Orangetheory Fitness is a rapidly growing global fitness franchise that offers a unique, science-backed workout program for people of all ages and fitness levels.
Unlike most other fitness programs, Orangetheory focuses on high-intensity interval training (HIIT) that alternates between short bursts of intense aerobic activity and longer, more relaxed periods.
It is one of the fastest-growing franchise opportunities and can also be counted in the 50 best franchise to own in 2023.
If you’re a fitness enthusiast or a business-minded individual, opening an Orangetheory Fitness franchise can be a great way to make money and help others achieve their fitness goals.
In this article, you’ll learn everything you need to know before opening an Orangetheory Fitness franchise, from starting costs to the requirements you’ll need to meet and what to expect from the day-to-day operations of your franchise.
However, being an investor it’s also important to know how much does an Orangetheory franchise owner makes.
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About Orangetheory
Orangetheory Fitness is a revolutionary, science-backed fitness franchise that has become one of the fastest-growing health and wellness franchises in the world.
The concept was developed with the goal of providing an intense cardio and strength workout all in one session that would help people reach their desired fitness goals quickly and easily.
At Orangetheory Fitness, members get to enjoy a heart-rate-monitored interval training program set to energizing music that helps keep them motivated and on track.
This unique combination helps give members an effective whole-body workout in just 60 minutes.
It also helps them track their progress during each session, giving them the motivation to push themselves further and reach their targets.
The innovative fitness franchise offers a variety of classes for all levels of abilities.
Orangetheory claims to be “more than a gym” because it provides members with the opportunity to become part of a community and be surrounded by like-minded individuals.
The community aspect is what makes the Orangetheory Fitness Franchise such an attractive option for potential franchisees since it helps create a loyal customer base that keeps coming back for more.
Orangetheory Fitness Franchise History
Orangetheory Fitness was founded in 2010 by Ellen Latham, a former physical therapist who wanted to combine the science of exercise physiology with the motivation and support of group fitness classes.
Other co-founders are David Long and Jerome Kern, who supported Latham’s vision and helped the brand become what it is today.
The first Orangetheory Fitness studio opened its doors in Fort Lauderdale, Florida, and franchising began the same year.
By mid-2014, there were over 100 studios in operation, and by 2018, Orangetheory Fitness celebrated its 1000th studio opening.
Today, there are over 1,500 Orangetheory Fitness studios across 25 different countries, making it one of the largest and fastest-growing fitness franchises in the world.
With its unique combination of science-backed fitness programs and a motivating community atmosphere, Orangetheory Fitness has become a favorite among fitness enthusiasts and casual gym-goers alike.
Orangetheory Franchise Model
| Cost Or Fees | Amount |
|---|---|
| Investment | $488,405 – $994,360 |
| Area | 2,600 to 4,000 square feet |
| Net worth | $500,000 |
| Franchise- Fee | $59,950 |
| Industry | Fitness |
| Total Outlets | 1500 Units |
Interested In Orangetheory Franchise?
How Much Does It Cost to Open an Orangetheory Fitness Franchise?
Opening a franchise with Orangetheory Fitness is an expensive endeavor, but the rewards can be great.
The initial franchise fee for opening an Orangetheory Fitness studio is $59,950.
This must be paid upfront and accounts for all costs associated with the setup phase, such as franchise training, marketing materials, the Franchise Disclosure Document, and other administrative costs.
The initial franchise fee is just the start. The total investment for a single Orangetheory Fitness studio ranges from $488,405 to $994,360.
This includes the franchise fee, real estate costs, build-out expenses, equipment and furniture purchases, insurance premiums, working capital requirements, as well as other miscellaneous costs.
Orangetheory Fitness also requires that all franchisees pay a royalty fee of 8% on gross sales and a 2% advertising fee.
These fees are paid monthly to help cover marketing costs and allow Orangetheory Fitness to provide its signature programs and services to each studio location.
