F45 Training is a fitness chain that provides time-based, high-intensity circuit training for its studio members. It is currently one of the fastest growing businesses in the world, with franchises operating in more than 67 countries.
F45 Training was launched in 2012 in Australia and has since expanded around the globe. The organization is publicly listed and has notables such as Mark Wahlberg and David Beckham as investors and brand ambassadors. Globally, the business currently comprises more than 3,300 fitness studios, a three-fold increase over the past five years.
F45 at a glance:
F45 Training requires all investors to have liquid assets of at least $120,000, but there are few other restrictions placed on potential franchisees. The company allows investors to employ a general manager to run the day-to-day operations of the gym, however, the investor will still be designated as the operating principal and must meet the franchisor’s qualifications for the role. The operating principal remains ultimately responsible for the performance of the studio and compliance with the franchise agreement, but this means it may be possible to own and operate an F45 Training studio with a light-touch presence.
Compared with many other franchise opportunities, opening a new F45 Training franchise is relatively cheap, with the costs to open a new training studio ranging from $350,000 up to $560,000. This is due to F45’s business model – they provide all the technology, equipment and materials needed to start and run a fitness studio. You can either buy an existing location and assume the franchise, or you can start a new location from scratch, although that comes with higher start-up costs.
Whichever way you go, you will pay a $52,000 initial franchise fee, then ongoing monthly fees to maintain the license. These include:
Note that the fitness industry has an average royalty fee of 6.4% and a marketing fee of 2%. F45 has slightly higher royalties but compensates for this by generating larger revenues per franchise unit.
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| Key Costs Guide | Low | High |
|---|---|---|
| Franchise fee | $52,000 | $52,000 |
| Document preparation fee | $2,000 | $2,000 |
| Opening package | $150,000 | $150,000 |
| Property lease – first month, plus deposits, etc. | $5,000 | $40,000 |
| Property design | $14,000 | $14,000 |
| Property improvements – build out | $1,000 | $100,000 |
| Store set up – fixtures, improvements, décor, etc. | $100,000 | $200,000 |
| Exterior and interior signage | $5,000 | $10,000 |
Veterans can receive a 50% discount on their initial franchise fee.
Yes, they are. According to external research, the average cost to set up an F45 Training studio is $458,000, while average gross revenues are $633,000 and the typical revenue is $253 per square foot, almost three times the industry norm of $80. Additionally, gross profits average 33%, which is above typical fitness franchise profits of 30%, and driving an average of 5 years to recoup initial investment – one of the best returns in the sector.
Low. Even during the COVID-19 pandemic few F45 studios closed their doors. However, not many F45 Training studios are kept for the long term or are passed on to other family members. Instead, they are usually sold as going concerns, with an average ticket price of $193,860 – significantly lower than the median initial investment. Franchisees who sell before recouping their start-up costs will likely incur an overall loss.
Relatively low investment cost, no need for huge liquid assets, above average profits, and continuing demand for fitness centres, trainers and equipment across Canada all signal that buying an F45 Training franchise may be a good investment opportunity. However, keep in mind the fairly hefty monthly fees and the potential to incur loss through early sale of the business.
Although F45 grants franchisees some territorial protection, they do not receive an exclusive territory. This means franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that it controls.
F45 Training provide comprehensive support to their franchisees. Available resources include:
It begins with an initial application, which you can start here. If you meet the brand’s selection requirements, (and you can launch a studio in their available locations), you may qualify to open an F45 Training franchise. After receiving approval, get started with an initial investment, followed by a period of intensive training.
Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that make funding your new fitness centre an exhausting business. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across Canada. Just tell us what you need and leave the rest to us.
Daire made it happen! There is no doubt that Swoop sped up the process and found lenders that worked to our time scale rather than the other way round
Joint owner, F45 Virginia
Swoop was actually very helpful in helping us get our initial fundraising in place. Swoop was able to connect us with investors, with grant financing options and debt financing options.
Founder, SingleKey
Pedja was amazing. Super supportive, understanding of our needs and wasn't pushy at all. We've been going back and forth with Swoop for over a year inquiring about different financing options and they were patient until we were ready!
F45 Multi-studio owner
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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