon conclusion of arbitration or proceeding.

25.  Renewal Fee:  $10,000

  • Due Date:  Upon renewal.


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