The Exercise Coach Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)
1. Initial Franchise Fee: $49,500
2. Initial Training Fee (up to 3 people): $2,500
3. Food, Lodging, and Travel (up to 4 people): $1,000 to $7,000
4. Lease Deposit and 3 Months’ Rent: $8,000 to $16,000 (studio); $4,000 to $12,000 (suite)
- These figures presume that you will be leasing your premises for your personal training studio or suite. The expense of leasing will vary depending upon the size of the premises, its location, landlord contributions, and the requirements of individual landlords.
- The franchisor anticipates that most personal training studios will range in size from 1,400 to 2,000 square feet and most personal training suites will range in size from 800 to 1,200 square feet.
- The franchisor estimates the rent will range from $2,000 to $4,000 per month for a studio or $1,000 to $3,000 per month for a suite, although your actual rent may vary significantly above or below this range depending on your area and the local market conditions.
- Landlords typically require security deposits equal to 1 or 2 months’ rent and may, in addition, require payment in advance of the first and/or last (or more) month’s rent.
- The total estimated initial investment includes 1 month’s security plus 3 months’ rent.
- Some franchisees may prefer to own their facility. The costs of purchasing a facility vary so widely that the franchisor cannot reasonably estimate the cost.
5. Utilities Deposits: $100 to $1,000 (studio); $0 to $1,000 (suite)
6. Build Out and Improvements: $0 to $45,000 (studio); $0 to $30,000 (suite)
- The costs of leasehold improvements and build-out vary widely based upon a number of factors, including the size and condition of the premises, whether or not there are any existing leasehold improvements, market conditions, cost of labor and supplies, and whether the landlord will contribute to the cost of the improvements.
7. Signage: $2,300 to $6,000 (studio); $1,000 to $2,500 (suite)
- The type and size of the signage you actually install will be based upon the zoning, property use requirements, and any landlord imposed restrictions. There could be an occasion where signage is not permitted because of zoning or use restrictions.
- The estimated cost includes both interior and exterior signage.
8. Furniture, Decorations, and Furnishings: $4,200 to $6,315 (studio); $3,450 to $6,315 (suite)
9. Computer System: $1,250 to $3,500
- You must purchase or lease the computer hardware and software that the franchisor requires.
10. Technology Fees (3 months): $1,107
11. Third-Party Software Fees (3 months): $1,586
12. Telephone and Internet Services (3 months): $400 to $1,200
13. Fitness Equipment Package: $12,350 to $103,737 (studio); $10,350 to $103,737 (suite)
- The total purchase price for the Equipment package is $103,737.
- The low estimate assumes you will finance the purchase through a third party. The high estimate assumes you will directly pay the franchisor’s affiliates the full purchase price for the Equipment Package.
- Due to the ever-changing pricing of materials and/or labor, which is out of the franchisor’s immediate control, all exercise equipment pricing is subject to change without notice.
14. Shipping, Installation, and Setup of Fitness Equipment Package and Other Equipment: $7,500 to $9,500 (studio); $6,500 to $9,500 (suite)
- This includes the cost to ship, install, and set up the proprietary fitness equipment and related software purchased from the franchisor’s affiliate as well as non-proprietary equipment purchased from third-party suppliers.
- The amount does not include taxes, which vary significantly from state to state. You are responsible for payment of these taxes if the franchisor or one of its affiliates must charge you for these taxes.
- The shipping amount also varies depending on the distance of your facility from the point of shipment and the franchisor’s corporate headquarters.
- You will pay a portion of this amount to the franchisor’s affiliates (estimated to range from $6,500 to $9,500) and they may engage the services of third parties to provide the services. The franchisor’s affiliates will not markup these costs.
15. Initial Supply of Inventory: $2,550 to $4,250
- This estimates your costs to purchase your initial inventory of office supplies, cleaning supplies, safety supplies, and nutritional bars and supplements.
16. AED and First Aid Kit: $1,350 to $2,100
17. Uniforms: $600 to $1,000
18. Pre-Opening Marketing and Advertising, Plus Print Collateral Material: $14,170 to $20,750
- You must spend money to market and advertise your Business prior to opening. The total cost is estimated to range from $14,170 to $20,750 although some franchisees may choose to spend more.
- The estimate includes your initial business identity and print collateral material ($3,000) and various advertising costs, including initial advertising, direct mail, and other forms of marketing.
19. Post-Opening Marketing and Advertising (3 months): $15,000 to $22,500
- You must spend at least $15,000 on local marketing and advertising during the first 3 months after you open your Business. The high end assumes the franchisee will spend more than the minimum required amount.
- Your pre-opening and post-opening marketing expenditures may vary widely depending on the specific market in which your Business is located. For example, marketing costs can be higher in urban areas, such as New York City or Los Angeles, than in more rural markets.
20. Business License: $250 to $500
21. Professional Fees: $2,620 to $5,240
22. Insurance (3 months’ premium): $800 to $1,500
- The high estimate includes the cost to purchase pandemic insurance, which the franchisor recommends but does not require.
23. Additional Funds (3-month period after opening): $10,000 to $40,000
- Before opening your Business, you must have sufficient working capital to cover the excess of your expenses over cash flow. This range estimates your working capital during the first 3 months of operation, including payroll costs (excluding any wage or salary paid to you) and other miscellaneous expenses and required working capital. You must have sufficient personal resources to cover your living expenses during this period.
- Your initial 3 months of rent, internet and telephone expenses, technology fees, local marketing commitments, and software fees are separately stated above.
- These figures are estimates based on the past experience of the franchisor’s affiliates and franchisees in establishing and operating Exercise Coach personal training studios and suites.
24. Total Estimated Initial Investment: $139,133 to $351,785 (studio); $129,983 to $329,285 (suite)