Detailed Estimates of F45 Training Franchise Costs Based on Item 7 (Estimated Initial Investment) of F45 Training’s 2019 Franchise Disclosure Document
1. Initial Franchise Fee: $50,000
2. Document Preparation Fee: $2,000
3. Opening Package: $122,000
- Currently, you must purchase from F45 Training the Opening Package, which includes F45 TV dongles, TVs, sound system, exercise equipment, rubber flooring, chinup bar frames, training uniforms, astro turf, and marketing collateral. F45 Training may add items or delete items included in the Opening Package.
- The cost of the Opening Package is $122,000, which includes shipping and other delivery costs.
4. Opening Package Taxes and Duties: $5,000 to $12,000
- When the order for your Opening Package is made, or when otherwise required, you must pay any taxes and other duties that you may be required to pay associated with delivery. F45 Training estimates this may cost between $5,000 and $12,000, depending on the state where your Studio is located.
- If you are not able to take delivery of the Opening Package, you must pay F45 Training the costs it incurs to store the Opening Package until you take delivery of the Opening Package. F45 Training estimates these costs to be $200 per month.
5. Leasehold Improvements: $1,000 to $10,000
- The cost of the leasehold improvements will vary depending on various factors, including size, condition, and location of the Studio, local wage rates, and the cost of materials. The low estimate assumes that your landlord will provide a partial build-out allowance.
- The cost of leasehold improvements includes preparation of a site verification survey, preliminary design documents, architectural costs, construction documents, construction administration services, and actual construction. This estimate does not include the costs for real estate, building permits, or financing.
- F45 Studios are typically located in in-line shopping centers or other types of multi-use buildings. You may purchase or lease the building for your Studio. F45 Training is unable to estimate real estate costs or lease costs because of wide variations in prices depending on factors like location, type of building on the property, size of the property, and market conditions in general.
- F45 Training estimates that the size of your Studio will be 1,650 to 2,400 square feet.
6. Utility Deposits: $1,000 to $2,000
- You will generally have to pay deposits to obtain services, including electric, telephone, Internet, gas, and water. The amount of the deposit and whether the deposit is refundable will vary with the provider.
7. Exterior and Interior Signage: $500 to $10,000
8. Furniture, Fixtures, Other Equipment: $4,000 to $10,000
- You must purchase and/or lease and install the additional furniture and fixtures F45 Training requires, which are not included in the Opening Package. The cost of the furniture and fixtures will vary according to local market conditions, the size of the Studio, suppliers, and other related factors.
- F45 Training requires certain equipment and technology to be professionally installed by suppliers approved by it. Presently, F45 Training requires the exercise bikes which are supplied as a part of the Opening Package to be assembled (to the extent that they are not pre-assembled) and the technology and audio visual equipment and sound system to be installed by a supplier it approves.
9. Office Equipment and Supplies: $1,000 to $3,000
- You must purchase from F45 Training (or its affiliates or other suppliers designated by it) general office supplies including stationery, business cards, and typical office equipment. F45 Training may add or delete items from this list. The precise requirements and costs may vary from one franchisee to another.
10. Computer System: $1,000 to $2,000
- You must purchase the computer equipment, hardware, and software necessary for operating the franchise. The required computer equipment includes an Apple MacBook Air, an Apple iPad, and a high-speed Internet router.
11. Business Licenses and Permits: $1,000 to $3,000
- State and local government agencies typically charge fees for occupancy permits, operating licenses, and construction permits. Your actual costs may vary from the estimates based on the requirements of state and local government agencies.
12. Training Expenses: $1,000 to $2,000
- F45 Training does not charge a fee for online initial training, however it charges a fee of $1,000 (for a maximum of two attendees) for attendance at its orientation seminar. If more than two people attend the orientation seminar, you must pay F45 Training an additional $200 for each attendee.
- You are responsible for your travel, meals, and lodging expenses when you and your employees or principals attend the orientation seminar.
13. Professional Services: $1,000 to $5,000
- This estimate is for your engagement of an attorney, an accountant, an architect, and other consultants to assist you in establishing your franchise. These fees may vary from location to location depending on the prevailing rates of local attorneys, accountants, and consultants.
14. Insurance: $500 to $1,000
- This is the estimated cost for your initial premiums. You must obtain and maintain the types and amounts of insurance coverage F45 Training requires.
- Insurance costs will vary depending upon the location and size of your Studio, the number of employees, the amount of your payroll, and other factors, and may change from time to time due to changes in insurance rates.
15. Grand Opening: $25,000
- You must carry out a grand opening promotion for the Studio as F45 Training requires. You must spend $25,000 on grand opening promotions. The grand opening promotions and marketing activities must be conducted as F45 Training requires.
- If F45 Training directs, you must pay it, or third parties approved by it, part or all of the Grand Opening Expenditures. If F45 Training requires that you pay it or third parties all or part of the Grand Opening Expenditures, then it or the required third party will conduct grand opening promotions on your behalf.
16. Nutritional Supplements: $3,000
- F45 Training may require you to purchase prepared meals in the future. If it does, this amount will be more.
17. Additional Funds (initial 3-month period): $8,000 to $50,000
- These additional funds provide a range of additional funds needed for the first three months of operation. The additional funds include funds for payroll expenses (the largest part of these additional funds), bank charges, cleaning charges, conference fees, courier fees, electricity and other utility costs, motor vehicle expenses, recruiting expenses, security expenses, Studio amenities and other expenses, and telecommunication provider costs. These estimates do not include rent or mortgage payments.
18. Total: $227,000 to $312,000
- This estimated initial investment is for one F45 Studio. The total does not include costs for real estate, building permits, or financing (if you build or purchase the land and building for your Studio versus renting).
- F45 Training has relied on the average costs incurred by its U.S. franchisees to compile these estimates.