F45 Franchise Cost, Profit & Failure Rate 2024

For over a decade, F45 has become the world’s fastest-growing fitness franchise, with countless fitness enthusiasts around the globe turning to their studios for a challenging, transformative workout.

What sets F45 apart from traditional gyms is its innovative approach to group exercise.

Beginning as a single studio in Australia in 2013, F45 has quickly become an international phenomenon and transformed the way people around the world work out.

If you’re someone who takes their health and fitness seriously, this is the perfect opportunity to join the F45 family.

In this article, we will cover everything you need to know about opening an F45 Franchise, from the franchise costs to the support you can expect from F45 corporate and more.

F45 Franchise

About F45

F45 is an international fitness training phenomenon. In just a few years, F45 has grown into one of the world’s largest and most innovative group exercise studios.

At F45, they have a unique approach to exercise that encourages clients to reach their fitness goals through high-intensity, functional training.

This includes a mix of weight lifting, cardio, plyometric exercises, and more. With over 5000 exercises and team challenges that change daily, there’s something for everyone at F45.

What sets F45 apart from other gyms is its innovative approach to group exercise. Every day at F45 is different and offers new challenges for clients.

The workouts are designed for maximum results in minimal time—just 45 minutes—and require no additional equipment or setup each day. All you need is your body and determination!

And with an ever-growing list of celebrity investors, including David Beckham and Mark Wahlberg, it’s no wonder why F45 Studios have become such a hit.

It also offered F45 membership with different plans like monthly, annually, and six-monthly. The good news is you can also cancel the F45 membership by following certain steps.


History Of F45

History Of F45

F45 has a long and rich history of innovation, growth, and success. Founded in 2013 in Australia, F45 was the brainchild of Rob Deutsch and Adam Gilchrist, two fitness enthusiasts who wanted to modernize the way people participated in fitness classes.

With their revolutionary approach to group exercise and commitment to delivering maximum results in minimal time, F45 quickly gained traction among fitness fanatics and casual gym-goers.

As demand for their innovative approach grew, they decided to start franchising their concept in 2013.

Today, F45 has over 3300 studios across 67 countries worldwide, becoming one of the most popular fitness franchises available.

They have expanded far beyond their humble beginnings, now offering different classes that range from HIIT and resistance training to yoga and Pilates.


F45 Franchise Model

Cost Or FeesAmount
Initial Investment$313-$458,000
Advertisement Royalty Fee$2.5K +\mo.
Cash Requirement$100,000
Area RequirementAround 1,650 to 2,400 square feet
Total Outlets1,750

How Much Does It Cost to Open an F45 Franchise?

The total cost of opening an F45 franchise is substantial but comes with many benefits and the potential for great rewards.

To begin, there’s a one-time franchise fee of $50,000, which grants access to the entire system and all its resources, such as the F45 studio database and the franchise operations manual.

This initial investment must then be followed by additional investments that range between $313,000–$485,000, depending on several factors.

These investments include the costs of construction and equipment, insurance, legal fees, startup capital, and other necessary funds.

On top of these investments, there will also be monthly royalty payments which are typically 7% of total gross sales or $2,500 per month, whichever is greater.

There’s also a monthly brand fun fee of 2% of the gross sales or $200 per month, whichever is greater.

Finally, franchisees also have to pay a monthly marketing fee in order to stay active with marketing and advertising efforts, which is $2,500 per month.


F45 Training Franchise Revenue & Profit

The revenue and profit of F45 franchise outlets could vary depending on the size of the outlet, location, number of employees, etc.

However, according to sources, F45 Training Franchise makes $632,902 in sales per year on average.

And considering an estimated profit margin of 33%, an F45 training franchise makes $208,857 in profits per year. And this is how we calculated the profit:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%632902.00
Rent8.38%(53005.54)
Insurance4.19%(26502.77)
Salaries16.75%(106011.09)
Franchise Royalty Fees4.19%(26502.77)
Utilities1.68%(10601.11)
Cost of Goods Sold (COGS)20.94%(132513.86)
Labor (Variable)10.89%(68907.21)
Total (Expenses)67.00%(424044.34)
Net Profit33.00%208857.66

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Payback Period Of F45 Training

The midpoint investment of F45 Training is $458,000, and the yearly profit is $208,857. So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $458,000/ $208,857= 2.21 years

Based on these figures, it will take approximately 2.21 years to pay back the initial investment for F45 Training. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Failure Rate Of F45 Training

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201859153+94
2019153310+157
2020310469+159

For the Franchised outlets:

  • In 2018, the growth rate was (94)/59×100≈159.3%
  • In 2019, the growth rate was (157)/153×100≈102.6%
  • In 2020, the growth rate was (159)/310×100≈51.2%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201807+7
2019770
202073-4
  • In 2018, the growth rate was (7)/0×100≈can’t be divided by zero
  • In 2019, the failure rate was (0)/7×100≈0.00%
  • In 2020, the failure rate was (4)/7×100≈57.14%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201859160+101
2019160317+157
2020317472+155
  • In 2018, the growth rate was (101)/59×100≈171.18%
  • In 2019, the growth rate was (157)/160×100≈98.12%
  • In 2020, the growth rate was (155)/317×100≈48.8%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for F45 grew from 2018 to 2020, showing a growth rate between 159.3% and 51.2%. On the other hand, for company-owned outlets, the failure rate of F45 was lying in the range between 0.00% and 57.14% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the F45 franchise has expanded in the years 2018-2020, showing a total growth rate between 171.18% and 48.8%.


