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General

Industry

Fitness

Category

Fitness Centers

SBA Identifier

S1224

Year of Founding

2010

Fees

Marketing Fee

2%

Royalty Fee

8%

Franchise Fee

$59,950-$59,950

Investment Range

$676K-$2.11M

Location units

Total U.S. Locations

1213

U.S. Franchised Units

1197

U.S. Corporate Units

16

Headquarters (City)

FL

Other

Item 19 - Franchise Financials

-

Financing Availability

yes

Started Offering Franchises

2010

Issuance of FDD Data

06/09/2021

What to know about Orangetheory franchise?

OTF Franchisor, LLC offers franchises for the operation of health and fitness studios that offer members access to exercise equipment, including cardio and strength equipment, in a simple, contemporary atmosphere characterized by our signature, energizing orange color scheme and trade dress under the Orangetheroy trademarks.

Orangetheory is based in Boca Raton, FL. Scroll down to learn more!

How Much Does a Orangetheory Franchise Cost?

Are you wondering how much is a Orangetheory franchise? Before starting a Orangetheory franchise, it is important to know the Orangetheory franchise fee ($59,950) working capital and other costs required to start the business.

The minimum investment amount required to open a Orangetheory franchise is $675,542 and can go all the way up to $2,105,322. Keep in mind, you should also allocate additional funds to live off of while the Orangetheory business ramps up. This can take as little as 6 months to over 2 years depending on the franchise opportunity. You should speak to at least 5 Orangetheory franchisees to understand the true cost of opening the franchise and how long it takes to: 1) start a Orangetheory business 2) pass break even 3) hit significant income.

After (and if) you pass the point of earning significant income from your Orangetheory franchise, there may be enough margin to hire a day-to-day manager and work less hours in the business.

Franchise Net Unit Growth

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Industry Report Request

Download our guide to compare Orangetheory. Hotels to the Cleaning and Maintenance, Outdoor Maintenance industry.

Franchise Data

Year Start of year Units Opened Units Closed Total End of Year
2016 307 204 0 499
2017 500 254 0 754
2018 754 213 0 963
2019 963 173 1 1134
2020 1134 65 2 1197

Additional Details

How much does a Orangetheory franchise owner make?

Orangetheory franchise earnings and revenue can vary significantly from one franchisee to another. The Orangetheory franchise owner profits can be influenced by labor costs, lease rates, hours worked as well as other factors.

Orangetheory unfortunately does not disclose financials on how much Orangetheory franchise owners make. This means they do not disclose sales or earnings for franchisees operating in the U.S.

Every franchisor is required by law to disclose income statements and balance sheets for how the franchisor is performing but not for the franchisee level. Unfortunately, Orangetheory does not make it easy to understand franchisee financial performance. This can be seen as a red flag and it is important to be that much more diligent in your conversations with Orangetheory franchisees. Do note that Orangetheory is not alone as about 40% of franchises do not disclose franchisee financial performance.

At Vetted Biz, we suggest you to speak with 5 to 10 Orangetheory franchisees to understand how much money they are making from their Orangetheory business.

You should also speak to former Orangetheory franchisees to understand why they left the system. Did they sell their Orangetheory at a profit? Were they forced to close their Orangetheory franchise down because it kept losing money?

What is the Orangetheory Franchise Fee?

Owning a Orangetheory franchise requires a 8% royalty fee and a 2% marketing fee. These two expenses represent the main ongoing costs you can expect to pay the franchisor throughout the franchise relationship.

Keep in mind, there is also an initial Orangetheory franchise fee of $59,950 that is included in the initial investment amount of $675,542 to $2,105,322. Depending on the franchise agreement you sign, you might have to pay the full franchise fee again if you decide to extend the Orangetheory franchise relationship. Consult with a licensed franchise attorney to understand exactly what you receive for paying the Orangetheory franchise fee of $59,950.

Visit the Orangetheory metrics tab to explore how the franchise, royalty and marketing fees compare to other Fitness franchises. You can also compare these fees for 2,000+ franchises currently offered in the U.S.

When was Orangetheory founded?

Orangetheory was founded 12 years ago in 2010. Orangetheory started offering franchises in 2010. At Vetted Biz, we recommend franchises have 3-5 corporate locations and 5+ years of experience before offering a franchise. There needs to be proof that the business model works and is replicable before offering the franchise to other!

How many Orangetheory locations are in the U.S.?

As of Issuance of 2021, there were 1197 Orangetheory locations owned and operated by franchisees across the U.S. There are also 16 corporate locations owned and operated by Orangetheory. Most Fitness franchises like Orangetheory have more franchised locations than corporate locations.

How many Orangetheory franchises opened over the past few years?

Over the prior 3 years we have data for, Orangetheory has opened 451 outlets throughout the U.S.

Visit the Orangetheory metrics tab to explore how the openings compare to other Fitness franchises.

How many Orangetheory franchises closed over the past few years?

