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F45 Training Franchise ProfileFitness Franchises > Gyms |
What Are the Initial Investment Requirements for an F45 Training Franchise?
To open an F45 Training franchise, you should be prepared for a substantial initial investment ranging from $294,200 to $719,100. This includes a franchise fee of $160,000. Additionally, you will need to have at least $100,000 in cash readily available and a net worth between $500,000 and $1,000,000. Understanding these financial commitments is crucial for assessing your readiness to embark on this franchise journey.
What Are the Ongoing Fees Associated with F45 Training?
F45 Training franchisees are required to pay a royalty fee of 7% on gross sales, along with a marketing fee of 2%. These ongoing fees are essential for maintaining brand support and marketing efforts that can drive customer engagement. It's important to factor these costs into your financial planning as they can significantly impact your overall profitability.
What Is the Average Revenue Potential for an F45 Training Franchise?
The average annual revenue per unit for an F45 Training franchise is approximately $319,000, with the potential for earnings ranging from $84,000 to $561,583. This variability underscores the importance of location, management, and marketing strategies in maximizing revenue. Understanding these figures can help you set realistic financial goals and expectations for your franchise.
How Quickly Can You Expect to Break Even with an F45 Training Franchise?
F45 Training franchises have a breakeven time of about 12 months, with an investment payback period of approximately 24 months. This relatively quick return on investment can be appealing for aspiring franchisees, but it requires diligent operational management and effective customer acquisition strategies to achieve these timelines.
F45 Training Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
F45 Training Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 472 | 598 | 730 |
| Net Change YoY | 126 | 132 | |
| Franchised Units | 470 | 597 | 728 |
| Net Change YoY | 127 | 131 | |
| Corporate Units | 2 | 1 | 2 |
| Net Change YoY | -1 | 1 |
Initial Investment
The F45 Training franchise requires a significant initial investment ranging from $294,200 to $719,100. This includes a franchise fee of $160,000, which grants access to the brand's proven business model and support systems. Potential franchisees should be prepared for a cash requirement of at least $100,000 and a net worth of $500,000 to $1,000,000 to qualify for ownership.
Revenue Potential
F45 Training franchises have shown promising revenue figures, with an average annual revenue per unit of approximately $319,000. The revenue can vary widely, with the lowest annual revenue recorded at $84,000 and the highest at $561,583. This substantial earning potential makes F45 an attractive option for aspiring franchisees in the fitness industry.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 7% of gross sales, along with a marketing fee of 2%. These fees contribute to the ongoing support and marketing initiatives that help drive brand awareness and customer engagement, ensuring that franchisees can effectively compete in their markets.
Breakeven and Payback Period
Franchisees can expect to reach breakeven within 12 months of operation, which is relatively quick compared to many other franchise opportunities. Additionally, the investment payback period is estimated at 24 months, allowing franchisees to recoup their initial investment in a reasonable timeframe.
Franchise Growth
F45 Training has experienced significant growth in franchised units, increasing from 470 in 2021 to 728 in 2023. This growth trend reflects the brand's expanding market presence and the increasing popularity of its innovative fitness model, appealing to a broad demographic of health-conscious consumers.
Operational Expenses
Franchisees should anticipate various operational expenses, with total annual costs estimated between $119,000 and $167,000. Key expenses include grand opening costs, marketing fees, insurance, and utilities. Understanding these costs is crucial for effective budgeting and financial planning to ensure the franchise's success.
Frequently Asked Questions
The initial investment for an F45 Training franchise ranges from $294,200 to $719,100. This includes the initial franchise fee of $160,000 and other startup costs.