Detailed Estimates of Burn Boot Camp Franchise Costs Based on Item 7 (Estimated Initial Investment) of Burn Boot Camp’s 2019 Franchise Disclosure Document
1. Initial Franchise Fee: $40,000
2. Technology: $4,400 to $7,700
- This includes the costs for a computer, iPads, software, credit card processing equipment, printer, scanner, wireless router, networking equipment, copier, sound system, microphone system, and a telephone.
3. Exercise Equipment, Furniture, and Fixtures: $22,280 to $30,300
- This is an estimate for the items you will need for all exercise equipment, furnishing, and fixtures. You must purchase various new pieces of exercise equipment for the operation of the Franchised Business as specified in the Operations Manual.
- The type of exercise equipment you will need to operate the Business includes, but is not limited to: dumb bells, kettle bells, smash balls, agility equipment, different types of exercise balls, and other types of approved exercise equipment depending on the size of your facility.
- The furnishings and fixtures necessary to operate your Business include but are not limited to: a desk, chairs, tables, filing systems, shelving, storage racks, cabinets, dehumidifiers, pull up systems, cubical storage lockers, and seating options for the operation of your Business.
- The low end of the estimate given is based on opening a 3,500-sq. foot fitness facility and the high end of the estimate is based on opening a 7,000-sq. foot fitness facility.
4. Real Estate: $7,500 to $25,000
- A typical Burn Boot Camp Business is in a shopping center, mall, or a free-standing building with approximately 3,500-7,000 square feet of space (it may be less than 3,500 square feet in a densely populated urban market as the franchisor defines that from time to time in its sole discretion).
- This estimate represents rents that range from approximately $2.14 per square foot per month to $3.57 per square foot per month for a 3,500 to 7,000 square foot facility respectively.
- This estimate includes first month’s rent plus a security deposit.
- You may be able to reduce this expense if you are able to occupy a space in an existing location that complements another business. The space must be enclosed and separate from other businesses with its own locking door.
5. Use Permits: $0 to $30,000
- You may or may not need to obtain use permits or zoning variances that will allow the premises to be used as a Burn Boot Camp Business. If you are required to do so, the total cost involved, including fees paid to local governmental authorities, attorneys, and other consultants, will vary based on geographical and other factors.
6. Leasehold Improvements: $4,000 to $100,000
- The franchisor suggests you find a space needing minimal leasehold improvements or fixtures. In most cases, you will need to alter the interior of your Business before you open for operation and you will need to install a floating floor system with rubber flooring materials according to the franchisor’s specifications.
- You may be able to negotiate with your landlord to obtain a tenant improvement allowance whereby your landlord will give you a sum of money upon or following execution of your lease for you to use for leasehold improvements, and the amount of any allowance will typically be added into your rent payments and amortized over the initial term of your lease.
- The high estimate in the table reflects the potential need to add drinking fountains, bathrooms (you may choose to add a single shower in each bathroom but it is not required), lighting, fire sprinklers, fire alarms, and an HVAC system that entails mechanical, electrical, and plumbing costs.
7. Utilities: $300 to $1,500
8. Signage: $6,000 to $12,500
9. Start-Up Inventory: $3,000 to $5,000
- You must purchase products and supplies for the general operation of the Franchised Business as specified in the Operations Manual.
- The types of products and supplies include, but are not limited to: scales, body fat analyzers, jump ropes, resistance cords and bands, foam rollers, proprietary products (which are products that carry the Burn Boot Camp brand), limited supplements, hand sanitizers, workout towels, hampers, first aid kits, t-shirts, backpacks, miscellaneous forms, cleaning supplies, general office supplies, and other products or supplies as specified by the franchisor.
10. Grand Opening Marketing: $20,000
11. Staffing: $28,000 to $43,000
- You must employ one Head Trainer, two part-time support trainers, one full-time “Burn Ambassador”, and one part-time “Burn Ambassador”. You may act as the Head Trainer provided that you receive the franchisor’s prior written consent.
- You must also hire an Operations Manager if you do not manage operations yourself.
- You must also hire adequate staff to provide child care. The franchisor may, in its sole discretion, waive the requirement for you to provide child care at your Franchised Business if the franchisor determines, in its sole discretion, that child care services are not likely to be expected by customers at your location.
12. Uniforms: $150 to $250
- You must purchase and maintain an inventory of approved apparel for the operation of your Business. You must purchase t-shirts for your Head Trainer and other trainers from the franchisor, its affiliates, and/or its approved vendors.
- You will need a minimum inventory of t-shirts that incorporate the franchisor’s logo and approved graphics for your Head Trainer and other trainers for your first month of operation.
- This estimate does not include any shipping costs which (if applicable) are your responsibility.
13. Insurance: $1,800 to $3,600
- This estimated range represents 12 months of pre-paid insurance premiums with the minimum coverage amounts that the franchisor requires, and does not take into account workers’ compensation insurance which may vary greatly by state, payroll, and classification.
14. Travel, Lodging, and Meals for Initial Training Program: $900 to $1,800
15. Business Licenses, Certifications, and Other Professional Fees: $500 to $2,500
- Business licenses differ from state to state but typically are used to track and monitor businesses for tax purposes and are required for businesses to operate lawfully in the state.
- Some states have sales tax laws on all fitness-related services, and defibrillator laws that require a fitness facility to have a defibrillator, and staff members that are qualified to operate one, at all times.
- Certain states require postings concerning steroids and other drug use, and limit supplements that a fitness facility can sell. You may have to comply with various state laws concerning labeling of ingredients in any supplements that you choose to sell.
- In addition, there may be local codes, ordinances, statutes, or laws which license or regulate fitness facilities.
- The franchisor also requires that you and any individual who plans on instructing any classes, be certified by a personal training program accredited by the National Commission for Certifying Agencies (“NCCA”), in addition to being CPR and First Aid certified and maintaining such certification.
16. Additional Funds (3 months): $10,000 to $30,000
- The estimated range includes minimum working capital for the startup of your Business and miscellaneous startup costs such as: rent for an additional two months; the purchase of additional exercise equipment, products, and supplies; additional staffing; workman’s compensation insurance payments (if applicable); tax deposits; prepaid expenses; additional permits; legal fees; accounting fees; and other miscellaneous costs.
17. Total: $148,830 to $353,150
- The franchisor relied on its experience and that of its principals, affiliates, and franchisees to arrive at these estimates. The estimate of initial investment funds is based on an owner-operated business or incorporating franchise operations to an existing complementary business, and does not include salaries or benefits for full-time employees.
- As your Business grows, you may choose to hire additional employees to carry out support service tasks.