Updated October 22, 2021.

If you are considering an F45 Training franchise, don’t get blindsided by these 32 important franchise fees (from the initial franchise fee, to the royalty fee, to 30 other fees found in Items 5 and 6 of F45 Training’s 2021 FDD).

1.  Initial Franchise Fee:  $50,000

2.  Document Preparation Fee:  $2,000

• On the Effective Date of the Franchise Agreement, you must pay F45 Training: (i) a $50,000 initial franchise fee; and (ii) up to a $2,000 document preparation fee that will be applied to its cost to prepare the Franchise Agreement and any ancillary documents.

• Upon execution of the Franchise Agreement and payment of the initial franchise fee and document preparation fee, you will be provided access to the F45 Intranet, including F45 Training’s intellectual property and confidential information it makes available to you through the Intranet.

• Additionally, you will also be provided with access to F45 Support and F45 Tech to begin setting up and operating your Studio.

• F45 Training has a program under which it may discount the initial franchise fee by up to 50 percent for certain approved US military veterans.

3.  Opening Package:  $125,000

• You must also pay F45 Training $125,000 for an “Opening Package,” which includes most of the equipment and inventory needed to start operating your Studio.

• You must pay F45 Training a non-refundable deposit of $10,000 when you sign the Franchise Agreement, and the balance of the payment for the Opening Package is due when the order for your Opening Package is made, or 6 months from the Effective Date of the Franchise Agreement, whichever comes first.

• The Opening Package fee includes shipping and other delivery costs, but does not include taxes or other duties you may be required to pay.

4.  Storage Fee:  $600 per month

• The Opening Package is generally scheduled to be delivered approximately 45 to 90 days after the date the Opening Package is shipped. If you are unable to take delivery of the Opening Package, you must pay F45 Training for the storage costs it incurs to store the Opening Package until you take delivery of the Opening Package.

• F45 Training estimates these costs to be $600 per month.

5.  Nutritional Supplements:  $3,000

• Upon ordering your Opening Package, you must also purchase from F45 Training for resale in your Studio an inventory of nutritional supplements in the amount of $3,000, the variety of which F45 Training will determine.

6.  Grand Opening:  $25,000

• Beginning 90 days before you open your Studio (“Opening Date”) and continuing through 30 days after the Opening Date, you must spend a minimum of $25,000 on grand opening promotions (“Grand Opening Expenditures”).

7.  Royalty Fee:  the greater of 7% of Gross Sales or $2,500 per month

• Due Date:  180 days after the Effective Date of the the Franchise Agreement and the first day of each subsequent calendar month.

• You must pay the royalty fee by electronic funds transfer. The first royalty fee payment is due on the 180th day after the Effective Date whether or not your Studio is open.

8.  Brand Fund:  up to 2% of Gross Sales, or $200 per month, whichever is higher

• Due Date:  180 days after the Effective Date of the the Franchise Agreement and the first day of each subsequent calendar month.

9.  Marketing Fee:  $2,500 per month

• Due Date:  On the Opening Date of your Studio and the first day of each subsequent calendar month.

• F45 Training or a third party it designates will use the Marketing Fee monies to pay for local advertising for your Studio.

• If F45 Training communicates to you in writing that you are not required to pay the Marketing Fee directly to it, you must spend at least $2,500 per month for local advertising for your Studio.

• You may spend more at your option. F45 Training recommends that you spend at least $4,000 per month on local advertising for your Studio.

10.  Local Cooperative Advertising (“Co-op”):  as determined by Co-op; currently, there are no Co-ops

• Due Date:  As determined by Co-op.

• If you are part of and contribute to a local Co-op where your Studio is located, F45 Training will credit dollar for dollar the amount you contribute to the Co-op toward your required Marketing Fee requirement for your Studio (or Local Advertising Expenditure, if applicable).

11.  Promotional Programs:  cost of programs and related fees, but no more than the monthly royalty fee

• Due Date:  When billed.

• If, at any time during the term of the Franchise Agreement, but not before the end of the 12-month period following the Opening Date of the Studio, your Gross Sales are not at least 70% of the annual, average gross sales of all F45 franchisees that have operated their studios for at least 12 months, then F45 may require you to participate in a special promotional program(s) that it implements, and you must pay the costs and fees associated with such program(s).

12.  Non-Compliance Fee:  not to exceed $2,000 per notice of violation

• Due Date:  10 days after notice of violation.

• In order to recover damages the brand incurs or other losses F45 Training suffers because of your non-compliance with the Franchise Agreement or the Standards, F45 Training may assess a noncompliance fee if you do not cure the non-compliance as F45 Training requires.

• F45 Training may charge you this fee in addition to the on-site evaluation fee described below.

13.  Service Fee:  currently, $500 per month

• Due Date:  15th day of the month after the Effective Date and then each subsequent month.

• F45 Training reserves the right to increase the Service Fee at the beginning of each calendar year.

14.  Orientation Seminar:  $1,000 for attendance at F45 Training’s orientation seminar (for a maximum of two attendees)

• Due Date:  When your registration for the orientation seminar is confirmed.

