F45 franchise

Hassle-free business loans to start your F45 franchise.

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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 business details

F45 Training was launched in 2012 in Australia and has since expanded around the globe. The organization is publicly listed on the NYSE 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:

Stores: 3,300+
Required investor liquid cash: $120,000
Minimum investment: $350,000
Maximum investment: $560,000

Can I start an F45 franchise?

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.

How much does an F45 franchise cost?

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:

Royalty: 7% of Gross Sales or $2,500 per month (whichever is higher)
Brand Fund: 2% of Gross Sales or $200 per month (whichever is higher)
Marketing Fee: $2,500 per month

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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Estimated key costs to open an F45 Training franchise (new location):

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

Do F45 offer discounted franchises for veterans?

Veterans can receive a 50% discount on their initial franchise fee.

Are F45 Training franchises profitable?

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.

What is the failure rate for an F45 franchise?

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.

Why should you start an F45 Training franchise?

Relatively low investment cost, no need for huge liquid assets, above average profits, and continuing demand for fitness centers, trainers and equipment across the US 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.

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What are the franchise territory policies for F45 Training?

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.

What franchise resources does F45 Training offer?

F45 Training provide comprehensive support to their franchisees. Available resources include:

Marketing support: F45 provides good marketing support, including advice on opening your new studio, access to a wide array of marketing materials, and help to get your marketing message out within your local area. They also provide external support via online and offline national and regional marketing programs.
Customer support: Field operations and an online support portal help you to manage customer service issues and build brand loyalty.
Third-party financing: F45 offer limited financial support for franchisees seeking funding to cover costs such as the franchise fee, startup costs, and payroll. Alternatively, you could work with the many independent funders who provide business loans to franchise operators.
Training: Franchisees must complete an in-depth training program. This includes 10 hours of on-the-job training, and 64 hours of classroom training. The program covers health and safety procedures, business management, the skills and techniques you will need to run your studio successfully, and instruction on the fitness exercises you will teach to your customers.

What is the process for starting an F45 franchise?

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.

Secure franchise funding with Swoop

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 center an exhausting business. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across the US. Just tell us what you need and leave the rest to us.

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Testimonials

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

Hocque Figureoa

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.

Viler Lika

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!

Chris Skeates

F45 Multi-studio owner

Written by

Chris Godfrey

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 Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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Swoop requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

F45: https://www.f45invest.com/about-us/franchise

3300 studios: https://www.f45invest.com/about-us/about-f45

Profitability: https://sharpsheets.io/blog/f45-training-franchise-costs-profits/

Failure rate: https://www.visafranchise.com/blog/f45-fitness-franchise

Fitness center demand: https://www.perfectgym.com/en/blog/business/fitness-industry-statistics-trends

Franchise application: https://www.f45invest.com/about-us/franchise

Independent funders: https://swoopfunding.com/us/blog/funding-your-franchise-a-guide-for-franchisees/

Franchise funding: https://swoopfunding.com/us/blog/funding-your-franchise-a-guide-for-franchisees/

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