Orangetheory Fitness is a popular fitness franchise known for its high-intensity interval training (HIIT) workouts. The brand has gained significant traction globally, with franchises located in numerous countries, including the United Kingdom. For those interested in opening an Orangetheory Fitness franchise in the UK, it’s essential to understand the financial requirements and the breakdown of the costs involved.

Initial Franchise Fee

The initial franchise fee for an Orangetheory franchise typically ranges between £37,000 and £50,000. This fee grants the franchisee the right to use the Orangetheory brand, marketing, and operational support. This is an upfront cost and is non-refundable.

Total Initial Investment

The total initial investment to open an Orangetheory Fitness studio in the UK is generally between £750,000 and £1.2 million. This amount includes several components necessary to get the business up and running:

• Real Estate: The cost of securing a location can vary greatly depending on the region. Urban areas tend to have higher real estate costs, with prices potentially reaching £300,000 to £500,000.
• Build-Out and Equipment: Construction and remodeling of the studio to meet Orangetheory’s specifications is a significant part of the investment. The estimated cost for this is between £150,000 and £300,000. This includes installing specialized fitness equipment, which can be expensive.
• Marketing & Advertising: Franchisees are required to contribute to a national marketing fund, as well as conduct local marketing campaigns. The local advertising budget is generally around £20,000 to £40,000.
• Training and Support: Orangetheory provides initial training to franchisees and their staff, which is factored into the overall costs. The training fee can amount to about £10,000 to £20,000.
• Other Costs: There are additional costs such as insurance, utilities, furniture, and licensing that could total approximately £30,000 to £60,000.

Ongoing Fees and Royalties

• Royalty Fees: Franchisees are required to pay a royalty fee of 7% of gross sales. This fee covers ongoing support, including access to the brand’s marketing strategies, operational guidance, and the use of its proprietary fitness programs.
• Marketing Fund Contribution: Franchisees must also contribute to a national marketing fund, typically about 2% of gross sales. This fund helps Orangetheory Fitness maintain its global advertising campaigns.
• Additional Operational Costs: These costs can include staffing, utilities, memberships, and other day-to-day expenses. Depending on the size and location of the studio, the monthly operational expenses can range between £30,000 to £50,000.

Profit Potential

While the costs to open and maintain an Orangetheory Fitness franchise can be high, the franchise model has shown to be profitable. Franchisees generally experience strong membership growth due to Orangetheory’s brand recognition and proven workout system. Typical monthly revenue for a fully operational studio can vary greatly, but successful franchises often see revenues in the range of £50,000 to £100,000 per month, depending on the location and membership numbers.

Location Considerations

Choosing the right location for your Orangetheory Fitness franchise is crucial to its success. In the UK, larger cities like London, Manchester, and Birmingham tend to be the most lucrative due to the higher population density and demand for fitness services. However, these areas also come with higher competition and real estate costs. Smaller cities or suburban areas might present a lower upfront investment but could offer slower growth rates.

Franchise Support

Orangetheory Fitness offers robust support to its franchisees, including:

• Pre-opening support: Assistance with site selection, lease negotiations, design and build-out, and marketing.
• Training: Initial training for franchisees and staff on how to operate the studio efficiently and maintain high service standards.
• Ongoing support: Access to marketing strategies, continuous operational support, and regular training to keep franchisees up to date with the latest trends in fitness.

Financing Options

Financing for an Orangetheory franchise in the UK is available through various banks and third-party lenders. Orangetheory also offers guidance on obtaining financing, including assistance with creating a business plan and connecting with lenders who are familiar with franchising.

Disclaimer

No guarantee of accuracy.