Crunch Fitness Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$668,000

-

$6,671,000

LOCATIONS

331

Tanya

Updated

April 11, 2024

Is

Crunch Fitness

a franchise?

Yes,
Crunch Fitness
currently
accepts
franchise
applications

Crunch Fitness is a renowned franchise fitness studio chain originating from New York City.

Established by Doug Levine in 1989 within NYC’s Greenwich Village, its humble beginnings were as a fitness studio situated in a quaint basement.

Under the Crunch Fitness umbrella, there are two distinct brands: Crunch Fitness and Crunch Signature:

  • The standard format is represented by Crunch Fitness, which boasts group classes, advanced HIIT sessions, and the offerings of a conventional gym.
  • On the other hand, Crunch Signature Clubs are predominantly upscale, full-service establishments with monthly memberships. These are primarily found in major cities and provide an extensive range of services, classes, and amenities. Currently, there are only 28 exclusive Crunch Signature gyms globally.

Crunch Fitness ventured into the franchise domain in 2010. Presently, it boasts an impressive network of over 400 gyms spread across the US, Canada, Spain, Portugal, Costa Rica, and Australia. Notably, a whopping 92% of these establishments are owned by franchisees.

How many

Crunch Fitness

franchises

are there?

In 2022, there were
331
outlets in
the United
States, of which
318
are franchises, and
13
are corporate-owned.

What are the

Crunch Fitness

franchise

fees?

Advertising fee

2.00%

Initial Franchise Fee

You must pay an initial franchise fee of $25,000 upon the execution of the agreement. This fee is fully earned and nonrefundable. If installment payments are permitted, a promissory note in a form acceptable to Crunch Fitness must be signed. The receipt of the Initial Franchise Fee, or its first installment if installment payment is allowed, is a condition for the agreement to be effective.

Royalty Fee

Franchisees are required to pay a monthly Royalty of five percent (5%) of Gross Sales. This Royalty must be calculated and paid within five days after the end of each calendar month. The Royalty will be automatically deducted from the franchisee's bank account.

Brand Marketing Fund Contribution (Marketing Fee)

Franchisees must make a monthly contribution to the Brand Marketing Fund. The amount is designated by Crunch Fitness but will not exceed two percent (2%) of Gross Sales. This contribution must be calculated and paid within five days after the end of each calendar month.

The Brand Marketing Fund Contribution will be automatically deducted from the franchisee's bank account. In certain situations, instead of charging a Brand Marketing Fund Contribution, Crunch Fitness may charge franchisees on a pro rata basis for specific marketing and advertising projects.

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

Crunch Fitness

franchise?

It costs between
$668,000
and
$6,671,000
to start a
Crunch Fitness
franchise.
Expenditure Type Cost Range Method Of Payment To Whom Payment Is to be Made
Initial Franchise Fee $25,000 Lump Sum Us
Training Expenses $1,500 to $10,000 As incurred Hotels/airlines/restaurants/rental car
Lease deposits $5,000 to $75,000 As arranged Landlord
Leasehold Improvements $400,000 to $1,900,000 As arranged Contractors, approved vendors
Fitness equipment, fixtures, other fixed assets $150,000 to $1,000,000 Varies Approved Suppliers/Us for coordination services
Opening Inventory $1,000 to $5,000 Cash Approved Supplier
Site Selection Travel Expenses $500 to $3,000 30 days after invoice Selected Broker
Security deposits, utility deposits, business licenses, bonding, and prepaid expenses $3,000 to $45,000 Cash Utilities, banks, government agencies, bonding companies
Professional fees $5,000 to $35,000 As incurred Lawyers, Architects, Accountants
Signs $7,500 to $45,000 As incurred Approved Supplier
Total Estimated Initial Investment $668,000 to $3,513,000

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

Crunch Fitness

provide

training

to its

franchisees?

Yes,
Crunch Fitness
provides
training

General Training Overview

The Crunch training program, known as Crunch University, adopts a multi-faceted approach that encompasses classroom sessions, virtual meetings, online learning, in-gym training, and certifications.

Franchise Introduction

This is a virtual meeting that serves as an introduction to the franchise, focusing on the Intranet & Crunch Connected platforms.

Certification Training

Crunch Fitness offers various certification programs, including:

  • Group Fitness Certification
  • HIITZone Certification
  • Hot Yoga Certification
  • Ride Studio Certification
  • Personal Training Certification which covers Personal Training, CrunchONE Kickoff, and Founding Client Campaign Certification.

Additional Training by ABC Financial Services

For those who opt for ABC's Full Service Package, they will provide 10 days of additional training at no extra cost. This is in addition to the training described in the main program. ABC Financial also offers extra training sessions to franchisees upon request, currently priced at $800 per day.

Role-Based Training

All managers, regional representatives, and executive-level team members are mandated to attend and successfully complete various aspects of the training based on their specific roles. The franchisee is responsible for covering the expenses of their managers attending this training.

On-Site Training

In conjunction with the opening of the Franchised Business, Crunch Fitness provides up to five (5) days of on-site training at the location of the Franchised Business. This training is provided at the expense of Crunch Fitness.

Does

Crunch Fitness

provides

territory

protection?

Yes, Crunch Fitness does offer territory protection. Each franchisee will receive a protected territory under their Franchise Agreement. The territory for each Crunch Fitness Franchised Business will encompass a population of approximately 75,000 persons at the time of signing the Franchise Agreement.

Can a

Crunch Fitness

franchise

be run as

a passive

investment?

The franchise cannot be run purely as a passive investment.

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