Orangetheory Franchise Owner Salary, Profit & Failure Rate 2024

Are you a fitness enthusiast or just someone who is thinking about investing in a fitness-related franchise?

With more and more people getting conscious about fitness, this might look like a good investment opportunity.

So in this guide, we break down how much does an Orangetheory franchise owner make?

The amount of investment you need, profit and revenue statistics, and everything else you need to know about Orangetheory Franchise.

So, let’s begin.

How Much Does an Orangetheory Franchise Owner Make

About Orangetheory

Orangetheory is an American Fitness studio based in Boca Raton, Florida, which was established in 2009 by Ellen Latham, a fitness psychologist.

David Long and Jerome Kern are other co-founders who supported Ellen to make Orangetheory what it is today.

So what is Orangetheory really? Orangetheory is a science-backed, technology-tracked, and coach-inspired group 60-minute workout.

During this workout, your heart-rate is monitored, and the exercises are then customized to suit your oxygen levels and hear rate.

Orangetheory was started in Ellen‘s house, and in only one decade, Orangetheory has made a comprehensive market of 1500 units in 25 countries.

The growth rate of Orangetheory clearly shows its potential. So is it a good franchise take on? Keep reading to find out!


How Much Does an Orangetheory Franchise Owner Make?

The money that you can make as an Orangetheory Franchise owner may vary based on your location, size, etc.

However, according to Glassdoor, an Orangetheory Franchise owner makes $120,000-$280,511 annually.

By looking at these numbers, we can say that Orangetheory Franchise is highly profitable, but there are certain things that you should know of before you buy this franchise.

Keep reading to find out!

Interested In Orangetheory Franchise?

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How Much Does An Orangetheory Employee Earn?

According to Salary.com, on average, Orangetheory employees make $30/hour, and their hourly wage ranges from a minimum of $25/hour to a maximum of $75/hour.

So an entry-level job as Accounting Clerk at Orangetheory will pay $25/hour, while an expert-level job as let’s say, Assistant Studio Manager, will pay $73/hour.

If we see this in terms of a year, then an Orangetheory employee makes $61,378 per year on average, with $52,281 per year being the lowest salary and $71,552 per year being the highest salary.

The individual salaries vary based on the job title, skills, location, department, etc.


Pros & Cons Of Orangetheory Franchise

Pros Of Orangetheory Franchise

  • Provides comprehensive corporate training & support for sales, marketing, fitness, training, equipment, construction & design.
  • Offers third-party financing option.
  • Franchisees can get started easily & do not require a lot of staff.
  • The brand offers assistance of real estate experts to find a suitable location.
  • Highly profitable franchise.

Cons Of Orangetheory Franchise

  • Charge 8-10% royalty fees.
  • Impose some obligations and restrictions.
  • High competition from Planet Fitness and Anytime Fitness.

Orangetheory Franchise Average Revenue & Profit

Orangetheory Franchise Average Revenue & Profit

The revenue and profit made by Orangetheory Franchise are not the same for all locations. Both things vary largely depending on the business size, franchise location, operating expenses, etc.

Also, Orangetheory has not disclosed any official information about the revenue and profit of its franchise.

However, it is estimated that individual Orangetheory Franchise owner makes $805,251 in sales per year on average and makes an annual profit of $30,000- $300,000 in the U.S.

And if we talk about the overall Orangetheory company revenue, then the current company estimated revenue is of $1.7 Billion per year.

((https://growjo.com/company/Orangetheory_Fitness))


Orangetheory Franchise Failure Rate

To understand the Orangetheory franchise failure rate further refer to the table below:

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
202011341197+63
202111971247+50
202212471281+34

For the Franchised outlets:

  • In 2020, the growth rate was (63)/1134×100≈5.55%
  • In 2021, the growth rate was (50)/1197×100≈4.17%
  • In 2022, the growth rate was (34)/1247×100≈2.72%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
202016160
20211615-1
20221521+6

For the Company-Owned outlets:

  • In 2020, the failure rate was (0)/16×100≈0.00%
  • In 2021, the failure rate was (1)/16×100≈6.25%
  • In 2022, the growth rate was (6)/15×100≈40%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
202011501213+63
202112131247+49
202212621302+40

For Total outlets:

  • In 2020, the growth rate was (63)/1150×100≈5.47%
  • In 2021, the growth rate was (49)/1213×100≈4.03%
  • In 2022, the growth rate was (40)/1262×100≈3.16%

According to the above-mentioned data, we can see that the franchised outlets for Orangetheory Fitness grew from 2020 to 2022, showing a growth rate between 5.55% and 2.72%.

On the other hand, for company-owned outlets, the failure rate of Orangetheory Fitness was lying in the range between 0.00% and 6.25% for the same period of time. The company later experienced an increase in the number of outlets showing a growth rate of 40%.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Orangetheory Fitness franchise has expanded in the years 2020-2022, showing a total growth rate between 5.47% and 3.16%.


