How To's

How Much Does An Orangetheory Fitness Franchise Cost?

Published

4 years ago

October 9, 2020

IBISWorld reported that fitness franchising grew significantly from 2013 to 2018. And the number is expected to rise until 2023. Hence, its business model has enticed many franchisees to consider establishing a fitness chain. Despite it being a sizable investment, many report success running a fitness chain franchise. For instance, Orangetheory Fitness is one of the fitness chains that have seen a surge in growth over the past few years. So, in this article, learn about the Orangetheory Fitness franchise cost and other requirements needed before you become a franchisee.

Orangetheory Fitness Franchise Overview

Before Orangetheory Fitness became one of the fastest-growing fitness boutiques, it was called The Ultimate Workout in 2008. Two years later, “The Ultimate Workout” rebranded to Orangetheory Fitness. And it has become known that ever since. Founder Ellen Latham shared those in her interview for Forbes Magazine.

Their approach to working out is what makes them different from other fitness chains. To explain, Orangetheory Fitness follows the “Excess Post-Exercise Oxygen” (EPOC) theory. To explain, this allows the members to have an “after burn.” It helps increase metabolic rates hours after doing the 1-hour workout. Because of that many members flock to their gym and continue to book their classes with them.

The discussion about franchising started in 2010 before it rebranded to Orangetheory Fitness. As more and more people visited their studio, franchising was their best option to meet the growing demand.

Presently, there are more than 1800 franchises in the U.S. and 26 other countries including Canada, Australia, Mexico, and Japan.

Training

Upon signing the Franchise Agreement (FA), signatories should undergo training. Firstly, there’s an initial four-day training held in Orangetheory Fitness’ headquarters at Boca Raton, Florida. However, the franchisor might also organize training resources or sessions digitally.

Aside from that, there’s also the Studio Launch Training conducted by the franchisor or an area representative. In fact, it comes at no charge for eight coaches and four salespeople. A first-time franchisee, owners, and employees will also have to attend a Presales Training. It also lasts for four days and is held in the franchisee’s studio.

Not to mention, franchisees, trainers, and managers may have to attend additional training and conferences.

Territory

The franchisor doesn’t seem to restrict the number of territories in a particular area. Instead, there are marks that allow the operations of a particular studio. This may then limit other studios opening near the area. However, the franchisor allows certain exceptions like limited access facilities to operate.

So, the franchisee may choose a location they see fit, and the franchisor can grant this territory. Factors such as population, traffic, competitors, and market conditions are considered when opening a new studio.

Obligations and Restrictions

Franchisees may supervise the studio but are not required to do so. However, the franchisor requires a manager to run the studio. The manager will then undergo the initial training program. Furthermore, the manager should be in the studio at all times and has no other obligations with other businesses.

Another key point to mention is sales. As mentioned in the FA, franchisees can only sell pre-approved products, services, and classes to customers.

Orangetheory Fitness Franchise Cost

The estimated Orangetheory Fitness Franchise Cost is between $608,172 to $1,800,322. According to the fitness chain, this includes the franchise fee, equipment, and licenses. Together with those, other costs to consider are royalty fees, brand funds, management fees, and training fees as well. Even so, it seems that Orangetheory doesn’t offer financing options.

You can check the tables below for the breakdown of your initial investment and other costs in franchising Orangetheory Fitness.

