The Exercise Coach Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$136,000

-

$349,000

LOCATIONS

168

Tanya

Updated

May 2, 2024

Is

The Exercise Coach

a franchise?

Yes,
The Exercise Coach
currently
accepts
franchise
applications

Headquartered in Zurich, Illinois, The Exercise Coach is an American franchise and operator of personal fitness boutiques utilizing Exerbotic proprietary technology.

The fitness franchise was established in 2000 by co-founders Gerianne Cygan and her husband Brian Cygan in Lake Zurich, Illinois.

The Exercise Coach franchise is based on revolutionary fitness science and fitness data platforms and offers personalized, time-efficient programs for those above the 50s to help them lose fat, build muscle and have an overall healthy outlook and physique.

The brand's franchising journey began in 2010 and currently, the franchise operates more than 199 gyms worldwide with 157 franchises in the US.

How many

The Exercise Coach

franchises

are there?

In 2022, there were
168
outlets in
the United
States, of which
168
are franchises, and
0
are corporate-owned.

What are the

The Exercise Coach

franchise

fees?

Advertising fee

1.00%

Initial Franchise Fee

The initial franchise fee is $49,500, which is due in one lump sum at the time the franchise agreement is signed. This fee is fully earned by the franchisor once the agreement has been signed and is non-refundable.

Royalty Fee

The royalty fee is the greater of 6% of monthly Adjusted Gross Revenues or $1,000 per month. This fee is due on the 7th day of the month for the prior month's operations. Notably, the royalty fee is waived for the first full or partial calendar month of operation.

Marketing Fee

The Local Marketing Fee ranges from $2,000 to $2,500 per month, depending on various factors. This fee is incurred as the franchisee spends on local advertising and marketing to promote their business. Additionally, franchisees contribute 1% of Adjusted Gross Revenues to the Brand and System Development Fund, which is due at the same time as the royalty fee.

Other Notable Fees

  • Cooperative Advertising Fee: Up to $2,000 per month, due at the same time as the royalty fee.
  • Legal Support Fee: Up to $500 per occurrence, due 10 days after invoicing.
  • Ongoing Training/Assistance Fee: Up to $500 per person per day, plus expenses, for ongoing training or assistance.

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

The Exercise Coach

franchise?

It costs between
$136,000
and
$349,000
to start a
The Exercise Coach
franchise.
Type of Expenditure Amount
Initial Franchise Fee $49,500
Initial Training Fee or Multiunit Operator Training Fee $2,500
Food, Lodging & Travel (up to 4 people) $1,000 to $7,000
Lease Deposit & 3 Months’ Rent $4,000 to $18,500
Utilities Deposits $100 to $1,000
Build Out & Improvements $0 to $50,000
Signage $1,000 to $8,000
Furniture, Decorations & Furnishings $4,125 to $6,240
Computer System $1,250 to $3,500
Technology Expense (3 months) $1,554
Third-Party Operating Software Expenses (3 months) $1,586
Telephone and Internet Services (3 months) $400 to $1,200
Fitness Equipment Package $10,129 to $81,269
Shipping, Installation and Setup of Fitness Equipment Package and Other Equipment $6,500 to $8,850
Initial Supply of Inventory $2,550 to $4,250
AED and First Aid Kit $1,350 to $2,100
Uniforms $600 to $1,000
Pre-Opening Marketing and Advertising Plus Print Collateral Material $14,195 to $20,775
Post-Opening Marketing and Advertising (3 months) $15,000 to $22,500
Business License $250 to $500
Professional Fees $2,620 to $5,240
Insurance (3-months’ premium) $800 to $1,500
Startup Payroll (3- months) $5,000 to $10,000
Additional Funds (3 month period after opening) $10,000 to $40,000
Total Estimated Initial Investment $136,009 to $348,693

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

The Exercise Coach

provide

training

to its

franchisees?

Yes,
The Exercise Coach
provides
training

Initial Training Program

The initial training program is designed to prepare the franchisee and their team for the opening and operation of their Exercise Coach studio. This program includes:

  • 53 to 77 hours of classroom training and 20 hours of on-the-job training.
  • Subjects covered include an overview of the Exercise Coach® Personal Training Studios, leadership, anatomy/physiology/biomechanics, exercise theory, sales/marketing, exercise application and equipment operation, customer experience/service, and general business practices.
  • The training takes place in Lake Zurich, IL, and remotely.
  • There is an initial training fee of $2,500 for up to three people, which is due at the time the franchise agreement is signed and is non-refundable.

Multi-unit Operator Training Program

For franchisees with multiple units, there is a Multi-unit Operator Training Program which:

  • Begins after the signing of the second and subsequent franchise agreements and continues for the first six months after opening each new location.
  • Focuses on multi-unit operations, team member development, and includes a minimum of 5 hours of classroom training via Zoom and 20 hours of on-the-job training.

Exercise Coach® Fitness Certification Program

For fitness coaches, the franchise offers:

  • An Exercise Coach® fitness certification program, which includes access to a learning management platform, written tests, and practical exams.
  • The initial coaches are trained as part of the initial training program, and new coaches can be trained by existing certified coaches in conjunction with the online certification training program.
  • There is a training fee of up to $250 per person per certification for all new coaches that attend the online certification programs.

Does

The Exercise Coach

provides

territory

protection?

The Exercise Coach franchise does provide territory protection for its franchisees.

Can a

The Exercise Coach

franchise

be run as

a passive

investment?

There is an expectation for the franchisee or a designated owner to be actively involved in the daily operations of the business, which would indicate that the franchise may not be ideally structured for passive investment.

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