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

Retro Fitness, a prominent name in the fitness industry, was founded by Eric Casaburi in 2004. The franchise began its journey in 2005 when Casaburi decided to convert his gyms to the Retro Fitness brand, marking the start of a new franchising era for the company.

Based in New Jersey, Retro Fitness distinguished itself by offering affordable gym memberships and a range of fitness services, experiencing substantial growth even during challenging economic times like the 2008 recession. Today, Retro Fitness operates numerous gyms across various states, offering a low-cost yet high-value gym experience.

Initial Franchise Fee

The Initial Franchise Fee for Retro Fitness is $29,000, which must be paid in a lump sum when the Franchise Agreement is signed. This fee is non-refundable and includes Franchisee Initial Training (F.I.T) for franchisees and “Retro Ready” training for up to twenty people.

Royalty Fee

Retro Fitness franchisees are required to pay a Royalty Fee of 5% of gross sales. This fee is subject to an annual increase of up to 0.5% each year, with a minimum monthly payment of $1,000 per outlet.

Advertising Fee

Franchisees must also pay an Advertising Fee, which is the greater of 2% of gross revenues per month or $400. This fee is payable to the Retro Fitness Advertising Fund starting from the ninth month after signing the Franchise Agreement or from the commencement of Pre-Sale operations, whichever is earlier.

Technology Fee

There is a Technology Fee of $549.99 per month for the “Retro-techno” package, commencing either ten months after the Franchise Agreement is signed or from the start of Pre-Sale operations.

Transfer Fee

In the event of a transfer, a fee ranging from $1,000 to $15,000 is applicable, depending on the specific circumstances of the transfer.

Renewal Fee

For renewing the franchise, a fee of $20,000 is charged, which can be reduced to $15,000 if the renewal agreement is executed between 12 and 24 months before the renewal date.

Lease Review Fee

A Lease Review Fee of $2,500 is charged for reviewing and potentially negotiating lease provisions for the franchise location.

Retro Fitness provides a comprehensive training program for franchisees that includes several key components to ensure the successful operation of a franchise.

1. Franchisee Initial Training (F.I.T.): This is the initial training program that new franchisees must attend before opening their Retro Fitness outlet. The training includes various phases and is conducted at the Retrofitness Support Center in West Palm Beach, Florida, or at other approved locations. The F.I.T program covers topics such as Operations Systems, Tools, Resources, and Support; Mandatory & Approved Vendors; Internal Systems; Policies and Procedures; Marketing Systems; Finance Systems; and Learning & Development Systems.
2. Retro Ready Presale/Operations Trainings: These trainings take place before the pre-sales phase of a new location and are conducted at approved training facilities or on-site at the franchisee's outlet. The training covers management operations, member billing and CRM, and staff training.
3. Additional Training Programs or Refresher Courses: Retro Fitness may require franchisees or their employees to attend additional training programs or refresher courses as necessary for the successful development of the franchised business.
4. Shadowing at a Certified Retro Fitness Outlet: Part of the training may involve shadowing at an existing certified Retro Fitness outlet to gain practical, on-ground experience.
5. Continuing Education and Conferences: Retro Fitness holds periodic conferences to discuss various aspects like sales techniques, personnel training, bookkeeping, accounting, inventory control, performance standards, advertising programs, and merchandising procedures. Franchisees are responsible for their own travel and living expenses related to these conferences and training events.

Retro Fitness does not offer exclusive territory rights to its franchisees. According to the franchise disclosure document, franchisees will not receive an exclusive territory and may face competition from other franchisees, from outlets owned by Retrofitness, or from other channels of distribution or competitive brands that Retrofitness controls.

While franchisees are assigned an "Approved Territory" based on a three-mile drivable distance from their approved site, this does not guarantee exclusivity. The franchisor reserves the right to develop additional business concepts under different trademarks, which may also be located within a franchisee's Approved Territory.

Retro Fitness requires active involvement in the operation of its franchises. Franchisees must designate a Managing Owner who is responsible for directly supervising the business. This individual must have sufficient authority to make crucial decisions and is expected to be the primary point of contact with Retrofitness.

Additionally, a Designated Manager, who may not necessarily be an owner, must be present during business hours. This manager is required to complete Retro Fitness’s management training and adhere to confidentiality and non-compete agreements.

Passive investment or absentee ownership is not supported in the Retro Fitness franchise model. The emphasis is on active management and direct involvement in the day-to-day operations to maintain the franchise's standards and performance.