Orange Theory Franchise – Costs, Fees & Earning Stats

Orangetheory is a fitness company that was co-founded by Ellen Latham in 2010. She was looking to create a workout that would produce results without being too time-consuming or monotonous. She came up with the idea of heart rate-based interval training.

In this article, we’ll discuss the costs and fees associated with opening an Orangetheory franchise and the company’s earnings potential.

Is Orangetheory a franchise?

Orangetheory is a fitness studio franchise that offers group personal training via HIIT workouts with technology wrapped into it. The company was founded and has been franchising since 2010 and is based in Boca Raton, FL.

How many Orange Theory franchises are there?

Orangetheory has seen rapid growth in recent years, and as of the start of 2022, there were over 1,262 Orangetheory franchises around the world.

With its unique approach to fitness, the company has been able to attract a wide range of customers, from athletes looking for a challenging workout to busy professionals who appreciate the convenience of the studio’s locations.

The Orangetheory fitness franchise has been successful in part due to its innovative workout model, which combines interval training with heart rate monitoring. This type of workout is highly effective for burning calories and improving overall fitness. This combination allows members to track their progress and ensure they are getting the most out of their workout. With its unique approach to fitness, it is no surprise that Orangetheory has been able to grow so quickly.

In addition to its studio locations, Orangetheory also offers at-home workouts and an app, which tracks challenges and benchmarks.

This type of workout is highly effective for burning calories and improving overall fitness and is based on the idea of interval training, which alternates between periods of high-intensity and low-intensity exercise that combines cardiovascular and strength training.

How much does an Orange Theory Fitness Franchise cost?

Opening a new business is always risky, but with the right franchise, it can be a very lucrative endeavor. Orangetheory is one of the fastest-growing fitness franchises in the United States, and with more than 1000 locations already open, it shows no signs of slowing down. So, how much does an Orangetheory Fitness Franchise cost?

The Orangetheory fitness franchise cost ranges from $589,129 – $1,621,269. This includes comprehensive training and support, which includes marketing, sales, technology, operations, and real estate. However, it’s important to note that these numbers can vary depending on the location of the franchise and the size of the facility.

After signing the franchise agreement, Orangetheory franchise development and support helps franchisees estimate the real estate purchase costs for the franchise business.

What is the Orangetheory franchise fee?

The Orangetheory franchise fee is $59,950. This initial fee gives you the right to use the Orangetheory name and logo of the company. In addition, you will receive support from a team of experienced professionals as you get your business up and running.

The ongoing royalty fee is 8% of gross sales, with a monthly 3% brand fund fee on gross sales. These fees help to cover the cost of ongoing support and marketing initiatives. Other fees include a software licensing fee and other ongoing fees.

To become a franchisee, a minimum of $350,000 in liquid capital is needed and a minimum net worth of $1,000,000.

Overall, the Orangetheory franchise fee is a decent investment that can give you the tools and resources you need to be successful in the fitness industry.

How much do Orangetheory franchise owners make?

Orangetheory Fitness studios have quickly become one of the most popular fitness franchises in the country. Orangetheory workouts are high-intensity and results-driven, making them appealing to people who are looking for a challenging workout.

But what about the financial side of things? How much do Orangetheory franchise owners actually make? The average revenue per franchise owner location was $1,142,442 in 2019 based on 750 locations.

However, there is a lot of variation depending on the location and size of the studio. For example, franchisees in metropolitan areas may make significantly more than franchisees in smaller cities.

The Wolf’s Take 🍟

OrangeTheory is one of the most successful franchises EVER! To go from being founded in 2010, to over 1,000+ locations open and operating just a decade later, is no small feat.

The brand has become a “can’t miss” for fitness enthusiasts around the world who all try to earn “splat points” during the patented OrangeTheory workout that involves high-intensity interval training, with technology embedded to track customers’ results. 

Though they’ve certainly had some struggles with closures throughout covid, their net unit count has still grown by 276 locations since 2019! In 2019, they also reported financials and based on the results of 750 locations that year, the average unit volume was $1,142,442.

This is a fantastic average revenue per location, as fitness tends to have solid margins that are anywhere from 15-30%!  Granted there is a large difference between 15% margins and 30% margins, but regardless, it’s a healthy amount of cash flow either way. 

I also had the pleasure of interviewing the largest OrangeTheory franchise owner in the world, Jamie Weeks. He couldn’t have had more positive things to say about the brand.

Because they’ve expanded so quickly, it’s tough to find new territory for OrangeTheory. And due to the brand’s success, a wave of boutique fitness competitors has popped up. While the market is more crowded, I suspect OrangeTheory’s technology, brand recognition, and roster of talented franchise owners will help it succeed in the years to come!

Ending Summary

Overall, the Orangetheory franchise is a great franchise opportunity for those looking to get into the fitness industry. With its unique approach to workouts and its affordable franchise fee, Orangetheory is poised for continued growth in the years to come.

This is not investment advice. As always, look at the franchise disclosure document and do your research and due diligence before investing and realize any investment may go to zero.