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

Initial Franchise Fee

The initial franchise fee for a Fitness Together franchise is $39,650. This fee is for a single Studio and must be paid as a lump sum by wire transfer. The fee is fully earned upon the execution of the agreement and is non-refundable.

Royalty Fee

Franchisees are required to pay a monthly royalty fee, referred to as the "Royalty." This fee is equal to six percent (6%) of the Studio's Gross Receipts from the preceding month. The royalty fee can be collected on a monthly or weekly basis, as determined by the franchisor. Currently, the due date for this fee is the 5th day of each month.

Marketing Fee (Brand Marketing Fund)

Franchisees must contribute to the Brand Marketing Fund, which is established for marketing, recruiting, advertising, and promotional programs. The contribution is equal to 2% of the Gross Receipts of the franchisee's Studio. The franchisor has the right to increase this contribution, but it will not exceed 4% of the Gross Receipts.

Other Notable Fees

1. Local Marketing Spend Requirement: This is also 2% of Gross Receipts, subject to the franchisor's right to increase.
2. Default Fee: In case of a default under the Franchise Agreement, a fee ranging from $250 to $2,500 may be charged.

Note: Gross Receipts include all revenue and receipts, including those taken by cash, credit card, debit card, check, electronic funds transfer, ACH, trade, barter, or exchange, among other means of revenue derived from the operations of the Studio.

Initial Training Program

‍Before opening the Studio, the franchisee (or their Operating Partner), the Designated Manager, and the Studio’s lead trainer must attend and satisfactorily complete the initial training program. The participants must complete this training no later than four weeks before the Studio's opening date.

The training program is expected to be provided at a certified Franchisee Training Studio, the Colorado Support Center, or another location designated by the franchisor. The franchisor also reserves the right to provide the training virtually.

Training Program Content

‍The training program covers various subjects essential for the operation of the Studio. Here's a breakdown of the program:

• Pre-Training Program Calls and Self-Directed Online Training: 18 hours of Classroom/Home Study Training.
• Introductions & Expectations: 1 hour of Classroom/Home Study Training.
• Client Experience Standards: 2 hours of Classroom/Home Study Training.
• Proprietary Systems: 4 hours of Classroom/Home Study Training.
• Client Acquisition and Retention/Programming (Sales Training): 10 hours of Classroom/Home Study Training.
• Employee Hiring & Management (Build Great Teams): 4 hours of Classroom/Home Study Training.
• Operating Plan Creation: 1 hour of Classroom/Home Study Training.The total hours for the training program amount to 40 hours of Classroom/Home Study Training.

Personnel Training

‍Apart from the initial training program, the franchisee is responsible for providing a training program for all their employees, ensuring they operate the Studio in accordance with the System Standards. All employees must pass this program before providing services at the Studio. The franchisor reserves the right to approve the length and content of all training programs provided to the employees.

The franchise does provide territory protection within the specified "Protected Area," but franchisees might still face competition from other channels or brands.

The franchise cannot be run purely as a passive investment, as there is an expectation of active involvement and supervision by the franchisee or their designated Operating Partner.