AKT Franchise Review (2023)
Written by: Patrick Findaro
Last Updated by
Rocio Somoza: January 20, 2023
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Contents
AKT Franchise Background
AKT is a dance based cardio fitness and wellness brand, fueled by positivity and a combination of personal training, and movement-based technique. A unique combination of toning, interval circuit, and dance-based workouts, with new original programming created every 3 weeks.
At the studios, there are 4 types of classes offered: Dance, Bands, Tone, Circuit.
Management Team
Developed by Celebrity Trainer, Anna Kaiser, AKT is a prescription-based dance concept, deeply rooted in movement and positive energy. Fueled by positivity and a belief that movement has a powerful, lasting impact, AKT is for all body types and fitness levels. With this positivity and combination of personal training and movement-based technique, AKT empowers members to become stronger in their bodies, minds, and communities – and they have fun doing it!
The concept was founded in 2013 and acquired by Xponential fitness in 2018. As of today, they have 20 studios open with another 100 awarded.
Franchise Health and Fitness Industry Analysis
Franchise Strengths
- With a proven yet unique concept in one of the most competitive industries, AKT has extensive market potential
- Appeals to a wide range of the population, from people who want to get in shape to others who are already in top physical condition
- Part of the Xponential franchise group which has a very strong track record in the fitness franchise space
Weaknesses
- Boutique gym that does not offer all of the resources and amenities of a full-service gym
- The fitness market is very competitive with low barriers to entry
Franchise Opportunities
- As a boutique concept, able to charge higher pricing than traditional fitness concepts
- Growing niche within the fitness market – 74% membership growth in boutique fitness concepts over the past 3 years
- Very large and growing market – $30bn industry with continued growth
- Brand awareness will continue to grow as the concept expands
Threats
- Operating in a very large, competitive market that is rapidly changing
- Profits can be negatively impacted due to close proximity of a similar competitor
- Potential for change in consumers’ preferred fitness regimen
- Potential impact from governmental restrictions
How Much is a AKT Franchise?
AKT Franchise cost ranges from $341,200 to $529,900 according to the 2021 FDD.
| Item | Estimated Amount (in USD) | When Due | To Whom Payment is to Be Made | |
| Low | High | |||
| Initial Franchise Fee | $60.000 | $60.000 | Signing of FDD | Franchisor |
| Travel & Living Expenses While Training | $500 | $3.000 | Piror to Training | Airlines, Hotels and Restaurants |
| Real Estate/Lease | 13.000 | 46.000 | As incurred | Landlord |
| Leasehold Improvements | 136.000 | 225.000 | As incurred | Approved Suppliers, Architects and Contractors |
| Signage | 18.000 | 30.000 | As incurred | Approved Suppliers |
| Insurance | 900 | 2.500 | Before Opening | Insurance Carrier |
| Exercise Equipment Lease – 3 Months | 4.800 | 6.900 | Before Opening | Approved Suppliers |
| Proprietary Initial Inventory Kit | 12.000 | 12.000 | Before Opening | Franchisor |
| Licenses and Permits | 0 | 5.000 | Before Opening | Local, State or Federal Government |
| Professional Fees | 4.500 | 4.500 | As incurred | Approved Suppliers |
| Sound Consultant | 1.500 | 3.500 | As incurred | Approved Suppliers |
| Audio Visual Equipment | 52.000 | 52.000 | As incurred | Approved Suppliers |
| Computer System | 2.500 | 3.500 | As Incurred | Third Party Vendors |
| Opening Support Program and Other Marketing Spend | 15.000 | 15.000 | Before Opening | Approved Suppliers |
| Instructor Pre-Opening Training and Related Expenses | 10.500 | 21.000 | Before Opening | Franchisor, Third Parties |
| Additional Funds – 3 Months | 10.000 | 40.000 | As incurred | Personnel, landlord, Approved Supoliers and other Third Party Vendors |
| Total | $341,200 | $529,900 |
How Much does a AKT Franchise make?
| Average Number of Members as of December 31, 2019 | Centers that Attained or Surpassed the Average Member Number | Median Number of Members as of December 31, 2019 | Centers that Attained or Surpassed the Median Member Number | |
| Centers with top 10% membership counts (51 centers) | 333 | 19 or 37% | 304 | 26 or 51% |
| Centers with middle 80% membership count (412 centers) | 176 | 196 or 48% | 172 | 205 or 50% |
| Centers with bottom 10% memebrship counts (151 centers) | 83 | 31 or 61% | 89 | 25 or 49% |
| Average Gross Revenue | No. of Studios | No. of Studios Above Average | High Reported Gross Revenue | Median | Low Reported Gross Revenue | |
| Disclosed Studios | $1.079.401 | 2 | 1 (or 50%) | $1.314.141 | $1.079.401 | $844.661 |
FDD Disclosure: “In the Chart below in this Item, we disclose the average “Gross Revenue” generated from the calendar year 2019 (the “Measurement Period”) by the only two (2) Studios that were open and operated over that entire calendar year utilizing our Proprietary Marks and System (the “Disclosed Studios”).
These two Disclosed Studios opened in November 2013 and November 2015, respectively, and both have operated continuously since opening. We excluded the four (4) other Studios open and operating of as December 31, 2019 – one (1) of which was affiliate-owned, with the other three (3) owned and operated by our System franchisees – because those Studios did not open until some point in 2019 and, as such, were not open and operating over the entire Measurement Period.
This Item 19 also excludes any disclosures related to the two (2) pop-up “studios” that our founders operate from time-to-time on a temporary basis under the Proprietary Marks because these Studios are not operated in a substantially similar manner to the Franchised Business (in terms of hours of operation or Studio environment) and, as such, are not the kind of traditional Studio accounted for in this Disclosure Document.
We and the owner of the Disclosed Studios have an agreement for the Disclosed Studios to be operated pursuant to a franchise agreement with us and, once we enter into such franchise agreement(s), the Disclosed Studios will be operated as franchised Studios moving forward.”
