Orange Theory franchise is one of the best gym franchise opportunities for an entrepreneur looking to start a gym. I adore the gym and fitness business, a subscription business model. I am writing this case study on the Orangetheory fitness franchise opportunity.
How much do orange theory franchise owners make? How much does an orangetheory franchise cost? This case study will answer these questions and cover Orange Theory franchise availability and things you should know when buying an orange theory franchise.
A Nielsen survey found that 81% of Millennials exercise or would like to, vs. only 61% of Boomers. For this reason, Millennials have caught the attention of boutique studios, wearable developers, and equipment manufacturers. There is a demand for fitness clubs globally, moreover in developing nations.
In 2020, the market size of the gym, health, and fitness club industry in the United States at over 32 billion U.S. dollars. The total market size of the global fitness club industry is over $96.7 billion. The fitness industry in the United States grew 8.7% in 2021.
How much does an orangetheory franchise cost
An orangetheory franchise costs anywhere from $ 500,000 to $ 1.5 million. The franchise fee covers the cost of opening a location, hiring and training staff, and marketing the business. Additional costs include equipment and software, uniforms, and marketing materials.
It is typically a five-year investment with royalties of between 8% and 12% including advertising fees.
Orangetheory franchise Cost in the United States
The Orange theory of fitness franchise Cost based on various factors. The primary will be the size of the fitness studio: the size and current leasehold condition of the proposed studio site.
There is no fixed estimate on how much an orange theory franchise costs.
This orange theory fitness franchise price range includes the initial franchise fee and ongoing operational charges, such as property and payroll taxes, advertising, and rent.
The below tables will help you understand Orangetheory fitness franchise requirements to get started and know the detailed cost to franchise Orangetheory fitness.
|Orange Theory Franchise Facts|
|Initial Franchise Fee||$ 59,950|
|Initial Investment||$500,000 – $1.5 million|
|Advertising Fee||2-3 %|
|Term of Agreement|
|Is franchise term renewable?||Yes|
|Renewable Franchise Fees||50% of Initial Franchise fees|
Other Orange Theory franchise costs are associated with starting an Orange Theory franchise business. All the above numbers in this article are based on the updated Orange Theory Fitness franchise disclosure document.
Orange Theory franchise cost
How much do orange theory franchise owners make?
Franchise owners of an Orange theory franchise make money by selling different tiers of memberships. These three different membership levels give members a set number of monthly classes.
Members can purchase additional classes at a discounted rate compared to non-members.
In addition to earning money on memberships, an Orangetheory studio can sell the brand’s clothing and accessories.
You should also know how does an orangetheory franchise make money?
What is the Orange theory fitness franchise owner’s salary?
The Orange theory Franchise Owners’ salary differs from location to location in the United States. As per my estimate, the Orange theory fitness franchise owners’ salary range between $ 70,000-$ 100,000 annually.
As per Glassdoor, Franchise Owner salaries at Orangetheory Fitness can range from $146,875-$288,489. This estimate is based upon two Orangetheory Fitness Franchise Owner salary reports provided by employees or estimated based on statistical methods.
What is Orange theory franchise profit?
There is no same profit in all franchise locations of the same brand. The franchise profit largely depends on location, business size, and cost to franchise Orangetheory fitness.
As per my research, the Orangetheory franchises in the United States make an annual profit of $ 30,000- $ 300,000.This orangetheory franchise profit is after the franchise owner’s salary.
The orange theory franchise profit will depend on orange theory fitness franchise revenues and franchise operating expenses.
Some higher orange theory fitness franchise revenues can have lower profitability, as their operating expenses may not be a budget.
OrangeTheory Franchise Studio Requirements
The Orange Theory has specific franchise requirements related to studio layout and design. Find the minimum Orange theory fitness requirements. The cost to franchise Orangetheory fitness largely depends on these studio requirements.
- Area required 250 – 350 sq.m or 2,690 – 3,765 sq.ft
- Above average and High-Income demographics
- Floor to Ceiling minimum height 3 meters or 10 feet
- Ground floor frontage and big facade, if possible
- Enough parking to meet peak hours members flow
- High visibility and access by roads.
