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- 2022 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$576K - $1.5M
- Units as of 2020
1,385 89.5% over 3 years
Here’s what you need to know if you’re interested in opening a Orangetheory Fitness franchise.
'Orange' you glad you chose Orangetheory Fitness? This could be the fitness gym that will truly work out!
This franchise opened in March 2010 in Florida and is headquartered in Boca Raton, Florida. The parent franchise of Orangetheory Fitness is Ultimate Fitness Holdings LLC, and the franchise boasts more than 1,200 outlets across the U.S. and internationally.
The franchise uses a scientifically proven formula that combines technology with science and coaching to achieve results. Orangetheory Fitness offers a unique experience. Starting with sign-up, registered customers receive a heart rate monitor for their one-on-one sessions or group classes. And each workout is different from the next.
Why You May Want to Start an Orangetheory Fitness Franchise
Unlike what is offered by at-home fitness workouts, running this franchise means that you'll be a partner in offering trainer-led workout sessions that consist of cardiovascular and strength training.
As a franchise holder, you'll operate from a studio that provides facilities and equipment for training. You will offer what is known by some as one of the best workouts in the country and be guided by an experienced management team.
This franchise targets high-income earners for the one-on-one session and offers affordable group personal workouts with more than 45 classes per week. Each client's heart rate monitor is worn every session. Results are projected onto mounted large screens as part of the Orangetheory Fitness franchise's workout with a state of the art technology strategy.
What Might Make an Orangetheory Fitness a Good Choice?
As more people adopt a healthier lifestyle, the emphasis is being placed on regular exercise, with trainer-led sessions topping this niche. Opening and running an Orangetheory Fitness gym will allow your customers the chance to engage in high-intensity workouts that may have a focus on strength, cardio, or heart rate-specific coach-led programs.
As a franchisee, you might need to invest in weights, rowing machines, treadmills, and suspension training equipment. Your studio should also have a reception area. The changing rooms should include showers and secure lockers for the customers.
Franchisees may find it helpful to sell various membership tiers and give your members a specified set of at-home workouts each month. There's also the option of additional classes that your clients can buy at discounted prices, at rates that are more attractive than what non-members may pay.
You'll likely have the opportunity to stock Orangetheory Fitness merchandise, including training accessories and branded apparel. As for your community, you'll be offering opportunities to look up “personal training jobs near me” on Google and find Orangetheory Fitness, which strives to hire the best fitness coaching talent available.
How to Open an Orangetheory Fitness Franchise
Orangetheory Fitness values people who are passionate and innovative, helping the franchise to remain a leader in the industry. It also places a strong emphasis on unity. To get started with the Orangetheory Fitness franchise, make sure this is a good fit for you.
Come to training ready to ask questions directed to the Orangetheory Fitness team. You also may want to speak with existing franchisees to get a sense of what opening and operating an Orangetheory Fitness franchise may mean for you. If your net worth and available liquid capital match the brand’s requirements, you may qualify to open an Orangetheory Fitness franchise, and you can get started with an initial investment.
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About Orangetheory Fitness
- Franchising Since
- 2010 (12 years)
- # of employees at HQ
- # of Units
- 1,385 (as of 2020)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Orangetheory Fitness franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $576,022 - $1,498,122
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Orangetheory Fitness has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 36 hours
- Classroom Training
- 33 hours
- Additional Training
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where Orangetheory Fitness landed on this year’s Franchise 500 Ranking versus previous years.
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