How To's
How Much Does a F45 Training Franchise Cost?
With the threat of the coronavirus pandemic, people are scrambling to turn their lives around. More and more people are now enrolled in the best gyms near their areas. If you’re a fitness freak who is business-oriented, F45 Training could be your next money-making undertaking. Learn about the F45 Training franchise cost and terms.
Company Overview
Built on a mission to provide fitness and fun, F45 Training is one of the most sought-after fitness training communities worldwide. Originating in Australia, this fitness program is all about doing quick bursts of intense movements at half the time you’d do in a conventional gym.
Launched in 2010, F45 Training now has over 1,000 estimated franchise locations all around the globe. Due to its surge in popularity, F45 Training started offering franchise opportunities in 2014. The franchisor is under the name F45 Training Incorporated.
But what makes the gym unique? Its programs consist of multi-functional workouts and a combination of HIIT and circuit-style exercises. And 45 stands for the total amount of time in minutes you’re doing the workouts.
Franchise Training Details
F45 Training’s headquarters is in El Segundo, California. And the franchisor requires all franchisees to attend and complete the orientation seminar in LA, California. This seminar will take five days.
Additionally, the operating principal, general manager, and studio manager must complete the initial training program online. This includes a series of instructional guides, programs, training information, webinars, and other operations details.
Moreover, the operating principal, general manager, and studio manager must attend and complete any additional training programs, seminars, conferences, and meetings the franchisor conducts.
Franchise Territory
The franchisor promises territory protection to franchisees. However, the franchisor doesn’t provide exclusive territory for franchisees. This means other franchisees may put up other F45 Training locations within their territory.
Furthermore, the franchisor should decide the chosen territory and meet the Franchise Agreement guidelines.
Upon signing the Franchise Agreement, the franchisor and the franchisee must agree on a designated area that must be within a geographical location. Finally, the franchisees will not be granted rights to the chosen area. But may, however, run the F45 Training studio from the designated area’s boundaries.
Franchise Obligations and Conditions
The franchisee must delegate an operating principal. If it’s sole ownership, the franchisee acts as the operating principal. If there are multiple owners, the franchisee must designate an operating principal who can directly or indirectly take ownership. This must be a franchise of 10 percent or more unless stated by the franchisor.
The franchisor has the right to deny a chosen operating principal. Though the franchisees may appoint a general manager, the operating principal should still monitor the general manager’s performance as well as the studio’s performance.
Moreover, the franchisees must only offer and sell products and services that the franchisor approves and requires, as stated in the manuals.
Franchise Terms and Renewal
The initial franchise term is five years. However, franchisees may be eligible for two consecutive terms for five years each, if they remain in good standing.
Financial Aid
The franchisor doesn’t offer direct or indirect financing to all franchisees. Moreover, the franchisor doesn’t guarantee a note, lease, or obligation to franchisees.
Did You Know?
Here are some fun facts about F45 Training you probably didn’t know:
- F45 Training is now in over 37 countries globally!
- One 45-minute session of F45 can burn up to 820 calories.
- It has over 2,700 different types of movements.
- Famous celebrities like Maisie Williams, Mark Wahlberg, Liam Payne, Hugh Jackman, Olly Murs, Nicole Richie are a few who enjoy F45 Training.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Document Preparation Fee | $2,000 | $2,000 |
| Opening Package | $125,000 | $125,000 |
| Opening Package Taxes and Duties | $5,000 | $12,000 |
| Architectural Floor Plan Design | $14,500 | $14,500 |
| Leasehold Improvements | $1,000 | $100,000 |
| Utility Deposits | $1,000 | $2,000 |
| Exterior and Interior Signage | $5,000 | $10,000 |
| Furniture, Fixtures, Other Equipment | $4,000 | $10,000 |
| Office Equipment and Supplies | $1,000 | $3,000 |
| Computer System | $1,000 | $2,000 |
| Business Licenses and Permits | $1,000 | $3,000 |
| Training Expenses | $1,000 | $2,000 |
| Professional Services | $1,000 | $5,000 |
| Insurance | $1,000 | $4,000 |
| Grand Opening | $25,000 | $25,000 |
| Nutritional Supplements | $3,000 | $3,000 |
| AED | $1,500 | $2,100 |
| F45 Body Fat Scanner (plus shipping and handling charges and taxes) | $8,500 | $8,500 |
| Music Licenses | $1,700 | $2,000 |
| Additional Funds (initial 3-month period) | $8,000 | $50,000 |
| ESTIMATED TOTAL | $313,200 | $485,100 |
Other Fees:
| Type of Fee | Amount |
|---|---|
| Royalty Fee | The greater of 7% of gross sales or $2,500 per month. |
| Brand Fund | Up to 2% of gross sales, or $200 per month, whichever is higher. |
| Marketing Fee | $2,500 per month. |
| Local Cooperative Advertising (Co-op) | As determined by Co-op; currently, there are no Co-ops. |
| Promotional Programs | Cost of programs and related fees, but no more than the monthly royalty fee. |
| Non-Compliance Fee | Not to exceed $2,000 per notice of violation. |
| Service Fee | Currently, $500 per month. |
| Orientation Seminar | $1,000 for attendance at the orientation seminar (for a maximum of two attendees). |
| Nutritional Supplements for Resale | Currently, an initial amount equal to $3,000; ongoing amount will vary. |
| Merchandise for Resale | The franchisor’s cost; currently, not less than $1,500 every three months (does not including shipping, taxes, and duties (if any), which franchisees must pay). |
| LionHeart Bands | Currently $49 per monitor, plus shipping and handling charges. |
| Interest | 18% per year or the maximum lawful rate. |
| Additional Training | A reasonable fee based on the franchisor’s costs of providing the training |
| On-site Remedial Training | The then-current per diem fee for remedial training, plus costs |
| On-site Evaluation Fee | Currently, $160 |
| Transfer Fee | 25% of the then-current initial franchise fee, plus the franchisor’s reasonable costs and expenses associated with the transfer, including training costs and legal and accounting fees. |
| Securities Offering Fee | $3,000, plus our reasonable costs and expenses associated |
| Renewal Fee | 50% of the then-current initial franchise fee. |
| Annual Conference | $600 per ticket; a minimum of two tickets must be purchased unless the franchisor otherwise approves in writing. |
| Non-Attendance Fee | Varies |
| DJ Fee | Actual cost of the DJ |
| Inspection and Testing | Cost of inspection and test |
| Indemnification | Varies |
| Audit Fee | Audit cost |
| Insurance Fee | A reasonable amount based on the franchisor’s expenses. |
| Enforcement Costs | Varies |