Your Investment

Name of Fee	Low	High
Initial Fee	$59,950	$59,950
Travel and Living Expenses During Training for all attendees	$1,200	$4,800
Deposit for Leasehold	$8,750	$206,000
3 Months’ Rent	$16,000	$114,000
Leaseholds Improvements and Construction Costs	$250,000	$1,000,000
Reception Desk, Retail Display Wall and all Interior Logo Signage	$11,600	$14,000
Graphics	$5,000	$6,000
Fitness Equipment (including installation) and OT Beat Start-Up System	$122,000	$190,000
Technology – Software Licensing Fee (3 months)	$3,272	$3,272
Fitness Equipment Maintenance	$900	$2,400
Initial Inventory of Orangetheory Fitness Retail Merchandise	$4,000	$6,000
AED and First Aid Equipment/Training	$1,000	$5,000
Exterior Signage	$5,000	$7,000
Technology System	$60,000	$88,500
Pre-Sale and Grand Opening Advertising	$30,000	$40,000
Presales Coordinator Program	$0	$4,900
Business Licenses/Miscellaneous Opening Costs	$1,000	$3,000
Insurance	$3,500	$5,000
Additional Assistance	$0	$5,500
Additional Funds – 3 months	$25,000	$35,000
ESTIMATED TOTAL (excluding real estate purchase costs)	$608,172	$1,800,322

Other Costs

Type of Fee	Amount
Royalty Fee	8% of gross sales.
Brand Fund Contributions	2% of gross sales. It may be increased up to 3% of gross sales.
Cooperative Advertising	As determined by the Cooperative, if one is formed in the franchisee’s area.
Successor Franchise Fees	50% of then-current initial franchise fee for new franchisees.
Transfer/Assignment Fee	50% of then-current initial franchise fee for new franchisees for a control transfer. Meanwhile, it’s 25% of the then-current initial franchise fee for all other transfers. This is other than transfers to an entity formed to operate the studio.
Interest and Late Fees	Lesser of 18% per annum. Or the highest rate permitted by law. In addition, $100 per week or portion of a week that the payment or report is overdue as well.
Audit Expenses	The cost of audit, including any charges of independent accountants, travel expenses and per diem personnel charges.
Additional Initial Training	Reasonable fee, $1,000 per person per session.
Studio Launch Training	Reasonable fee, $1,000 per person per session for additional, replacement, or repeat trainees.
Refresher Training Fees	Reasonable fee, $250 per day per person trained.
Conference Fees	Reasonable registration fees; varies by program.
On-Site Evaluation Fees	The franchisor’s costs and expenses in connection with the on-site evaluation.
Insurance Premiums	Amount of unpaid premiums, as well as an administrative fee.
Products Purchases	Varies.
Technology Fee	$899 per month, as well as a $575 management software setup fee.
OT Beat Fees	$149 per month.
Non-Compliance Fee	Up to $1,000 per notice of violation.
Product/Supplier Approval Costs	Reasonable cost of inspection or testing as well as actual cost of laboratory fees, professional fees and travel and living expenses of the franchisor’s personnel.
Management Fee	A fee that the franchisor specifies up to 15% of gross sales as well as the franchisor’s actual costs and expenses.
Indemnification	Varies
Costs and Attorney’s Fees	Varies

Did You Know?

Aside from having physical fitness boutiques, Orangetheory Fitness also has an app. This way, Orangetheory Fitness members can download it and schedule class bookings ahead of time as well. Furthermore, it can even sync member’s activities and progress.

It seems 2017 was a big year for the fitness chain because it opened its 1000th US location at Modesto, California. This location’s franchisee, Karin Neal, was an Orangetheory Fitness member before opening the studio. Then, after attending one class, she decided to franchise her own Orangetheory Fitness studio.

They signed master franchise agreements in the U.K. and Japan to further branch out their studios in those territories.

Back in 2017, Orangetheory Fitness raised money to aid research to help create a cure for ALS. But that’s not their only endeavor for health-related causes. They’ve also collaborated with the American Heart Association to raise awareness and pledge donations in funding research for heart disease.

The fitness franchise has also partnered with athletes to become their ambassadors and sports teams like the New York Yankees to use their facilities for training.

Starting an Orangetheory Fitness Franchise

Now that you know the Orangetheory Fitness franchise cost, you can go to their website and fill up a form. They’ll then contact you regarding your interest in the franchise.

However, they did disclose that only 0.1% of those who inquired to franchise got that opportunity. It’s due to limited development options. Even so, they’re always open to having an Orangetheory Fitness center operating in an area where a potential franchise might be interested in establishing.