• You must pay F45 Training $200 for the third and each additional person who attends orientation.

15.  Nutritional Supplements for Resale:  currently, an initial amount equal to $3,000; ongoing amount will vary

• Due Date:  When billed.

• You must continue to purchase from F45 Training, its affiliates, or other suppliers nutritional supplements for resale in your Studio and maintain the amount of inventory F45 Training requires, which will be a reasonable amount.

16.  Merchandise for Resale:  currently, not less than $1,500 every three months (does not include shipping, taxes, and duties (if any), which you must pay)

• Due Date:  Every three months during the term of the Franchise Agreement.

• F45 Training may provide to you certain collateral merchandise for resale that contain the Marks, such as sporting goods, equipment, and memorabilia, like T-shirts, caps, cups, and mugs.

17.  LionHeart Bands:  currently, $49 per monitor, plus shipping and handling charges

• Due Date:  On demand.

• F45 Training will provide you with F45 LionHeart heart rate monitors for the purposes of resale or to supply to members of your Studio. 100 LionHeart monitors are included in the Opening Package.

• You must order at least 100 LionHeart heart rate monitors every year following the expiration of the first 12 months of operation of the Studio.

18.  Interest:  18% per year or the maximum lawful rate

• Due Date:  On demand.

• F45 Training may charge interest on all overdue amounts.

19.  Additional Training:  a reasonable fee based on F45 Training’s costs of providing the training; currently, $250 per day per person trained

• Due Date:  Before additional training.

• You must also pay the expenses of your personnel who attend training.

20.  On-site Remedial Training:  the then-current per diem fee for remedial training, plus costs; current per diem rate is $250

• Due Date:  When billed.

• If you ask or if F45 Training believes it is appropriate, F45 Training will (subject to availability) provide trained representatives to conduct on-site remedial training at your Studio.

21.  On-site Evaluation Fee:  currently, $160 per on-site evaluation if F45 Training determines that your Studio is not in compliance with the terms of the Franchise Agreement, plus current per diem rate of $250

• Due Date:  On demand.

• F45 Training may conduct an on-site evaluation of your Studio to determine compliance with your obligations under the Franchise Agreement. If your Studio is not in compliance, F45 Training may charge you the on-site evaluation fee in addition to the non-compliance fee.

22.  Transfer Fee:  25% of the then-current initial franchise fee, plus F45 Training’s reasonable costs and expenses associated with the transfer, including training costs and legal and accounting fees

• Due Date:  With transfer application.

• There is no fee if an individual or partnership transfers rights to a corporation controlled by the same interest holders or for a transfer of a non-controlling interest in you by a Principal not signing the Guaranty.

23.  Securities Offering Fee:  $3,000, plus F45 Training’s reasonable costs and expenses associated with the proposed offering

• Due Date:  When billed.

• F45 Training limits its review to the manner in which the offering materials treat your and F45 Training’s relationship.

24.  Renewal Fee:  50% of F45 Training’s then-current initial franchise fee

• Due Date:  Signing of renewal Franchise Agreement.

• You must give F45 Training at least 6 months and not more than 9 months notice to renew and meet other renewal conditions.

25.  Annual Conference:  $600 per ticket; a minimum of two tickets must be purchased unless F45 Training otherwise approves in writing

• Due Date:  Upon issuance of invitation to conference.

• F45 Training will bill you the cost of the tickets whether or not you attend the conference, and it may direct payment through electronic funds transfer.

26.  Non-Attendance Fee:  varies based on costs F45 Training incurs to prepare for attendance; currently, $100 to $300 per person

• Due Date:  On demand.

• If any person required to attend any training, conferences, or meetings fails to attend, you must pay F45 Training the non-attendance fee in an amount F45 Training determines at the time.

27.  DJ Fee:  actual cost of the DJ; currently, $25 to $400 per session if F45 Training supplies you with a DJ to play at your Studio on a Saturday

• Due Date:  On demand.

• You must have a DJ in attendance at your Studio each Saturday for each training session you conduct. You may engage the services of a DJ independent of F45 Training, and pay the DJ as you arrange; or F45 Training will engage one for you, and you will pay F45 Training the cost of the DJ each month, in advance.

28.  Inspection and Testing:  cost of inspection, if applicable, and cost of test

• Due Date:  When billed.

• Before approving a supplier, F45 Training may require you to pay the cost of testing the supplier’s products and inspecting its facilities.

29.  Indemnification:  varies according to loss

• Due Date:  On demand.

• You must indemnify F45 Training when certain of your actions result in loss to it.

30.  Audit Fee:  cost of audit

• Due Date:  When billed.

• Payable if an audit shows you have understated any amount owed to F45 Training by 3% or more.

31.  Insurance Fee:  a reasonable amount based on F45 Training’s expenses

• Due Date:  On demand.

• If you fail to maintain the required insurance, F45 Training may (but need not) obtain it for you. If it does, it will charge you a fee, plus its expenses.

32.  Enforcement Costs:  will vary

• Due Date:  As incurred.

• You must pay F45 Training’s costs of enforcement (including attorney’s fees and costs) if you do not comply with the Franchise Agreement.