Orangetheory also requires that each prospective franchisee have at least $350,000 in liquid capital available at the time of signing the Franchise Agreement.
This requirement is in place to ensure that franchisees are financially capable of meeting the demands of running a successful Orangetheory Fitness studio.
While these costs may seem expensive upfront, they are necessary investments for operating a successful Orangetheory Fitness studio.
Once these costs are accounted for, franchisees will be able to start offering their services and begin building a community of loyal customers.
Orangetheory Fitness Franchise Requirements
Orangetheory Fitness is an attractive option for prospective franchisees due to its innovative fitness approach and ability to create a community atmosphere.
However, before investing in a franchise, it is crucial to make sure that you meet all of the requirements set by the company.
The first requirement for opening an Orangetheory Fitness studio is that each prospective franchisee must have at least $350,000 in liquid capital available at the time of signing the Franchise Agreement.
This requirement is in place to ensure that franchisees are financially capable of meeting the demands of running a successful Orangetheory Fitness studio.
Additionally, Orangetheory requires that all prospective franchisees have a net worth of at least $1 million.
This ensures that each potential franchisee has sufficient resources to cover any unexpected costs or losses associated with their business venture.
Beyond financial qualifications, Orangetheory also seeks out experienced entrepreneurs with prior experience managing and growing businesses.
Potential franchisees need to have previous experience leading teams and being able to engage with their team on a daily basis.
Finally, Orangetheory wants each potential franchisee to fully understand both the risks and rewards associated with owning and operating one of their studios.
Prospective owners must be willing to commit themselves fully to opening their business and expanding its reach within their local market.
Orangetheory Fitness Franchise Profit & Revenue
Orangetheory Fitness doesn’t disclose its revenue for its franchise. But we do know the total revenue of Orangetheory Fitness is $913,155,000.
If we divide this by the total number of fitness centers of 1,134, we can find its revenue that is $805,251.
Now, as per this and an estimated profit margin of 25%, we can say that an Orangetheory Fitness franchise owner makes $201,313 in net profits per year on average.
| Financial Overview | Percentage of Revenue | Amount ($) |
|---|---|---|
| Individual Franchise Annual Revenue | 100% | 805251.00 |
| Rent | 9.38% | (75492.28) |
| Insurance | 4.69% | (37746.14) |
| Salaries | 18.75% | (150984.56) |
| Franchise Royalty Fees | 4.69% | (37746.14) |
| Utilities | 1.88% | (15098.46) |
| Cost of Goods Sold (COGS) | 23.44% | (188730.70) |
| Labor (Variable) | 12.19% | (98139.97) |
| Total (Expenses) | 75.00% | (603938.25) |
| Net Profit | 25.00% | 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 Fitness Franchise Training And Support
Orangetheory Fitness provides a comprehensive and intensive training program for all franchisees.
This program consists of both on-the-job and classroom training, as well as e-learning courses available online.
The initial 36 hours of on-the-job training covers all the basics necessary to operate an Orangetheory Fitness studio.
Franchisees will learn how to use their equipment, understand customer service requirements, and coordinate team members in daily operations.
In addition to the on-the-job training, all franchisees must complete 33 hours of classroom training which is held at Orangetheory’s corporate headquarters in Boca Raton, Florida.
This course focuses on the company’s policies and procedures as well as its overall approach to customer service.
After completing both the on-the-job and classroom training, franchisees will have access to a library of additional e-learning courses available online.
These courses provide guidance on topics such as personnel management and staffing solutions, which are essential components for running a successful studio location.
Orangetheory Fitness Franchise Terms Of Agreement & Renewal
Once prospective franchisees have gone through the necessary training and fulfilled all of the requirements set by Orangetheory Fitness, they will be able to enter into a contractual agreement with the company.
The initial franchise term is 10 years, during which time franchisees will have exclusive access to their own studio location and be eligible for marketing support from Orangetheory’s corporate office.