How To's

The Rise of Paris Banh Mi Franchise

Published

8 months ago

March 15, 2024

Peter Bolic

Are you gearing up for a new business in 2024? Forget the next big tech start-up -the latest trend in town might be a perfectly toasted baguette. Take Paris Banh Mi Cafe and Bakery, for instance. This Vietnamese sandwich shop is rapidly growing, with locations popping up from coast to coast, from California to Florida.

But what’s the secret behind their success? Explore why the Paris Banh Mi franchise has snowballed in the last two years and be inspired to start your own business .

About Paris Banh Mi

The French baguette was introduced in Vietnam in the mid-19th century when the country was still a part of French Indochina. In the 1950s, Saigon saw the birth of a unique Vietnamese sandwich, “bánh mì,” which quickly became a favorite food of a large part of the population.

The story of Paris Banh Mi started in Orlando, Florida, at 1021 E Colonial Drive in 2019. Hien Tran and Doan Nguyen, a married couple passionate about food, opened the first Paris Banh Mi location. Their concept was simple: bring the delicious flavors of Vietnamese banh mi sandwiches, traditionally baguettes filled with savory meats and pickled vegetables, to a broader audience.

The customers quickly fell in love with the fresh ingredients, bold flavors, and convenient fast-casual setting. Now, Paris Banh Mi Cafe and Bakery promises to bring their customers the best “Baguette Banh Mi” taste.

In just two years, the laid-back cafe and bakery in Florida multiplied into a chain of stores in the county. Today, Paris Banh Mi is serving customers in 46 locations all across the USA. The company plans to expand to 100+ locations by 2026.

Each Paris Banh Mi Cafe and Bakery has a clean and spacious dining area, fast service, friendly staff, and a selection of delicious food and pastries. Take a peek at some of their mouth-watering baguette sandwiches filled with authentic Vietnamese ingredients.

Source: Paris Banh Mi website

For those craving something sweet, the bakery indulges you with a variety of French pastries. Check out their sandwiches, pastries, and beverages on the Paris Banh Mi Cafe and Bakery menu page.

Source: Paris Banh Mi website

Why Own a Paris Banh Mi Franchise

Paris Banh Mi is a franchised quick-service restaurant offering exciting opportunities for aspiring business owners. Many nail salon owners and aspiring entrepreneurs are switching to buying a Paris Banh Mi franchise. The main reasons why they love Paris are:

It opens a great opportunity and is more profitable.
Seamless franchising process and fewer things to worry about
Required low capital to open
Higher end-of-year profits

The benefits extend beyond operational efficiency. Paris Banh Mi boasts a surprisingly low-cost entry point compared to other franchises.

The initial franchise fee is manageable at $60,000. The total investment for opening a Paris Banh Mi can range from $200,000 to $500,000. This amount reflects the option to acquire a pre-existing, equipped location (second generation) for a lower investment cost or a complete build-out from scratch option.

Regardless of the chosen route, the investment is significantly lower than that of building a business from the ground up, making Paris Banh Mi an attractive option for many entrepreneurs.

Licensing Information

Owning a Paris Banh Mi franchise is not just about delicious food! The company is looking for dedicated individuals who can run their restaurant full-time. They will provide a multi-day training program for new franchisees. In addition, Paris Banh Mi offers ongoing support for franchisees, guiding them to make informed decisions and thrive in this exciting industry.

You’re a good fit for a Paris Banh Mi Cafe Bakery franchise if you are:

Passionate about food, especially fresh baguettes and pastries
A self-starter with a proven track record in business
Financially responsible with a focus on results
Ready to fully commit to building the Paris Banh Mi brand

If you have what it takes, don’t hesitate to contact them through the franchise hotlines on their franchise opportunities page.

Conclusion

Buying a restaurant franchise is one of the most attractive routes in the world of franchising. Paris Banh Mi makes owning your own business a lot easier. Forget the high costs and headaches of starting from scratch. Their low investment and comprehensive training program mean you can be your own boss with a delicious product. If you are ready to take a bite out of success, contact Paris Banh Mi today!

