Orangetheory Fitness Franchise

Orangetheory Fitness has been franchising since 2010 , currently with 1,400 total locations in the health & fitness sector, headquartered in FL. The 2024 FDD lists a total initial investment between $563K and $1.1M, with the 92% low-to-high spread driven mainly by site size, market, and how extensive the buildout runs. Included in that number: the franchise fee of $60K, equipment, leasehold improvements, and initial working capital to carry the business through ramp-up.

The brand charges 8.0% of gross sales in ongoing royalties; add the 2.0% advertising-fund contribution and the combined ongoing draw reaches 10.0% of gross sales. Critically, Orangetheory Fitness does disclose financial performance data in Item 19, a voluntary disclosure that only about a third of U.S. franchisors make. The reported average gross revenue per location is $1.2M, meaning the typical unit pays roughly $96K per year in royalty alone. Treat revenue and profit as separate questions: rent, labor, cost of goods, and local demand all determine what a franchisee actually keeps.

The unit count trend here is positive -- Orangetheory Fitness posted 3.6% net growth year-over-year (80 openings, 30 closures). Sustained positive growth is a signal that the unit-economics are working well enough to attract new operators, though late-stage growth can also reflect aggressive sales push rather than operational health.