Orangetheory Fitness Franchise FDD, Costs & Fees (2024)
KEY FRANCHISE STATS
All you need to know about this franchise in a snapshot
Initial franchise fee
$59,950
Investment required
$613,000 - $1,645,000
Orangetheory Fitness: Revolutionizing the Boutique Fitness Experience
Owned by Ultimate Fitness Holdings LLC, Orangetheory Fitness is a boutique fitness studio franchise that was established in 2007 by exercise physiologist Ellen Latham in Fort Lauderdale, Florida.
Orangetheory Fitness operates modern fitness studios that provide members with access to various exercise equipment, including cardio and strength machines, as well as other services and merchandise associated with the Orangetheory brand. The unique workout regimen combines science, coaching, and technology to guarantee maximum results from the inside out.
The franchise is headquartered in Boca Raton, Florida, and began franchising in 2010. Each Orangetheory studio offers a signature 60-minute workout designed to increase energy, strength, and overall health through heart rate-based interval training. Members experience a dynamic group workout led by certified coaches who guide them through treadmill, rowing, and strength training exercises.
The Orangetheory concept focuses on achieving excess post-exercise oxygen consumption (EPOC), which helps members continue to burn calories even after their workout. This innovative approach, combined with state-of-the-art equipment and supportive community environment, has made Orangetheory Fitness a leader in the fitness industry.
Initial investment
Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.
| Type of Expenditure | Amount |
| Initial Fee | $59,950 - $59,950 |
| Travel and Living Expenses During Training | $1,200 - $4,800 |
| Deposit for Leasehold | $0 - $60,000 |
| Rent (one month) | $3,360 - $38,000 |
| Leasehold Improvements and Construction Costs | $250,000 - $1,000,000 |
| Fitness Equipment (including installation) and OTbeat™ Start-Up System | $164,250 - $233,500 |
| Technology - Software Licensing Fee (3 months) | $3,272 - $3,272 |
| OTbeat Fee (3 months) | $697 - $697 |
| 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 - $14,000 |
| Technology System | $70,000 - $98,500 |
| Pre-Sale and Grand Opening Advertising | $30,000 - $40,000 |
| Presales Training 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 | $15,000 - $60,000 |
| Total Estimated Initial Investment (excluding real estate purchase costs) | $613,129 - $1,644,519 |
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Franchise Disclosure Document
Training
Orangetheory Fitness provides comprehensive training and ongoing support to ensure the success of its franchisees. The training program covers a wide range of topics essential for running a successful fitness studio. Here are the key components of the training:
Initial Training Program
- Classroom InstructionThe initial training includes 40 hours of classroom instruction, focusing on business operations, marketing strategies, sales techniques, fitness programming, equipment usage, and technology systems.
- On-the-Job TrainingIn addition to classroom instruction, franchisees receive 80 hours of on-the-job training. This practical training covers the application of classroom knowledge, daily operational procedures, customer service, staff management, and studio maintenance.
Ongoing Support
- Real Estate AssistanceOrangetheory provides real estate expertise to assist in site selection, lease negotiation, and the design and construction of the studio.
- Operational SupportFranchisees receive regular updates on best practices and continuous training on new fitness trends. They also get assistance with implementing new technology and equipment.
- Marketing and Sales SupportThe franchisor supports strategic marketing campaigns and sales strategies to drive membership and retention. Franchisees are also trained on the use of social media and other digital platforms for promotion.
- Fitness and Equipment TrainingFranchisees receive training on the use of Orangetheory’s specialized fitness equipment, updates on new fitness programs and routines, and guidance to ensure all fitness activities are scientifically backed and coach-inspired.
- Technology TrainingThe comprehensive training includes guidance on Orangetheory’s technology systems, such as point-of-sale systems, membership management, the OT Beat System for tracking workouts, and audio-visual systems for enhancing the workout experience.
Territory Protection
Orangetheory Fitness Franchise does not offer exclusive territory protection to its franchisees. This means that while a franchisee may have a designated area to operate, they do not have the guarantee of being the sole Orangetheory Fitness location within that area.
The company retains the right to open additional franchise or company-owned studios nearby, potentially leading to increased competition within the same market.This approach allows Orangetheory Fitness to expand its brand presence more aggressively and ensure accessibility to a broader customer base.
However, it also places the onus on franchisees to differentiate their studios through exceptional service, marketing efforts, and community engagement. Franchisees must leverage the brand's reputation and their business acumen to build a loyal customer base despite the lack of territorial exclusivity.
