Do you want to open a gym equipment repair business by buying FMT franchise? If YES, here is how much it cost to open a Fitness Machine Technicians franchise successfully. If you are looking towards opening a Fitness Machine Technicians FMT Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.
Fitness Machine Technicians FMT was founded in 2002 as a gym equipment repair company and they began franchising in 2012, about 8 years ago. The current CEO is Don Powers and they have their corporate head office at 134 Pennsylvania Ave. Malvern, PA 19355 and as of the 2021 Franchise Disclosure Document, there are 39 franchised Fitness Machine Technicians FMT locations in the USA.
Based on 2021 FDD data, Fitness Machine Technicians FMT has franchise locations in 25 states. The largest region is the South with 12 franchise locations. Fitness Machine Technicians is a business to business national franchise opportunity with potential for residual income through recurring service-based contracts.
Qualified candidates will be able to review their Financial performance representation and FDD. As a Fitness Machine Technicians owner, you have control over your business development using proven systems and processes. Streamlined operations include: Call Center for outbound calling, Annual Preventive Maintenance contracts, Integrated field/technician POS including invoicing, GPS tracking and CRM.
Financial Investment Required to Open a Fitness Machine Technicians Franchise?
Fitness Machine Technicians FMT has a franchise fee of up to $45,000, with a total initial investment range of $71,450 to $118,490. Here are areas where you are expected to spend money and the cost associated with it;
Table of Content
1. Initial Franchise Investment: $71,450 to $118,490
Please note that initially, owners can work from a home-based office or small leased space (500sf). Lease or buy technician’s field vehicles. Inventory on demand from the central warehouse or direct from suppliers as needed for repairs as contracted with clients and customers.
2. Franchise Fee: $45,000
Please note they are looking for hard-working individuals that want to excel while owning and operating their own business.
3. Royalty Fee: 6 percent of Gross Sales
And this fee is paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
4. Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution
At least 1 percent per calendar year and the Due Date: for this is Monthly. Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Fitness Machine Technicians (FMT) and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative.
If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
5. Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
6. Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
7. Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Fitness Machine Technicians (FMT) if it is held liable for claims arising out of your franchise operations.
8. Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
9. Equipment, Supply, or Supplier Testing or Inspecting
Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.). This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Fitness Machine Technicians (FMT) if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Fitness Machine Technicians (FMT) is required to defend your unsuccessful claim against it.
- Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
- Financial Assistance: Fitness Machine Technicians (FMT) has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, inventory, accounts receivable, payroll.
- Initial Franchise Fee: $40,000 to $45,000
- Total Investment: $71,450 to $118,490
- Working Capital: $5,000 to $15,000
- Minimum Cash: $20,000
- Net Worth: $100,000
- Royalty Fee: 6.0%
- Ad Fees: 1%
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