AKT Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$400,000

-

$496,000

LOCATIONS

30

Tanya

Updated

May 2, 2024

Is

AKT

a franchise?

Yes,
AKT
currently
accepts
franchise
applications

AKT is a chain of dance-based premier fitness boutiques, headquartered in Irvine, California. It is owned by Exponential Fitness Inc. alongside other franchises such as Cycle Bar and Club Pilates, among others.

AKT studios combine dance-based cardio, strength, tone, and circuit training to offer members engaging and fulfilling workouts in an energized environment.

AKT was founded in New York City in 2013 and began franchising in 2018. As of 2023, the franchise had opened 36 franchises in the US.

Fueled by positivity and a belief that movement creates a lasting impact, AKT has positioned itself as a fast-growing franchise and was ranked two years in a row by Entrepreneur Magazine’s Top New Franchises. It continues to offer entrepreneurs a smart investment with low entry requirements and strong EBITDA to help members enjoy a fun and supportive atmosphere to improve their fitness levels.

How many

AKT

franchises

are there?

In 2022, there were
30
outlets in
the United
States, of which
29
are franchises, and
1
are corporate-owned.

What are the

AKT

franchise

fees?

Advertising fee

2.00%

Initial Franchise Fee

The initial franchise fee for the right to operate the Studio is $60,000. This fee is fully earned by the Franchisor upon payment and is non-refundable under any circumstances.

Royalty Fee

Franchisees are required to pay a weekly royalty fee equal to 7% of the Gross Sales generated by the Studio over the immediately preceding week.

Marketing Fee (Brand Development Fund Contribution)

Franchisees are obligated to contribute to the Brand Development Fund. As of the document's issue date, the contribution is 2% of the Studio's Gross Sales. This contribution will be payable from the earlier of the date the Studio opens or the date the Studio receives a payment from a client in connection with approved services.

The Franchisor has the discretion to increase this contribution upon providing 60 days' written notice.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

AKT

franchise?

It costs between
$400,000
and
$496,000
to start a
AKT
franchise.
Type of Expenditure Low Amount - High Amount
Initial Franchise Fee2 $60,000 - $60,000
Initial Training Program Fees3 $0 - $0
Travel & Living Expenses while Training3 $0 - $3,000
Real Estate/Lease4 $27,000 - $49,000
Net Leasehold Improvements5 $198,000 - $225,000
Signage 6 $16,000 - $20,000
Insurance7 $1,100 - $2,500
Lease Payments in Connection with Fitness Equipment and Other FFE Package 8 $3,700 - $12,500
Pre-Sale and Soft Opening Retail Inventory Kit 9 $12,000 - $12,000
Computer System and Related Equipment10 $47,000 - $47,000
Initial Marketing Spend, including amounts on Opening Support Program 11 $15,000 - $15,000
AKT Certification Program Fee12 $8,000 - $8,000
Music and Technology Fees 13 $1,895 - $1,895
Additional Funds - 3 Months14 $10,000 - $40,000
TOTAL $399,695 - $495,895

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

AKT

provide

training

to its

franchisees?

Yes,
AKT
provides
training

Initial Training Program

This program is comprehensive and covers various aspects of the franchise operation. The franchisee will not be required to pay any training fee or tuition in connection with individuals that attend the Initial Training Program prior to the opening of the Studio, provided all individuals attend at the same time.

However, for those who wish to complete the Initial Training Program at a different time, the franchisor may charge its then-current training fee.

Ongoing/Refresher and Other Additional Training

The franchisor may provide or request that franchisees and certain of their management personnel attend and complete up to 5 days of additional/refresher training each year. This training is essential to ensure that the franchisee is updated with the latest operational practices and standards.

Remedial Training

If the franchisor determines that the franchisee is not operating the Studio in line with the terms of the agreement or the manual, the franchisor may require the franchisee, its Designated Manager, and/or certain Authorized Instructors of the Studio to attend and complete up to 5 additional days of training.

AKT Certification Program for Instructors

In the event a franchisee hires any instructors during the ongoing operation of the Studio, these instructors must complete the AKT Certification Program before providing any classes or performing any approved services at the Studio.

Does

AKT

provides

territory

protection?

Yes, the AKT Franchise does provide territory protection. Once a franchisee has identified their Authorized Location and it is accepted by the franchisor, a Designated Territory will be established around the Authorized Location within which the franchisee will have certain protected rights.

Can a

AKT

franchise

be run as

a passive

investment?

The franchisee has the option to appoint a Designated Manager to handle the daily operations, hence can potentially be run as a passive investment, provided the right management structure is in place.

Related Posts