How To's

Chick-fil-A Franchising Opportunities in 2024

Published

8 months ago

March 14, 2024

Dan Wesson

Buying a franchise from Chick-fil-A is an excellent money-making and healthy option. The fast-food chain has been serving hungry consumers the most delicious chicken sandwiches unmatched by other fast-food restaurants. Buying a Chick-fil-A franchise means investing in a good business and your future. It also lets you continue the culture behind the popular food chain. Here are Chick-fil-A franchising opportunities that will give you entrepreneurial freedom in 2024.

Company Overview

Founded in 1946 by Truett Cathy, Chick-fil-A is deemed one of the longest-running chicken sandwich chains in the United States. The founder opened his first chain in Hapeville, Georgia, and has become a favorite soul food for many. Truett had worked in restaurants seven times a week and knew the importance of rest. That’s why he vowed to close Chick-fil-A every Sunday. He values rest and worship, so he sets aside one day of the week for his employees—a practice that Chick-fil-A still upholds today.

Chick-fil-A also selects franchisees that uphold their values and passion. The company takes great care in selecting who they do business with, which includes getting to know candidates through a lengthy and intensive selection process. The founder’s vision is to influence the people and communities they serve. Chick-fil-A also seeks franchise candidates in Puerto Rico, Canada, and the United States.

Chick-Fil-A candidates are required to show personal financial integrity and stewardship. They also need to have proven experience in leadership and a strong business acumen. Chick-fil-A ensures that candidates showcase entrepreneurial spirit, a strong character, and a growth mindset. This is to uphold the vision and values that Truett started in 1946.

Franchise Training Details

The initial on-site training programs last three to four weeks. However, the duration and actual location of the training will vary.
The training program primarily covers operational aspects, such as food preparation, service, customer relations, accounting, communications, purchasing, planning, maintenance, policies, management styles, and marketing.
The franchisor may require franchisees to attend various conferences and seminars occasionally. This is on top of the initial training program.
The franchisor may also offer various programs that operators can use in advertising products or hiring staff, which aren’t stipulated in the Franchise Agreement.

Franchise Territory

The franchisor will grant franchisees one Chick-fil-A restaurant at the franchisor’s designated location.
Franchisees will not get exclusive or protected territory, so they may face competition from other operators.

Franchise Obligations and Conditions

Franchisees must devote their time and effort 100% to operating their Chick-fil-A restaurant.
The franchisor only allows franchisees to sell products approved by Chick-fil-A. This also applies to franchisees with a Chick-fil-A-associated food truck.

Franchise Term and Renewal

The franchise term expires on early December 31, the year the agreement is signed or whatever the lease expiration is. Franchisees may apply for one-year extensions unless written notice is given 30 days before the franchise term expires.

Financial Assistance

The franchisor designates locations, leases, and subleases the store’s premises to franchisees. The lease and sublease terms will vary depending on the type of Chick-fil-A restaurant and location.
The franchisor also engages in concession agreements that oversee the utilization of non-traditional satellite unit locations with the proprietors or administrators of said satellite unit spaces.
The franchisor offers extended payment periods for specific pre-opening costs stipulated in the Franchise Agreement. Additionally, the franchisor leases equipment to operators, charging a monthly rental fee based on the fair market rental value established by Chick-fil-A using its singular and exclusive business judgment. It’s important to note that neither the franchisor nor any affiliated entities provide any financing arrangements to operators, either directly or indirectly.

Did You Know?

Here are some fun facts about Chick-fil-A you need to know!

Did you know that Chick-fil-A only uses peanut oil for frying? That’s what makes the chicken its unique flavor! Chick-fil-A is also the single most significant purchaser of peanut oil in the United States. They also believe peanut oil is a healthier option.
The best Chick-fil-A promotional gig was the “First 100,” where the first 100 customers inside a new Chick-fil-A restaurant would get free chicken for a year.
Did you know that the founder, Truett Cathy, invented the chicken sandwich? He worked for a restaurant in Atlanta, and the newly delivered chicken breasts were too big to serve as airline food. He turned this into a meal for the staff.
You can get a free ice cream cone by walking up to the counter and trading your toy when ordering the kid’s meal.

