About Fitness Factory Franchise
Fitness Factory is a gym and fitness center franchise backed by Fitness Factory Management, LLC.
The brand has been franchising since 2022, offering a fitness facility model designed to serve local communities with well equipped workout spaces and a welcoming atmosphere.
The franchise fee is $49,500.
Fitness Factory Franchise Cost & Fees
Minimum Investment
$795K
Average Investment
$1.2M
Maximum Investment
$1.6M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,500 | One-time payment upon signing |
| Royalty Fee | The greater of $495 per month or 5% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | National Advertising and Promotions Fund: Minimum of 2% of Gross Revenues (suspended until 30 Facilities open); Local Advertising and Promotion: Minimum of $3,000 per month or 3% of Gross Revenues per year, whichever is greater | National brand fund |
| Total Investment Range | $794,500 – $1,645,000 | Includes build-out, inventory, working capital |
The investment range of $795K–$1.6M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (The greater of $495 per month or 5% of Gross Revenues) and marketing fee (National Advertising and Promotions Fund: Minimum of 2% of Gross Revenues (suspended until 30 Facilities open); Local Advertising and Promotion: Minimum of $3,000 per month or 3% of Gross Revenues per year, whichever is greater) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,500 | $49,500 |
| Lease Review Fee | $2,500 | $2,500 |
| Lease Deposit | $10,000 | $25,000 |
| Construction Consulting Fee | $2,500 | $2,500 |
| Leasehold Improvements | $600,000 | $1,200,000 |
| Equipment, Fixtures, and Furnishing, and Flooring | $50,000 | $150,000 |
| Pre-sales | $25,000 | $30,000 |
| Permits and Licenses | $1,000 | $10,000 |
| Signs | $5,000 | $30,000 |
| Prepaid Insurance Premium | $6,000 | $15,000 |
| Bond | $0 | $10,000 |
| Grand Opening Advertising | $8,000 | $13,000 |
| Training | $1,000 | $2,500 |
| Computer System | $3,000 | $4,000 |
| Utility Costs and Deposits | $1,000 | $11,000 |
| Additional Funds – (Three months) | $30,000 | $90,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 2/3 of the then current Initial Franchise Fee |
| Renewal Fee | $5,000 |
| Technology Fee | Website Hosting Fee: $150 per month; Mobile Application Service Fee: $129 per month; Website Maintenance Fee: $200 per month; My iclub fee: $71 per month |
| Audit Fee | The costs of our audit |
| Facility Improvement Fee or Annual Fee | As determined by you |
| Cooperative Advertising | As required by us but not to exceed $3,000 or 3% of Gross Revenues per year, less any Local Advertising and Promotion expenditures by you in that year |
| Special Promotional Programs | Cost of program |
| Collection Costs, Attorneys’ Fees and Interest | Interest on overdue amounts from the due date until paid at the lesser of 18% interest per year or the highest lawful interest rate, costs of collection, attorneys’ fees and court costs |
| Non-Compliance Fee | Varies based upon infraction |
| Initial Training (additional people) | $200 per day per person |
| On-site Training, Supplemental Training and Regional Training Course | $200 per person per day |
| Indemnification | Amount of loss, damages or other fees (including administrative costs and legal fees) plus costs |
| Bank Charges and Administrative Costs | Our then-current fees |
| New Product or New Supplier Approval | Up to $1,000 per evaluation |
| Additional Investment for Renovations, Modernizing, and Redecorating | Approximately $25,000 - $200,000 |
| De-Identification of Premises | Costs plus reasonable administrative fee |
| Insurance | Cost of insurance plus our reasonable expenses |
| Third Party Commercial Billing Service | Approximately 4.3% of the amount collected on your behalf by such service |
| Delayed Opening Fee | $100 per day |
| Financial Report Late Fee | $25 per day |
| Guarantee | Varies |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately two-week training program |
| Classroom Training | 58 |
| On-the-Job Training | 32 |
| Training Location | Our headquarters in Edgewater, NJ, online or a Facility designated by us |
| Additional Training | Refresher courses and supplemental training may be optional or mandatory, at a tuition rate of $200 per person per day plus personal expenses. Training for new or additional Facility Managers is $100 per person per day. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected for single-unit, Exclusive for multi-unit development areas. |
| Exclusive Territory | No |
| Territory Size | a general trade area with a population base of approximately 50,000 to 75,000 people and will be delineated by zip codes |
| Description | For a single-unit franchise, you are granted a territory in which to operate your Facility, but it is not exclusive. You may face competition from other franchisees, company-owned outlets, or other channels of distribution controlled by the franchisor. The territory is intended to provide geographic protection from company-owned operations or other Fitness Factory franchisees, meaning the franchisor will not establish another franchisee or company-owned outlet using the Marks within your territory. However, you do not have exclusive rights to advertise, solicit, or service customers within the territory, and territory boundaries may overlap with other franchisees as long as no new facilities are opened within your granted territory. For multi-unit development agreements, an exclusive “Development Territory” is assigned. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | The earlier of (i) 10 years after the opening of the Facility, (ii) 10 years after the Required Open Date, or (iii) the expiration of the initial term of the lease for the Facility |
| Renewal Term | One successor term that will continue until the earlier of (i) 10 years from the start of the Successor Term, or (ii) the expiration of the then current term of the lease for the Facility, inclusive of any option to renew such lease |
| Renewal Fee | $5,000 |