The self-explanatory floor plan below will be followed to give all OTF fitness standard look and feel. I always tell my readers that these standard procedures make franchising a success.
Make franchising successful. You will be successful.
International Orange Theory Franchise Requirements
Orangetheory Fitness is looking for franchise expansion globally by appointing Master Franchisee and Area developers in new countries or cities they venture into.
The Master Franchisee / Area Developer Prerequisite
- Businesses Individuals or Investors with solid entrepreneurial experience.
- Prior Proven expertise in self-managing and developing multi-unit franchisees in the retail industry, services, or products.
- Strong fair sighted vision. Passion for developing whole franchise territory to maximum potential. They meet the committed franchise units of 15 to 100 units depending on area geography and demographics.
- Willingness to invest and operate atleast 20% of total projected franchise units.
- Appoint and manage a full-time franchisee support team for your Orangetheory master franchise territory
- Prior experience in hiring, managing, and leading sales teams.
- Capital arrangement for initial investment for franchise studio $451,000 – $1.5 Million
- For Master Franchise Capital Investment Requirement $ 4 Million
Orange thoery fitness franchise reviews
I have a few franchise partners’ reviews. These are detailed reviews mentioned as collected from orangetheory fitness franchises.
Know This Is Why OrangeTheory Franchise Is So Famous!
The franchise owner from Israel, Arkady Berkovsky, says,
“After experiencing the results on ourselves, my partners and I knew OTF was the franchisefor us. After providing us with a great business model, the corporate team made the processextremely easy and straightforward. Even the technological support team was amazing —considering the crazy amount of tech involved with the product! My team and I can no longer imagine opening a franchise location with any other company and we could not be happier.”
Mr.Khaled Jafar, the Orangetheory Fitness Master Franchise owner for Kuwait, Saudi Arabia, Qatar, United Arab Emirates, Oman, and Bahrain, says
“As part of my due diligence on Orangetheory, I spoke with a lot of existing franchisees,familiarized myself with the business model, tried the workout and loved it, and saw the brand continue to grow. But you only get a sense of how a company is as a partner after you sign the dotted line and become a franchisee. Frankly that’s when I understood the worth and value of the company I was partnering with. The level of support I receive as a Master Franchisee is bar none. Our teams are in constant communication and that has shortened the learning curve for us in our growth here regionally.”
I call upon franchise owners of Orangethoery who read this case study to comment on your Orangethoery fitness franchise reviews.
Orangetheory Fitness Franchise Rankings
- The Orangetheory Franchise ranked #4 among the 2020 Top Growth Ranking by Entrepreneur.
- Orangetheory Fitness Franchise ranked #25 on Entrepreneur’s 2019 Franchise 500 list.
- In the Franchise Times Fast & Serious list of smartest-growing brands, Orangetheory Fitness is one of the fastest-growing fitness franchises in the United States, Ranked #1 in 2018.
What is the Orange theory ?
In 2007, physiologist Ellen Latham brought together science and fitness in a revolutionary way. She called it the Orange Effect and started a fitness studio in the United States.
Orangetheory Fitness is a health club and gym specializing in functional training, a type of exercise that focuses on helping you move and function correctly without relying on machines or weights. Functional training is excellent for people of all ages and fitness levels, as it can help you improve your endurance, strength, agility, balance, and coordination.
The franchisor, Ultimate Fitness Holding LLC, operates OrangeTheory Fitness studios with orange color branding. Orangetheory Studios operates as contemporary fitness studios identified by an orange color scheme and trade dress codes.
The Orangetheory fitness offers members access to exercise equipment, including cardio and strength equipment, and other related services and ancillary merchandise related to the Orangetheory concept.
Facts That Nobody Told You About Orange Theory Franchise.
OrangeTheory Fitness has experienced a rapid franchise expansion over the last decade and has strong demand from existing franchise owners. The franchise expansion opportunities are limited.
In 2021, less than 0.1% of franchisee applicants offered the Orangetheory fitness franchise.