Orangetheory Franchise Payback Period

With an investment of $994,360 and a yearly profit of $201,312, we can calculate the payback period of Orangetheory Fitness.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $994,360/ $201,312 = 4.9 years

Based on these figures, it will take approximately 5 years to pay back the initial investment for Orangetheory Fitness. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Orangetheory Fitness Franchise Cost

Here’s a breakdown of the average total cost that you need in order to open a Orangetheory Fitness Franchise:

  • Initial investments: $488,405 – $994,360
  • Net-worth Requirement: $500,000
  • Franchise Fee: $59,950
  • Liquid Cash Requirement: $150,000
  • Ad Royalty Fee 2%
  • Ongoing Royalty Fee: 8%
Name of FeeLower endHigher end
Initial Franchise Fee$42,500$49,500
Deposit for Leasehold$12,000$30,000
Travel and Living Expenses During Training (for all attendees)$1,200$4,800
3 Month’s Rent$18,000$45,000
Reception Desk, Retail Display Wall and all Interior Logo Signage$11,500$14,500
Leaseholds Improvements and Construction Costs$200,000$560,000
Fitness Equipment (including installation) and OT Beat Start-Up System$93,108$111,913
Initial Inventory of Orangetheory Fitness Retail Merchandise$4,000$6,000
Fitness Equipment Maintenance Contract$900$1,500
AED and First Aid Equipment/Training$1,000$5,000
Audio/Video System, Other Equipment and Supplies$20,500$25,500
Exterior Signage$5,000$7,000
Pre-Sale and Grand Opening Advertising$30,000$40,000
Computer System$14,000$18,000
Pre-Sale Coordinator Program$0$3,900
Business Licenses/Miscellaneous Opening Costs$1,000$4,000
Additional Funds – 3 months$25,000$50,000
Insurance$3,500$5,000
Estimated Total (Excluding real estate purchase costs)$488,405$994,360

((https://topfranchise.com/products/orangetheory-fitness-franchise/))


Facts About Orangetheory

  • All Orangetheory coaches hold three certifications minimum.
  • Orangetheory was founded by a single, unemployed motivated mother.
  • There are more than 1500 Orangetheory locations around the world & you can visit any of them with your membership.
  • The Orangetheory logo design represents an exploding fat cell.
  • The REFLEX™ treadmill at Orangetheory was designed especially for them.
  • Orangetheory is much more than a fitness class, and they host 90-minute donation classes every once in a while to promote heart health.
  • Orangetheory is a science-based interval training class where your heart rate is monitored throughout the workout to find out EPOC (post-exercise oxygen consumption.)

What Is Orangetheory Known For?

What Is Orangetheory Known For

Orangetheory is a 60-minute intense full-body workout that combines intense cardio sessions and high-intensity interval training (HIIT).

They are known for heart rate-based interval training which helps in burning more calories.

To measure your heart rate, they give you Heart Rate monitors to wear, which are displayed on a large screen in their studio.

The intensity of the workout is tailored according to your heart rate zones which prevent under or over-training and gives out the best results.

((https://www.orangetheory.com/en-au/faq/))


Is Orangetheory Franchise Profitable?

Yes, even after taking into account the high cost of investment and high royalty fees, we can say that the Orangetheory franchise is profitable.

And as per sources, Orangetheory franchises make $201,312 in profit each year on average, which represents a profit margin of 25%.

Here is the calculation of profit based on the estimate (Orangetheory has not disclosed information about its franchise’s revenue and profit.)

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%805251.00
Rent9.38%(75492.28)
Insurance4.69%(37746.14)
Salaries18.75%(150984.56)
Franchise Royalty Fees4.69%(37746.14)
Utilities1.88%(15098.46)
Cost of Goods Sold (COGS)23.44%(188730.70)
Labor (Variable)12.19%(98139.97)
Total (Expenses)75.00%(603938.25)
Net Profit25.00%201312.75

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.


Orangetheory Franchise Earning Potential

How much you can earn as an Orangetheory Franchise owner depends on your operating costs, location, skills, etc.

From our research, we have found that Orangetheory Franchise easily generates a profit margin of 15-30% on average and has a very high earning potential.

Currently, Orangetheory franchise owners make $120,000-$280,511 annually on average, but with the increase demand in fitness and in the popularity of Orangetheory, you can expect to make more than this amount too.


Wrap Up

After looking at the revenue, sales, profit, and other essential details about Orangetheory, we can conclude a few things.

The initial investment required to open Orangetheory is high, and the repayment period is also on the higher end.

However, Orangetheory is a profitable business with high earning potential.

It also has a unique selling point to sustain itself amongst its competitors. And as far as the eligibility criteria are concerned, it is also not stringent.

Overall, the Orangetheory franchise is a good opportunity to invest in.


Frequently Asked Question

Is the fitness industry profitable?

Yes, the fitness industry is quite profitable, and if you are thinking about investing in one, then now might be a good time.

With decent knowledge about gym equipment and the fitness industry, you can open your own gym or fitness center.

How many Orangetheory franchises are there in the world?

In recent years, Orangetheory has seen massive growth worldwide.

At the start of 2022, there were 1,262 Orangetheory franchises globally, and now in 2023, there are more than 1500 Orangetheory locations in 25 countries around the world.

What is the requirement to open a Orangetheory franchise?

There are three requirements that you must meet to open an Orangetheory franchise:

  • Solid entrepreneur experience
  • No Absentee Ownership
  • $350K liquid capital with a $1M net worth

Where is the headquarters of Orangetheory?

The headquarters of Orangetheory is in Boca Raton, Florida.

Who founded Orangetheory?

Orangetheory Fitness was founded in 2010 by Ellen Latham, Jerome Kern, and David Long in March 2010.

Who owns Orangetheory?

Orangetheory Fitness is owned by Roark Capital Group.

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