At the end of the initial 10-year term, franchisees have the opportunity to renew their agreement with Orangetheory Fitness for an additional term of 10 years.
However, in order to qualify for renewal, ownership must demonstrate continued success in operating its studio as well as maintaining a high degree of customer satisfaction ratings.
If ownership is able to meet these criteria, they can then extend their agreement with Orangetheory Fitness while enjoying continued access to marketing support and guidance from corporate headquarters.
Orangetheory Fitness Franchise Obligations And Restrictions
Orangetheory Fitness requires all franchisees to abide by the terms of their contract and meet certain obligations and restrictions.
This ensures that each studio is run in accordance with the company’s standards and values while also providing a consistent customer experience across all locations.
One of the most important aspects of being an Orangetheory Fitness franchisee is that there can be no absentee ownership.
All owners or operators must engage with their team daily to help drive sales and build an active community of members.
In addition to this requirement, any products, services, or classes provided at the studio must be approved in writing by the corporate office prior to being offered.
This helps ensure that all activities are in line with the company’s standards and regulations.
Each studio must also meet certain minimum performance levels outlined in the franchise agreement.
These levels measure customer satisfaction, financial performance, marketing efforts, and overall operational excellence.
Franchises are only allowed to renew their agreement if they can maintain these minimum performance levels and remain compliant with all other requirements set forth by Orangetheory Fitness.
Orangetheory Fitness Franchise Acceptance Rate
Orangetheory Fitness is a highly sought-after franchise opportunity, and the acceptance rate is incredibly low.
In 2021, Orangetheory accepted less than 0.1% of prospective franchisees into their program, a figure that speaks to the impact and growth of the brand in recent years.
The limited availability of franchise opportunities is due to the overwhelming demand from existing franchisees, who are eager to expand their operations and capitalize on the success they have seen thus far.
As such, Orangetheory has had to become increasingly selective with its admissions process in order to ensure that all new owners have the right skill set and resources needed to operate a successful studio location.
Orangetheory Fitness Franchise Financial Assistance
Orangetheory Fitness is a highly successful and sought-after franchise opportunity, but the company does not offer direct or indirect financing to potential franchisees. Nor does it guarantee a franchisee’s note, lease, or other obligations.
As such, prospective owners are responsible for covering all costs associated with opening and operating their own studios.
Franchisees who wish to secure financing for their fees or equipment purchases should turn to third-party lenders or explore their options with the U.S. Small Business Administration (SBA).
The SBA provides loan guarantees to qualifying entrepreneurs interested in starting a business, including those pursuing a franchise opportunity.
Opportunities abound for entrepreneurs in fitness center franchising, including brands like Jazzercise, Elixir Muscle Recovery Franchise, F45 Franchise, and ISI Elite Training franchise.
Orangetheory Comparison
| Company | Orangetheory | HOTWORX |
|---|---|---|
| Founded In | 2009 | 2014 |
| Initial Investment | $488,405 – $994,360 | $188,070 to $351,885 |
| Franchise-Fee | $59,950 | $19,950 |
| Total Outlet | 1500 | 210 |
| Annual Revenue | $136.44 Million | $341,000 |
Frequently Asked Questions
Is Orangetheory a good way to lose weight?
Because Orangetheory combines HIIT cardio and strength training, both components are excellent for weight loss.
Is Orangetheory a High-Intensity Interval Training (HIIT) workout?
Orangetheory is a one-hour high-intensity interval training (HIIT) workout that uses your heart rate to burn calories.
How often should you do Orangetheory in a week?
You should be physically active and attend three to four Orangetheory classes per week on your off days.
Is Orangetheory a Franchise?
Yes, Orangetheory is one of the most well-known fitness franchises, with over 1,500 studios in 25 countries.
How much does an Orangetheory franchise cost?
Starting an Orangetheory franchise requires an initial investment of $488,405 – $994,360, with a franchise fee of $59,950.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.