If you believe you are the best fit for the Orangehteory franchise, your area has a demand for fitness studios. You should contact us or OTF management to know the Orangetheory fitness franchise for sale in your area.
|Industry Type||Health & Fitness|
|Sub Category||Fitness Club & Gym|
Ultimate Fitness Holdings LLC
|Founder/Management Head||Ellen Latham, Creator & Co-Founder|
|Dave Long, CEO & Co-Founder|
|Jerome Kern,Partner & Co-Founder|
|Employees at Company H.O||170 + employees at H.0|
|Franchise Expansion Plan||United States & Canada|
|Asia & East Africa|
|Number of Units||1400 + units in 25 countries|
|Number of Franchise Units||1178 (as if 2020)|
|Social Media Handles|
|Company Office location||Ultimate Fitness Holdings LLC|
|6000 Broken Sound Prkway|
Orange Theory Franchise Information
I will tell you about the Orangetheory franchisee info and requirements before starting an Orangetheory business in the United States and internationally.
At Orangetheory Fitness, success matters for its members and franchises.OrangeTheory will work equally hard with franchisees to make franchise studios a success, and the OTF workout indeed produces results for its members and profits for the franchises.
OrangeTheory has around 1 million members and 1400 fitness studios in 25 countries around the globe. The Orangetheory Fitness management focuses on accomplishing its mission to bring more life to more people in the world.
Around 80% of all OrangeTheory studios are franchised. These numbers indicated their dedication and support for their retail and franchise network.
After the Orangetheory franchise information,you will know their requirements.
Orange Theory franchise costs Canada and internationally.
If you are from Canada, you should know that OTF has more than 100 fitness studios in Canada. It will make great sense to start with the Orangetheory franchise in Canada. You will like to know the Orangetheory franchise cost in Canada.
Also, if you are from Australia, Germany, the United Kingdom, India, or another country, I will give your approximate Orangetheory franchise cost in these countries.
|Country in Orangetheory fitness franchise for sale||Orangetheory franchise cost range|
|Orangetheory franchise cost Canada||Can $ 750,000 to Can $1.5 Million|
|Orangetheory franchise cost Australia||AUD $ 800,000 to AUD $1.6 Million|
|Orangetheory franchise cost United Kingdom||£ 450,000 to £ 1.2 million|
|Orangetheory franchise cost Germany||€ 500,000 to € 1.5 Million|
|Orangetheory franchise cost India||Rs 3.5 CR – Rs 7.5 CR|
Orange Theory franchise Training & Support Offered.
The Orangetheory Fitness Management has an extensive franchisee training program. This program covers the daily franchise operating procedures of the fitness studio. The training to the franchise owner and his team.
The training program lasted for four days and was conducted at the franchisor’s headquarters in Florida. Also, they have an online training program for international franchises. The Master Franchisee or Area Representative will also provide training to international fitness studios.
The free franchise training includes operations training and OFTit certification training for eight fitness coaches and four salespersons. First, OFT franchise owners must complete the initial pre-sales training program before selling memberships at the fitness studio.
Over and above, there are refresher training, annual conferences, supplementary new service or product launch training, and yearly management training programs.
Orange Theory fitness Operations & franchise support
The operations of an Orangetheory Fitness franchise are similar to those of most other gym franchises. The franchise owners must have a minimum of a high school diploma and certification as a personal trainer or fitness instructor. They must also have a passion for fitness and be able to commit to a minimum of 40 hours per week.
International Franchise Managers and Support team dedicated in your country to assist with sales, operations, fitness, real estate, and more.
PRE-OPENING SUPPORT AND TRAINING
- Master Franchise/Area Developer Training
- Real Estate Training
- Sales & Operations Training & Fitness
- Foundations & Orientation
- Pre-Sales Training
- Launch Training (Sales & Operations/Fitness)
- Site Field Support
- Franchise POS and CRM Software
POST-OPENING SUPPORT AND TRAINING
- Strategic Planning & Execution Training
- Regional Certification (Sales & Operations/Fitness)
- Regional/International Summit(s) and Convention
- Executive Business Reviews
How is Orange Theory Franchise Territory Granted
The Franchise Agreement grants franchisees the right to operate a single studio at a specific location in the site selection area that franchisees select and the franchisor accepts, in its sole discretion.
