AKT Franchise in 2024: Costs, Fee & FDD
Discover if AKT is the right boutique fitness investment for you. Learn about the Anna Kaiser Technique, startup costs, revenue potential, and franchise perks with Xponential Fitness. Explore why dance-based workouts are reshaping the fitness industry!
Table of Contents:
AKT was founded by celebrity trainer and fitness innovator Anna Kaiser in 2013. Known for blending dance, interval training, strength, and toning into an energetic, full-body workout, AKT quickly rose to prominence in the boutique fitness industry. With its focus on fun, dynamic movement and community-based motivation, AKT stands out by making fitness enjoyable, while delivering serious results. Backed by Xponential Fitness, one of the largest boutique fitness franchisors, AKT benefits from the experience and infrastructure that supports long-term growth and success.
AKT’s core product is its signature dance-based interval workouts designed to keep participants engaged and challenged. Classes incorporate elements of cardio dance, strength, toning, and flexibility, providing a comprehensive fitness experience. The workouts are set to high-energy music and are suitable for all fitness levels, making AKT especially popular among women aged 25-45 who are looking for a fun, effective, and community-driven workout. AKT also offers branded apparel and wellness events, broadening its market reach.
AKT has grown steadily, with over 30 locations across the United States and plans for international expansion. As part of Xponential Fitness’ portfolio, AKT benefits from proven business strategies and a solid growth plan. Each studio attracts hundreds of clients weekly, drawn by the engaging class formats and community atmosphere. AKT’s commitment to innovation ensures that its workouts stay fresh and in tune with the latest fitness trends, helping retain a loyal customer base.
Franchisees receive comprehensive support, including initial and ongoing training, site selection assistance, and marketing strategies. AKT provides in-depth instructor training to maintain workout quality and consistency across locations. Franchisees also benefit from technology systems, operations support, and national marketing campaigns. This robust support system helps ensure that new franchise owners can confidently launch and operate their AKT studios while focusing on growing their community of loyal members.
AKT Franchise Insights
- Founded by Anna Kaiser, trainer to stars like Shakira and Kelly Ripa, AKT leverages celebrity influence to maintain its premium brand image and attract fitness enthusiasts looking for trendy, results-driven workouts.
- As part of the Xponential Fitness family, which supports nine boutique fitness brands, AKT benefits from an extensive network, proven business systems, and national brand recognition.
- With a focus on dance-based interval training, AKT stands out in the crowded boutique fitness market, offering a high-energy, choreography-driven experience that appeals to a niche, yet dedicated, customer base.
AKT Franchise Key indicators
Growth YOY (%)
9%
vs industry 5%
Total U.S. Franchised Units
26
3-Year Failure Rate
8%
vs industry 9%
Sales-to-Investment ratio
0.9:1
How much does it cost to open an AKT franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening an AKT franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening an AKT franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a AKT below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $60,000 | $60,000 |
| Initial Training Program Fees | $0 | $0 |
| Travel & Living Expenses While Training | $0 | $3,000 |
| Real Estate/Lease | $27,000 | $49,000 |
| Net Leasehold Improvements | $198,000 | $225,000 |
| Signage | $16,000 | $20,000 |
| Insurance | $1,100 | $2,500 |
| Lease Payments for Fitness Equipment and Other FFE Package | $3,700 | $12,500 |
| Pre-Sale and Soft Opening Retail Inventory Kit | $12,000 | $12,000 |
| Computer System and Related Equipment | $47,000 | $47,000 |
| Initial Marketing Spend | $15,000 | $15,000 |
| AKT Certification Program Fee | $8,000 | $8,000 |
| Music and Technology Fees | $1,895 | $1,895 |
| Additional Funds – 3 Months | $10,000 | $40,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $399,695 | $495,895 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open an AKT franchise, the required capital involves both the initial investment costs and a net worth requirement set by AKT. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial investment ranges from $399,695 to $495,895. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement While AKT doesn’t publicly disclose this figure, similar boutique fitness franchises typically require liquid assets (cash or easily accessible funds) of at least $100,000 to $150,000 to cover operational needs and initial expenses.
- Net Worth Requirement Based on industry standards, a net worth of around $500,000 to $600,000 is generally recommended. This ensures long-term financial stability and the capacity to sustain the business during its growth phase.
How much does an AKT franchise owner make?
Calculating the salary of a AKT franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of an AKT franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
AKT Revenue & Gross Sales
AKT’s recent revenue performance reflects a promising outlook within the boutique fitness industry. The most recent data shows median gross sales of $290,586 for franchise locations. This figure highlights the steady demand for AKT’s dynamic dance-based workouts and personalized fitness experience.
Which key factors impact the average revenue performance of AKT franchisees?
The performance of AKT’s U.S. franchisee median gross sales can be attributed to several key factors. Increased demand for boutique fitness experiences, particularly dance-based workouts, has fueled customer interest and membership retention. AKT’s unique blend of cardio, strength, and toning classes appeals to a wide demographic, especially fitness enthusiasts seeking fun, engaging workouts. Strategic marketing initiatives and strong social media presence have also played a role in driving brand awareness and attracting new members. Additionally, the expansion of digital offerings and personalized training sessions has allowed franchisees to reach more clients, enhancing revenue streams. Location quality, community engagement, and effective operational management are crucial elements that likely impacted sales performance compared to the prior year.