F45 Franchise Requirements

To qualify as a prospective F45 franchisee, there are certain requirements that must be met.

To begin with, applicants must demonstrate they have access to at least $100,000 in liquid assets.

This is necessary to ensure the financial stability of the business and protect against any unexpected costs or expenses.

Beyond this initial requirement, there’s an additional investment that ranges between $313,000–$485,000, depending on several factors.

These investments include construction and equipment costs, insurance fees, legal fees, and startup capital.

In addition to having access to these funds and being able to cover these investments, a potential F45 franchisee must have access to a suitable commercial space for setting up their studio.

To meet F45 standards, this space should measure at least 170 square meters (or 1830 square feet) in size.

There are also other intangible qualities that the franchisor will look for, such as a passion for fitness and community-building.

A good F45 franchisee should be dedicated to helping their clients reach their fitness goals by providing effective workouts in a supportive environment where everyone feels welcomed and accepted.


F45 Franchise Training and Support

F45 Franchise Training and Support

When it comes to training and support, F45 offers an extensive induction program that covers everything from its training method to franchise management.

This includes instruction in areas such as sales techniques, marketing strategies, business operations, and more.

F45 also offers ongoing training opportunities for franchisees and staff members alike.

These include divisional meetings where you’ll be able to connect with other owners in your area, state meetings, national owner meetings, and even the occasional international meeting.

Finally, there’s also a 24/7 online support desk where franchisees can get advice or help on any questions they might have related to the business.

This is an excellent resource if you ever run into any roadblocks while running your franchise.


F45 Franchise Terms of Agreement & Renewal

Like most franchises, F45 has a standard agreement and terms of renewal that applies to all their franchisees.

This agreement outlines the obligations you must fulfill to maintain your franchise status and keep running the business.

The initial term of the agreement is typically five years. This means that to get started with the business; applicants must commit to a minimum of five years of operation.

After this initial term expires, franchisees can choose to renew their agreement for two additional consecutive terms of five years each.

F45’s renewal process is designed to provide stability for both parties and ensure that everyone involved is on the same page in terms of expectations and responsibilities.

It also helps make sure that F45 Franchises remain true to their core values and objectives when it comes to providing high-quality service and meeting customer needs.


F45 Franchise Obligations and Restrictions

In addition to meeting the requirements outlined above, there are certain obligations and restrictions that F45 franchisees must adhere to in order to maintain their franchise status.

For starters, F45 requires that each franchise have a designated individual who acts as an “operating principle” responsible for overseeing the performance of the business.

This individual should be present at all times during business hours and must take responsibility for any issues or discrepancies that arise.

In addition, F45 also has strict guidelines regarding how their franchises market themselves. 

Franchisees are only allowed to offer, advertise, and sell products within their protected areas – this means they cannot expand beyond those boundaries without receiving approval from the parent company first.

They must also follow any regional marketing guidelines provided by F45 headquarters.


F45 Franchise Financial Assistance

Securing financing can be one of the biggest hurdles for any aspiring business owner.

Fortunately, F45 has partnered with the finance platform Swoop to help franchisees obtain financial assistance when needed.

Swoop offers a range of financing solutions, including unsecured lines of credit and business loans, allowing franchisees to get the funds they need quickly and easily.

This makes it easier for franchisees to cover startup costs, purchase supplies or equipment, or just have access to funds should an unexpected expense arise.

As of now, only franchisees in Australia, Ireland, the United Kingdom, and Canada are eligible for obtaining financing through Swoop.

However, F45 is working on expanding the program and making it available to more countries in the near future.

The fitness center franchise market offers several opportunities for entrepreneurs, such as franchises from Orangetheory, Jazzercise Franchise, Elixir Muscle Recovery Franchise, and ISI Elite Training franchise.


F45 Comparison

CompanyF45Jazzercise
Founded In20121962
Initial Investment$313-$485$3,700
Franchise-FeeN/A$1,250
Total Outlet17508,460
Annual Revenue$275 Million$100 Million

Conclusion

F45 is a great franchise opportunity for anyone looking to break into the fitness industry.

With its user-friendly operational procedures, comprehensive financial assistance programs, and a steady stream of customers from around the world, it’s no wonder why so many entrepreneurs are interested in becoming F45 franchisees.

If you have a passion for fitness and community-building, then F45 is the perfect option for you! With a little bit of research and dedication, you can soon be on your way to becoming an F45 franchisee.


FAQs

Who is the CEO of F45?

Adam Gilchrist is the current CEO of F45.

How many F45 are in the US?

There are over 650 studios in the United States of America.

How long is each Exercise in F45?

Every Exercise in all the studios runs the same 45-minute class each.

Is F45 a Franchise?

Yes, F45 is a global fitness center that offers franchise opportunities with a proven business model.

How much does the F45 franchise cost?

Starting the F45 Franchise requires an initial investment of $313-$485, with a liquidity of $100,000.

Where is F45 Training headquartered?

F45 is an Australian franchisor and operator of a fitness center based in Austin, Texas.

Who founded F45 Training?

The fitness franchise was launched in 2011 by Rob Detuch and Adam Gilchrist.

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