Do you want to start a gym & fitness business by buying F45 franchise? If YES, here is how much it cost to open a F45 franchise and their requirement.
F45 is one of the fastest growing fitness franchises that have an Australian decent. The first F45 gym was started by Rob Deutsh in 2011, in Sydney’s Paddington, Australia. The fitness instructor then was charging people $65 a week to attend an intense 45-minute circuit sessions.
As the business caught on, he started franchising the concept in 2014. Being one of the fastest growing franchises in the industry worldwide, F45 has 480 studios in Australia and 750 around the world including the United States. Their corporate headquarters in USA is at El Segundo, California.
F45 Training has created a finely tuned, powerhouse system with a variety of fun, functional and efficient workouts. The concept is simple: their studios all over the world offer a 45 minute High-Intensity, Circuit Training workout class for studio members.
They have well developed 45-minute workouts that have 27 different varieties. Their studios offer the same class at different times throughout the day. Everyday throughout the week is a different 45-minute workout. The workouts are created by F45 Training Headquarters from a database of over 3,000 different exercises, so their members never get the same workout twice.
How Much It Cost to Open a F45 Franchise
- Initial Franchise Fee – $50,000
- Document Preparation Fee – $2,000
- Opening Package – $122,000
- Opening Package Taxes and Duties – $5,000 to $12,000
- Leasehold Improvements – $1,000 to $10,000
- Utility Deposits – $1,000 to $2,000
- Exterior and Interior Signage – $500 to $10,000
- Furniture, Fixtures, Other Equipment – $4,000 to $10,000
- Office Equipment and Supplies – $1,000 to $3,000
- Computer System – $1,000 to $2,000
- Business Licenses and Permits – $1,000 to $3,000
- Training Expense – $1,000 to $2,000
- Professional Services – $1,000 to $5,000
- Insurance – $500 to $1,000
- Grand Opening – $25,000 to $25,000
- Additional Funds (initial 3-month period) – $8,000 to $50,000
- ESTIMATED TOTAL – $227,000 to $312,000
Other Fees to note
- 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.
- Email Administration Fee – Currently, $10 per month for each Studio email address with an “f45training.com” domain name. Franchisees must pay for at least two F45 email addresses.
- Intranet Fee – Currently, $60 per month.
- Website Administration – Currently, $25 per month.
- Heart Rate Platform Fee – $105 per month.
- Software License Fee – Currently $150 per month for LionHeart software; reasonable amount for additional software programs based upon cost to provide the software and related services or as charged by third-party providers.
- Orientation Seminar – $1,000 for attendance at the orientation seminar (for a maximum of two attendees).
- 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 – The franchisor’s cost, which is currently $25 to $35 per monitor, plus shipping and handling charges.
- F45 Body Fat Scanner Usage Fee – Market rate; currently, $45 to $60 per scanning session.
- Interest – 18% per year or the maximum lawful rate.
- Additional Training – A reasonable fee based on the franchisor’s costs of providing the training; currently, $250 per day per person trained.
- On-site Remedial Training – The then-current per diem fee for remedial training, plus costs; current per diem rate is $250.
- On-site Evaluation Fee – Currently, $160 per on-site evaluation if the franchisor determines that the Studio is not in compliance with the terms of the Franchise Agreement.
- 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 with the proposed offering.
- 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 based on costs the franchisor incurs to prepare for attendance; currently, $100 to $300 per person.
- DJ Fee – Actual cost of the DJ; currently, $25-$50 per session if the franchisor supplies franchisees with a DJ to play at their Studio on a Saturday.
- Inspection and Testing – Cost of inspection, if applicable, and cost of test.
- Indemnification – Varies according to loss.
- Audit Fee – Cost of audit.
- Insurance Fee – A reasonable amount based on the franchisor’s expenses.
- Enforcement Costs – Will vary.
Benefits of an F45 Fitness Franchise
Some of the benefits you stand to gain if you purchase an F45 fitness franchise are;
- Very low capital investment – once off franchise fee and low fixed monthly support fee.
- Tried and tested systems and infrastructure – simple and easy business processes
F45 Training combines a best-selling training product with the most intelligent, cost-effective Business model in the industry to give their franchisees the very best opportunity to earn a substantial income, while enjoying a great work/life balance while improving the lives of their members, regardless of industry experience.