AKT Franchise Operational Costs
When opening an AKT franchise, several key ongoing operational costs are essential to consider for maintaining profitability:
- Lease and Utilities Renting a premium location in high-traffic areas like shopping centers or urban hubs, along with expenses for electricity, water, and HVAC systems to maintain an ideal workout environment.
- Staff Salaries Instructors, front-desk staff, and maintenance personnel need competitive wages, especially if your studio operates multiple classes daily.
- Equipment Maintenance Upkeep and occasional replacement of specialized fitness equipment, sound systems, and studio flooring to ensure a high-quality experience.
- Technology Costs Subscription fees for booking systems, CRM software, and member management platforms to streamline operations.
- Cleaning and Sanitation Regular cleaning services and supplies to uphold health and safety standards for members and staff.
Efficiently managing these costs is crucial for ensuring a sustainable and successful AKT franchise.
AKT Franchise Fees
As you consider investing in an AKT franchise, it’s crucial to be aware of the ongoing fees that are part of running your business. These fees ensure that you benefit from continued brand support, marketing, and system-wide growth. Here’s a breakdown:
- Royalty Fee 7% of Gross Sales, payable weekly via EFT. This fee contributes to continued access to the AKT brand, resources, and operational support.
- Brand Development Fund Contribution 2% of Gross Sales, payable weekly along with the royalty fee. This fund supports national and regional marketing initiatives to strengthen brand recognition and drive customer engagement.
- Potential Additional Fees There might be other fees related to training, technology updates, or operational compliance depending on your franchise’s needs.
Staying on top of these fees is essential for financial planning and maximizing your franchise’s potential for success.
AKT Franchise Earnings
The most recent data for the AKT franchise shows median gross sales of $290,586 and owner-operator earnings around $52,000. Given the boutique fitness industry’s growth and AKT’s strong brand presence, this performance suggests a solid return on investment for franchisees who effectively manage costs and drive customer engagement.
To maximize profitability, maintaining a consistent client base, delivering high-quality classes, and leveraging corporate support for marketing and training are essential. While these earnings provide a promising outlook, prospective franchisees should account for location-specific factors like local competition and market demand when estimating their potential income.
How to Open a AKT Franchise
Becoming a AKT franchisee is a rigorous process that involves financial scrutiny, extensive training, and thorough evaluation. However, it offers the potential for a lucrative business opportunity backed by a globally recognized brand and comprehensive support system.
The full process for how to open a AKT franchise is outlined below:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Introductory Call Engage in an initial call with the AKT franchise development team. This step helps both you and the franchisor assess mutual fit and alignment with the brand’s vision and requirements.
- Franchise Application Complete and submit a formal application, detailing your financial qualifications, business experience, and motivation for becoming an AKT franchisee. The franchisor reviews your application for eligibility.
- Discovery Day Attend Discovery Day at AKT’s headquarters. Meet the leadership team, learn about the business model, experience the brand culture, and get a firsthand look at the operations.
- Franchise Agreement Signing If both parties agree to proceed, sign the franchise agreement and pay the initial franchise fee, officially securing your franchise rights and territory.
- Site Selection and Lease Negotiation Collaborate with AKT’s real estate team to identify and secure an ideal studio location. The franchisor assists in lease negotiation and ensures the site aligns with brand standards.
- Studio Build-Out Begin the design and construction of your studio according to AKT’s specifications. The franchisor provides guidance to ensure the build-out meets operational and aesthetic requirements.
- Initial Training Program Attend comprehensive training at AKT’s headquarters covering business operations, class instruction, client acquisition, and marketing strategies. This training equips you with the skills to run a successful studio.
- Pre-Opening Marketing & Staff Hiring Launch marketing campaigns to build community awareness and hire your team, including instructors and support staff. AKT provides templates and guidance to support your efforts.
- Grand Opening and Support Host your grand opening event with corporate support to ensure a smooth launch. Ongoing operational and marketing assistance continues post-launch to help your business thrive.
Pros & Cons
Pros
Growing Boutique Fitness Market: AKT taps into the booming boutique fitness industry, which appeals to consumers looking for specialized, high-energy workouts. This trend shows no sign of slowing down.
Proven Business Model: Backed by Xponential Fitness, a well-respected leader in boutique fitness, AKT offers a robust support system, proven processes, and a network of successful franchisees.
Diverse Revenue Streams: In addition to memberships, you can generate revenue through personal training, branded merchandise, and special events, creating multiple income opportunities.
Broad Target Market: AKT appeals to a wide demographic, including fitness enthusiasts, dancers, and individuals seeking dynamic, dance-based workouts.
Cons
Competitive Fitness Market: The boutique fitness industry is saturated with alternatives like Pure Barre, Orangetheory, and F45, making it crucial to differentiate your studio.
Seasonal Fluctuations: Membership retention can be challenging during holiday seasons or summer months when people are less likely to stick to their fitness routines.
Operational Demands: Managing staff, ensuring consistent class quality, and maintaining customer engagement require strong leadership and organizational skills.
Location-Dependent Success: The success of your studio heavily relies on securing a high-traffic location and building a loyal community, which can vary by market.