Once the franchisor has approved the site, they will designate a geographic territory for franchisees. This territory is known as franchise territory.
The franchisor-Orangetheory Fitness will decide the franchise application and its territory based on population, neighborhood businesses, road traffic flow, competition presence, area demographics, and socio-economic factors.OrangeTheory Fitness recommends high and average-income population areas.
Also, the franchisor will assure its franchisees of exclusivity of franchise territory in the franchise agreement.
These are valid franchising terms that will make franchising win!
What is Orange Theory Fitness Franchise Term of Agreement and Renewal?
The Orangetheory franchise agreement term is 10 years and further mutually renewed for another franchise term of 10 years.
Does Orange Theory Franchise provide Financial Assistance?
The franchisors in the United States offer franchise financing assistance. The financing options include
- Online business loan
Some online business lenders offer loans upto $1 to $5 million.
- Bank loans and operational overdraft
A personal credit score above 670 will assure you of overdraft for Orangetheory franchise operating expenses and working capital limits.
- SBA Loans
With a lesser credit score, you can qualify for SBA loans.
You can read Franchisedeck’s complete guide on franchise financing options.
Also, check if Orangetheory Fitness franchise financing is available. You may get some of the costs covered for less than with other traditional funding options.
How to get Orange Theory Franchise Insurance ?
Franchise Business Insurance aims to protect a franchise owner’s financial investment in an Orangetheory fitness franchise business.
I highly recommend franchisors incorporate franchise insurance as a part of their financials in the franchise disclosure document.
The orange theory has a provision for insurance in their OTC FDD. The cost will vary and depend on the size of the OTC franchise business.
Reasons Why Everyone Love Orange theory Franchise
This orangetheory franchise offers fitness training and workout classes for better heart health and strength training.
Besides, Orangetheory franchise profit as a motivator, the franchise owners will be conducting one of the best workouts in your country. The learning from the management team will be priceless.
The business is planned and systematic with the help of a franchise operations manual and franchise start-up checklist from management. The sales process is quite simple and foolproof.
The Orangetheory fitness franchise targets high-income groups for 1-1 sessions. On the other hand, affordable groups have more than 45 classes per week with personal workout classes.
The business is technology-driven, results of members’ heart rates are shown on large screens. These factors will further improve Orangetheory franchise profit and sooner ROI for franchises.
How much does the Orange theory franchise, charge customers?
Depending on the membership level, the average cost of a membership at Orangetheory is between $59 – $200 a month. Non-members can take a single class for $28.
How much profit can an Orange theory franchise make?
Orangetheory franchise revenue is up overall, but there is no specific information on the average income for individual franchisees. The number of franchises continues to grow, and many franchisees have multiple units.
Franchise owners can make additional money by selling Orangetheory clothing and accessories. Other add-on services are restricted according to the franchise agreement.
The best way to increase profits would be to open up another Orangetheory fitness, a 24X7 fitness gym. This method will increase the cost slightly, but the orangetheory franchise profit will improve remarkably.
Conclusion: Is it worth buying the Orange theory franchise
Orange Thoery franchise, a science-focused fitness chain, reached incredible heights with franchise business strategy and advanced technology.
The Orange Theory Fitness gym is a great place to work out. The staff is friendly and helpful, and the facilities are top-notch. The gym has a variety of equipment, and the staff is always willing to help you find what you need.
Orangetheory fitness franchise opportunity is one of the franchise opportunities that has made franchising proud. I’m a strong advocate of franchise business strategy. This case study is for those who are unsure about franchising success.
I have done my best to cover all aspects of franchise Orangetheory fitness. If you encounter any email or advertisement for “Orangetheory fitness franchise for sale.” Read this case study and then decide on buying an Orangetheory franchise.
The financial numbers mentioned are based on information from the last updated Orange theory franchising disclosure document.
I look forward to hearing from you with suggestions and feedback on this case study. Also, let me know which franchise business case study you want me to write on.
Also, you can read about Orange theory competitors
- F45 Franchise,
- Planet Fitness
- Anytime Fitness Franchise
- Gold’s Gym franchise
- Hotworx franchise
- Kidstrong franchise
- Chevron franchise
- Crunch fitness franchise