At F45 Training, simplicity is at their core, and they’ve built their business around it. They simplified their business model by shrinking overheads, streamlining the delivery of their training programs, and eliminating as much complexity in the business backend as possible.
As a true pioneer in the fitness industry, F45 Training seeks to incorporate the best in digital technology to deliver the most engaging, innovative workout in the world.
Steps on How to Get an F45 Fitness Franchise
If you are interested in the F45 fitness franchise, the first thing you have to do is to go to their website and fill the application form presented therein. You need to include your name, address, city and state. You will need a phone number and email address. Then choose the amount of capital you will have to invest.
Wait for the email that confirms that your application was received and is being reviewed. This email will tell you if you will be approved for the location. It will also go into more specifics regarding the financing. You will be asked to schedule a time for an associate to call you and talk more.
Ensure to have your financial papers ready when you have your phone conversation. This is when you will find out if you have enough money to open the center or if you will need financing. If you need help with financing, you can apply for an SBA prequalified loan.
Note that approval is expected to be quick once you meet the requirements. You should already have a building location in mind. After you are approved, the organization will start sending fixtures and merchandise to your building. You will then be mandated to attend a workshop at the headquarters before the opening of your center.
- Training Provided
F45 Training provides their franchisees all the training they need. They regularly hold training days and provide detailed instructions on workout implementation.
F45 has integrated two of the most innovative and widely researched trends in the health and fitness industry – interval cardio and strength training; the most effective method of burning fat and building lean muscle. This highly functional team training program is a finely tuned powerhouse system with a variety of fun, functional and efficient workouts to achieve maximum results.
Franchisees (or the Operating Principal if they are an entity) must attend the orientation seminar in Los Angeles, California, which is currently conducted over a period of five days. Franchisees (or their Operating Principal if they are an entity), their General Manager (if applicable), and Studio Manager must complete, to the franchisor’s satisfaction, their initial online training program.
The online initial training program consists of a series of Webinars, instructional guides, training information and programs, and other operations information. The Operating Principal, General Manager, if applicable, and Studio Manager, and any other personnel the franchisor designates, must attend and complete any additional training and meetings or conferences that the franchisor may from time to time require.
- Territory Granted
Although the franchisor grants franchisees some territorial protection, they will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that it controls. The Franchise Agreement gives franchisees the right to operate an F45 Studio at a site the franchisor accepts as meeting its site selection guidelines.
Franchisees must select the site for their studio from within a geographic area the franchisee and the franchisor agree on (Designated Area), which will be identified in the Franchise Agreement when franchisees sign the Franchise Agreement. Franchisees will not acquire any rights in and to the Designated Area, other than the right to select a site for the studio from within the boundaries of the Designated Area.
- Obligations and Restrictions
When franchisees sign the Franchise Agreement, they must designate an individual to serve as their “Operating Principal.” If franchisees are an individual, they will be the Operating Principal. If franchisees are not an individual, their Operating Principal must maintain a direct or indirect ownership interest in the franchise of not less than 10%, unless the franchisor consents otherwise. The Operating Principal must meet our qualifications and must be approved by the franchisor.
Franchisees may, at their option and subject to the franchisor’s written consent, designate a General Manager to supervise their operations. Even if the franchisor permits franchisees to designate a General Manager to supervise their operations, their Operating Principal remains ultimately responsible for the General Manager’s performance and the performance of the studio and compliance with the Franchise Agreement.
All products and services franchisees use or sell at the studio must conform to the franchisor’s standards. Franchisees must offer and sell all products and services the franchisor requires. Franchisees must sell only the products and services that the franchisor has expressly approved in writing.
- Marketing Support
F45 Training provides extensive marketing assistance, including advice on promotional campaigns before and after launching. You are also given access to a comprehensive suite of conventional and digital marketing materials and how to most effectively employ them to build F45 brand awareness in your local community. Additionally, you have the opportunity to leverage the growing national profile of the F45 network.
- Term of Agreement and Renewal
The length of the initial franchise term is five years. Renewal is for two, additional, consecutive five-year terms, if requirements are met.
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