How to get Orangetheory franchise ?

By Startup Authority May 30

The fitness business has remained economically healthy for more than 2 decades, rising at an annual pace of 8%, with about one million people joining health clubs in the U.S each year. Orangetheory Fitness provides a unique and valuable solution for people of all ages and fitness levels who want to attain and maintain an active lifestyle.

Why is the Orangetheory franchise unique?

Orangetheory franchisee provides you with Small studios intended for large groups
The unique concept blends fitness and technology.
Real estate, operations, marketing, sales, fitness, equipment, technology, training, building & design are all covered by comprehensive corporate training and assistance.

Orangetheory Franchise Cost

The following items will be included in the cost of starting an Orangetheory franchise.

Investment total: The total expenditure required to start an "Orangetheory Franchise" franchise varies between $563,529 and $994,121.
$59,950 for the initial franchise price
8 per cent royalty fees
Royalty fee : 8% of gross sales
Local Advertising Minimum amount determined by the franchisor will range from $2,500 to $4,000 per month.
As successor franchise fees, new franchisees pay 25% of the then-current initial franchise fee.
Transfer/Assignment For new franchisees, charge 25% of the then-current initial franchise fee. Fee is proportional to the franchisor's expenditures and expenses when relocating.
Interest and late fees are calculated at the lower of 18 per cent per year or the greatest rate allowed by law, plus $35 per week or a portion of a week that the payment or report is late.

Training Required for Orangetheory franchise

Interest and late fees are calculated at the lower of 18 per cent per year or the greatest rate allowed by law, plus $35 per week or a portion of a week that the payment or report is late.
The fee for refresher training is $250 per person instructed per day.
Up to $1,000 per attendee during the annual conference.

Interest and late fees are calculated at the lower of 18 per cent per year or the greatest rate allowed by law, plus $35 per week or a portion of a week that the payment or report is late.

Fees for Technology-Software Licenses

Ø Monthly fees range from $399 to $749, plus a $575 MindBody Online startup fee.

Ø Toll fees range from $149 to $449 per month (now $149).

Fee for Non-Compliance

Ø Up to $1,000 per violation notice.

Costs of Product/Supplier Approval

Ø Inspection or testing costs + actual laboratory fees, professional fees, and the franchisor's personnel's travel and living expenses.

Ø Fee for management: 5% of gross sales plus the franchisor's reasonable fees and expenditures

Ø Costs and attorney fees will vary depending on the situation.

Investment required for Orangetheory fitness franchise

Do you want to open an Orangetheory Fitness franchise in other countries too? For a number of nations, we provide predictable franchise cost:

The total investment to open an Orangetheory Fitness gym in the United States ranges from $488,405 to $994,360.
The investment ranges from Can$624,015 to Can$1,270,454 in Canadian money.
The investment ranges from AUD 637,000 to AUD 1,297,000 in Australian dollars.
In German money, the investment ranges from €397,339 to €808,956.
In British pounds sterling, the investment ranges from £359,165 to £731,230.
The investment ranges from Rs 3,57 crores to Rs 7,28 crores in Indian currency.

Is Orangetheory profitable?

Average Franchise Revenue Estimated: $517,000
Recouping your investment would take around 27 years based on a midpoint investment of $1,378,500 and expected profits of $51,800 (10 % profit margin).

Agreement Term and Renewal

The primary franchise period is 10 years. Franchisees can renew for an additional 10-year term if they meet the qualifications.

Revenue model for an orangetheory franchise

Orangetheory franchise owners generate money by selling various membership tiers. These three membership categories provide a predetermined amount of monthly classes to members. In addition, members receive a discount on additional classes when compared to non-members.
An Orangetheory studio can sell the brand's attire in addition to membership fees.

Maximum amount you can charge to your customers

Depending on the membership program, Orangetheory costs anywhere from $59 to $200 each month. A single lesson is $28 for non-members.

How to start Orangetheory Fitness franchise ?

These are the steps to starting an Orangetheory Fitness franchise :

Make sure your capitalization is correct.
You must have a net worth of at least $480,000 to launch an Orangetheory Fitness business.
Understand the financial commitment required for a franchise.
You'll need to include the costs of construction and real estate and the costs of equipment and signs, licenses and permits, uniforms, and insurance.
Assess your prior experience and abilities.
Before seeking to open an Orangetheory Fitness franchise, you should carefully consider your previous business experience.
Determine the market's availability.
Before starting with the franchising application, you should check the market availability for Orangetheory Fitness franchises to see whether there are any available markets in your desired location.
Complete and submit your application.
The Orangetheory Fitness franchise team will assess your application. Upon receiving your online application, you will receive an email confirmation and the franchise contact information.
Get your Orangetheory Fitness franchise approved and open.

Once your financial and background checks are completed, you will be granted franchise clearance. Only candidates who meet all franchise owners' standards will be approved.