Franchise Cost

Your Investment

Name of Fee	Low	High
Initial Franchise Fee	$10,000	$10,000
Opening Inventory	$13,500	$140,000
First Month’s Rental of Equipment	$750	$5,000
First Month’s Lease/Sublease of Premises	$2,550	$85,500
First Month’s Insurance Expense	$240	$12,000
Additional Funds	$491,345	$2,550,935
ESTIMATED TOTAL	$518,385	$2,803,435

Other Fees

Type of Fee	Amount
Advertising	May vary (a) between 0% to 3.25%, to be determined by Chick-fil-A, as a percentage of gross receipts or (b) by vote of operators in local or regional areas.
Advertising Support and Services Fee	Advertising support and services fees incurred, if any, will vary based upon the support and services offered by the franchisor, and selected and received by the operator; the current in-house blended hourly rate for services is $100; Operator will pay any additional fees, costs and expenses as applicable.
Additional Franchise Fee	$5,000 for each additional Chick-fil-A restaurant business.
Business Services Fee	$300 (monthly).
Rent (Traditional Restaurant)	$2,550 to $85,500 (including where applicable, percentage rent).
Occupancy Charge (Satellite Unit)	Determined under the concession agreement attached as an exhibit to the concession sublicense agreement; currently estimated to range between 4% and 30% of gross receipts.
Food Truck Usage Fee (Food Truck)	Currently $2,100 to $3,100, plus additional fees, costs and expenses.
Food Truck Insurance Fee (Food Truck)	Currently $250 to $450 (monthly).
Insurance	$240 to $12,000 (monthly).
Equipment Rental	Currently $750 to $5,000 (monthly).
Hardware and Software Support; High-Speed Internet Access	$9,500 to $20,000 (annually).
Fines – Minimum Standards and Procedures	Will vary under the circumstances.
Indemnification	Will vary under the circumstances.
Operating Service Charges	Determined by formula.
Credit Cards Fees and Related Processing Fees	Will vary.
Highway Signage	Will vary under circumstances.
Interest on Late Payments	The maximum rate permitted by law, or if none, 1.25% per month.
Cash Handling System Services	$85 to $450 (monthly)
Reimbursement of Cost of Performance	Costs and expenses of performance.
Holdover Liquidated Damages	Double the base rent and percentage rent.

Here are the Chick-fil-A franchise costs:

If you’re looking for another investment opportunity, visit Franchise How’s website for more information.

How To's

Zoom Sewer and Drain Cleaning Franchise Cost

Published

8 months ago

March 12, 2024

Dan Wesson

Taking care of your home’s plumbing system is an essential part of being a homeowner. However, not everyone has the skill and patience to do it, and so franchises such as Zoom Sewer and Drain Cleaning are some of the most lucrative. Here’s what you need to know if you’re thinking of getting it:

Franchise Description

Zoom Sewer and Drain Cleaning provides drain cleaning, maintenance, sewer inspections, repair and replacement services for residential and commercial customers. The business began in 1995 and had been franchising since 2013. They have their headquarters in Norristown, Pennsylvania, and Zoom Franchise Company, LLC is the franchisor.

Training

Training for the franchisee’s principal owner and personnel will be provided by the franchisor or its representatives and agents. Before starting your franchise, Zoom Sewer and Drain Cleaning will require you to complete their training program. It comes in two phases:

Phase 1: 2 to 3 days training at the Franchise Business
Phase2: 2 to 3 days in Norristown, PA

The franchisor may also require you to attend additional training during the length of your term agreement. The franchisor is planning to hold a 2 to 3-day national Zoom Fest yearly. This will be held in Norristown, PA, or any location it designates. They will require franchisees to attend, but their managers will be welcome.

