Complete investment analysis based on official FDD data
Total Investment
$821,622 – $1,377,160
Franchise Fee
$59,950
Royalty Rate
8.0%
The total initial investment to open a Orangetheory Fitness franchise ranges from $821,622 to $1,377,160, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $59,950.
Midpoint estimate: $1,099,391
$59,950
One-time initial fee
The Orangetheory Fitness franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Orangetheory Fitness brand and is included in the total initial investment range above.
Royalty Fee
8.0%
of gross revenue
Ad/Marketing Fund
3.0%
of gross revenue
Total Ongoing Fee Burden: 11.0% of gross revenue
Combined royalty and advertising fund contributions before any other fees.
| Fee Type | Rate | Type | Notes |
|---|---|---|---|
| Royalty Fee | 8.0 | PCT | Paid via automatic bank account debit. Must pay royalties even if minimum performance levels not met. Performance Standards: Year 1: $300,000, Year 2: $350,000, Year 3+: $400,000. If standards not met, franchisee pays difference between actual royalties and royalties based on performance standards. |
| Brand Fund Contributions | 3.0 | PCT | Currently 3% but may be increased up to 5% of Gross Sales. Paid via automatic bank account debit. Franchisor may change contribution from time to time. |
| Minimum Monthly Local Advertising Spend | 2.0 | VARIABLE | Must be spent on advertising, promotions and public relations within the Territory. Due within 10 days of receipt of invoice. If not spent, franchisor may require contribution of deficiency to Brand Fund. |
| Cooperative Advertising | N/A | VARIABLE | Variable based on Co-op determination if one is formed in franchisee's area. No minimum or maximum. Each Studio gets one vote. Franchisor and affiliates do not currently control majority of votes. Co-op contributions count toward required local advertising spend. |
| Successor Franchise Fees | 50.0 | PCT | Payable before renewal if franchisee renews Franchise Agreement. Other conditions apply to renewal. |
| Transfer/Assignment Fee | 50.0 | VARIABLE | Payable before consummation of transfer or sale. Control Transfer means: (i) any interest in Franchise Agreement; (ii) Studio or substantially all assets; (iii) 20%+ interest in Entity; or (iv) ownership interest resulting in change of control. Other conditions apply. Transfers to Entity formed to operate Studio excluded. |
| Interest and Late Fees | 18.0 | VARIABLE | Payable on demand for all overdue amounts and reports. Interest begins from date of non-payment or underpayment. $100 weekly late fee applies. |
| Audit Expenses | N/A | VARIABLE | Payable on demand only if franchisee understates any payment owed by more than 2%. Includes attorneys' fees, accountants' fees, travel expenses and employee compensation. Will not exceed actual costs. |
| Additional Initial Training | 1000.0 | FIXED | Payable before training. Only for new or replacement personnel attending Initial Training Program after Studio opens. Franchisee responsible for travel and living expenses. |
| Studio Launch Training | 1400.0 | FIXED | Payable on demand. Studio Launch Training is provided at no charge for up to 8 fitness coaches and 4 sales associates attending same initial program. Fee applies to additional, replacement, or repeat trainees. |
| Refresher Training Fees | 250.0 | FIXED | Payable on demand. Currently $250 per day per person, may be increased but not to exceed $500 per person per day. For supplemental or refresher training programs for Managing Owner, studio manager, or other personnel as required. |
| Conference Fees | N/A | VARIABLE | Payable on demand. Currently requires attendance at Convention (expected <$1,000 per person in 2025) and training summit (expected <$600 per person in 2025). Franchisee responsible for all travel and living expenses. |
| On-Site Evaluation Fees | N/A | VARIABLE | Payable on demand only if franchisor determines on-site evaluations are or become excessive. Includes cost of travel, meals and lodging for franchisor personnel. |
| Insurance Costs | N/A | VARIABLE | Payable on demand only if franchisee fails to obtain or maintain required insurance coverage and franchisor elects to obtain or maintain coverage. |
| Product Purchases | N/A | VARIABLE | Payable upon receipt of invoice to franchisor or affiliate. Required to make additional product purchases from designated or approved suppliers. |
| Advertising Collateral | N/A | VARIABLE | Payable upon receipt of invoice. Only payable if franchisee requests multiple copies of advertising materials from franchisor. |
| Technology Fee | 899.0 | FIXED | Currently $899/month. Subject to annual increase of 10% (compounded and cumulative, may exceed 10% in any year to adjust for prior years with no increase). Covers products, services, licenses and sublicenses for Technology System. Payments commence upon opening Management Software account for membership presales. One-time setup fee of $575. Franchisor may change included products/services without limitation. |
| OTbeat Fees | 149.0 | FIXED | Currently $149/month with $250 one-time setup fee. Must purchase OTbeat System from affiliate upon opening Studio. Monthly fee may increase up to $500/month; setup fee may increase up to $500. Additional technology fees may be incurred from time to time. |
| Non-Compliance Fee | N/A | VARIABLE | Due 10 days after notice of violation. May be assessed for violations of Franchise Agreement and/or Manuals. Franchisor reserves all other rights and remedies. |
| Management Fee | N/A | VARIABLE | Payable on demand if franchisee is in default, fails to maintain Studio per standards, or fails to have trained manager on staff. Franchisor may send personnel to manage Studio until default cured or standards met. If managing after death or disability, fee is 3% of Gross Sales plus actual costs. |
| Indemnification | N/A | VARIABLE | Payable on demand. Franchisee must indemnify franchisor and affiliated parties when certain franchisee actions result in loss under the Agreements. |
| Costs and Attorneys' Fees | N/A | VARIABLE | Payable on demand. Franchisee must reimburse franchisor for all costs in enforcing obligations if franchisor prevails. |
| Liquidated Damages (ADA) | 10000.0 | FIXED | Payable immediately after notice from franchisor. Only payable if Area Development Agreement (ADA) is terminated and franchisee has not developed all Studios agreed to develop under ADA. |
Category
Fitness
Franchise Score
out of 100
Mean Revenue
$857,377
per year, per location
Avg. Annual Closure Rate
0.0%
Low risk — below industry average
Net Unit Growth
-1247 units
From 2022 to 2025
| Year | Start | Opened | Closed | Transfers | End |
|---|---|---|---|---|---|
| 2022 | 1247 | +47 | — | — | 1281 |
| 2023 | 1281 | +53 | — | — | 1311 |
| 2024 | 1311 | +27 | — | — | 1283 |
| 2025 | — | +15 | — | — | — |
Based on the FDD data, here is a data-driven snapshot of the Orangetheory Fitness franchise opportunity:
Overall Score
60/100
Moderate opportunity
Est. Payback Period
N/A
Insufficient data
Risk Level
Low
0.0% annual closure rate
Orangetheory Fitness shows a moderate score across our evaluation criteria. Careful due diligence is recommended. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.
Get the full Orangetheory Fitness franchise intelligence report with risk analysis, deal-breaker alerts, and detailed financial projections.
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