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Fitness Together Franchise Review (2021)

Written by: Patrick Findaro
Last Updated by Brenda Bagnoli: August 18, 2022
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Fitness Together

Fitness Together is a one-on-one personal training concept. Many individuals believe that they simply do not know how to get a good workout. Even if they go to the gym regularly, they end up getting frustrated because they do not have the support and the know-how to get the results they want

Contents

Fitness Together Franchise Background

At Fitness Together, clients receive a customized workout with a clear focus on their goals and results. Whether they are looking to lose weight, tone and tighten muscles, or simply achieve better health, the Fitness Together philosophy is simple: Fitness Together pairs them with a personal trainer in a private setting and a workout plan tailored just for them

All workouts take place in a private, comfortable atmosphere. Personal trainers help clients use equipment safely. 

The studio's certified personal trainers educate the client on proper techniques to help achieve maximum results.

Management Team

Fitness Together was founded in 1983 by Rick Sikorski, opening his first studio in Scottsdale, Arizona. Since 1996, Fitness Together started franchising and since then has has expanded continuously, opening franchise locations throughout the United States, Costa Rica, Israel, Brazil and Canada. The company is now part of well-known franchise company WellBiz Brands

There are more than 140 locations across the U.S. Each independently owned and operated. Fitness Together studios offer a truly customized approach to fitness for their clients. They also employ some of the best personal trainers in the industry to help clients achieve the results they want.

Franchise Fitness Center Industry Analysis

Franchise Strengths

  • Proven fitness and wellness concept that offers a strong sense of community, personalized attention, personal training and nutrition
  • Appeals to a wide range of the population, from young people who want to get in shape to older people that want to be healthy
  • Recurrent revenue streams with monthly membership fee structure
  • Strong franchise brand that is growing rapidly 

Franchise Weaknesses

  • Reliant on finding, training, and retaining good coaches/trainers to deliver the classes and engage the members
  • Operates in a competitive environment with low barriers of entry

Fitness Center Industry Opportunities 

  • Brand awareness will continue to grow as the concept expands
  • Personal training can accelerate fat loss and muscle gain
  • Reduced chance of injury since you have a certified trainer working one-on-one with the client
  • 80% of Americans don’t get recommended exercise (CBS News)

Threats in the Fitness Center Industry Market

  • 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 health/fitness regimen
  • Growing preference for group fitness classes

How Much is a Fitness Together Franchise? 

Fitness Together Franchise cost ranges from $143,600 to $258,100 according to the 2019FDD.

Item Estimated Amount (in USD) When Due To Whom Payment is to Be Made
Low High
Initial Franchise Fee $39.900 $39.900 Upon signing Franchise Agreement Franchisor
Real Property and Utility Security Deposits 2.050 4.600 As arranged, generally 2 months before opening or when lease is executed Landlord and utility providers
Leasehold Improvements (net of landlord tenant allowances) 29.700 117.000 As arranged Landlord and Approved Suppliers and contractors and franchisor
Equipment 29.700 38.800 8 weeks before opening Approved Suppliers
Furniture and Décor 4.900 5.700 2-3 weeks before opening Approved Suppliers
Computer Hardware and Software 5.300 6.100 4-6 weeks before opening Franchisor and Approved Suppliers or other thirs party suppliers
Initial Training 1.350 2.700 As incurred Third party providers
Grand Opening Spend Fee 15.000 15.000 No later than 10 days after the date that you sign an approved lease for your Studio premises (or 10 days after you purchase an existing Studio) Franchisor
Signs 4.000 8.000 6-8 weeks before opening Approved Suppliers
Business Licenses and Permits 100 1.000 6-8 weeks before opening Government agencies or other licensing authorities
Insurance 800 900 At signing of lease Approved Supplier
Miscellaneous Opening Costs 300 1.000 As incurred Suppliers
Additional Funds (3 Months) 10.500 17.400 First 3 Months of operation Landlord, utilities, providers, suppliers, other operating expenses
Total $143.600 $258.100
Royalty Ad-Fund
6% 2%

How Much does a  Fitness Together Franchise make?

  1. According to Fitness Together 2019 FDD

Financial Performance Representations

FDD Disclaimer: “Table 1 describes 2018 Average Annual Revenue for Studios in the Franchise System open as of January 1, 2018 (a total of 137 Studios) that operated for the entirety of 2018, and further describes the number and percentage that met or exceeded the average. Studios are categorized based upon annual revenue, which we require our franchisees to submit to us on a monthly basis and is defined in the same manner as gross receipts are defined under the Franchise Agreement. “Gross receipts” include all of your revenue and receipts, including those taken by cash, credit card, debit card, check, trade, barter or exchange, electronic funds transfer, or any other means of credit, which are derived from the operations of your Studio, including the sale of memberships, fitness services, gift cards which are not sold under our national gift card programs, merchandise, products or any other products or services sold by you, whether sold at your Studio location or from an off-site location. Gross receipts also include the gross amount of redemptions for gift cards sold under our national gift card program. Gross receipts exclude sales, use or privilege taxes paid to the appropriate taxing authority, refunds made to clients, and gross redemption amount of gift cards sold under any of our national gift card programs. In addition, should your business be interrupted for any reason and you are receiving business interruption insurance payments, the gross amount of these payments will be considered to be gross receipts and will be subject to the Royalty.”

Category No. of Studios 2018 Average Annual Revenue Number that Met or Exceeded the Average Percentage that Met or Exceeded the Average Same Studio Average Annual Revenue Increase (2018 over 2017) 2018 Median Revenue 2018 Highest Revenue 2018 Lowest Revenue
All Studios 137 $350.753 54 39,4% 0,9% $314.819 $1.029.533 $31.323
Not Using CRM Software for at least 6 Months 37 $325.095 14 37,8% 3,4% $261.040 $869.203 $31.323
Using CRM Software for longer than 6 Months 100 $360.246 34 34,0% 0,0% $322.402 $1.029.533 $79.700
The same-studio average annual revenue increase for all 137 Studios described in the table above for the 2018 calendar year versus the 2017 calendar year was calculated by comparing annual revenue for the 2018 calendar year to the 2017 calendar year, on a same-studio basis, for each Studio, for those studios open at least one year prior to the start of 2018. Because this category compares year-over-year revenue, we have not included 1 of the 137 franchised Studios that were open as of January 1, 2018, because it did not operate during the entirety of 2017. During 2015, the Company introduced a new customer-relationship management software platform, which was used by 100 locations at the end of 2018. All of these locations were open and operating for all of the 2018 calendar year and had used the software for longer than 6 months as of December 31, 2018.
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