Territory

The franchisor will designate a protected territory where the franchisees will operate their business. Before signing any Franchise Agreement, both the franchisor and the franchisee will agree on a geographic territory.

The franchisor will base the protected territory on contiguous zip codes that will consist of approximately 500,000 individuals. This will be based on the most recent U.S. Census data at the time of signing the franchise agreement. This means that as long as the deal is taking effect, the franchisor or its affiliates will not locate, operate, or grant a franchise for another Zoom Sewer and Drain Cleaning business within the protected territory.

Obligations

The franchisor requires the franchisee or its principal owner to exert every effort to take responsibility for the management of the business. They will do this on a daily basis unless they agree on an alternate arrangement. With the franchisor’s discretion, the franchisee can hire a manager to handle the operations of the business.

Franchisors will also require you to sell products and services that have their approval. On the other hand, franchisees aren’t allowed to sell unauthorized products or services in compliance with the franchise agreement. Franchisees are also not allowed to solicit business outside of the protected territory. They are, however, permitted to serve customers outside of the protected territory as written in the FDD.

Term of Agreement

The initial franchise will take ten years after the signing of the agreement. You can renew the contract for another ten years, for four times, if you continue to meet the requirements.

Financial Assistance

Zoom Sewer and Drain Cleaning doesn’t offer direct or indirect financial assistance to its franchisees. In addition, they will not guarantee a franchisee’s note, lease, or obligation.

Did You Know?

Get to know more about Zoom Sewer and Drain Cleaning before you get that franchise. Here are some facts about the business:

They have very little competition in the niche. Most of their competitors are independent plumbers and contractors
According to the company’s co-founder and COO, Ellen Rohr, this is a recession-resistant business, and the Covid-19 pandemic has proven this
They have a reported $12 million in revenue with 53 employees and 15 franchisees

Your Investment

The table below shows the estimated cost of a Zoom Sewer and Drain Cleaning franchise. Take note that these numbers may change without any prior notice.

Name of Fee	Low	High
Initial Franchise Fee	$35,000	$35,000
Lease	$3,000	$9,000
Leasehold Improvement	$2,000	$40,000
Furniture, Fixtures and Computer System	$7,500	$13,000
Vehicles	$7,000	$9,500
Vehicle Wrap and Design	$4,500	$5,500
Initial Equipment and Inventory of Supplies	$40,000	$50,000
Business Licenses and Permits; Deposits and Pre-Paid Expenses	$0	$5,000
Professional Fees	$500	$3,000
Insurance – Quarterly	$4,000	$6,000
Initial Training Expenses	$500	$3,000
Initial Marketing Expenses	$45,000	$60,000
Additional Funds – 6 months	$50,000	$100,000
ESTIMATED TOTAL	$199,000	$341,000

Other Costs

Type of Fee	Amount
Royalty Fee	5% of Net Sales.
Marketing Fee	Up to 2% of Net Sales. Currently, the franchisor does not charge this fee.
Call Center Fee	Up to $25 per scheduled appointment. Currently, the franchisor does not operate the Call Center or charge a Call Center Fee.
Technology Fee	The then-current Technology Fee; currently $500 per month.
Webpage Development and Optimization Fee	The then-current fee charged by the franchisor’s designated website SEO provider; currently $695 per month.
Additional Location Fee	The then-current Additional Location Fee; currently $2,000.
Transfer Fee	Up to 50% of the then-current Initial Franchise Fee.
Renewal Fee	Up to 25% of the then-current Initial Franchise Fee.
Additional Training and Assistance	Fee and all expenses. Currently $1,000 per day plus travel expenses.
National Conference	Reasonable fees and all expenses.
Testing for Supplier Approval	Reasonable fee.
Interest on Late Payments	Lesser of 1.5% per month or maximum legal rate.
Audit Fee	Cost of audit.
Taxes	Actual cost.
Indemnification	Will vary under circumstances.
Costs and Attorneys’ Fees	Will vary under circumstances.