| Renewal Conditions | Franchisee must provide written notice of election to renew 6-12 months prior to expiration, have rights to occupy premises for an additional 5 years (or approved substitute premises), complete all required maintenance/refurbishing, be in good standing, satisfy all monetary obligations, execute the then-current franchise agreement, satisfy current training requirements, not be involved in legal action against franchisor, execute a general release of claims, and pay the $5,000 Renewal Fee. |
| Transfer Fee | 2/3 of the then current Initial Franchise Fee |
| Transfer Conditions | Approval is conditioned upon satisfaction of all monetary obligations, cure of existing defaults, execution of a general release, provision of executed purchase agreement, transferee meeting franchisor's standards (educational, managerial, business, moral character, credit rating, financial resources), transferee not being in a similar competitive business, transferee executing current franchise agreement, and transferee/manager completing initial training. |
| Termination for Cause | The franchisor has the right to terminate the Franchise Agreement with cause. Curable defaults (e.g., Marks/confidential information failure, monetary payment failure, other breaches) have cure periods of 7, 15, or 30 days. Non-curable defaults (e.g., criminal acts, bankruptcy, liens, insolvency, repeated breaches, misrepresentation, fraud, intentional underreporting, abandonment) result in immediate termination without opportunity to cure. |
| Non-Compete Period | During the term of the franchise; two years following the date of expiration, non-renewal, transfer, or termination of the Franchise Agreement |
| Non-Compete Details | During the term, neither franchisee nor immediate family members may have any interest in any other business offering health or fitness services/products. Post-term, for two years, they cannot own, engage in, be employed by, or have any interest in a competitive business within 25 miles of any Facility, or any company granting franchises/licenses for competing businesses. They also cannot solicit customers or employees from the former Facility or franchisor. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You must participate in the day-to-day operation of your Facility. If the franchisee is a corporation, partnership, or limited liability company, the Facility must be operated by a designated manager (“Facility Manager”) who has satisfactorily completed our initial training program and devotes full-time attention and best efforts to management. The Facility Manager does not need equity ownership but cannot be changed without franchisor approval. The franchisee (or its equity owners/managing member) must also devote full-time energy and best efforts to the management and operation of the Facility. |
| Required Suppliers | Franchisees must use designated or approved manufacturers, suppliers, and distributors from the “Approved Supplies List” for inventory, products, fixtures, furniture, equipment, signs, stationery, supplies, and other items or services. SSP Nutrition Inc. (supplement supplier) and Blue Star Construction LLC (construction company) are Approved Suppliers. |
| Supply Restrictions | You must only use the approved brands and models as specified on the Approved Supplies List. You may not contract for alternate supplies or with alternate suppliers directly. If you desire to offer or use any alternate product/supply or non-approved supplier, you must submit samples for evaluation and obtain prior written approval from the franchisor. |
| Franchisor Revenue from Suppliers | The franchisor and/or its affiliates may derive income or revenue from franchisee purchases and leases, and may negotiate rebate arrangements with Approved Suppliers. It is estimated that 75% of initial purchases and leases and 50% of total operating purchases and leases will be from Approved Suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing to you. We do not guarantee your note, lease, or other obligations. |
Fitness Factory Franchise Earnings — Item 19
Average Revenue
$116K
Median Revenue
$111K
Revenue Range
$76K – $185K
Sample Size
6 units
Past financial performance does not guarantee future results. Individual results will vary.
Fitness Factory Litigation & Risk Flags
Clean Litigation RecordFitness Factory has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Fitness Factory System Growth
Total Units
7
Franchised
0
Company-Owned
7
Fitness Factory currently operates 0 franchised locations and 7 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 5 |
| 2021 | 1 | 0 | 6 |
| 2022 | 1 | 0 | 7 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
00
Total Assets
$1K
Audited by Moss Adams LLP for year ending September 30.
Fitness Factory Franchise — FAQ
The total investment to open a Fitness Factory franchise ranges from $794,500 to $1,645,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $49,500. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Fitness Factory charges a royalty fee of The greater of $495 per month or 5% of Gross Revenues of gross sales, plus a National Advertising and Promotions Fund: Minimum of 2% of Gross Revenues (suspended until 30 Facilities open); Local Advertising and Promotion: Minimum of $3,000 per month or 3% of Gross Revenues per year, whichever is greater contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Fitness Factory Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Fitness Factory to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Fitness Factory franchise owners report average revenue of $116K and median revenue of $111K. This is based on a sample of 6 units. Past performance does not guarantee future results.
Fitness Factory has been franchising since 2022. The FDD shows an investment range of $794,500-$1,645,000, a The greater of $495 per month or 5% of Gross Revenues royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $49,500 and the total investment ranges from $794,500 to $1,645,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Fitness Factory and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Fitness Factory or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com