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Fitness Together Franchise ProfileFitness Franchises > Personal Training |
What Are the Initial Investment Requirements for a Fitness Together Franchise?
To open a Fitness Together franchise, the initial investment ranges from $245,341 to $500,636. This includes a franchise fee of $40,000, along with other startup costs. Potential franchisees should also be prepared to meet cash requirements between $245,341 and $465,636 and have a net worth of $300,000 to $500,000. Understanding these financial commitments is crucial for assessing your readiness to invest in this franchise opportunity.
What Are the Ongoing Fees Associated with a Fitness Together Franchise?
Fitness Together franchisees are subject to ongoing fees, including a royalty fee of 6% of gross sales and a marketing fee of 2%. These fees are essential for maintaining brand standards and supporting marketing efforts. Aspiring franchisees should factor these ongoing costs into their financial planning to ensure sustainable profitability over time.
What Is the Average Revenue Potential for a Fitness Together Franchise?
The average annual revenue per unit for a Fitness Together franchise is approximately $477,995, with a median of $401,377. However, revenue can vary significantly, with the lowest annual revenue recorded at $54,791 and the highest at $1,574,767. This variability highlights the importance of location, management, and marketing strategies in determining the financial success of each franchise unit.
What Is the Expected Breakeven and Payback Period for a Fitness Together Franchise?
Franchisees can expect to reach breakeven within 18 months and achieve investment payback in about 24 months. These timelines are essential for prospective franchisees to understand, as they provide a framework for evaluating the financial viability of their investment and the potential for early profitability in their Fitness Together franchise.
Fitness Together 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:
Fitness Together 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 | 115 | 106 | 96 |
| Net Change YoY | -9 | -10 | |
| Franchised Units | 115 | 106 | 96 |
| Net Change YoY | -9 | -10 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Fitness Together franchise requires an initial investment ranging from $245,341 to $500,636. This includes a franchise fee of $40,000. Potential franchisees should be prepared for a cash requirement between $245,341 and $465,636, along with a net worth requirement of $300,000 to $500,000. These financial commitments are essential for establishing a successful fitness studio.
Revenue Potential
The average annual revenue per Fitness Together unit is approximately $477,995, with a median annual revenue of $401,377. This highlights the potential for profitability within the franchise model. However, revenue can vary significantly, with the lowest reported annual revenue at $54,791 and the highest reaching $1,574,767, indicating a diverse range of performance outcomes based on location and management.
Ongoing Fees
Franchisees are subject to ongoing fees, including a royalty fee of 6% on gross sales and a marketing fee of 2%. These fees contribute to the overall support provided by the franchisor, which includes marketing initiatives and operational guidance aimed at enhancing franchisee success.
Financial Performance
The average financial performance metrics reveal a gross profit margin of 98.4%, but operating expenses are high, totaling approximately $61,798,331, which can exceed revenue in certain cases. This underscores the importance of managing costs effectively to ensure profitability and sustainability in the fitness industry.
Breakeven and Payback
Franchisees can expect a breakeven period of around 18 months, with an investment payback period of approximately 24 months. These timelines are critical for potential investors to consider, as they indicate how quickly they can expect to recoup their initial investment and start generating profit.
Franchise Growth
Over the past few years, the number of franchised units has seen a decline, with 115 units in 2021, dropping to 96 units in 2023. This trend may reflect market challenges or increased competition, making it essential for prospective franchisees to conduct thorough market research and assess local demand before investing.
Frequently Asked Questions
The initial investment for a Fitness Together franchise ranges from $245,341 to $500,636, including a franchise fee of $40,000.