Spenga Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$287,000

-

$861,000

LOCATIONS

64

Tanya

Updated

April 11, 2024

Is

Spenga

a franchise?

Yes,
Spenga
currently
accepts
franchise
applications

SPENGA is a chain of fitness studios concept headquartered in Homer Glen, Illinois, that was founded on the three pillars of spin, strength, and yoga.

The fitness franchise was founded in 2014 and works on the three principles of ride, represent, and relieve to achieve the mental and physical development of its members. It is designed in 60-minute workout sessions combining heart-pumping spin, HIIT training, and a full-body soothing yoga workout to help improve endurance, strength, and flexibility.

SPENGA Combines these three separate workouts into one session to offer its members convenience and motivation without having to go to three separate gyms. As one of the fastest growing franchises in the $34 billion industry, it also gives franchisees an opportunity to stand out as compared to singular training concepts.

The chain began franchising in 2015, and by 2022, it operates over 63 franchises in the US and one company-owned location.

How many

Spenga

franchises

are there?

In 2022, there were
64
outlets in
the United
States, of which
63
are franchises, and
1
are corporate-owned.

What are the

Spenga

franchise

fees?

Advertising fee

2.00%

Initial Franchise Fee

Franchisees are required to pay an Initial Franchise Fee of $49,500 upon the execution of the Agreement. This fee is non-refundable under any circumstances and is considered fully earned upon payment. This fee contributes to the administrative expenses incurred in granting the franchise and compensates for the franchisor's lost or deferred opportunity to franchise to others.

Royalty Fee

Franchisees must pay a monthly Royalty Fee which is the greater of: seven percent (7%) of the Net Cash In generated by the Studio in the preceding calendar month, or a Minimum Royalty of $1,000 per month. This fee is due on or before the fifth of each month, commencing upon the franchisee's first sale or the opening of the Studio.

Marketing Fee

The Marketing Fee, also known as the Brand Development Fund Contribution, can be up to two percent (2%) of the Net Cash In generated by the franchisee's Studio over the preceding month. However, it is noted that currently, the franchisor does not collect any Fund Contribution.

Local Marketing Requirement

Franchisees are also required to spend a minimum of $3,000 to $4,000 each month on local advertising for their Studio. This does not include labor charges and is specified by the franchisor in writing.

Grand Opening Marketing

In addition to the Local Marketing Requirement, franchisees must spend between $20,000 and $30,000 for Grand Opening Marketing expenses under a marketing plan developed by the franchisee and approved by the franchisor.

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

Spenga

franchise?

It costs between
$287,000
and
$861,000
to start a
Spenga
franchise.
Type of Expenditure Amount
Initial Franchise Fee $49,500
Lease – Security Deposit $5,425 to $19,966
Lease Expenses – 3 Months $0 to $59,898
Leasehold Improvements $92,000 to $495,913
Fitness Equipment – Initial Payment (lease or financing agreement) $17,600 to $36,200
Fitness Equipment – Ongoing Payments (3 months under relevant agreement) $8,820 to $10,626
Other Equipment Furniture, Fixtures, and Equipment $7,832 to $12,669
Grand Opening Marketing Expense and Pre-Opening Activity Expenses $20,000 to $30,000
Signage $13,500 to $24,000
Computer Hardware and Software $4,000 to $6,000
Opening Supplies $1,700 to $2,100
Insurance $1,200 to $4,000
Other Deposits Including: Utilities, Banks/Credit Card Companies, Lease Equipment, Vendors, Alarm Company, and Telephone $1,000 to $2,000
Professional Fees $2,500 to $5,000
Initial Training Expenses $1,000 to $4,000
Additional Permits, Approvals and Qualifications (if and as applicable) $250 to $1,000
Initial Inventory of Retail Items $4,000 to $6,500
Audio Video Package $44,750 to $50,750
Employee Recruiting $2,000 to $7,500
Construction Design and Review Compliance $0 to $5,000
Sound Engineer Consulting $0 to $3,500
Additional Funds –3 Months $10,000 to $25,000
Total $287,077 to $861,122

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

Spenga

provide

training

to its

franchisees?

Yes,
Spenga
provides
training

Corporate Initial Training

Franchisees are provided with an initial training program that includes components conducted at the franchisor's corporate headquarters or another designated training facility, known as the Corporate Initial Training. This training must be completed prior to the opening of the franchised business. Additionally, there is a Remote Initial Training component that may include telephone calls, webinars, or other remote learning methods.

Initial On-Site Assistance

Franchisees will also receive Initial On-Site Assistance, which includes Instructor Training. All prospective studio instructors must participate in this training and successfully demonstrate their ability to provide the approved services in a studio setting.

Multi-Unit Owner Training

For franchisees who are multi-unit owners and have already received Corporate Initial Training for two other studios, the franchisor reserves the right to waive certain training requirements and may not provide the same level of initial training or on-site assistance.

Costs and Expenses

Franchisees are responsible for all costs and expenses associated with attending and completing all aspects of the initial training program, which includes travel, lodging, meals, and any personnel wages/compensation.

Does

Spenga

provides

territory

protection?

The franchise does not provide territory protection to its franchisees, meaning they do not have exclusive rights to operate within a certain geographic area without competition from other franchise-owned or company-owned locations.

Can a

Spenga

franchise

be run as

a passive

investment?

The franchise can potentially be run as a passive investment, provided that a franchisee hires a designated manager approved by the franchisor to handle the daily operations.

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