Over the prior 3 years we have data for, Orangetheory has closed 3 outlets throughout the U.S.

Visit the Orangetheory metrics tab to explore how the closures compare to other Fitnessfranchises.

Is Orangetheory growing? Are they opening more locations than they are closing?

The net unit growth rate for Orangetheory over the past 3 years is 59%. Over the last year we have data for, Orangetheory had a net unit growth rate of 6%.

Without a comparison, this number doesn’t mean much. Compare how the Orangetheory growth rate compares to 2,000+ other franchises and Fitness franchises like Orangetheory. More info in the Orangetheory metrics tab.

Is Orangetheory franchise eligible for an SBA Loan?

Orangetheory is eligible for SBA loans including the 7(a) loan. To find out more about the SBA loan program for franchising click here.

Orangetheory franchise was assigned the SBA Franchise ID of S1224 on 1/10/2017. This DOES NOT mean the SBA endorses this franchise. The SBA Franchise Directory will only include business models like Orangetheory that are reviewed and found eligible under SBA's affiliation rules and other eligibility criteria.

Is Orangetheory a franchise in the United States?

According to the SBA, Orangetheory meets the Federal Trade Commission (FTC) definition of a franchise. The FTC Franchise Rule requires franchisors to provide all potential franchisees with a disclosure document (FDD) containing 23 items about the franchise, its officers, and other franchisees. Be sure that Orangetheory provides you with an FDD if you are in discussion to buy a Orangetheory.

What is the Orangetheory Franchise for Sale Rate?

The Orangetheory systemwide health and franchisee satisfaction can be measured by the Orangetheory franchise for sale rate. The franchise for sale rate is calculated by the percentage of units transferred to new franchisees and reacquired by franchisor.

The franchise for sale rate for Orangetheory over the past 3 years is 21%. Over the last year we have data for, Orangetheory had a franchise for sale rate of 6%.

Without a comparison, this number doesn’t mean much. Compare how the Orangetheory franchise for sale rate compares to 2,000+ other franchises and Fitness franchises like Orangetheory. More info in the Orangetheory metrics tab.

What is the Orangetheory Franchise Failure Rate?

Orangetheory franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons. The failure rate is one of the most important franchise metrics to consider when investing in a franchise!

Orangetheory failure rate over the past 3 years is 0%. Over the last year we have data for, Orangetheory had a franchise failure rate of 0%

Without a comparison, this number doesn’t mean much. Compare how the Orangetheory failure rate compares to 2,000+ other franchises and Fitness franchises like Orangetheory. More info in the Orangetheory metrics tab.

How can I find out more details on Orangetheory franchise?

Visit the Orangetheory metrics tab to explore franchise profitability, industry comparables and more. Become a Vetted Member today for exclusive access on this franchise opportunity!

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General

Industry

Fitness

Category

Fitness Centers

SBA Identifier

S1224

Year of Founding

2010

Fees

Marketing Fee

2%

Royalty Fee

8%

Franchise Fee

$59,950-$59,950

Investment Range

$676K-$2.11M

Location units

Total U.S. Locations

1213

U.S. Franchised Units

1197

U.S. Corporate Units

16

Headquarters (City)

FL

Other

Item 19 - Franchise Financials

-

Financing Availability

yes

Started Offering Franchises

2010

Issuance of FDD Data

06/09/2021

Franchise Fee Midpoint

The percentage change of total franchise units from one year to the next

 

1 year

3 years

Orangetheory

18%

22%

Industry median

All franchises median

Unlock premium content

Franchise Disclosure Document

Download Latest FDD (2021)

Net Unit Growth (most recent year)

Net Unit Growth (3 years)

Failure Rate

Franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons.

 

1 year

3 years

Orangetheory

[0%]

6%

Industry median

All franchises median

Unlock premium content

Franchise for Sale Rate

The percentage of units transferred to new franchisees and reacquired by franchisor.

 

1 year

3 years

Orangetheory

22%

3,050%

Industry median

All franchises median

Unlock premium content

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Investment Midpoint

The average of the low and high range of the investment amounts calculated from the most recently available Franchise Disclosure Document

Orangetheory

$1,390,432

Industry median

All franchises median

Unlock premium content

Royalty Fee

The median royalty fee from the Franchise Disclosure Document

Orangetheory

8%

Industry median

All franchises median

Unlock premium content

Franchise Fee Midpoint

The percentage change of total franchise units from one year to the next

 

1 year

3 years

Orangetheory

18%

22%

Industry median

All franchises median

Unlock premium content

Item 19 – Financial Performance Representations

Historical financial performance representations

Unlock premium content

Franchise Financials

Franchisor company financial information and financial performance representations, if disclosed by the franchisor.

Unlock premium content

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Business details

Company name

-

Business email

info@orangetheory.com

Mailing address

6000 Broken Sound Parkway NW, Ste. 200

State headquarters

Florida

Key leadership

Orangetheory

Phone

+1 (000) 000-00-00

City

Boca Raton

Zip code

33487

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